In the course of trade or business, have you paid anyone $600 or more during the year? If so, please read on.
If you made payments of $600 or more to individuals, entities that are not incorporated, or attorneys, then you mustreport these payments to the Internal Revenue Service and the Massachusetts Department of Revenue on Form 1099-MISC. These forms need to be mailed to the recipients no later than January 31, 2013, and filed with the respective government agencies by February 28, 2013. Now is a good time to make sure you have each recipient's full name, address and tax identification number.
If you have prepared your own payroll this year and need assistance with preparing and filing Forms W-2, these forms also need to be mailed to the recipients by January 31, 2013, and filed with the respective agencies by February 28, 2013.
You can purchase and prepare your own forms; or, if you prefer, we can prepare the forms for you. If you would like Yoshida & Sokolski to prepare your forms, please contact Susan Madden by email susan@yoshcpa.com at your earliest convenience for more information.
HEALTH INSURANCE
If you are an employer, you are required to provide written information regarding health insurance and the health insurance marketplaces to all of your employees (full-time and part-time) by Tuesday, October 1, 2013. You are obligated to provide this information to your employees whether you offer health insurance coverage or not. The federal government has provisions to assess penalties for non-compliance.
You may create your own notice, or you may use the sample notices provided by the Department of Labor. One of the notices is for employers who do not offer insurance; the other notice is for employers who offer health insurance coverage. You need to complete the form that applies to your business and provide a copy of it to each of your employees. We suggest that you retain a record acknowledging receipt of this notice by each of your employees. Contact our office for the above-referenced documents.
Completing the forms is easy. If you do not offer health insurance, you can complete the form once and make copies to distribute to your employees; if you do offer health insurance, when completing Part B of that form, be sure to be specific regarding eligibility for your plan. The first page of this form (Plan B, parts 1-12) can be completed once and copied for each employee; however, page 2 of this form (parts 13-16) is employee specific.
Beginning January 1, 2014, you will have to provide this notice within fourteen (14) days of an employee's start date.
If we can be of further assistance to you in implementing this new regulation, please contact us at your convenience.
