A Holiday Cheat Sheet: What Your Business Needs to Know

Happy holidays from your jolly numbers nerds. Throughout the year, we’ve told you about several upcoming changes that could impact your business. As our gift to you (yeah, we’re nice like that), we’ve wrapped all these updates up in one big inclusive blog so you can find all you need to know in one spot (you’re welcome).

We’ve even thrown in a few new stocking stuffers to make sure you’re in the loop. Why? With a new presidency coming quickly, policies are bound to change, and staying up to date will help your business stay out of trouble.

Taxes

  • The deadline of the W-2 has been moved up to January 31st, rather than the typical due date at the end of February. Form 1099-MISC is also receiving this new deadline. For a refresher on when forms are due, check out this infographic.
  • Partnership tax returns and c-corporation tax returns are getting new deadlines. Partnership returns, which were previously due on April 15th, are now due on March 15th. C-corporation returns switched and are now due April 15th rather than March 15th. Of course, there are some exceptions to this based on when your business operates its fiscal year. If your corporation has a June 30th year-end, you do not get the extra month; your returns still have to be filed by September 15th. Look here for that information.

Affordable Care Act (ACA)

  • Form 1095, which previously had leniency until its March 31st due date, has now moved and become a little more strict. The form now needs to be submitted no later than January 31st to ensure your employees get this form on time. As a refresher, Form 1095 contains three different forms: 1095A, B and C.
    • Form 1095A, which is a health insurance marketplace statement, details the coverage the employee has, how much was paid for insurance and tax credits.
    • 1095B is for employers who offer health coverage with less than 50 full-time employees, while 1095C provides coverage information if your company had more than 50 full-time employees.

Form 1095 isn’t the only one with a new due date. 1094B and C have also moved up to a deadline of February 28th via snail mail, or March 31st if being submitted electronically. Form 1094 has to be provided to the IRS to report minimum essential health care coverage. In other words, it tells the IRS about the health care options your company provides. 1094B will be completed no matter the size of your business, while 1094C is for larger employers, those with 50 or more full-time employees. (Confusing? Yes, but we can help. Just ask!)

  • Don’t forget about the Critical ACA Compliance Test. Under this rule, certain employers, those with 50 or more employees, are required to offer coverage to at least 95 percent of their full time employees, and not doing so can result in huge penalties for your business. For more ACA updates and changes, look here.

Miscellaneous

  • Form I-9 received a face lift. A new form was released, which also included updated instructions to make completing it a little bit easier (how nice of them). Along with the new look came a new date. Employers must start using the new form by January 22, 2017.
  • A long, long time ago (okay, only a few months ago) our friends at the Department of Labor released a new overtime ruling. Under this new ruling, the overtime salary threshold almost doubled to $913/week, starting December 1, 2016. However, here we are at the end of December and this rule hasn’t gone into play. So, what’s going on? Some states weren’t quite impressed with this idea, and challenged this new ruling. Because of this challenge, the changes were put on hold. As of now, there isn’t any news on when and if this ruling will move forward, but if it does, we will keep you posted.
  • We’ve got some bad news for bitcoin. Back in November, the US Department of Justice (DOJ) asked a district court in the Northern District of California for a summons to be issued for bitcoin exchanger Coinbase Inc. This summons will potentially require the company to hand over information related to all bitcoin transactions it handled between 2013 and 2015. Then, the DOJ would share this info with the IRS to match against filed tax returns. Yikes. If your business used bitcoins through this time period, it’s time to review them with your tax advisor. Don’t have one? We can help.

There you have it: a handy cheat sheet to keep you updated on changes effecting your business. With a recent election and a new presidency transition coming soon, more changes are likely on the horizon. When these changes happen, we’ll make sure to fill you in. For now, sit back, relax and enjoy this holiday season.

holiday-graphic

 

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