How Do I Report Income from Health Savings Accounts on a W2 Form?
Report income from employee benefits, such as a Health Savings Account, in box 12 of a Form W2. Use code W when you report your employer contributions and the employee’s contribution through a cafeteria plan. Report additional non-excludable employer contributions to an HSA with the employee’s income in boxes 1, 3, and 5. Use box […]
How Do I Report Income from Employee Stock Purchase Plans on a W2 Form?
Report the income of Employee Stock Purchase Plan shares as wages on Form W2. Fill in box 1 of a Form W2, Wage and Tax Statement with the total earned amount. An employer may also include the reported compensation from box 1 in box 14. Enter the same information in boxes 16 and 18 if […]
How Do I Report Income from Employee Educational Assistance on a W2 Form?
Report certain income from employee educational assistance as wages on an employee’s Form W2. There are specific exceptions and guidelines for how you report these benefits. Assistance benefits that exceed $5,250 belong in box 1 of Form W2. Do not include the payments in box 1 that meet the threshold but the Internal Revenue Service […]
Can I File a 1099 Form for Payments Made to an Independent Consultant?
Yes, you can file a 1099 form for payments that you make to your independent consultants. The slightly different title does not prevent employers from using the form. The main difference with a contractor and consultant is that an “independent contractor” is a legal umbrella term. Whereas, an independent consultant is a non-legal classification for […]
Can I File a 1099 Form for Payments Made to a Vendor?
Simply put, sometimes. The Internal Revenue Service does not require businesses to report all payments that you make to an independent contractor with a 1099. Make sure you know when to report your payments using the form to avoid any unnecessary complications for the business and your hired contractors. Use a Form 1099-MISC or Form […]
Can I File a 1099 Form for Payments Made to a Marketing Agency?
Yes, you oftentimes should file a 1099 form for payments that you make to a marketing agency. There are times when the Internal Revenue Service will not object to you not issuing the Form 1099-MISC or Form 1099-NEC. Complete a Form 1099-NEC for marketing contractors that provided you with services during a tax year that […]
Can I File a 1099 Form for Payments Made to a Gig Worker?
Yes, you can file a 1099 form for payments you make to a gig worker. Understand the correct 1099 form to use for the reporting season and type of worker. An important 1099 form to know about is called Form 1099-K. Use the form starting in January of 2024 for the gig workers that you […]
Can I File a 1099 Form for Payments Made to an S-Corporation?
No, you should not file a 1099 form for payments made to an S-Corporation. You typically do not send a 1099 form to an S-Corporation or C-Corporation, because the Internal Revenue Service regards corporations as separate legal entities. Employers only issue 1099 forms to report some types of income. The reported income should be what […]
Can I Use Software to Generate W-2 Forms?
Yes, you can and should use software to generate W-2 forms for the Internal Revenue Service and for your employees. Using software to generate these and other tax forms helps minimize a risk of errors. Preventing these errors reduces the fines or penalties your company encounters if you make a mistake during the next tax […]
Can Payroll Software Handle Healthcare Benefits and Retirement Contributions?
Yes, payroll software can and ideally should handle deductions, such as healthcare benefits and retirement contributions. Look for a program with the capability to keep records of employee and employer contributions. Payroll integration should make it easy to automate the administrative process of retirement contributions. Monitoring a business’s compliance will enable you to offer your […]