How Do I Report Income from Commission Earnings on a W-2 Form?
Report your employees’ commission income, in most cases, in box 1 on a W-2 form. Treat the commissions like wages when you withhold and pay taxes for the business. You must pay regular employment taxes on the wages, such as Social Security and Medicare taxes. You may choose to combine an employee’s salary and their […]
How Do I Report Income from Bonuses on a W2 Form?
Report the bonuses that you paid an employee during the year in box 1 on a W2 form. Bonuses are a form of compensation. The Internal Revenue Service subjects them to the same taxation as your employees’ salaries or additional wages. Withhold a specific amount from employee bonuses for Social Security, Medicare, and additional income […]
How Do I Report Fringe Benefits on a W-2 Form?
Employers must enter the value of certain fringe benefits in Boxes 1, 3, and 5 on W-2 forms. Not all fringe benefits for employees are taxable, but most do require that you report them. Federal income tax, Social Security tax, Medicare tax, and FUTA all affect the value of a fringe benefit. A separate form […]
Are There Any Exceptions or Exemptions to Filing W-2 Forms?
Employers generally must complete, file, and furnish Form W-2 to each of their employees. The information on the form helps to ensure that all employees receive Social Security and Medicare benefits. There are two major exceptions or exemptions for when you file W-2 forms. Do not file a Form W-2 for independent contractors who you […]
Can I File Multiple W-2 Forms Together?
The short answer is yes, but take a moment before you proceed. Reporting income can present intricacies for many employers. Avoid an audit from the Internal Revenue Service and unhappy employees by understanding what your responsibilities are each tax season. Single employers must only submit one W-2 form per employee. The number of roles that […]
What is Semiweekly Schedule Depositor?
Deposit your business’s employment taxes for Wednesday, Thursday, and/or Friday payments by the following Wednesday. A semiweekly schedule depositor must also deposit taxes for the Saturday, Sunday, Monday, and/or Tuesday payments by the following Friday. A semiweekly schedule is one of two options for taxes that you report on Forms 941, 943, 944, and 945. […]
How Do I Report Income from a Lease Agreement on a 1099 Form?
Specific scenarios in the real estate industry and property management dictate which forms you must file and when you need to file them. Landlords and property management companies must fulfill their own unique steps when they report income from a lease agreement on a 1099 form. Landlords – Distribute W-9 forms to your commercial tenants […]
How Do I Report Income from a Copyright on a 1099 Form?
Individuals who earn income from a copyright often report their royalties on a Form 1099-MISC. File the form for each individual that you paid $10 or more in royalties during the tax year. Check first whether you need to report royalty payments as business revenue or instead as investment income. You will probably classify a […]
Can I File a 1099 Form for Payments Made to a Freelance Writer?
Yes, you must report non-employee compensation if you paid a freelance writer $600 or more in a specific tax year. Use Form 1099-NEC to report the payment figure made to a freelance writer. Send copies of the completed form to the Internal Revenue Service and a relevant independent contractor by January 31 of the following […]
Can I File a 1099 Form for Payments Made to a Foreign Person?
The general answer is no, but the question is technically open to more than one interpretation. A foreign independent contractor is not a 1099 worker in most circumstances. These international workers may provide specific talents at a more affordable price than hiring a full-time employee. Keep in mind that “1099” is the Internal Revenue Service’s […]