Avoid an Audit! Learn the Upcoming Due Dates for 2018

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As the first half of the year ends, we want to let you know about some pressing issues that need to be addressed no later than January 31, 2018.

  New Due Dates for W-2’s

W-2 and W-3 government forms need to be filed by January 31, 2018 along with W-2’s to each employee. It is a new requirement to file with Social Security the same date as providing W-2’s to each employee.

  Form 1099

As you recall, businesses are required to prepare these annual information returns for certain amounts paid to individuals in the course of the conduct of the trade or business (amounts paid to corporations are not subject to these requirements, except attorneys). These payments include interest paid in excess of $10.00 and payments for rents or services in excess of $600.00.

A copy of the 1099 is to be furnished to the recipient by January 31, 2018. Copies of 1099-MISC reporting non-employee compensation in Box 7 must be filled with the IRS by January 31, 2018.

Oregon requires anyone with 11 or more 1099-MISC or 1099-R (retirement) to be filed electronically. For less than 10, there is no requirement to file with Oregon.

Personal Property Return

Most businesses that own or lease equipment and other types of personal property are required to file a personal property return with the county assessor by March 15, 2018. You may or may not receive the necessary form for this purpose from the assessor at the beginning of 2018. Extensions are no longer available and penalties will be assessed on late filed returns.

If you need our assistance in preparing any of these forms, or have any questions regarding filing requirements, please contact us as soon as possible.

  Personal Use of a Corporate Auto

W-2 forms MUST include any owners/employee’s personal use of a company-owned or leased vehicle. This amount is included in calculating Social Security tax. We have the information to help you calculate the amounts to report to your payroll service. You should notify your payroll service before they process your last payroll for the calendar year, otherwise you could incur additional charges.

 

  Mileage Logs

The IRS has recently been auditing business mileage reimbursements and expenses, travel logs and personal use of corporate vehicles. If you have not already done so, please keep track of business mileage and personal mileage especially if you are deducting actual expenses in your corporation. Keep a travel log in your vehicle; keep receipts for repairs, gas and other related items.

  S Corporation Health Insurance on W-2

Health Insurance for S Corp officers must be reported on their W-2’s. Please contact your accountant if you have questions.

If the company uses an outside payroll service, the payroll service should be provided with this information prior to the end of the year so that it can be included in the shareholder employee’s Form W-2. If the information is not provided to the payroll service in a timely manner, most payroll services will generally charge an additional fee for rerunning any affected Form W-2s.

If you process your own payroll, work with your accountant to be assured of proper reporting.

 

  Oregon Sick Time

If you are an employer that has 10 or more employees, make sure you are following the Oregon sick time rules. Each employee receives 1 hour of sick time for every 30 hours worked or up to 40 hours a year.

  SUI Rate Change for Payroll Tax

If you receive a letter from the Employment Department for State Unemployment Tax rate change, please update your SUI rate as of January 1, 2018. If you are using a payroll service, please send the letter to them so they have accurate information to begin processing payroll in January 2017.

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