Navigating Year-End Filing: 15 Tips for Success

Don't let end of year business tax filings catch you by surprise. Velosio breaks down 15 tips for year-end filing.

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    End-of-Year Filing & Business Tax Deadlines for 2023

    The year-end period can often be a challenging time for businesses. Navigating complex compliance regulations, calculating payroll taxes, and keeping abreast of evolving laws, along with managing various IRS business forms, can be quite taxing. 

    However, this inevitable year-end process doesn’t have to be a daunting task. With these helpful tips and an understanding of the compliance changes for the 2023 filing year you can transform this typically hectic season into a more manageable experience. 

    15 Tips and Tricks for Successful Filing 

    1. Reconcile W-2s with 941 Submissions: Ensure your W-2s align with your 941 submissions from earlier in the year. Pay special attention to wages under special programs and verify all transactions, including void checks, are accurately recorded. 
    2. E-file 1099 and Other Information Returns: Starting January 2024, e-filing is mandatory for those filing 10 or more information returns. Greenshades’ e-filing technology makes meeting this requirement effortless. 
    3. Verify Identification Numbers: Avoid penalties by ensuring all social security and taxpayer identification numbers match. Greenshades’ verification tools can help validate these numbers before filing. 
    4. Adjust for Imputed Income: Don’t overlook imputed income from benefits, which can vary based on industry, benefit types, and income levels. Greenshades Benefits can assist with these calculations. 
    5. Check the Wage Base: For 2023, the social security withholding limit is $9,932.40, with a wage base of $160,200. Ensure your calculations reflect these figures. 
    6. Choose the Correct 1099 Form: Use 1099-NEC for independent contractors and 1099-MISC for certain non-employees who received income from your organization. 
    7. Complete W-9 Forms for Vendors: This ensures correct withholding levels for payments to vendors and contractors. Use backup withholding if necessary and report it on the issued 1099 form. 
    8. Ensure Accurate W-4 Forms for Employees: Accurate W-4 information is crucial for correct tax withholding from employee paychecks. 
    9. Update Employee Access Settings: Review your user list for current employees and enable online distribution for year-end forms. 
    10. Utilize Electronic Distribution: Streamline year-end processes and enable faster filing for employees by turning on electronic distribution. 
    11. Leverage Greenshades Concierge Support: Take advantage of unlimited basic customer support and enhanced support packages for expedited service. 
    12. Simplify Form Production with Greenshades: Use our printing and mailing service for effortless distribution of forms to employees. 
    13. Set Up Tax Form Storage: Prepare for IRS inquiries by downloading filing history annually and utilizing Greenshades’ seven-year archiving service. 
    14. Remind Employees to Update Personal Information: Encourage employees to review their personal details like mailing addresses and dependents for accurate form delivery. 
    15. Start Early: Begin preparations now to ensure a smooth filing season in January, allowing time for adjustments and securing the best rates for printing and mailing services. 

    Critical Filing Deadlines 

    Now that we explored the helpful tips to get you prepared for filing, it is time to get ready to file. As we gear up for the filing season, it’s crucial to be well-prepared, especially with the specific deadlines for different forms. Understanding and adhering to these deadlines is vital for your team to effectively manage form distribution and stay compliant. 

    W-2 Deadlines: 

    • January 31: Distribute W-2 Forms to both the IRS and each employee. If filing on paper or electronically, a copy must also be submitted to the SSA. 

    1099 Deadlines: 

    • January 31: 1099 Forms are generally due to the recipient. 
    • February 28: If mailing, send copies to the IRS. 
    • April 1: For electronic submissions, send copies to the IRS. 

    Note: The 1099-NEC must be filed to all recipients by January 31. Other 1099 forms may have specific deadlines, which can be confirmed on the IRS website. 

    To navigate these deadlines efficiently, consider partnering with a year-end software provider like Greenshades Their year-end and tax filing solution can help you stay on top of critical deadlines, verify SSN and TIN, and distribute forms electronically or by print and mail. 

    Changes for the 2023 Filing Year 

    While 2023 has been relatively stable in terms of filing changes, there are still some significant updates to be aware of. Here are a few key updates: 

    E-Filing Updates  

    Starting January 2024, organizations filing over 10 information returns (like 1099, 1095-C, or 1042-S) must utilize e-file. This is an increase from the 250 threshold in previous years. 

    IRS Switch from FIRE to IRIS 

    The IRS is transitioning to the IRIS system to support the increase in e-filing, specifically for 1099 forms. This new system is designed for efficient e-filing in line with the latest requirements. Note that obtaining a Transmitter Control Code (TCC) is mandatory for this portal, unless you’re filing through a partner like Greenshades who can directly handle this for you. 

    Update for Puerto Rico and U.S Territories  

    The IRS is also refining tax returns by merging Form 940/941 documentation for U.S. territories. From Q4 2023, the 941-SS/PR version will be discontinued, making way for Forms 941 and 941 (sp). Additionally, 2023 marks the end of Form 940-PR. 

    Make Year-End Season a Breeze 

    Preparing strategically for tax season can significantly benefit your business by saving time, reducing costs, and minimizing stress. By staying prepared, having a well-defined plan for year-end forms, monitoring deadlines closely, and utilizing technology, you can efficiently streamline your tax preparation process. 

    Velosio partners with Greenshades for year-end forms, tax filing and payroll processing solutions.  With Greenshades you can ensure precise and timely submission of W-2, 1099, and other year-end forms, with compliance checks and easy distribution options. To talk to an expert, contact Greenshades today!