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Congress Extends Payroll Tax Cut
Congress has extended the employee-side payroll tax cut through the end of 2012. After weeks of uncertainty over whether an agreement could be reached, the House passed the Middle Class Tax Relief and Job Creation Act of 2012 (H.R. 3630) by a vote of 293 to 132 on February 17, 2012. Senate approval quickly followed, also on February 17, by a vote of 60 to 36.
Check Your Non-Profit’s Tax Exempt Status
Is your non- profit organization still a non-profit as far as the IRS is concerned? There is an online tool for exempt organizations available on the IRS website.
Missing W-2 Form Tips
The IRS has released a tax tip advising taxpayers missing a Form W-2, Wage and Tax Statement (IRS Tax Tip 2012-20). Employers should have mailed or hand delivered a Form W-2 for each of their employees by January 31, 2012, for wages paid in calendar year 2011.
The IRS recommends taxpayers follow four steps if they have not received a Form W-2:
New W-2 Reporting Requirement for Health Coverage Cost
Confused about reporting the cost of health insurance coverage for employees? Starting in tax year 2011, the Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan. Fortunately for many small businesses, employers filing fewer than 250 Forms W-2 are exempt from this requirement.
Form 1099-Misc or 1099K?
Be sure to review payments subject to be reported on Form 1099-Misc. Beginning with the 2011 tax year, the IRS requires you to exclude from Form 1099-MISC any payments you made by credit card, debit card, gift card, or third-party payment network such as PayPal. (These payments are being reported by the card issuers and third-party payment networks on Form 1099-K.)
