These 3 simple actions will allow you and your business to start the year in the best way, keeping up to date and complying with the different regulations and required deadlines.
1. Remember to notify your payroll provider of any bonuses you have paid to your employees (including Gift Cards)
Whenever you pay a bonus to an employee, you should make adequate payroll deductions. In the event that you (or your company) provide a bonus without withholding and processing the payroll, you will have to pay not only the regular payroll taxes, but also the portion of the employee’s taxes even if they have not been withheld. Additionally, if you do not notify your payroll provider at the appropriate time, you may incur expenses or penalties when submitting the forms for the fourth quarter of the year, and the W-2 forms that must be delivered in January. This also applies to amounts delivered in cash or gift cards.
2. Prepare for 1099-MISC by requesting W-9 forms
The 1099-MISC forms for Contractors has a deadline of January 31, just like the W-2 forms. To avoid unnecessary stress in January, order your contractors’ W-9s in December. Also remember that even if you have the W-9 from the previous year, you should ask for the updated form in case there is any change. In case you are not sure if you need to do the 1099-MISC from a supplier, consult your accountant preferably in December, since there is less workload. You can download the W-9 form here.
3. Start updating and organizing your accounting books for your tax returns.
December is a good time to start bookkeeping for your company. This is a great help since your company will be less likely to have to request an extension to file taxes if you already have your accounting updated. It will also help you make your estimated tax payment in case your company or personal statement is making a profit.
Start by downloading your statements until November and send them to your accountant. If you prefer to make the books yourself, use a tool like Xero or QuickBooks Online to make your job easier. You can also attend Quickbooks and Xero trainings that we provide every week.
Following these three (3) steps greatly facilitates your management in January and minimizes the stress of the first month of the year.
At GBS Group, we take the month of December to prepare for the next season and for our clients, this will help us have a prosperous and successful 2020 year.
We are at your service if you need anything before the end of the year. Our offices will be open everyday in December except Christmas, on the 24th and 25th, and New Years, December 31st and January 1st.