2016 Housekeeping

Now that 2016 is coming to a close,  it is time to start thinking about 2017 and all that comes with the new year.  Below is a summary of housekeeping items to keep in mind for the upcoming year.

Filing Requirements for 2016 forms in 2017

Form 1099s – Be sure to review your records from 2016, to identify any Form 1099 reporting requirements.   Generally, business are required to file a Form     1099-MISC if a business pays $600 or more for services from an unincorporated business (LLCs, sole proprietors, etc.).  There are exceptions to these rules.  You do not have to issue a 1099 to an LLC which files as an S or a C corporation.  You must file a 1099 for corporations when they perform legal services, include medical and health payments, fish purchases (for cash), or substitute payments in lieu of dividends or tax-exempt interest.  Call if you have questions.  Form 1099s are required to send a

Form 1099 to the recipient by February 1, 2016 and with the IRS and Oregon by February 28, 2017 for manual filers and March 31st 2017 for electronic filers.   Generally Form 1099s are required to be filed electronically with the IRS and the state of Oregon.  However, if the business is required to file fewer than 10 Form 1099s then the business is not required to file any Form 1099s with the state of Oregon.

Taxpayers will want to be sure to review their Form 1099 filing requirements because if a Form 1099 is not filed for a payment of $600 or more, the IRS and the Oregon Department of Revenue could disallow the deduction associated with the expense.  (Just as a note, Isler CPA is an unincorporated business therefore please be sure to send Isler CPA, LLC a Form 1099).

W-2 To Employees – W-2s for 2016 are required to be sent to employees by January 31, 2017 AND filed with the Social Security Administration by January 31, 2017 for manual filers and electronic filers.  This is new.  IRS is trying to get ahead of the refund fraud that has been going on in the last couple of years.

If you have a nanny or household employee be sure to review the requirements for having to issue a W-2 to the nanny or household employee.  If you paid your household employee $2,000 or more in cash wages you will be required to file a Form W-2 and W-3, reporting withheld social security and Medicare.  Be sure to review your records to confirm if you need to file these forms.  Federal tax payments go in with your personal return, whereas Oregon does require separate payroll reports be filed by January 31 201

W-3 – W-3 are required to be filed with the Social Security Administration by January 31 2017, as noted above.  Oregon follows Social Security Administration rules, so all Oregon W2s must also be sent to employees AND filed by January 31, 2017.

Personal Property Tax Reports –  Lane County personal property tax reports are due March 15, 2017.  Just as in 2016, there is no extension available for filing your personal property tax returns.  Therefore, be sure to file these on time.  In addition, during the last two years,  Lane County has made a concerted effort to identify those business which have not filed personal property tax returns in the past but are required to so.  A business is required to file a report even if it has personal property below the $16,000 threshold and you will owe no tax.  We recommend filing your personal property tax reports, even if you are below the $16,000 threshold in order to avoid letters and headaches from Lane County at a later date.

Below is a summary of various annual payroll and business rates and limits applicable for 2017.

Payroll Rates and Limits Updates 2016
2016 Annual Payroll Letter

If you have any questions regarding any of the information above please don’t hesitate to contact Eric Bell at Isler CPA or at ebell@islercpa.com.