This short article reinforces how important the language is in a trust document. Don’t wait until the decedent passes away to clarify any issues!
Happy New Year!
A few changes in our office to keep YOUR information PROTECTED & SECURE:
As always, contact us with questions. Cheers!
Did you know that the IRS has changed the deadline for submitting Federal 1096/1099 forms?
If your company is required to issue 1099 forms, then please read the following:
What information is needed for a contractor who is an LLC:
Don’t delay – noncompliance can be COSTLY!
If you need help with filing your 1099s, then please call our office today to see how we can help! 913-432-3147
This year the U. S. Department of Labor enacted updated regulations that will expand overtime protections to SALARIED workers by increasing the previous salary exclusion from $455/week ($23,660/year) to $913/week ($47,476/year). This increase in pay threshold for salaried workers may impact you – so please read our quick summary to help determine what changes you may need to make (if any) for your salaried employees. These new rules will become effective on December 1st, 2016.
• If you pay your employees hourly, then regular Fair Labor Standards Act (FLSA) rules still apply that requires overtime (time and a half) to be paid to employees who work greater than 40 hours each work week
• Salaried positions fall under two categories according to the Department of Labor (DOL):
EXEMPT positions: Executive, Administrative, professional, and outside sales (now a narrower classification than before). However, if these employees are salaried at less than $913/week, you will be responsible for tracking hours and paying the exempt salary overtime rate (a calculation different then standard hourly overtime).
NONEXEMPT positions: all other salaried positions including “blue-collar” positions as described by the Department of Labor. You will be responsible for tracking hours and paying standard time and a half overtime beyond 40 hours of work in a work week.
We recommend that you adhere to recordkeeping requirements as listed in Fact Sheet #21 set by the Wage and Hour Division (WHD) which includes your employees information, time beginning and ending each date, the date, total hours worked, and listed regular hour wage rate for each employee; regardless of exempt or nonexempt status. Since WHD will be increasing scrutiny of correct classification of employees (exempt vs. nonexempt) and overtime pay, it is best to have a single timekeeping policy that includes the details above.
Because we are not attorneys, we can not offer assistance on employee classification of your salaried employees. Feel free to review the FLSA’s description or contact your business attorney regarding how to classify your employees.
Are you ready to take on the challenges of new payroll law? Does your company need assistance in processing payroll and navigating the complexities of payroll regulations? Please feel free to contact us to see how we can help!
A quick reminder on issuing 1099 forms for 2015:
All recipient copies must be sent by February 1, 2016 and IRS/State copies sent by February 29, 2016. A Form 1099 must be issued for anyone paid rent, outside services, labor, interest, commission, prizes/awards and legal fees ($600 or more). Corporations are not issued 1099s (except attorneys’ and veterinarians’ fees).
Congress has increased the penalties for failure to file or late filing of Forms 1099 effective January 1, 2016. Failing to issue a 1099 or filing with incomplete or incorrect information — carries penalties ranging from $50 to $250 per 1099, with a maximum penalty of $1,000,000 for small businesses and $3,000,000 for large businesses.
To prepare your 1099 forms, you must have a complete W9 containing the following information for each recipient/vendor:
• Legal Name
• Social Security# or EIN#
• Mailing Address
• Total Amount Paid for 2015
• Payment type (Labor, Commission, Rent, etc.)
If you do not have a current W9 form from the vendor, your company will not be protected against potential backup withholdings that may apply to that vendor.
Also, LLCs that are taxed as a Sole Proprietor must use a Social Security Number, and you must have the name of the recipient and DBA name, if they have one. LLCs that are taxed as Partnerships must use the company’s EIN (employer id number). LLCs taxed as corporations must properly fill out the W9 so that you do not need to issue a 1099.
If you would like TaxesPlus to prepare your 1099 forms, then we would be happy to help. Please submit a request or call our office to get setup 913-432-3147.