2023 End of the Year Letter For Businesses
As we are preparing to welcome in the New Year, there are some tight deadlines we need to meet. There are also some new requirements that I would like to make you aware of.
1. 1099s
These forms are due to independent contractors by January 31st. Forms are due to other recipients by February 28th. If you plan to have me prepare the 1099s, I need the W9s and payment information from the following by January 10, 2024:
Anyone who provided contract labor to your business;
Anyone to whom your business pays rent;
Anyone who provided services to your business:
i. Repairs
ii. Maintenance
iii. Legal
iv. Accounting
v. Medical
vi. Consulting
vii. Any other services
2. Christmas Bonuses
Please remember that Christmas bonuses MUST be included in payroll. There are some incorrect thoughts out there that small dollar amounts or gift cards are exempt. Any cash or cash equivalent (e.g., gift cards) is required to be included. If I do your payroll, please ensure you provide me these amounts prior to your final payroll for the year. If I don’t do your payroll, please ensure you provide this information to your payroll provider for inclusion in your employees’ payroll.
3. W2s
Please have your employees review the address on their most recent paystub for accuracy and notify me of any changes by December 31. These changes should be uploaded to TaxDome. Please also notify your employees that if we have an email address on file for them, they will be receiving a secure email with a link to download their W2s rather than mailing them. We found that issues with the mail last year delayed the receipt by some people. We will also be uploading them to the individual portals, but the secure emails will provide them the information faster.
4. Under the new Corporate Transparency Act, Treasury’s Financial Crimes Enforcement Network will be requiring many businesses who do not currently report to the Securities and Exchange Commission to report their Beneficial Ownership starting in 2024. This could include a residential rental business if it is an LLC. Newly formed businesses will be required to file this upon creation. Existing businesses have until January 1, 2025, to file the report. Any changes to information must be timely reported (the time period has been changing). I wanted to make you aware of this. It is still an evolving process and it has not yet been determined if assisting with this would be considered legal services in Virginia in which case I would not be able to assist you with this process. Here is a link to the website with more information on this new requirement Beneficial Ownership Information Reporting | FinCEN.gov
5. The new engagement letters and tax questionnaires (organizers) will be going on TaxDome at the end of the month. Please remember that S-corporations and partnerships with a 12/31 year end have a March 15th filing deadline, so I will need these completed as quickly as possible. For those of you who had your business included under your personal TaxDome account, or had multiple businesses, you will notice that these have been broken into individual accounts for each entity. You will still just have the one sign-in which will bring you to the list of accounts. This is to help with the efficiency of our workflow and assist us in ensuring we do not overlook a filing.
6. Starting January 1, 2024, my bookkeeping/accounting/consulting fee will be $75/hour. I have attached my schedule for payroll/contractor pay processing. Please note, the last column is for the total number of W2 and 1099 forms filed for the year, not your current number of employees.
Sincerely,
