January 1 – Earned Income Credit
If you are an employer and have employees who were receiving advanced Earned Income Credit payments in 2010, stop making those payments – they are no longer allowed.
January 18 – Employer’s Monthly Deposit Due
If you are an employer and the monthly deposit rules apply, January 18 is the due date for you to make your deposit of Social Security, Medicare and withheld income tax for December 2010. This is also the due date for the nonpayroll withholding deposit for December 2010 if the monthly deposit rule applies. Generally, this due date is January 15, but when the due date falls on a Saturday, Sunday or federal legal holiday, it is not due until the next business day. As of 1/1/11, federal employment tax deposits must be made electronically (no more paper coupons), except employers with a deposit liability under $2,500 for a return period may remit payments quarterly or annually with the return.
January 31 – 1099s Due To Service Providers
If you are a business or rental property owner and paid $600 or more for the services of individuals (other than employees) during a tax year, you are required to provide Form 1099 to those workers by January 31st. “Services” can mean everything from labor, professional fees and materials, to rents on property. In order to avoid a penalty, copies of the 1099s need to be sent to the IRS by February 28, 2011 (March 31, 2011 if filed electronically). They must be submitted on optically scannable (OCR) forms. This firm prepares 1099s in OCR format for submission to the IRS with the 1096 submittal form. This service provides both recipient and file copies for your records. Please call this office for preparation assistance.
Payments that may be covered include the following:
- Cash payments for fish (or other aquatic life) purchased from anyone engaged in the trade or business of catching fish
- Compensation for workers who are not considered employees (including fishing boat proceeds to crew members)
- Dividends and other corporate distributions
- Amounts paid in real estate transactions
- Amounts paid in broker and barter exchange transactions
- Payments to attorneys
- Payments of Indian gaming profits to tribal members
- Profit-sharing distributions
- Retirement plan distributions
- Original issue discount
- Prizes and awards
- Medical and health care payments
- Debt cancellation (treated as payment to debtor)
January 31 – W-2 Due to All Employees
All employers need to give copies of the W-2 form for 2010 to their employees. If an employee agreed to receive their W-2 form electronically, post it on a website and notify the employee of the posting.
January 31 – File Form 941 and Deposit Any Undeposited Tax
File Form 941 for the fourth quarter of 2010. Deposit any undeposited Social Security, Medicare and withheld income tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the quarter in full and on time, you have until February 10 to file the return.
January 31 – Certain Small Employers
File Form 944 to report Social Security and Medicare taxes and withheld income tax for 2010. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is $2,500 or more for 2010 but less than $2,500 for the fourth quarter, deposit any undeposited tax or pay it in full with a timely filed return.
January 31 – File Form 943
All farm employers should file Form 943 to report Social Security, Medicare taxes and withheld income tax for 2010. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the year in full and on time, you have until February 10 to file the return.
January 31 – W-2G Due from Payers of Gambling Winnings
If you paid either reportable gambling winnings or withheld income tax from gambling winnings, give the winners their copies of the W-2G form for 2010.
January 31 – File Form 940 – Federal Unemployment Tax
File Form 940 (or 940-EZ) for 2010. If your undeposited tax is $500 or less, you can either pay it with your return or deposit it. If it is more than $500, you must deposit it. However, if you deposited the tax for the year in full and on time, you have until February 10 to file the return.
January 31 – File Form 945
File Form 945 to report income tax withheld for 2010 on all non-payroll items, including back-up withholding and withholding on pensions, annuities, IRAs, gambling winnings, and payments of Indian gaming profits to tribal members. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the year in full and on time, you have until February 10 to file the return.