NEW IRS RULES WILL REQUIRE SMALL BUSINESSES TO FILE TAX FORMS ELECTRONICALLY IN 2024
The Internal Revenue Service (IRS) has released new regulations that will dramatically expand the number of businesses that are required to file electronically next year.
Currently, all businesses are required to file certain tax forms every year for each of their employees and for any independent contractors their businesses paid the prior year.
The form for employees is called a W-2 and shows the total wages the business paid that employee during the prior year. A W-2 must be given to each employee and also must be filed with the Social Security Administration by January 31st.
The form for independent contractors paid by the business is called a 1099 and must be given to independent contractors (except most corporations or LLCs) that were paid $600 or more by the business in the prior year. These 1099s also must be filed with the IRS by January 31st.
Currently, only businesses that issue 250 or more of these forms in a calendar year are required to file them electronically. However, starting in 2024, businesses that issue ten or more W-2s or 1099s a year will be required to send these forms to the government electronically. To determine if a business meets the threshold to file electronically, the number of W-2s and 1099s the business issues in a year is added together. For example, a business with seven employees and four independent contractors would need to file seven W-2s and four 1099s. Added together, this is eleven total forms, which is more than the 10-return threshold and would require the business to file all these returns electronically.
This new electronic filing requirement applies to returns required to be filed on or after January 1, 2024. Hardship waivers may be available for businesses that would have trouble complying with the e-filing requirements. Businesses needing to apply for a waiver must file Form 8508 with the IRS, which is available here.
To assist small businesses, the IRS has created an online portal for businesses that file fewer than 100 Forms 1099 per year. The portal is available now and is called the Information Returns Intake System (IRIS). It is a way for businesses to file their 1099s electronically without having to download special software. To use the online portal, employers must apply for authorization in advance. More information about IRIS is available from the IRS website.
For more information about how the new e-filing threshold will affect your business, please contact your local accountant or tax professional.
LAST REMINDER: YOUR COMPANY’S 2023 ANNUAL REPORT
MUST BE FILED BY MAY 1ST
There are only a few weeks left before the May 1st deadline for Florida corporations and limited liability companies (LLCs) to file their Annual Report with the State of Florida.
Florida law requires all Florida corporations and LLCs to pay a fee every year to the state Division of Corporations to maintain the company’s active status. The fee for corporations is $150, and the fee for LLCs is $138.75.
This is your last reminder that the deadline to file your company’s 2023 Annual Report is May 1st. If you miss the May 1st deadline, the state will tack on a penalty of $400 in addition to the normal fee! This penalty is mandatory and cannot be waived.
If you do not keep your company active with the state, your corporation or LLC can be dissolved by the state, which allows someone else to take your company’s name. Being dissolved also jeopardizes any workers’ comp exemptions for the company’s corporate officers.
To file your company’s 2023 Annual Report, go to the Division of Corporations Annual Report filing page. This is the official government web page.
You will need your company’s document number that was assigned by the Division of Corporations when you first registered your business with the state. You can find your company’s document number by searching your company’s name on Sunbiz. The document number will be at the top of the page with your company’s information under “Detail by Entity Name.”
Scam alert: Your business may receive emails from private companies about filing your Annual Report. Read these solicitations carefully before choosing to pay a private company to file your company’s Annual Report! These companies are not affiliated with any official government agency, and they charge a lot more than the Annual Report actually costs. If you choose to pay one of these companies to file your Annual Report, it will be a lot more expensive than if you filed it yourself on Sunbiz.org.
FUBA members with questions about their Annual Report can call the FUBA offices at 800-262-4483 and ask for Karen or Mallory.
REMINDER: PAID LEAVE FOR COVID NOT REQUIRED
As we mark the third anniversary of the COVID-19 pandemic, we wanted to remind employers that paid leave for employees with COVID is not required in Florida. There is no federal or state law that requires Florida employers to provide paid leave for their employees that miss work due to COVID. In the first year of the pandemic, a federal law required employers to provide 80 hours of paid leave, but that law expired at the end of 2020.
Employers are allowed to treat COVID leave like any other sick leave. If the employer already provides paid sick leave, the employee can use any available sick leave. If paid sick leave is not available, the leave can be unpaid.
IS YOUR WORKERS’ COMP INSURANCE WITH FUBA? IT SHOULD BE.
One of the most important membership benefits FUBA offers to our members is access to our workers’ compensation insurance program.
The insurance offered through FUBA’s program is rated A- Excellent by A.M. Best and offers competitive dividends to policyholders along with our fantastic FUBA customer service.
Is your business getting the benefit of FUBA’s workers’ comp program? If not, call your local insurance agent today to ask about moving your insurance to FUBA.