Information Reporting Form Due Date Changes
Organizations that make wage payments to employees and certain payments for nonemployee compensation should know of accelerated filing deadlines that affect several common 2016 forms required to be filed in 2017. The Protecting Americans from Tax Hikes Act of 2015 includes modifications to the filing dates of returns and statements relating to employee wage information and nonemployee compensation. Affected forms include:
- Forms W-2, Wage and Tax Statement, and W-3, Transmittal of Wage and Tax Statements
- Form 1099-MISC, Miscellaneous Income, with nonemployee compensation reported in Box 7
W-2 Modified Deadlines
Beginning with the 2016 calendar year, the deadline for electronic or paper filing of Forms W-2 and W-3 with the Social Security Administration (SSA) is now on or before January 31 following the calendar year-end. The due date to furnish forms to recipients remains January 31 following the calendar year’s close. While employers can apply for a 30-day filing extension with the SSA, it’s important to note the extensions aren’t automatic and will only be granted in cases of catastrophe or extraordinary circumstances.
The deadline modification will affect all organizations with W-2 employees. The due date changes are an attempt to better equip the IRS to fight identity theft and refund fraud. Having information in the system early in the filing season will allow for timely matching and reduce the amount of fraudulent returns filed and refunds issued.
1099 Filings Modified Deadlines
Beginning with the 2016 calendar year, the deadline for paper and electronic filing of Form 1099-MISC with amounts reported in Box 7 changes to on or before January 31 of the following calendar year-end. The filing due date for Form 1099-MISC with amounts in all other boxes (except 7) is unchanged from last year—February 28 for paper filers and March 31 for electronic.
Organizations that make nonemployee compensation payments of $600 or more to an individual, partnership, estate or, in some cases, a corporation will be affected. The IRS states nonemployee compensation includes payments made to someone who isn’t your employee for services in the course of your trade or business.
Prepare for the Deadlines
There are several steps organizations can take to prepare for the new deadlines.
- Know payroll processor deadlines and provide a year-end adjustment in advance of the final payroll to avoid potential additional fees for unnecessary amendments of tax and wage reporting forms.
- Review the organization’s accounts payable procedures to ensure proper documentation is maintained for vendors. Require all new vendors to complete Form W-9, Request for Taxpayer Identification Number and Certification, prior to remitting payment.
- Review current vendor listing for incomplete information.
- Contact vendors with missing information and request a completed W-9.
- Review your general ledger and current vendor listing to evaluate your filing requirement.
Below is a summary of due dates by form and filing method: