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Payroll Client Letter – 2018

 

Forms to Complete

Below you will find lists of the forms you are required to complete. If you have questions, please reach out to your Blue & Co. advisor.

One (1) Immediate Response and Affidavit Form is required per entity.

For preparation of W-2 forms and if you are required to file form 943 (2018 Agricultural Employment):

Please complete the following forms and return them via the secure link in your email:

Additional forms (if necessary):

For preparation of W-2 forms and you are required to file form 941:

Please complete the following forms and return them via the secure link in your email:

Additional forms (if necessary):

For preparation of 1099 forms:

Please complete the following forms and return them via the secure link in your email:

 


Client Letter

Dear Clients,

In order to help meet your payroll and information return filing needs, we have posted information relevant for preparation of these forms to our website. Whether you decide to prepare these forms yourself or have Blue & Co. prepare them for you, we ask that you complete the Immediate Response and Affidavit Form and return it to us so that we are aware of your intentions. If we are preparing payroll and/or information returns for multiple companies, please complete a separate form for each company.

Click here to jump to the list of forms you need to complete.


Important

Certain information returns (W-2 forms and 1099 forms for Non-Employee Compensation) are to be filed to the respective government agencies by January 31. As such, it is imperative that we receive your information timely. If not, we may need to prepare forms manually, and you may be subject to increased fees and penalties and interest for late filing.


Employment and information return worksheets are posted online for your completion. Complete the calendar year figures and return to us by January 14, 2019. If we are preparing any W-2 forms for you, please complete the two-page questionnaire regarding employee benefits as well. We have provided forms for calculation of automobile fringe benefits (personal use of Company automobile) online as well, in case this is applicable to your situation.


REMINDER OF HEALTH CARE REPORTING REQUIREMENTS:

Applicable Large Employers (ALE’s) (generally those with 50 or more full-time equivalent employees) are subject to requirements to report health care coverage. Employers must provide Form 1095-C to employees by January 31, 2019, and to the IRS (along with transmittal Form 1094-C) by February 28, 2019. If filed electronically, forms to the IRS should be filed by March 31, 2019. These reports provide information about health coverage the ALE offered (or didn’t offer) to each full-time employee, which the IRS will use to determine if the employer shared responsibility payment applies to the ALE and if the employee is eligible for the premium tax credit. All ALE’s are subject to this reporting requirement, regardless of whether they offer coverage or are subject to the employer shared responsibility provisions. The IRS will use the information to determine if the ALE is eligible for transition relief under the employer shared responsibility provisions. Please check with your health care provider to determine your filing requirement, and to obtain assistance with these forms.


Penalties

It is important that you do not neglect your responsibility to file information returns. The Internal Revenue Service can impose penalties on any taxpayer that fails to furnish another person with an information return by the required date. There are also penalties for failure to file and where appropriate, failure to pay or pay timely. The penalties vary by type of return and type of penalty. You need to be aware that they can be quite severe.

The payer will also be subject to a penalty for submitting information returns with no identification number or incorrect identification numbers. The Internal Revenue Service has become quite strict in enforcing backup withholding requirements. It is important to provide Blue & Co. with the correct taxpayer identification number for all recipients of Form 1099. The Internal Revenue Service will issue cross-check notices to taxpayers whose identification numbers and names do not match its records.

The recipient must furnish his or her Social Security or Federal Identification Number to said taxpayer. Failure to do so could subject any such payments to backup withholding by the taxpayer. We have provided a current copy of Form W-9, Request for Taxpayer Identification Number & Certification online for your convenience.


Information Returns – 1099s

Please refer to the 1099 Filing Requirements for a review of some basic information regarding who should receive these forms. The recipient’s copy of the Form 1099 must be mailed to the recipient by January 31, 2019. The Internal Revenue Service has requested that all information returns be typed or machine prepared. The Indiana Department of Revenue no longer requires copies of information forms.

Your phone number will be included in the filer name and address area on Forms 1099. Please make sure to write your telephone number on page 1 of the information return worksheet before you return it to us.


Payroll Returns – W-2s

If you have paid wages during 2018, the appropriate payroll tax returns must be prepared, mailed to employees and filed no later than January 31, 2019. Please note that if you prepare your own forms, the state of Indiana requires electronic filing for all businesses that file more than 25 W-2 statements. If you have not done so in previous years, the deadline for registering with the state to file electronically is December 31, 2018. Forms are due to the state no later than January 31, 2019.

In order for us to prepare returns for you on a timely basis, we ask that you submit the completed worksheet no later than January 14, 2019. We cannot guarantee timely filing of returns if information is received after January 14, 2019. 


Submitting Information to Blue & Co.

A secure link has been created for information to be sent securely to Blue & Co. for preparation of your 2018 payroll and information returns. Please reference the link sent to via email. If you would like to request a new email be sent with the upload link, please contact your Blue & Co. representative.


Electronic Filing

Blue & Co. will file W-2’s and 1099’s with the Internal Revenue Service, the Indiana Department of Revenue and Social Security Administration electronically. Therefore, we must have your signature on the Immediate Response and Affidavit Form prior to releasing any returns to you. The form can be returned using the ShareFile link in your email (preferred) or via mail, email or fax.

If you have any questions, please do not hesitate to call Pam Swartout at 317-428-6858 or Mindi Harling at 317-428-6830. You may also contact your Blue & Co., LLC representative who will direct your call to the appropriate person.

Identify the best tax planning strategies for you. Click here to go to our 2018 Year-End Tax Planning Guide.

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