PADGETT BUSINESS SERVICES January 2021 SBB

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PADGETT BUSINESS SERVICES®

January 2021

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1st Quarter 2021 Due Dates

January 15th

Individuals:

Fourth quarter 2020 estimated tax payments are due (final installment).
Provide Form W-4 to your employer to make any changes in federal withholding in 2021.

February 1st

Employers:

File 2020 Form W-2 Copy As and its transmittal and give employees their copies of Form W-2.
File Form 941 for 4th quarter 2020, or annual Form 944. File Form 940 for 2020.

Businesses:

File 2020 Form 1099-NEC Copy As and its transmittal. NOTE: Beginning 2020, Form 1099-NEC must be used for non-employee compensation paid to independent contractors instead of Form 1099-MISC.
Distribute Forms 1099 to recipients for 2020.

March 1st

Employers that paper file:

Paper file Form 1096 with Copy A of all Forms 1099-MISC.
Paper file ACS Forms 1094-B, 1095-B, 1094-C or 1095-C if required.

March 2nd

Employers: Distribute ACA Forms 1095-C to your employees if required.

Large food or beverage establishments who paper file: File Form 8027 to report 2020 tip income, reported tips, and allocated tips.

March 15th

C Corporations & LLCs: File Form 2553 to choose to be treated as an S corporation beginning on January 1, 2021.

Calendar-Year S Corporations: 2020 Form 1120S due or file Form 7004 for an automatic six-month extension. Provide shareholders with copy of Schedule K-1.

Partnerships: 2020 Form 1065 due or file Form 7004 for automatic six-month extension. Provide partners with copy of Schedule K-1.

March 31st

Employers that e-file:

E-file Form 1096 with Copy A of all Forms 1099-MISC.
E-file ACS Forms 1094-B, 1095-B, 1094-C or 1095-C if required.

Large food/beverage establishments that e-file: E-file Form 8027 to report 2020 tip income, reported tips, and allocated tips.

Five questions to ask before you switch payroll services

As we prepare for the new year, many businesses are considering whether they should change their payroll services partner in 2021. Outsourcing your payroll services can offer some much-needed flexibility so you can keep the focus on your customers, while also providing the right kind of attention and care for your employees.

Finding the right payroll services partner means finding someone who will make sure several crucial tasks will be done on time and in compliance with the appropriate state laws – ensure your employees get paid, your payroll taxes are collected and paid, and payroll tax forms are filed.

As you conduct your search for a new payroll partner, it’s important to know the types of questions you need to be asking.

Six things you should know about the new stimulus deal

Some long-awaited and much-needed relief for U.S. businesses is on the way as Congress has approved -- and the president has signed -- legislation for a second round of stimulus to aid those impacted by the COVID-19 pandemic. The bulk of the $900 billion stimulus package is geared to support businesses, helping them weather the economic storm through a mixture of programs and tax breaks.

Here are six things you should know about this newest deal.

How to spread some cheer and save on your taxes through holiday gift-giving

Who doesn’t love opening a present this time of year? Spreading that holiday cheer through a gift to your employees and customers is a great way to get in a festive spirit and thank them for their hard work, especially during a challenging year like 2020!

Remember that only certain types of gifts are deductible, so make sure you follow the rules to avoid a Grinch-like spoiler come tax filing season. Here’s a quick overview of some holiday gift options for your employees and customers.

Ways you can help your employees without getting hit by the IRS

It’s in our nature to want to lend a hand and help those who have fallen on hard times, and during the COVID-19 pandemic there are plenty of people who could use a bit of grace and compassion. The challenge as a business owner is finding a way to ensure the help you want to offer to your employees can truly benefit them to the fullest.

Fortunately, there are various tax provisions and programs businesses can rely on to help their employees in need, as well as make sure both sides aren’t hit with any unexpected tax penalties.

Stop! Don’t make a charitable contribution before reading these 8 tax tips!

The holidays are a time for being thankful, and that often means giving back to organizations and causes that are important to you and your family. These charitable gifts might be able to earn you a tax deduction, so it’s important to understand all of the nuances that surround charitable giving and what it means for your tax bill.

Here are a few things to keep in mind as you make your end-of-the year gifts.

Padgett CEO named to Accounting Today’s Top 100 Most Influential People list

Honoring his visionary approach to and respected leadership for the accounting industry, Jeff Phillips, the CEO of PADGETT BUSINESS SERVICES^®, has been named to the exclusive Top 100 Most Influential People in Accounting list compiled by Accounting Today.

This annual, prestigious report includes several prominent leaders in the accounting industry and tax policy, including U.S. President-Elect Joe Biden; Tracey Golden, chair of the American Institute of CPAs; Sasan Goodarzi, the CEO of Intuit; Sen. Mitch McConnell, Majority Leader of the U.S. Senate; and outgoing U.S. Treasury Secretary, Steven Mnuchin.