New Law Sets Jan. 31 W-2 Filing Deadline
Health Care Information Reporting:
Things Employers Can Think About Now
New Law Sets Jan.
31 W-2 Filing Deadline; Some Refunds Delayed Until Feb. 15
new federal law moves up the W-2 filing deadline for employers
and small businesses to Jan. 31.
The new law makes it easier for the IRS to find and stop
refund fraud. It also delays some taxpayer refunds.
Those taxpayers claiming the Earned Income Tax Credit or the
Additional Child Tax Credit won't see refunds until Feb.15, at
Here are some key points to keep in mind:
Protecting Americans from Tax Hikes (PATH) Act. Enacted
last December, the new law means employers need to file their
copies of Forms W-2 by Jan. 31. These forms also go to the
Social Security Administration. The new deadline also applies
to certain Forms 1099. Those reporting nonemployee
compensation such as payments to independent contractors
submitted to the IRS are due Jan. 31. Employers have long
faced a Jan. 31 deadline in providing copies of these forms to
their employees. That date won't change.
Different from past deadline. Employers normally had
until the end of February, if filing on paper, or the end of
March, if filing electronically, to send in copies of these
forms. The IRS is working with the payroll community and other
partners to spread the word.
Helps stop fraud or errors. The new Jan. 31 deadline
will help the IRS to spot errors on returns filed by
taxpayers. Having these W-2s and 1099s sooner will make it
easier for the IRS to verify legitimate tax returns and get
refunds to taxpayers eligible to receive them. The changes
will allow the IRS to send some tax refunds faster.
Some refunds delayed. Certain taxpayers will get their
refunds a bit later. By law, the IRS must hold refunds for any
tax return claiming either the Earned Income Tax Credit (EITC)
or Additional Child Tax Credit (ACTC) until Feb. 15. This
means the whole refund, not just the part related to the EITC
File tax returns normally. Taxpayers should file their
returns as they normally do. The IRS issues more than nine out
of 10 refunds in less than 21 days. However, some returns may
need further review. Whether or not claiming EITC or ACTC, the
IRS cautions taxpayers not to count on getting a refund by a
certain date. Consider this fact when making major purchases
or paying debts.
Use IRS.gov online tools. Starting Feb. 15, the best
way to check the status of a refund is with the Where's My
Refund? tool on IRS.gov or the IRS2Go Mobile App.
Taxpayers should keep a copy of their tax return. Beginning in
2017, taxpayers may need their Adjusted Gross Income amount
from a prior tax return to verify their identity. They can get
a transcript of their return at www.irs.gov/transcript.
Health Care Information Reporting: 7 Things Employers Can
Think About Now
your organization is an applicable large employer (ALE), you
must report information about the health care coverage you
offered to your full-time employees.
As an employer, it's not too early to start thinking about
these seven facts related to your information reporting
responsibilities under the health care law.
The health care law requires ALEs to report information
about health insurance coverage offered to its full-time
employees and their dependents as well as to the IRS.
ALEs must report information about themselves, the
coverage they offered – if any – and the individuals covered
under the policy.
ALEs are required to furnish a statement to each
full-time employee that includes the same information provided
to the IRS by January 31, 2017.
ALEs that file 250 or more information returns during
the calendar year must file the returns electronically.
ALEs must file Form 1095-C, Employer-Provided Health
Insurance Offer and Coverage with the IRS annually, no later
than February 28, 2017 or March 31, 2017 if filed
electronically. Forms 1095-C are filed accompanied by the
transmittal form, Form 1094-C.
Self-insured employers that are applicable large employers,
and therefore are also subject to the information reporting
requirements for offers of employer-sponsored health insurance
coverage, must combine reporting under both provisions by
filing a single information return, Form 1095-C, and
transmittal, Form 1094-C.
The ACA Assurance Testing System opens November 7, 2016
for tax year 2016 testing. Software developers – including
employers and issuers who passed AATS for tax year 2015 – will
not have to retest for tax year 2016; the Tax Year Software
Packages will be moved into Production status. New
participants need to comply with test requirements for tax
year 2016. For more information, see Publication 5165, Guide
for Electronically Filing ACA Information Returns for Software
Developers and Transmitters.
Applicable large employers can find a complete list of
resources and the latest news at the Applicable Large Employer
Don't hesitate to call us if you
need help or want to
get started on tax planning for the remainder of 2016 or for
2017 already! If you have comments or questions on the information in these
articles, as usual feel free to call our offices.
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