This is a great time to celebrate, BUT . . .
…don’t forget about tax season looming in the near future.
Deadlines for certain tax information arrive quicker than you think. Some of them are in January!
Here are a few things that you need to think about IN DECEMBER to prepare for the year end.
• Pull your vendor information together to prepare for Form 1099 filing in January. Who are your 1099 vendors?
○ Make sure you have EIN or SSN plus full address for each
○ Have a W-9 on record for these vendors
Any person or company that you paid service-related fees to is considered a 1099 Vendor.
Professional Examples: Attorney, Accountant, Bookkeeper, Coach, Contracted Temporary Help
Maintenance Examples: Painter, Cleaning Service, Handyman, Lawn Service
• If you have employees, confirm the following information to prepare for W2 filing in January.
○ Name or Address changes
○ You have the correct SSN on file
• Did you have employees out on Disability? If so this information needs to be processed with the last payroll – better still, send to the payroll company as they were received.
• Any Salary or Benefit adjustments that need to be included in Payroll
• Are you providing “Holiday Gift Bonus” to your employees? This should be included in your payroll also. *ask your accountant more about this.
To avoid additional charges from your payroll company – or your own aggravation – I would suggest to start working on these items now.
Review your financial statements!
What is your net profit?
Do you want or need to spend more before year end?
We all know that we have to pay taxes, but if you have been holding off on a big purchase you will want to review your income to see if it is advantageous to spend that money now.