Tax Updates and Deadlines
January 9, 2018
Dear Valued Client:
Happy Holidays! As the year comes to and end we would like to bring to your attention a few changes and deadlines for the new year.
- Massachusetts minimum wage will remain at $11.00 per hour and $3.75 per hour for tipped employees.
- Rhode Island minimum is increasing for 2018 and 2019. For 2018, the minimum wage will be raised from $9.60 to $10.10. For 2019, the minimum wage will increase to $10.50. The minimum wage for tipped employees will remain at $3.89 throughout 2019.
- Forms W-2 and W-3 are required to be furnished to employees by January 31, 2018. Forms W-2 and W-3 are now also required to be filed with Social Security Administration by January 31, 2018. There are substantial penalties if this is not done on time. We will need to have the information for after-the-fact payrolls by January 15th in order to ensure timely filing of these forms.
- 1099 Miscellaneous Income forms are required to be furnished to the recipient by January 31, 2018 and new this year to the Internal Revenue Service by January 31, 2018. Please provide the recipient’s name, address, social security or EIN number and amount to our office by January 15th.
If the following four conditions are met, you must generally report a payment as nonemployee compensation:
- You made the payments to a payee of at least $600 during the year.
- You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations).
- You made the payment to an individual, partnership, estate, or, in some cases, a corporation. (An example, if payments are made to a lawyer, even if incorporated, a 1099 is issued)
- You made the payment to someone who is not your employee.
- Please note there are substantial penalties for not filing these forms timely. The penalties for under 30 days late is $50 per return or statement; 31 days to August 1, 2018 is $100 per return or statement; $260 per return or statement after August 1, 2018 and for Intentional Disregard $530 per return or statement.
- For information on other types of 1099 filings, please call the office for further information and rules.
Rhode Island Amnesty Program:
- The State of Rhode Island has recently sent over 80,000 notices with balances due. An amnesty program has been set up and will be in place until February 1st. The program allows a taxpayer to not pay the penalties and some of the interest if the amount is paid in full. If you received one of these notices, please contact us to help you resolve the matter.
It is our goal to help you file these forms timely and give you ample time to gather the necessary information. Please feel free to contact the office with any questions or concerns you may have.