Changes for W-2s & 1099s. Employers & Employees need to be aware of these!
There are a couple changes that the IRS is making regarding some information returns. Here is what to expect.
W-2—Within the next couple of years certain employers will now be required to start including any health insurance that is paid for an employee on their W2’s. This does NOT mean that your health insurance is being taxed. Health insurance is still exempt from payroll taxes. This is just an information item that the IRS is requiring. Employers will need to make sure that they obtain a breakdown of the insurance amounts that they pay per employee before w2s are filed. If we file your w2s, we will request this; however, if you file the w2s on your own or use a payroll service, you will want to make sure that you provide that information to them.
1099-K—This is a new information return that you may be seeing if you accept payments by credit cards or other third party network services. Banks and other Merchant Service Providers are now required to file 1099-K’s with the IRS that shows the total revenue you received from credit card sales through them. You will want to forward any 1099-K’s that you receive to us so we can have the documentation when we file your tax returns.