You may be issuing them to contract labor and vendors.Be careful to explain when you used personal funds to pay business expenses and business funds to pay personal expenses.
You need to avoid inconsistencies and overlaps between the two.Compare business and personal expenses.
Partnerships require Schedule K-1 and Form 1065. Sole proprietors require Form 1040 and Schedule C. W-MISC for employees and independent workers. Identify the required forms for company filings:. October 15, 2020: Deadline for filing extension returns. April 15, 2020: Deadline for sole proprietorships, single-member LLCs and C-Corporations. March 15, 2020: S-Corporations and partnerships filing deadline. Mark your calendar for important deadlines:. Here are the items we recommend you include: Hopefully, you’ve already started on your 2020 Tax Checklist. Face higher penalties for failing to file returns and employee benefit plan reports.Īs you assimilate these changes, you should prepare your checklist for 2020 taxes. Set up a new plan by your filing date in the following year rather than December 31 of the current year. More easily establish Multiple Employer Retirement Plans among two or more employers. Include more part-time workers in your retirement plan by reducing the minimum requirement from 1,000 hours to 500 hours in at least three consecutive years. Increase the maximum default percentage of compensation from 10% to 15%. Collect a $500 credit for the adoption of auto-enrollment. Collect a larger ($500) credit to set up a retirement plan if you have 100 or fewer employees. If you offer a 401(k) or similar plan, you can: They’re new for 2020, reflecting the removal of allowances for calculating paycheck withholdings.Ībout 1.3 million additional workers will now get overtime if they earn less than $35,568, up from last year’s threshold of $23,660. You’ll need to refigure the withholding and deductions on affected employees. As we ease into the next tax year, it’s the right time to assess what’s new for businesses:
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