2017 Brings New Year, New Rules, New Deadlines: Forms W-2 and 1099-MISC for 2016
The countdown has begun. Year-end company parties are in full swing, families are getting together to celebrate the holidays, and the 2016 year is coming to a close. Before we all know it, we will wake up to a new year. With 2017 in our view, there are several things you need to know now in order to prepare for the changes.
Beginning in 2017, for the 2016 reporting year, the deadlines related to filing Forms W-2 and 1099-MISC are changing. The recipient copies must now be submitted to the Social Security Administration and Internal Revenue Service, respectively, by January 31, by either paper or electronically filed. This is a significant change from years past when the deadline to report to the agencies was February 28 and a 30-day extension was available.
Compressing the time frame will no doubt add plenty of extra work, as well as confusion, to this otherwise regular step in year-end reporting.
To complicate matters further, the changes related to the 1099-MISC form will only affect filers who report nonemployee compensation payments in Box 7. Since the majority of filers will report information in that box, an understanding of these changes and how they may affect you are of the utmost importance heading into the new year.
The IRS recently eliminated the automatic 30-day extension of time (using Form 8809) to file W-2 forms. You may want to consider filing recipient copies early in January in order to have the time to correct any issues prior to January 31.
If The Marston Group, PLC typically prepares your Forms W-2 or 1099-MISC, we ask that you give us your information (including up-to-date copies of Form W-9 for all 1099 recipients) no later than January 10, 2017. We appreciate your cooperation with helping us meet the new IRS/SSA filing deadline.
Should you have any questions or concerns, please do not hesitate to contact our firm directly at (901) 761-3003. As always, we are here to help you.