Current Updates

Important Changes to Your Year-End Reporting

There are important changes to your year-end reporting requirements associated with Form 940’s and Form 1099’s.

Annual 940 FUTA Form

 Many states borrowed money from the Federal Unemployment system to pay their State Unemployment benefits. Those loans were to be repaid by November 2011 or a portion of YOUR credit reduction would be reduced. However, many states did not get those loans repaid, with Nevada and California being among them. This reduced credit reduction is .003 of all taxable wages and will add a maximum of $21.00 per employee who earned $7,000 in 2011.

You are required to complete and include Schedule A with your Form 940.   Please read through your Federal Form 940 report to insure you accurately complete all of the sections.

1099 Information Returns

 You no longer need to prepare 1099 forms for vendors/subcontractors where your payments were made by credit card/debit card. Those payments are now being reported on Form 1099-K by the credit card merchants. Please remember to file all 1099’s to their recipients by January 31, 2012

Should you need additional assistance or have questions please feel free to call our office at 775-885-8847 or visit the IRS website at www.irs.gov.