Finding the appropriate small business IRS Forms is a bit difficult when you are running your payroll program. As there are various tax forms for the employees to fill out, it is confusing which of the form is applicable to your business. In this article let us discuss, few of the IRS payroll forms that are required to be filed by small businesses
Form W-2, Wage, and Tax Statement
Form W2 should be filed for every employee, who have worked for you during the calendar year. Use the information of your payroll from the year in order to fill out the form. This W2 form specifies the taxes that you have withheld from the wages of the employee to the government. Form W2 must be sent to each employee and the Social Security Administration. The copy of these forms must be kept at least for 4 years by the employers. The filing deadline is January 31st. This form is due both to the SSA and the employees on the same date.
Form W-3, Transmittal of Wage and Tax Statements
Form W3, a transmittal form which sums up all the W2 forms. You can send the W3 Form along with the W2 Form to the Social Security Administration. The due date is same as the W2 form deadline. The W3 form is not for the employees and they do not receive them.
Form 944, Employer’s Annual Federal Tax Return
Few small businesses report the federal income taxes and FICA taxes yearly as it has to be done quarterly usually. As there is the difference in the tax reporting for small business, there need different payrolls. Form 941 is replaced by the Form 940 for these employers. But to use the Form 944, the IRS must notify you. The deadline for this form 944 is 31st January.
Form 1095-B, Health Coverage
Form 1095 B is used to report the employee health coverage. When you offer your employees with a self-insured health plan, you need to file the Form 1095 B. This plan refers that your business has its own health insurance instead of other third party insurance. This self-insured health coverage plan is more prevalent among large employers, but small business persons can also try this plan.
Send the copy of this plan to IRS and one to the employee. As an employer, you need to keep this form copy for at least 3 years. Due date to mail this Form to the employees is 31st January. Send mail paper format form 1095 B to the IRS by 28th February. File the Form 1095 B electronically to the IRS by 31st March.
Form 1094-B, Transmittal of Health Coverage Information Returns
Form 1094 B is also a transmittal form that accumulates the Form 1095 B. This Form provides an overview of the health insurance that the employer offers to the employees. Form 1094 B must be returned along with Form 1095 B to the IRS. The deadline for the Form 1094 B is same as the Form 1095 B deadline. This form is not for the employees and they do not receive them.
Apart from these above payrolls, there are many payrolls for small businesses that can be used by your company according to the needs of the company. But you need to file the necessary forms on time so that you will avoid the penalties.
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