Following are commonly used tax reporting forms used by businesses, employees, and independent contractors:
IRS Form W-2: Wage and Tax Statement
IRS Form W-2 is a form required to be prepared by employers once each year. The IRS requires employers to report wage and salary information for employees on Form W-2. The form also reports the amount of federal, state, and other taxes withheld. Employers are required to provide employees with the form no later than January 31 of each year so employees have it in time to file their personal tax returns.
IRS Form W-9: Request for Taxpayer ID Number and Certification
IRS Form W-9 is the form used to provide the taxpayer's Tax 10 Number (TIN) to someone who is required to file an information form with the IRS to report income paid. The form must be completed by self-employed independent contractors.
IRS Form 1099-Misc/ Miscellaneous Income
This I RS form is used to report rents, royalties, and other income of $600 or more from a single person or entity each year. Self-employment income is now reported on IRS Form 1099-NEC.
IRS Form W-4, Employee's Withholding Certificate
This form is completed by employees to establish how much federal income tax an employer should withhold from each paycheck. It is completed at the start of employment and should be updated when appropriate.
IRS Form 1099-NEC
This form replaced the 1099-MISC, Miscellaneous for reporting self-employment income of $600 or more each year. The form is used by independent contractors.
IRS Form 542 for Independent Contractors
IRS Form 542 must be filed by California employers each calendar year who make payments of $600 or more to an independent contractor or makes an agreement to pay an independent contractor more than $600. The form must be filed within twenty days of the payment or the agreement.
IRS Form 941
IRS Form 941 is a tax form that businesses file quarterly to report income taxes, Social Security taxes and Medicare taxes they withhold from employee paychecks. Form 941 also from employee paychecks. Form 941 also reports employer Social Security taxes and Medicare taxes. Filing deadlines are the last day of January, April, July, and October.
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