Kick off the year by checking these bookkeeping tasks off your list:
1. Update Unemployment tax rate before issuing your first-of-the-New-Year payroll.
2. File 4th quarter State Unemployment return and Federal Unemployment.
3. Collect all W-9 Forms and issue Form 1099 by January 31.
One thing to watch out for at the end of the year is notifications about unemployment insurance tax rates for the coming year. It is important to update the rates in the payroll software before running the first payroll of the new year – and for some businesses, that means getting it done before January 1st!
By the fourth quarter, many businesses have surpassed the taxable wage base and will not owe additional unemployment taxes at year-end. However, it is still necessary to file the quarterly unemployment return with the state's unemployment agency.
Another year-end task is to make sure Form W-9 has been collected from each vendor, freelancer, or independent contractor you did business with during the year. Enter the tax id in the QuickBooks vendor profile and check the box if they are eligible for a 1099. You need to send Form 1099 to each non-incorporated vendor by January 31 (Note: An LLC is not a corporation, be sure to include your LLC vendors when you issue 1099s).
Still have questions about bookkeeping in the new year? Contact me for a free consultation.
Tony Solgard, a QuickBooks Certified ProAdvisor, is president of Bookkeepers Plus, located in Cape Coral and Bonita Springs, Florida, and providing bookkeeping services to businesses nationwide. His blog helps business owners understand why accounting details are important and to educate them (or whoever they assign to the bookkeeping function) on how to do it right. The blog offers accounting, bookkeeping, and financial management tips, points you toward small business financial resources, and gives a shout out to small businesses with financial success stories. It discusses the pros and cons of using QuickBooks as well as provides tips to maximize your use of QuickBooks.