Monthly Archives: January 2014

Sales & Use Tax Due on 2-5-14.

REMEMBER:  You need to file your sales and use tax return by February 5th, 2014.

If you do not regularly file a sales tax return, you need to file a “Sales & Use Tax” return by February 5th, 2014.  Click here to file: https://www.mndor.state.mn.us/ur/jsp/Login.jsp

“. . . but I do not collect sales tax or have taxable services!” 

Many people think this, however you must file a return for USE TAX as well as SALES TAX.  USE TAX is the sales tax you should have paid on purchases you may have bought over the internet or in other situations where you did not pay the sales tax at the time of purchase.  This sales tax must be paid in voluntarily and must be paid online.

Business By Design can not file this return for you!  For more infomation, click below to download details about filing this return and filing requirements:

BBD’s Explanation:   Explanation of Sales & Use Tax -2013

Frequently Asked ??’s:  2013 FAQ’s-MN Sales and Use Tax

How to file?:    Step by step instructions for filing Sales and Use Tax returns

For information on what is or is not taxable, please refer to the MN Fact Sheets here:  http://www.revenue.state.mn.us/businesses/sut/Pages/fact_sheets.aspx

For more information, you can go to the MN Department of Revenue Website at:  http://taxes.state.mn.us/sales/pages/index.aspx

1099 Forms & Independent Contractor Rules

Do you need to send 1099’s for payments made in 2013?

If you, individually, or your corporation, have paid $600.00 or more to any one individual in 2013, you are REQUIRED to prepare a 1099 for each individual. (NOTE:  No 1099 is required if you pay a Corporation).  LLC’s would require a 1099 unless the LLC is taxed as a Corporation.

Please note that the Payee needs to receive their 1099 by January 31st, 2014 and the IRS needs to receive their copy by February 28th, 2013.

How to prepare your 1099’s.

If you are required to issue 1099’s you have two options.  Please choose one.

Option #1:  Prepare these yourself by the due dates stated.

You can get the forms from the IRS directly by calling the IRS; ordering the forms online; or visiting one of their offices.  The St. Paul and Bloomington offices do have these forms, but you may be limited in the amount they will give you.

Option #2:  Business by Design will prepare these forms for a fee.

BBD Charges $50.00 for two (2) 1099 forms, and $25.00 for each additional form 1099.  For example:  we prepare 5- 1099’s-the cost is $125.  These fees include preparing the 1099’s and the applicable 1096 form.  The attached payment authorization will need to submitted with your 1099 request.

We will not prepare these returns without a payment authorization on file.  No charges will be processed until the 1099’s are completed and reviewed by you.

Click for Payment Authorization:  Payment Authorization Form

Click for 1099 request form (FILL-IN):  External 1099 Request – Fill In

      1. Who the Payer is (you or corporation name)
      2. Who the Payee is (the name of the person that was paid)
      3. Address of the Payee.
      4. Social Security Number of the Payee.
      5. Amount Payee was paid in 2013.
      6. What is payment for:  services, rent, mortgage interest, interest, etc.

This information MUST be provided to us in WRITTEN form by fax or e-mail (no voicemails) by January 24th, 2014. Any handwritten information must be legible.  If you would like to fax us this information, our fax is:  952-392-1201.

PLEASE BE CERTAIN YOUR INFORMATION IS CORRECT:  There is a $200.00 fee for 1099’s that need to be corrected and reissued because of erroneous information received.  Therefore, it is important you send us the correct and complete information.

If you have any other questions, you can contact Karin Horkey at Business By Design (karinhorkey@biz-by-design.com) or 952-392-1210.