1099 Forms & Independent Contractors

Do you need to send 1099’s for payments made in 2018?

IRS Audit Warning

If you, individually, or your corporation, paid $600.00 or more to any one individual or required business (including LLC’s that are not taxed as a corporation) in 2018, you are REQUIRED to prepare a 1099 for each individual or business. (NOTE:  No 1099 is required if you pay a Corporation).

Please note that the Payee must receive their 1099 by January 31st, 2019 and the IRS needs to receive their copy by January 31st, 2019.

PLEASE NOTE:  The IRS will be imposing a penalty if you fail to provide the recipient and the IRS copies of the 1099’s.  The penalty is $250 for each IRS and payee copy not filed or furnished to the recipient, respectively.  For example, if you were required to do 5 – 1099’s and you do not do them, it would result in a penalty of $2500.

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 or purchasing them at your local office supply store.

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

Our fee is $100.00 for two (2) 1099 forms and $25.00 for each additional form 1099.  For example:  we prepare 5- 1099’s-the cost is $175.  These fees include preparing the 1099’s and the applicable 1096 form.  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

      1. Who the Payer is (you or corporation name)
      2. Who the Payee is (the name of the person or business that was paid)
      3. Address of the Payee.
      4. Social Security Number of the Payee.
      5. Amount Payee was paid in 2018.
      6. What is payment for:  services, rent, mortgage interest, interest, etc.

FOR 2018: All of your 1099 information will need to be uploaded to us using the Secure Exchange on myBBDPass by January 23rd, 2019.  Any handwritten information must be legible.  To view an example of what the Secure Exchange folder looks like, click here:  myBBDPass Secure Exchange Instructions

If you would like to download a complete copy of this information click here: myBBD 1099 Reporting Information 2018

To log into your myBBDPass Account, click heremyBBDPassLogin

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@mybbd.com) or 952-392-1210.


 

Sales & Use Tax DUE February 5th, 2019

Sales & Use Tax ImageREMEMBER:  You need to file your sales and use tax return by February 5th, 2019.

If you do not regularly file a sales tax return, you need to file a “Sales & Use Tax” return by February 5th, 2019.  Click here to file: https://www.mndor.state.mn.us/tp/eservices

“. . . 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.

This information is being provided to you as a guide. Business By Design does not have your user name or password and we are not able to reset forgotten passwords. Specific questions regarding Sales and Use Tax and e-services should be directed to the MN Department of Revenue at 651-282-5225.

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

Click here for everything you need to know to file your Sales & Use Tax Return:  myBBD Sales & Use Tax Reporting Information

For step by step instructions on how to file watch the video below:    

For more information, you can go to the MN Department of Revenue Website at:

https://www.revenue.state.mn.us/businesses/sut/Pages/Education-Videos.aspx

S-Corporation Health Insurance

Be sure your health insurance premiums are deductible…

If you have an S-Corporation and you want to deduct 100% of your Health Insurance Premiums, you are REQUIRED to have your TOTAL PREMIUMS PAID IN 2018 reported on your year end W-2 forms.

If you do not have this reported on your W-2 you will not be able to deduct 100% of your health insurance premiums paid in 2018.  For an explanation of what to do, please select one of the two documents below to view and follow the listed instructions:

If BBD Processes your payroll:  

Click Here: Health Ins Reporting – myBBD Payroll – 2018

 If BBD DOES NOT process your payroll:

Click Here: Non-BBD Payroll Clients – HI reporting 2018

2018 Year End Planning

Forms and useful information ….Tax Planning

Here are some forms and useful information to review for your year end tax planning.  If you have not had your year end tax review yet and need to schedule an appointment yet, please click here:

  • To prepare for this appointment;

CLICK HERE2018 Year End Review Appointment Checklist

  • To use a fill in worksheet as a guide to send us,

CLICK HERE:  2018 Year End Review Fill-In Worksheet

ALL S-CORPORATIONS, PLEASE NOTE THE FOLLOWING:

  • Your business year end is December.
  • All S-Corporations with a profit will need to some type of wage/payroll for 2018.
  • Your wages and taxes will be determined during your review appointment.

REMINDER: Tax Payments, HSA and IRA contributions for 2017

 TAX RETURNS vs. TAX PAYMENTS:  What is due?

  • Your tax payment is due by April 17th.  Your tax return does not have to be filed by 4/17 as long as we have filed an extension.
  • If we have prepared your taxes in the past, and your taxes are not complete – rest assured, we have filed an extension for you, you do not need to do anything, or sign anything.

** IF YOU OWE TAXES — Your TAX PAYMENT is due by April 17th.  Your filing date can be extended, but not the payment **


EXTENSION PAYMENTS:

If you would like to make a tax payment for April 17th, please contact us ASAP.  We will be happy to help you with this.  If you had a tax review completed by us for 2017, please refer to the notes from that meeting for our instructions on what you will need to do by 4/17.

If you have questions, please email:  darrellynn@mybbd.com.  He can get your questions to your BBD Accountant in Charge.

HEALTH SAVINGS ACCOUNTS (HSA) for 2017HSA Image

  • Funding for 2017:  Your 2017 HSA contribution needs to be funded by 4/17/18.  HSA contributions can not be extended with a personal tax extension.
  • Family Plan:  The max contribution for a family plan is $6,750.
  • Individual Plan:  The max contribution for an individual plan is $3,400.
  • Age 55+:  If you are 55+, you can add an additional $1,000 to your contribution.

NOTE:  Make sure you qualify to make a HSA contribution prior to making a 2017 contribution.

IRA’s and ROTH IRA’s for 2017 – Personal ContributionsIRA - Image

  • IRA Contributions:  The max IRA contribution is $5,500.   If you are 50 and older, you can an additional $1,000.   The IRA must be opened and funded by 4/17/18.  This contribution can not be extended with a personal tax extension.
  • ROTH IRA Contributions:   The max ROTH IRA contribution is $5,500.   If you are 50 and older, you can an additional $1,000.   The IRA must be opened and funded by 4/17/18.  This contribution can not be extended with a personal tax extension.

NOTE The due date of 4/17 DOES NOT apply to SEP’s and 401K contributions.  Those contributions can be extended with the due date of the Personal or Corporation tax return.