By Jennifer F. Flinchum, CPA, CFP®, Partner
Important business tax filing reminders
In this article, we highlight key business reporting and filing deadlines for 2023. The filings below can often be more challenging and require more time than anticipated due to gathering information from others, nuances in the law, varying due dates, and the new Internal Revenue Service (IRS) e-file requirements. There are savings opportunities available (proper Business, Professional and Occupational License (BPOL) classification, filing in multiple jurisdictions, and reviewing property listings), so please do not delay in preparing for these filings.
Payroll reporting
The following payroll returns are due January 31, 2024:
- Provide copies of Form W-2 to employees
- File Form W-3 and Forms W-2, Copy A, with Social Security Administration
- File Payroll tax returns with appropriate agency:
- Form 941, Employer’s QUARTERLY Federal Tax Return (or Form 944, Employer’s ANNUAL Federal Tax Return)
- Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return
- Form VA-6, Employer’s Annual or Final Summary of Virginia Income Tax Withheld (or annual withholding report for applicable state)
- Form VEC-FC-20/21, Employer Quarterly Payroll and Tax Report (or SUTA report for applicable state)
- File Form 945, Annual Return of Withheld Federal Income Tax (if income tax was withheld on non-payroll items)
Out-of-state employees?
If you have employees living and/or working in states other than Virginia, be sure to confirm and comply with the reporting dates for those states.
New rule for 2023 payroll filings
If you file 10 or more W-2s and 1099s and various other informational forms, your business must e-file.
Form 1099 information returns
Form 1099-NEC, which reports non-employee compensation, is due to recipients and the IRS on January 31, 2024:
Payments for non-employee compensation are reported on Form 1099-NEC in Box 1.
- Provide Form 1099-NEC to unincorporated independent contractors to whom you have paid $600 or more for services used in a trade or business during calendar year 2023
- File Form 1096 and Forms 1099-NEC, Copy A, with the Internal Revenue Service
- Attorneys’ fees for services of $600 or more paid in the course of a trade or business are reported in Box 1 of Form 1099-NEC, regardless of legal classification (unincorporated, LLC or Corporation).
- Payments made by debit or credit card should not be reported on Form 1099-NEC. These electronic payments are reported on Form 1099-K, Payment Card and Third-Party Network Transactions, by the merchants and third-party networks who collect the payments.
New rule for 2023 Form 1099 information return filings
If you file 10 or more W-2s and 1099s and various other informational forms – you must e-file.
Other Forms 1099
Forms 1099 which report payments other than non-employee compensation are generally due to recipients on January 31, 2024 and to the IRS on February 28, 2024.
To ensure compliance of various filings as specific due dates may vary a bit (and be different for e-filed forms), please refer to the IRS General Instructions for Certain Information Returns.
- Provide Form 1099 to recipients
- The type of Form 1099 depends on the amount and type of payment made
- File Form 1096 and Forms 1099 with the IRS by February 29, 2024
- Gross proceeds paid to attorneys of $600 or more paid in the course of a trade or business in connection with legal services are reported in Box 10 of Form 1099-MISC, regardless of legal classification (unincorporated, LLC or Corporation).
- Gross proceeds are not reported on Form 1099-NEC.
- Payments made by debit or credit should not be reported on Form 1099-NEC. These electronic payments are reported on Form 1099-K, Payment Card and Third-Party Network Transactions, by merchants and third-party networks who collect the payments.
New rule for 2023 other Forms 1099 filings
If you file 10 or more W-2s and 1099s and various other informational forms – you must e-file.
IMMEDIATE ACTION REQUIRED: It is recommended that businesses review their records prior to December 31, 2023, to make certain that a Form W-9 (Request for Taxpayer Identification Number and Certification) is on file for any contractor requiring a Form 1099. The best practice is to collect the Form W-9 during the year and prior to payment.
Local tax reporting
Business license renewal applications for license year 2024 must generally be filed, and taxes paid by March 1, 2024.
Some localities, such as Hanover County, do not have a business license (except for contractors) while other localities require a license for just certain types of businesses. Contact your locality for more information. Keep in mind that if your business operates in multiple localities, multiple licenses may be required.
Returns of business tangible personal property have filing dates which vary depending on the locality:
- Chesterfield County March 1, 2024
- County of Hanover May 1, 2024
- County of Henrico March 1, 2024
- City of Richmond March 1, 2024
IMMEDIATE ACTION REQUIRED: Since tangible personal property tax due is calculated on the assessed value of assets available for use as of January 1, 2024, the asset listing should be reviewed each year to confirm that assets disposed of during the year have been removed by December 31 and assets acquired have been added. Assets still owned but not in use should be disposed of prior to December 31, otherwise they are reportable for local property tax purposes.
Also note that tangible personal property expensed for federal income tax purposes (often referred to as the de minimis rule ($2,500 per item if no audited financial statement) is still reportable to the localities.
Questions on business tax filings and deadlines specific to your business? Contact your Keiter Opportunity Advisor for assistance.
Additional business tax and reporting resources
Local County Business License Information
About the Author
Jennifer F. Flinchum, CPA, CFP®, Partner
Jen partners with her corporate and individual clients to identify tax planning and credit opportunities while managing liability and risk. She applies her significant experience in tax compliance and strategic consulting for both privately held businesses and their owners. Her expertise also includes tax accruals, mergers and acquisitions, multi-state tax issues, audit controversy and executive compensation. Jen is the lead partner of Keiter’s Family, Entrepreneur, and Executive Advisory Services Team.
More Insights from Jennifer F. FlinchumThe information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.
