Massachusetts Form 1099-K Reporting

Massachusetts now mandates filing Forms 1099-K with the department of revenue when the gross amount paid in settlement in a calendar year is $600 or greater.

Third party settlement organizations, TPSOs and other Massachusetts filers can use our 1099 software to comply with these new Mass 1099-K reporting requirements.

Summary of requirements:

1.New reporting requirements are effective beginning with Forms 1099-K filed for 2017 calendar year.

2.Forms 1099-K filed for 2017 calendar year must be provided to payees by January 31, 2018 and must be filed with Mass DOR by February 28 or March 31 if filed electronically.

3.The new reporting requirements apply to third party settlement organizations, or TPSOs

4.The reporting threshold is $600.

5.Where a filer has a Massachusetts Form 1099-K reporting obligation but is not required to file Form 1099-K with the IRS, the filer may file with the Department using IRS Form 1099-K.

6.The mailing address for filing on paper is:

Massachusetts Department of Revenue
P.O. Box 7045
Boston, MA 02204

7.The website to upload 1099-Ks to Mass DOR is MassTaxConnect (MTC).

Please visit the link below to learn more about w2 Mate W2 / 1099 Software:

2018 Tax Cut Cheat Sheet for Employers

The United States Congress passed the Tax Cuts and Jobs Act of 2017 on December 20, 2017.

Payroll Mate is helping employers and tax professionals comply with the new regulations.

The Payroll Mate team put together this “cheat sheet” that covers some of the common questions employers have about the new bill:

When will the IRS publish the 2018 withholding tables?
In a statement on December 13, 2017, the IRS said they will be publishing Notice 1036 (Early Release Copies of the Percentage Method Tables for Income Tax Withholding) in January 2018.

When will Payroll Mate be updated with the 2018 Tax Cut changes?
As soon as the IRS publishes Notice 1036, our development team will start implementing and testing the 2018 federal withholding calculations.

What are the new withholding rates?
The new rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

What is the new standard deduction?
$12,000 for single filers, $24,000 for married joint filers, and $18,000 for heads of household.

What is the new personal exemption?
The personal exemption has been repealed. So there is no personal exemption starting in 2018.

What are the new flat withholding rates?
For supplemental wages up to $1 million, the optional flat rate is 22%.
For supplemental wages in excess of $1 million, the mandatory flat rate is 37%.

What is the mandatory backup withholding rate?
The mandatory backup withholding rate (applies when independent contractors don’t give you their taxpayer identification number before you pay them) is 24%.

Will form W-4 get updated?
Yes, most probably employee form W-4 will have “structural changes” and a new version will be published by the IRS.

Do we need to file forms 1095-C / 1094-C for 2017?
The final tax reform bill (which takes effect in 2018) eliminates (makes it $0) the tax penalty levied on individuals who don’t obtain health insurance. However applicable large employers still have to furnish copies of Form 1095-C to their employee by the end of January and to file those forms, along with the transmittal, Form 1094 – C, with the IRS by Feb. 28, for paper filers, or by April 2, for e-Filers.

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Form 1095-C: Top 10 Things Every Employer Should Know


Here are the Top 10 things about IRS Form 1095-C that every employer should know:

1) If you are an employer with 50 or more full-time employees in the preceding calendar year you must use Affordable Care Act Form 1095-C to report your employees’ offers of health coverage and enrollment in health coverage.

2) If you are an employer and you provide self-insured health coverage to your employees, you must send Form 1095-C (to your employees and the IRS) regardless of the number of your full-time employees.

3) You must send 2015 forms 1095-C to your employees no later than February, 1st 2016. The easiest way to process 1095-C forms is by using ACA 1095 Filing Software either desktop-based or online.

4) You can send form 1095-C to an employee in electronic format (such as a PDF document) instead of paper as long as you have the employee’s consent and the electronic format matches the specs of the paper copy (complies with IRS Publication 5223).

5) You must send 2015 forms 1095-C to the IRS no later than February, 29 2016 if you are filing on paper and no later than March, 31, 2016 if you are filing electronically.

6) If you are filing 250 forms 1095-C or more, you have to file electronically with the IRS.

7) The IRS will not impose penalties for incorrect or incomplete fields on the 2015 1095-C forms if you can show you have made a good faith effort to comply with the ACA filing requirements.

8) If your is business is located in “Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Georgia, Kentucky, Louisiana, Maine, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas, Vermont, Virginia, West Virginia” you mail the IRS copy of form 1095-C to “Department of the Treasury Internal Revenue Service Center Austin, TX 73301”. And If your is business is located in “Alaska, California, Colorado, District of Columbia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Wisconsin, Wyoming” you have to mail the form to “Department of the Treasury Internal Revenue Service Center Kansas City, MO 64999”.

9) You may mask the employee’s or covered individual’s social security number (SSN) on Form 1095-C you send to the employee (NOT the IRS) by showing only the last four digits of the SSN and replacing the first five digits with asterisks (*) or Xs.

10) If you submit 1095-Cs to the IRS electronically you have to create your submissions in XML format and comply with IRS Publication 5165.

Our 1095 Mate software gives employers everything they need to process 1095-C and 1094-C forms in-house at an affordable price and with minimum effort.

1095 Mate Software

2015 Payroll Tax Changes

It’s that time of the year again! In this post we share the 2015 payroll tax changes (as of December 18, 2014). We would also like to invite you to check out our 2015 Payroll Mate software (for processing 2015 payroll) and our W2 Mate 2014 software (for 2014 year-end W2 and 1099 compliance) .

If you have any feedback about this list, please email .


Social security, the 2015 tax rate is 6.2% each for the employee and employer. The 2015 social security wage base limit is $118,500.

The 2015 Medicare tax rate is 1.45% each for the employee and employer. There is no wage base limit for Medicare tax. In addition to withholding Medicare tax at 1.45%, you must withhold a 0.9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year.

The 2015 Federal Unemployment Tax Act (FUTA) wage base is $7,000 per employee.

The 2015 Federal Withholding Allowance is $ 4,000.00.

The 2015 Federal income tax rates are 10%, 15%, 25%, 28%, 33%, 35% and 39.6%.

The 2015 federal brackets for SINGLE filers are $2300, $11525, $39750, $93050, $191600, $413800 and $415500.

The 2015 federal brackets for MARRIED filers are $8600, $27050, $83500, $159800, $239050, $420100 and $473450.

2015 States unemployment wage base:

Alabama [$8000], Alaska [$38,700], Arizona [$7,000], Arkansas [$12,000], California [$7,000], Colorado [$11,800], Connecticut [$15,000], Delaware [$18,500], District of Columbia [$9,000], Florida [$7,000], Georgia [$9,500], Hawaii [$40,900], Idaho [$36,000], Illinois [$12,960], Indiana [$9,500], Iowa [$27,300], Kansas [$12,000], Kentucky [$9,900], Louisiana [$7,700], Maine [$12,000], Maryland [$8,500], Massachusetts [$15,000], Michigan [$9,500], Minnesota [$30,000], Mississippi [$14,000], Missouri [$13,000], Montana [$29,500], Nebraska [$9,000], Nevada [$27,800], New Hampshire [$14,000], New Jersey [$32,000], New Mexico [$23,400], New York [$10,500], North Carolina [$21,700], North Dakota [$35,600], Ohio [$9,000], Oklahoma [$17,000], Oregon [$35,700], Pennsylvania [$9,000], Puerto Rico [$7,000], Rhode Island [$21200], South Carolina [$14,000], South Dakota [$15,000], Tennessee [$9,000], Texas [$9,000], Utah [$31,300], Vermont [$16,400], Virgin Islands [$22,900], Virginia [$8,000], Washington [$42,100], West Virginia [$12,000], Wisconsin [$14,000] and Wyoming [$24,700] .

Final 2014 (yes 2014 not 2015) credit reduction rates

California 1.2%, Connecticut 1.7%, Indiana 1.5%, Kentucky 1.2%, New York 1.2%, North Carolina 1.2%, Ohio 1.2% and Virgin Islands 1.2%

States with new income tax withholding tables for 2015:

Arkansas, California , Colorado , Connecticut, Washington DC, Idaho, Illinois, Kansas, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Missouri, New Mexico, New York, North Dakota, Oklahoma, Oregon, Rhode Island and Vermont .

IRS 2015 mileage rates

The 2015 standard mileage rates for the use of a car, van, pickup or panel truck will be 57.5 cents per mile for business miles driven, 23 cents per mile driven for medical or moving purposes, and 14 cents per mile driven in service of charitable organizations.

2015 State minimum wage changes

Alaska [$8.75], Arizona [$8.05], Arkansas [$7.50], Colorado [$8.23], Connecticut [$9.15], Florida [$8.05], Hawaii [$7.75], Maryland [$8.00], Massachusetts [$9.00], Missouri [$7.65], Montana [$8.05], Nebraska [$8.00], New Jersey [$8.38], Ohio [$8.10], Oregon [$9.25], Rhode Island [$9.00], South Dakota [$8.50], Vermont [$9.15 and Washington [$9.47] .

2014 Printable 1099-MISC Form (PDF)

Create 2014 printable 1099-MISC forms in Adobe PDF format to report miscellaneous income, 1099 employee compensation and rents to the IRS during 2015 tax season. The resulting PDF files can be printed on Windows computers, Apple Macs, tablets and even smart phones that support documents in the portable document format (PDF).

What you will need is W2 Mate 2014 software along with W2 Mate 2014 Option #6 (PDF). If you do not own a copy of W2 Mate 2014 you can test drive the software by downloading a copy from the link below:

Download W2 Mate Software

1- Open W2 Mate Software by clicking the icon on the desktop.

2- Create one or more recipients by navigating to the “1099/1098 Recipients” screen.

3- Fill in the Amounts for each recipient such as non-employee compensation, rents, royalties and so on.

4- Review the information for your recipients. You can also export all 1099-MISC forms to Excel where you can review your data in a tabular format.

5- Under 1099 Forms screen, click the “Create PDF 1099s” button. Specify the folder where you want to create the PDF 1099-MISC forms and the contractors / 1099 employees you want to create the forms for.

6- Now W2 Mate will create 2014 1099-MISC forms in PDF format that are ready to be sent to the recipients.

7- Use your email client or any other electronic communication means to send the PDF forms to your recipients.

8- Once the recipient receives the form(s) they can be opened and printed using the free Adobe Reader.

9- Click here for a sample 2014 1099-MISC PDF form created using W2 Mate software.

To learn more about W2 Mate capabilities, please click here .

W2 1099 Software FREE