Error in 2013 IRS Form 1096

 

This post applies to 2013 Form 1096, 2013 Form 1099-B and W2 Mate 2013

We have been getting emails and phone calls from our customers asking about the calculation of Form 1096 Box 5 (Total amount reported with this Form 1096) when used to report 1099-B (Barter) forms.

Unfortunately there is an error in the form 1096 instructions from the IRS and we can still see the error with the latest copy downloaded today (Friday November 8 2013).

The 2013 1096 form instructions (page 2 of the form) incorrectly instruct filers to enter the total amount from 1099-B boxes 1d and 14 in Box 5 of the Form 1096. The correct boxes are 1099-B 2a and 7. Please note that boxes 1d and 14 are not used to report money amounts, so they can’t be summed in the first place.

Please also note that the IRS was in the process of introducing major changes to form 1099-B for 2013, but they ended-up using the same form for 2012 with minor changes. Form 1096 instruction most probably refer to boxes that were expected to be part of the new 1099-B form, which was never released.

This error in form 1096 instructions applies to paper copies and does not affect users filing 1099s electronically.

You can contact the IRS at the information returns hotline 1-866-455-7438 if you have any questions about form 1096 instructions.

Form 941 for the third quarter 2013

 

Reminder to Employers and Small Business Owners:

The due date for filing IRS Form 941 for the third quarter 2013 is Thursday October 31, 2013.  Please remember to make all payroll tax deposits on time.

Peachtree Software (Sage 50) Payroll Data Import & Export

 

Peachtree (Sage 50) payroll import and export is now part of our Payroll Mate software.

We tried to make the process of reading payroll setup from Peachtree and exporting payroll transactions as easy as possible. We invite you to try this existing new feature by downloading a free trial of Payroll Mate from this link. We would love to hear from you, please send us any feedback to info@realtaxtools.com .

The diagram below shows how the import process works.

 

Importing employees' information and payroll setup from Peachtree

 

Based on our internal testing, the average time for importing 20 employees from Peachtree into Payroll Mate is around 15 minutes for someone familiar with Peachtree. This does not include employee state exemptions which will need additional time (depending on the state).

On the export side, once the initial setup is done, exporting data from Payroll Mate to Peachtree should not take more than 5 minutes or even less. The diagram below shows how the export process works.

 

Exporting payroll checks to Sage 50

 

2014 Payroll tax Changes

 

We will continue to update this post with new payroll tax changes for 2014.

These changes include withholding tables (federal and state), UI taxable wages and rates, filing penalties, EFT thresholds and more.

Our Payroll Mate® payroll software helps employers and tax professionals stay in compliance with different federal and state payroll tax regulations.

You can download a free trial from here.

 

Arkansas 2014 withholding tables

For tax years beginning on and after January 1, 2014, the lowest tax bracket will be reduced to nine-tenths percent (0.9%) on the first four thousand ninety-nine dollars ($4,099) of net income or any part thereof.

Nevada UI Tax

Effective January 1, 2014, the taxable UI wage base will be $27,400. (The taxable wage base is currently $26,900).The taxable wage base for Unemployment Insurance (UI) contributions is calculated each year at 66 2/3 percent of the average annual wage paid to Nevada workers.

New Jersey UI Tax

2014 Taxable Wage Base under UI, TDI and FLI is $31,500.

Washington UI Tax

The 2014 wage base is $41,300; in 2013 the rate was $39,800.

The taxable wage base is the maximum amount on which you must pay taxes for each employee. The rate is calculated each year based on average wages in Washington.

West Virginia EFT, E-File, E-Pay

For periods starting on or after January 1, 2014, West Virginia taxpayers remitting any single business tax of $25,000 or more during fiscal year 2013 must pay and file returns electronically for all business tax types, unless specifically excluded. The EFT threshold for 2013 was $50,000.

California Minimum Wage

The current California $8 per hour minimum wage will increase to $9 per hour on July 1st, 2014, and will increase to $10 per hour on January 1st, 2016.

Rhode Island Minimum Wage

Effective January 1, 2014 the minimum wage will increase to $8 and hour (currently 7.75 an hour).

Connecticut UI Electronic Wage Reporting / Minimum Wage

Connecticut HB 6452 requires all employers to submit their quarterly wage reports electronically beginning in 2014 unless they apply for a waiver. In 2013 the threshold was 250 for filing electronically.

Connecticut SB 387 Raises the minimum wage by $0.45 in January of 2014, another $0.30 in January of 2015.

 

Payroll Mate Best Value in Payroll Software

 

Pressure Seal W2 Forms

 

Our W2 Mate® software now supports printing 8.5 X 14 inch pressure seal W2’s.

The resulting pressure seal W2 is broken into the following sections:

  1. Copy C for the employee’s records on the top left corner.
  2. Copy B to be filed with the employee’s federal tax return on the top right corner.
  3. Copy 2 to be filed with the Employee’s state, city or local tax return. This copy appears twice right under copies C and B.
  4. W2 Form instructions will be already printed on the back of the pressure seal form.
  5. The bottom part of the pressure seal W2 includes the employer’s and employee’s addresses.

In order to print a pressure seal W2 form inside W2 Mate, please select the following option inside W2 printing dialog:

“Pressure Seal 4-Up Format (use with folding machines)”.

The screenshot below shows how a pressure seal W-2 form generated from inside W2 Mate looks like.

Anatomy of a Pressure Seal 1099 MISC form generated by W2 Mate.

Click here to learn more about W2 Mate and pressure seal W2 forms.