February Is a Big Month for Tax Forms
Businesses must send many tax forms in February.
These forms report income paid during the year.
The IRS uses them to match income with tax returns.
Missing these deadlines can lead to penalties.
Key February Tax Deadlines
February 2
Businesses must complete several important filings.
Employers must:
- File Form W-2 with the Social Security Administration
- Give employees their W-2 income statements
- Send certain 1099 forms to contractors and recipients
Businesses may also need to file:
- Form 940 for federal unemployment tax
- Form 941 for payroll taxes
February 10
Employers who deposited payroll taxes on time may have this later deadline to submit their reports.
Employees who receive tips must also report January tip income to their employer.
February 17
Another payroll tax deadline arrives.
Employers must deposit taxes that were withheld from employee wages in January.
Businesses must also send certain forms including:
- Form 1099-B
- Form 1099-S
- Certain Form 1099-MISC reports
New Tax Rule for Retirement Contributions
Higher-income workers who make catch-up retirement contributions now face a change.
In some cases these extra contributions must be treated as Roth contributions, which means they are taxed now rather than later.
This affects certain employer retirement plans.
Accounting Tip for Small Businesses
Good bookkeeping makes tax reporting much easier.
Each month businesses should review:
- Payroll records
- contractor payments
- expense tracking
- bank reconciliations
When records stay organized, preparing tax forms becomes much faster.
Final Thought
February is one of the busiest months for business tax reporting.
Submitting forms on time keeps your business compliant with IRS rules.
If you need help preparing payroll reports or tax forms, Lincoln Systems can assist your business.
