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Download END-OF-YEAR FEDERAL TAX REPORTING ISSUES
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AASBO 2010 WINTER CONFERENCE IRS AUDITS FSLG KIM SAVAGE THE EXAMINATION PROCESS Examination Selection Process Examination Issues and Periods Examination Outcomes and/or Sanctions FORM W-4 COMPLIANCE Exempt Certificates Invalid Certificates None U.S. Person Employees STUDENT FICA EXCLUSION Summer Employment MISCLASSIFIED WORKERS OR PAYMENTS Coaches Sport or Special Event Workers Part-time Hourly Wage Earners Section 3401(d) Employees GROUP TERM LIFE INSURANCE Employer Paid Benefit >$50,000 Employee Paid Elective 125 Plan Benefit CASH EQUIVALENT FRINGE BENEFITS Gift Cards Awards Paid as 3401(d) Employer Employee Allowances Vehicle Cell Phone Other Employer Provide Cell Phone Personal Use Policy w/ Substantial Restrictions Employee Explicit Acknowledgement of the Policy Employee Procedure/Process to Monitor Policy Compliance Policy Requirement for Employee Disclosure of Personal Use Procedure to Identify, Compute, and Include Taxable Wage Amount EMPLOYEE TAKE HOME VEHICLES Condition of Employment Requirement to Commute in an Employer Vehicle Written Policy Prohibiting Other Personal Use Employee Compliance w/ the Policy Non-Personal Use Vehicle Permissible Valuation Methods for Taxable Benefit SAME DAY MEAL REIMBURSEMENTS/ALLOWANCES General Rule – Taxable Fringe Benefit Exceptions: 1. Qualified Business Entertainment 2. Meeting Attendance – Meals in Kind 3. Qualified De Minimus Meal Reimbursements See State Department of Administration Policy www.gao.az.gov EMPLOYER PROVIDED EMPLOYEE HOUSING General Rule = Taxable Fringe Benefit Internal Revenue Code Section 119(a) Internal Revenue Code Section 119(d) Campus Housing Adequate Rent Employer Paid Utilities INFORMATION RETURN COMPLIANCE Payments Subject to Reporting Recipient “Types” Subject to Reporting Sanctions for Non- Compliance – Civil Penalties and Back-up Withholding Taxes School District Area of Compliance Failures – Auxiliary and/or Activity Accounts FORM 1099MISC Verify TINS Used are Possible Numbers Verify Recipients’ Names and TINs are Consistent Impose Back-up Withholding if No Valid TIN on File when Possible Payments Reportable to Corporations Payments for Services to LLCs FORM 1099MISC Deceased Employee’s Wages Paid to Estate or Beneficiary Not Used for Payments to Non-Resident Aliens For More Information Instructions: Forms W-2, W-3, W-4 & 941 Pub 15 Employer’s Tax Guide Pub 15-A Employer’s Supplemental Tax Guide Pub 15-B Employer’s Tax Guide to Fringe Benefits Pub 963 Federal-State Reference Guide FSLG Fringe Benefit Guide Need Help? www.socialsecurity.gov/employer “How to Reach Us” SSA National Employer Information Line 800 772-6270 Phone your FSLG Specialist -Kim Savage 928-214-3309 -Wayne Woods 602-636-9124 -Robert Reinart 602-636-9657 THANK YOU
