Presented By Ivy Fivey, Owner & CFO Coach at One Stop Consulting Shop, LLC
Wishing everyone a happy holiday season and prosperous New Year ahead! Here are some year-end reminders and tips for our local business owners:
1. If you claim a mileage reimbursement, take a picture on New Year’s Day of your odometer. It will give you the year-end reading for 2018 and the beginning reading for 2019 (so you have it documented for next year). It also documents the odometer should you ever need proof of the reading.
2. Make sure any year-end adjustments are made to your books If you made any year-end retirement contributions with a company paid portion or did some year end spending, make sure the end of your 2018 is accurate for a smooth tax preparation season.
3. If you have open invoices in December and are cash basis, remember to not include these amounts in your Profit and Loss Statement!
4. 1099s are due by January 31st and to be considered on time, many software companies may require an earlier submittal. Make sure you know the cut-off day and time to submit your 1099s so that they are considered timely to the IRS and you will not face a late penalty fee. This is also a good time to make sure you have a W9 on file for every contractor and that their information is up to date. Accurate information will avoid needing to request amended 1099 forms.
5. W2s are due to your employees by the 31st as well! Should you have any payroll adjustments, make sure to discuss your questions and changes with your payroll provider prior to year end. December is also a good time to make sure your employee contact information is up to date so W2s can be mailed to correct addresses.
6. Estimated taxes are due January 15th for individuals and this applies to business owners with a “flow-through” entity like an s-corp, partnership of single member LLC. If you did not make estimated tax payments in 2018 but know that you have a tax liability due to the IRS, this is a great time to make a payment to help reduce any underpayment penalties. As a reminder, if you request an extension of time to file your 2018 taxes, that extension only applies to the tax return itself and does not apply to any taxes that you may owe. If your tax liability is not paid in full by April 15th (or through estimated payments throughout 2018), then you may be assessed underpayment penalties and interest.
Make sure to speak with your Tax Professional if you have questions about closing out 2018 and starting a fresh 2019! Happy New Year!