Harper, Rains, Knight & Company, P.A.

February 2021 Business Due Dates

1/19/21 Uncategorized

February 1 – 1099-NECs Due to Service Providers & the IRSIf you are a business or rental property owner and paid $600 or more to individuals (other than employees) as nonemployee compensation during 2020, you are required to provide Form 1099-NEC to those workers by February 1. ‘Nonemployee compensation’ can mean payments for services performed for your business or rental by an individual who is not your employee, commissions, professional fees and materials, prizes and awards for services provided, fish purchases for cash, and payments for an oil and gas working interest. In order to avoid a penalty, copies of the 1099-NECs also need to be sent to the IRS by February 1, 2021. The 1099-NECs must be submitted on optically scannable (OCR) forms. This firm prepares 1099s in OCR format for submission to the IRS with the 1096 submittal form. This service provides both recipient and file copies for your records. A business or individual who is required to file 250 or more information returns (i.e., 1099s among others) must file those forms electronically. Please call this office for preparation assistance. February 1 – Form 1098 and Other 1099s Due to RecipientsForm 1098 (Mortgage Interest Statement) and Forms 1099, including 1099-NEC (see above) are due to recipients by February 1. The IRS’ copy, other than for 1099-NECs, is not due until March 1, 2021, or March 31, 2021 if electronically filed. These 1099s may be reporting the following types of income:

Dividends and other corporate distributions
Interest
Rent
Royalties
Payments of Indian gaming profits to tribal members
Profit-sharing distributions
Retirement plan distributions
Original issue discount
Prizes and awards
Medical and health care payments
Debt cancellation (treated as payment to debtor)

February 1 – Employers – W-2s Due to All Employees & the GovernmentEMPLOYEE’S COPY: All employers need to give copies of the W-2 form for 2020 to their employees. If an employee agreed to receive their W-2 form electronically, post it on a website and notify the employee of the posting. GOVERNMENT’S COPY: W-2 Copy A and Transmittal Form W-3, whether filed electronically or by paper, are due January 31 to the Social Security Administration.February 1 – File Form 941 and Deposit Any Undeposited TaxFile Form 941 for the fourth quarter of 2020. Deposit any undeposited Social Security, Medicare and withheld income tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the quarter in full and on time, you have until February 10 to file the return. February 1 – File Form 943All farm employers should file Form 943 to report Social Security, Medicare taxes and withheld income tax for 2020. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the year in full and on time, you have until February 10 to file the return.
February 1 – File Form 945
File Form 945 to report income tax withheld for 2020 on all non-payroll items, including back-up withholding and withholding on pensions, annuities, IRAs, gambling winnings, and payments of Indian gaming profits to tribal members. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the year in full and on time, you have until February 10 to file the return.
February 10 – Non-Payroll TaxesFile Form 945 to report income tax withheld for 2020 on all non-payroll items. This due date applies only if you deposited the tax for the year in full and on time.
February 10 – Social Security, Medicare and Withheld Income Tax File Form 941 for the fourth quarter of2020. This due date applies only if you deposited the tax for the quarter in full and on time.February 10 – Certain Small Employers File Form 944 to report Social Security and Medicare taxes and withheld income tax for 2020. This due date applies only if you deposited the tax for the year in full and on time.February 10 – Farm Employers File Form 943 to report Social Security and Medicare taxes and withheld income tax for 2020. This due date applies only if you deposited the tax for the year timely, properly, and in full.February 10 – Federal Unemployment Tax File Form 940 for 2020. This due date applies only if you deposited the tax for the year in full and on time.February 16 – Social Security, Medicare and Withheld Income TaxIf the monthly deposit rule applies, deposit the tax for payments in January.February 16 – Non-Payroll WithholdingIf the monthly deposit rule applies, deposit the tax for payments in January.February 16 – Payroll Withholding
Employers begin withholding for employees who claimed exemption from withholding in 2020 but have not provided a W-4 (or W-4(SP)) to continue the exemption for 2021.February 16 – All BusinessesThe following information statements are due to recipients to whom certain payments were made during 2020: Form 1099-B (Proceeds from Broker and Barter Exchange Transactions), Form 1099-S (Proceeds from Real Estate Transactions) and Form 1099-MISC (Miscellaneous Income) if substitute payments are reported in Box 8 or gross proceeds paid to an attorney are reported in Box 14. With consent of the recipient, the 1099 can be issued electronically.