Today, we are going to discuss three important record-keeping tips that every employer should be doing. This includes what business records to keep, employee records to keep, and for how long to keep them. Welcome to HR over coffee, a video series from the experts at HR 360 where we discuss compelling and timely topics in HR and benefits management. You may not give much thought to these topics outside of tax season, but some of the expenses you pay during the year might qualify for money-saving tax credits or deductions come tax time. If you organize your tax records now, you'll make tax filing easier and faster when you do them next year. It also helps reduce the chance that you'll lose a receipt or statement that you need. Here are three tips from the IRS on tax record-keeping for employers: 1. Save certain business records: The following are some of the types of records that you should keep: - Gross receipts: These are the income you receive from your business. You should keep supporting documents that show the amounts and sources of your gross receipts. - Purchases: These are the items you buy and resell to customers. Your supporting documents should show the amount paid and that the amount was for purchases. - Expenses: These are the costs you incur other than purchases to carry on your business. Your supporting documents should show the amount paid and that the amount was for a business expense. - Assets: These are the properties such as machinery and furniture that you own and use in your business. You need records to compute the annual depreciation and the gain or loss when you sell the assets. Such records may include cash register tapes, bank deposit slips, receipt books, and purchase and sales invoices. These records may also include credit...
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Who needs 8027 Form: What You Should Know
Form 8027-A, Employer's Annual Information Return of Tip Income and Allocated Tips for All Employees — to report the amount of tips that an employee receives on Federal Insurance Contributions Act (FICA) Qualified Plan Distributions. The tip pool is your employees' share of FICA-qualified plan income. Tips from outside the plan—employees, partners, the company, and the source of those tips—deposit in the wage and tax pool. They are the taxes that are paid on the tips after the employee has paid the employer's share. The amount of tip income and the type of employer contribution determine whether the employer pays federal income tax on the tips that employees receive. All you need to record your tip income is Form 8027-A and your employers' reports, Form 8859 and Form 8859-B, and the tip sheet. All tip data may be printed out on Post-It Note form instead. The employer report has the following information: Employer's identification numbers (EIN) Employer-paid payroll taxes Employer Form W-2 Forms W-2c, W-2d, and W-2e Form 1099-MISC Payroll deductions, including Social Security and Medicare deductions, If you report the amount of an employee's tip income on Form 8027, you need to enter your EIN and a “1099-MISC,” “W2E,” or “W2c.” An “1099-MISC” is the IRS code of Form W2, your employer provided wage and tax reporting system. Your tips must be reported as “Allocated Tips”—that is, tips that were not paid to the employee and are not part of your total tips reported on any individual Form 8027-A. If you are not a restaurant or food service operator, your first quarterly payment is due on February 1. The second quarter is due March 1 or May 1. If you are a restaurant or food service operator, you are required by law to file a Form 1099-K if you pay the full minimum wage. The Tip Pool For tips received in a calendar quarter the total paid in the calendar quarter is the total tips received over the prior 12 months. Tip pooling is a method by which a tip pool is created.
Online solutions help you to manage your record administration along with raise the efficiency of the workflows. Stick to the fast guide to do Form 8027, steer clear of blunders along with furnish it in a timely manner:
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