When was Form 1099-NEC reinstated, and why?
Form 1099-NEC was reinstated for the 2020 tax year after a hiatus of nearly four decades. The form is now used to report nonemployee compensation (NEC) paid to independent contractors, freelancers, and other self-employed individuals. Why Was Form 1099-NEC Reinstated? The primary reason for the reinstatement was to simplify and streamline reporting requirements, specifically in […]
What is the difference between gross receipts and total receipts?
The terms gross receipts and total receipts on IRS Form 8027, used to report tip income and allocated tips for large food and beverage establishments, have distinct meanings: Gross Receipts Represents the total revenue from food and beverage sales that are subject to tipping. Total Receipts Refers to all the revenue generated by the establishment, […]
The Rise of ACA State Mandates
The rise of ACA (Affordable Care Act) state mandates reflects a growing trend among states to reinforce or expand upon the federal ACA’s provisions, often in response to federal rollbacks or regional health care needs. Background The ACA, enacted in 2010, aimed to make health insurance more accessible and affordable. It introduced provisions like: Individual […]
How do I correct an error on Form CA-592?
For Form CA-592 (Resident and Nonresident Withholding Statement), the California Franchise Tax Board (FTB) requires that corrections be made by paper filing rather than electronically. Correcting an Error on Form CA-592 (Paper Filing): Here’s what you need to do: Obtain a New CA-592 Form: Get a blank Form CA-592 from the FTB website or from […]
Can W-2C Correct Mistakes for Prior Years?
Yes, a W-2C (Corrected Wage and Tax Statement) is used to correct errors on a previously filed W-2 form for prior years. If mistakes were made on the original W-2, such as incorrect wages, tax withholding, or other information, the employer can issue a W-2C to correct those errors. Some common situations where a W-2C […]
Do businesses with 49 employees or fewer have any ACA compliance obligations?
Businesses with 49 or fewer employees have no obligations under the Affordable Care Act (ACA) to provide health insurance or meet other mandates required of larger employers. No ACA Employer Mandate Businesses with fewer than 50 full-time equivalent employees (FTEs) are not required to: Offer health insurance to employees. File ACA forms such as 1095-C […]
