Feds green light stiffer penalties for these errors
Let your A/P department know: Getting 1099s filed accurately and efficiently should be a top priority right now.
That’s because the recent Small Business Jobs Act significantly increases the penalties that firms will get hit with for mistakes made during the 1099-filing process.
Fortunately, you have some time to error-proof your processes. The higher penalties begin for returns that are required to be filed on or after Jan. 1, 2011 — coinciding with the expanded reporting requirements under the healthcare reform law.
So how much do the penalties go up? First-tier penalties — for correcting a filing mistake within 30 days — will be $30 per return, up from $15. These penalties max out at $250,000 per year, which is a huge jump from the current annual limit of $75,000.
Both second- and third-tier penalties will also double. Second-tier fines will jump to $60 for each incorrectly filed return, and third-tier penalties increase to $100 per return.
Readers, what does your company do to prevent 1099-filing errors?
- Share on
Free Training & Resources
White Papers
Provided by Anaplan
Further Reading
Reassessing HSA employer contributions can increase participation while capturing meaningful payroll tax savings. Employer contributions to...
Although Congress isn’t famous for cooperation, there was enough bipartisan support for the Secure 2.0 Act of 2022 (pages 817-946 of ...
Earned wage access, also known as on-demand pay, is being leveraged by your peers as a key recruitment and retention tool for workers who m...
Some of your year-end health plan responsibilities have lifted, thanks to eleventh-hour legislation from Congress. Plan sponsors that me...
Now that you have a feel for what positions at your firm should be hybrid, you might be considering giving employees the ultimate work sche...
A new proposed rule from the Department of Labor’s Employee Benefits Security Administration outlines how 401(k) fiduciaries must assess ...
