The IRS recently posted the 2019 version of General Instructions for Forms W-2 and W-3 on its website. The IRS had previously released an "Info Copy Only" version of the 2019 Form W-2. While there were no significant changes to Form W-2, the 2019 W2/W-3 instructions noted a number of items:
- Employee stock options are not subject to railroad retirement tax. The 2019 instructions note that employee stock options are not subject to railroad retirement tax. A Supreme Court ruling held that stock options granted from railroads to their employees are not included in the employees' taxable compensation and are not "money remuneration" under the Railroad Retirement Tax Act (RRTA). Railroad employers are advised not to withhold Tier 1 and Tier 2 taxes when employees covered by the RRTA exercise stock options. Federal income tax on taxable compensation from railroad employees exercising their options must still be withheld.
- The verification code pilot program has ended. Box 9 is no longer in use. The IRS has initiated an analysis to determine the future use of the Form W-2 Verification Code Program as recommended by a recent TIGTA report.
- Disaster tax relief is available for those affected by recent disasters. For more information about disaster relief, you can visit: IRS.gov/DisasterTaxRelief.
- Failure to file and failure to furnish penalties and penalties for intentional disregard of filing and payee statement requirements have increased due to adjustments for inflation.
February is in full-swing, make sure you'are aware of the Federal Tax Employment deadlines for the month!
Semi-weekly depositors must deposit the income tax they withheld from employee wages, and both the employee and employer share of Social Security and Medicare taxes (FICA taxes), by the end of Wednesday if the payday was on the previous Wednesday, Thursday or Friday; or, by the end of Friday if the payday was on the previous Saturday, Sunday, Monday, or Tuesday.
If a due date falls on Saturday, Sunday, or a legal holiday, the deadline is postponed until the next business day. Semi-weekly depositors must have at least three business days after the end of a semiweekly period to deposit their taxes.
The February deposit deadlines for semi-weekly depositors are as follows:
- February 1 - deposit the tax for payments made January 26-29.
- February 6 - deposit the tax for payments made January 30 - February 1.
- February 8- deposit the tax for payments made February 2 - 5.
- February 13 - deposit the tax for payments made February 6 -8.
- February 15 - deposit the tax for payments made February 9-12.
- February 21 - deposit the tax for payments made February 13 - 15.
- February 22 - deposit the tax for payments made February 16 - 19
- February 27 - deposit the tax for payments made February 20 - 22.
- Holiday: Monday, February 18, is George Washington's Birthday.
Filers who have a monthly deposit frequency must deposit the tax for January by February 15th. February 28 is the deadline to file paper versions of the following forms with the IRS: Forms 1099-R and 1099-MISC, accompanied by Form 1096; Affordable Care Act (ACA) Forms 1094-B, 1094- C, 1095-B, 1095-C ; and Form 8027 (Employer's Annual Information Return of Tip Income and Allocated Tips). Electronic filers have until April 2nd to file these returns.
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