Now that you’ve issued 1099s and W2s, what’s next?
I’m sure by now, that your business has issued all of its 1099s and W2s by the February 2nd deadline, right? Well, the fun isn’t over. You also have to send copies of these forms along with a summary or transmittal sheet to the Social Security Administration and the IRS. To do this you’ll be using forms W-3 and 1096.
What is form W-3?
Commonly known as “Transmittal of wage and tax statements”, this form summarizes the total amounts reported on forms W2 issued to employees. It includes wages, federal and state taxes, Medicare, and other miscellaneous payments made to employees. You have the option of filing this form electronically or mailing it directly to the Social Security Administration. If you choose to mail the form, you need to include Copy A of the W2 statement for each employee that it was issued for. When filing electronically, you need only to send form W3. The deadline for filing this form is March 2, 2009
What is form 1096?
Commonly known as “Annual Summary and Transmittal of U.S. Information Returns”, this form summarizes various types of miscellaneous payments from forms 1098, 1099, W2-G, & 5498. You are required to file form W-3 electronically if you have more than 250 returns of any one type. If mailing the form, you need to include copies of all submitted 1099, 1098, W2-G & 5498. The deadline for filing this form is March 2, 2009 with forms 1098, 1099 & W2-G, or June 1, 2009 with form 5498.
In addition to federal submittal forms, each state has its own requirements for submission of employee and contractor statements. You must check with your local state taxing authority for specified instructions, or notify a bookkeeper for assistance.
Partnering for your success
Jacqueline E. Williams
Financial Strategist
THE STOCK MARKET: AN EMOTIONAL ROLLER COASTER
There is no magic potion or hidden secret to a guaranteed method of making a killing in the stock market.
Let’s be real, every business is in the business to make money. Their method of doing so depends on their level of integrity. It’s believed that the stock analysts reports are the inside scoop as to how a company is performing and the expected projections of profits. But is that really how it works? Take for instance, when news comes out on a particular stock that causes the price to rise drastically. The enthusiasm by the average investor is to jump on the band wagon of this “hot tip”. Doing so will continue to drive the price up, making the stock look very attractive. In the meantime, those who already hold the stock may not even buy additional shares. Why? Because they are waiting for the price to max out so they can sell at a profit. Another question is who is giving this information to the market? I don’t mean to sound skeptical here but, we as investors need to be careful not to get caught up in the artificial enthusiasm behind hot stock tips. The corporate scandals of early 2000 are a prime example of this sort of activity. Many Wall Street analysts, brokers, and executives unfairly profited from activity such as this. Information was either acted upon in secret before being given to the general public or false information was given to the public, while executives secretly benefited from the information. Although the government has strict rules concerning the fiduciary responsibility of publicly traded companies, many of these regulations were side stepped intentionally for the sole benefit of profit. By the time the government found out, executives had already claimed millions in profits, and the general public or investor was left bankrupt. What’s the lesson to be learned here? When investing be extra careful about how you use the information you receive. Remember to stick to your investment strategy, which should be based on factors such as, income level, investment knowledge & financial goals. What I learned in economics 101 still holds true: prices are based on the laws of supply and demand. When the supply is fixed, the price will fluctuate based on the demand. If demand is high, the price will go up. If demand is low, the price will go down. And thus the stock market also follows this rule. So the next time you hear about a “hot stock tip”, do some research to find out who disseminated the information and why? You just might be surprised.
Partnering for your success
Jacqueline Williams
Financial Strategist