Small Business

Elective deferrals from retirement plans and adjustments or deductions are listed with a code and an amount in Box 12.
CODES:
A = Uncollected SS or RRTA tax on tips
B = Uncollected Medicare tax on tips
C = Taxable cost of group life insurance over 50K
D through H,S,AA,BB,EE = Elective Deferrals and Roth contributions
J = Nontaxable sick pay
K = 20% excise tax on golden parachute payments
L = Employee business expense reimbursements
M = Uncollected SS or RRTA tax on life insurance
N = Uncollected Medicare tax on life insurance
P =excludable moving expense reimbursements
Q =Nontaxable combat pay
R = Employer contributions to Archer MSA
S = salary reduction under 408(p) Simple
T = Adoption benefits
V= income from stock option
W = HSA employer contribution
Y = 409A deferral
Z = 409A income
AA = Roth contribution under 401(k)
BB =Roth contribution under 403(b)
DD = employer health coverage
EE =Roth contribution under 457(b)

Redesigned Form 940 replaces previous Form 940 and Form 940-EZ. We have replaced both Form 940-EZ and Form 940 with a new simplified Form 940. If you filed Form 940-EZ before, you must now use the redesigned Form 940.

There are two Internet verification options you can use to verify that your employee names and Social Security numbers match Social Security's records.
You can: Verify up to 10 names and SSNs (per screen) online and receive immediate results.
This option is ideal to verify new hires.
Upload overnight files of up to 250,000 names and SSNs and usually receive results the next government business day.
This option is ideal if you want to verify an entire payroll database or if you hire a large number of workers at a time. While the service is available to all employers and third-party submitters, it can only be used to verify current or former employees and only for wage reporting (Form W-2) purposes. Register to Use the Social Security Number Verification Service (SSNVS) - at www.ssa.gov/bso/bsowelcome.htm.

If, even after nudging from the IRS, your employer doesn't send you a replacement W-2 in time for you to file your return, you may file using Form 4852 in place of your missing wage statement.
After you complete the form, attach it to your tax return in place of your absent W-2.
A copy of Form 4852 also should satisfy your state tax collector for those returns.
Be aware, though, that using Form 4852 instead of an original W-2 may delay your refund while the IRS verifies the information you provided. And in cases where an employer has filed for bankruptcy or ceased operations, the IRS suggests you send a copy of Form 4852 to your local Social Security Administration office.
This should ensure that you get proper credit for the Social Security and Medicare taxes you paid so that your checks will be correct when it comes time to collect these benefits. .

Firms and workers file Form SS-8 to request a determination of the status of a worker for purposes of federal employment taxes and income tax withholding.
A Form SS-8 determination may be requested only in order to resolve federal tax matters. If Form SS-8 is submitted for a tax year for which the statute of limitations on the tax return has expired, a determination letter will not be issued.
The statute of limitations expires 3 years from the due date of the tax return or the date filed, whichever is later.
The IRS does not issue a determination letter for proposed transactions or on hypothetical situations.
The IRS may, however, issue an information letter when it is considered appropriate

If the business has 1 federal Identification number then 1 Form 941 should be filed. Employers with multiple locations or divisions must file one Form 941 per quarter. Filing more than one will cause processing delays and unneeded correspondence.

The IRS reminds employers that the Federal Unemployment Tax Act surcharge of 0.2% expired on June 30, 2011.
This means that the FUTA rate for employers decreased from 6.2% to 6.0% starting on July 1, 2011.
The IRS revised Form 940, Employer’s Annual Federal Unemployment Tax Return, to accommodate the two different rates
The surcharge was originally enacted in 1976, and Congress has extended it several times since. Unemployment benefits are not tied to the surcharge, so the expiration of the surcharge will not affect current or future unemployment benefits.

Some advantages are: it has minimum legal restrictions; and is easy to discontinue. Some disadvantages are: unlimited liability; your income tax cannot be deferred by retaining profits; and you may not bring in new owners or outside capital contributions. Speak to your local CPA to determine the best entity choice for your needs.

An advantage is that it is a way to combine the financial abilities and skills of several different people. Some disadvantages are that the general partners are liable for the actions of the other partners and a partnership is not that easy to get out of. Speak to your local CPA about selecting the best entity for your purposes.