How to prepare
We know the end of the year can be a hectic time for your business. We’re here to help make the process as easy as possible. Be sure to share this information with your employees as well.
W-2: Tax form issued to any full or part-time employee that receives a payment through Justworks
1099: Tax form issued to any contractor paid in excess of $600
940: Employer's Annual Federal Unemployment (FUTA) Tax Return
- Reports tax contributions to federal unemployment
- Justworks e-files the Form 940 in the aggregate under Justworks' EIN
941: Quarterly Federal Tax Return
- Reports income taxes, Social Security, Medicare taxes withheld from employees
- Justworks e-files the Form 941 in the aggregate under Justworks' EIN
W-3 (Transmittal of Wage and Tax Statements): used to file the Copy A portions of W-2 forms to the Social Security Administration (SSA)
- Justworks submits timely, by the January 31 deadline
1096 (Annual Summary and Transmittal of U.S. Information Returns):used to file 1099s to the IRS
- Justworks submits timely, by the January 31 deadline
Important things to note: your W-2s will list Justworks as your employer rather than your company’s name. It will also reflect Justworks information rather than your company’s because Justworks files taxes on behalf of your company. Your 1099s will state your business and the relevant information.
What to consider
CHECK YOUR EMPLOYEE AND COMPANY DATA
Your tax forms are only as good as the information you give us. Verify all your employees’ information in Justworks, including:
- Employee name
- Employee home and work addresses (remote employees will likely have the same home and work address)
- Employee SSN
If any information is incorrect, update it in Justworks by December 14th, 2018.
To make this easier next year, check out our Best Practices for Running Payroll.
SCHEDULE PAYMENTS AND BONUSES EARLY
For payments to be reflected on 2018 W-2s and 1099s, the recipient must receive the payment in 2018. To that end, ensure you have scheduled all 2018 payments and bonuses (hourly, salaried, supplemental, contractor, and vendor) by 2pm EST on December 24th, 2018.
However, we recommend scheduling said payments earlier than the above deadline because of holiday disruptions, and also allowing time for admins and employees to make any adjustments including one-time deferral changes.
If you'd like to isolate 401(k) deductions for any bonuses or other off-cycle payments for your employees, please reach out to your Account Manager or our Customer Success team.
TELL US IF YOU’VE PAID ANY CONTRACTORS OR VENDORS OUTSIDE JUSTWORKS
If you have paid any contractors or vendors by check or other means outside Justworks, you need to update the total amount paid to each contractor in Justworks by December 14th, 2018. This is so we can file 1099s for contractors on your behalf.
VISIT YOUR END OF YEAR RESOURCE CENTER & SUBMIT END OF YEAR FORM
The End of Year Resource Center is your #1 destination for all things end of year. There, you’ll find deadlines, a task list to help you stay on track, and a hub of resources that will help you guide your employees, or to learn more about each of the items you may need to report to Justworks.
You’ll find a End of Year form within the Resource Center to provide information we need from you related to the topics below:
- If your company is an S-Corp
- If you have employees who are on tax-exempt visas
- If your company has an employer-paid life insurance policy that exceeds $50,000 or covers greater than 2% shareholders of an S-Corp.
- If any of your employees have received 3rd-party sick pay or payout from disability claims in 2018
- If your company provides fringe benefits or perks to your employees outside of Justworks
End of Year Filing
We handle your quarterly and year-end filings so there is one less thing for you to think about during this busy season. As your PEO, Justworks handles all of your quarterly and year-end filings for payroll taxes. To help ensure that we can take care of this for you with no issues, please have your employees keep their info, such as names, address, date of birth, and social security numbers up to date.
Justworks will file the following on your behalf: W-3/941, 1096, 1095-C (if applicable), ACA (if applicable), EEO-1 (if applicable), Wage Reports & Summaries, and Withholding.
Justworks will issue the following on your behalf: Form W-2 and Form 1099.
Justworks will file your W-3 and 941 on your behalf and will not have copies available for each individual company as all are filed together and in aggregate.
Justworks will create Form 1095-C for companies with over 50 employees. For companies under 50 employees that are offering benefits, their insurance company will provide form 1095-B. For companies receiving benefits through Justworks in 2018, that means the 1095-C will be issued from Aetna.
Please be mindful of phishing schemes that are more common at this time of year. As your PEO, we’ll be collecting a lot of information from you for the purpose of payroll and tax filing.
- Set a strong, unique password for your account (that you don't use for anything else) and don’t share your password with others. Hint: Justworks will never ask for this information from you.
- Enable 2-factor authentication, and encourage your employees to do the same.
- Be mindful of phishing schemes that are more common at this time of year. You can hover over hyperlinks in emails to check that the URL is related to the company that appears to be writing you.
- Be careful about what you share via email. Hint: Justworks will never ask you to send Social Security Numbers or other sensitive information over email.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.