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 15th, 2017.
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 2017 W-2s and 1099s, the recipient must receive the payment in 2017. To that end, ensure you have scheduled all 2017 payments and bonuses (hourly, salaried, supplemental, contractor, and vendor) by 2pm EST on December 22nd, 2017.
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 27th, 2017. This is so we can file 1099s for contractors on your behalf.
UPDATE YOUR JUSTWORKS ACCOUNT IF YOU’RE AN S CORP
Are you an S Corp? If so, let us know by contacting your Account Manager or email@example.com by December 15th, 2017.
LET US KNOW IF ANY OF YOUR EMPLOYEES ARE ON VISAS
Are any of your employees on visas that have tax exemptions? We need to know so we can file their taxes correctly. Reach out to your Account Manager or firstname.lastname@example.org with the employee and visa details by December 15th, 2017.
LET US KNOW IF YOU’VE CONTRIBUTED TO LIFE INSURANCE POLICIES GREATER THAN $50,000
When group term life insurance exceeds $50,000 for an employee, the value of coverage in excess of $50,000 is taxable and must be reported as income. If you have paid over $50,000 to an employee in group term life insurance in 2017, let us know the name of the employee and the amount of coverage by contacting your Account Manager or email@example.com by December 15th, 2017.
LET US KNOW IF YOU’VE PAID OUT ANY SHORT TERM DISABILITY CLAIMS THIS YEAR
Yep, you got it. There are different tax rules for STD payouts. Let us know if you paid out any STD claims made by your employees in 2017 by contacting your Account Manager or firstname.lastname@example.org by December 15th, 2017.
REPORT THE TAXABLE AMOUNT ON ALL FRINGE BENEFITS
Fringe benefits or perks are considered taxable income. So that we can accurately file your taxes, you need to report the total taxable amount of any fringe benefit you’ve given to your employees by contacting your Account Manager or email@example.com. You don’t need to report NYHRC or Citi Bike memberships that you offer through 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 2017, that means the 1095-C will be issued from Aetna.
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.