What’s new on this year’s 1099s
February 2, 2009 by Carol KatarskyPosted in: 1099s, Best practices, Communication, In this week's e-newsletter, IRS regs, Latest news & views, Tax compliance
The good news: The form itself is mostly unchanged. But there are a few administrative changes you need to be aware of. File this tipsheet away so you have it handy when you start the next year-end process. You’ll need to be on top of these changes:
- There’s a new due date for sending 1099s to payees. If you’re reporting gross proceeds paid to an attorney (Box 14) or substitute payments (Box 8 ) the deadline is now Feb. 15 for statements due after 2008.
- Death benefits paid to the estate of a deceased employee are now reported on 1099-MISC, not the 1099-R. That’s true whether the payment comes from a qualified or nonqualified compensation plan.
- You are not required to complete Box 15a in relation to deferrals paid under nonqualified plans subject to Sec. 409A.
- If you make military differential payments after 2008 those payments should be reported on the W-2, not the 1099. This applies to payments made to former employees on active duty for more than 30 days.
Updated: For more info on how to treat military differential payments, check this guide from IRS or download Publication 15, Employer’s Tax Guide.
Tags: 1099, A/P, Best practices, IRS, Resource, Tax compliance, Tax filing
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February 5th, 2009 at 10:16 am
Ok, this Military differential pay is driving me nuts! I have finally got it and now it seems they are changing the rules again. We have an employee who we, in error, paid through payroll and had to adjust three prior tax years and issue him a 1099. We did it correct for the last couple of years but now I need to put his differential pay on the W-2 for 2009? The IRS doesn’t even know how differential pay works. How can I find out the real way to handle this for 2009? Is there an IRS rule book somplace that makes sense?
February 5th, 2009 at 10:19 am
Cyd, are you asking about how to handle the past corrections, or differential pay you expect to have to report in ’09?
February 5th, 2009 at 10:21 am
Carol, I need to know for 2009. According to the FinaceRegs info the differential pay has to go on the W-2 beginning with 2009. We have been reporting it on a 1099 for the past couple of years.
February 5th, 2009 at 11:26 am
That’s correct for wages paid after 12/31/08. That’s one of the recent changes. I’m adding some links to the story to further explain what the feds are doing.