Hello, all you hard-working entrepreneurs and business owners out there!
It’s JoAnna from Nothing But Numb3rs, your friendly neighborhood number-cruncher. As the holiday season is upon us, and you’re probably decorating your office with tinsel, planning your staff Christmas party, or even just wondering how many mince pies you can eat in one sitting (my record is six, but who’s counting?), there’s one important thing that you might be forgetting – your end-of-year tax compliance checklist.
Now, I know what you’re thinking, “JoAnna, why are you bringing up taxes during the most wonderful time of the year?” Well, my friends, much like Santa with his list of naughty and nice children, we too need to check our lists – and check them twice!
Failure to complete your checklist could land you on Santa’s naughty list and trust me, unwarranted stress in the New Year is a gift no one wants to receive. So, let’s dive right in and make sure you’re all set for 2024.
Making a List, Checking It Twice
- W-2s and 1099-NECs: Much like writing your Christmas cards, these need to be sent out no later than January 31, 2024, to all your employees and independent contractors, as well as to the Internal Revenue Service and State Revenue departments. Let’s avoid any late delivery mishaps!
- Reviewing W-2 figures: Ensure all employee information is correct. This task is akin to making sure all your Christmas lights work – one faulty bulb can spoil the whole display!
- Checking 1099s: Non-employee compensation forms also need a thorough review. Think of it as double-checking you’ve got all the ingredients for your Christmas pudding – missing one could leave a sour taste.
- Maximizing contributions to employer’s IRA SEP plans: Review your end-of-year payroll figures and make those final contributions. It’s like leaving a mince pie out for Santa – you want to give generously!
- Making 4th quarter estimated tax payments: Review your profit and loss statements and pay up to the IRS and State revenue departments. This is similar to settling your Christmas shopping bills – better to do it now than let it hang over you into the New Year.
- Contributing to Individual Retirement plans and 401(k) plans: The limit for 401(k) has increased to $22,500 for 2023, and the IRA limit has risen to $6,500. If you’re over 50, you can contribute up to $7,500 to your IRA plan. It’s like stuffing those stockings – the more you put in now, the more you’ll enjoy later!
Wrapping Up
So, there you have it, folks. Your end-of-year tax compliance checklist. Just like making a list for Santa, it might seem like a chore now, but come Christmas morning (or in our case, the start of the new tax year), you’ll be glad you did it.
Remember, being on Santa’s nice list means getting the presents you want. Similarly, being on the right side of the taxman means starting 2024 without any unnecessary stress. And isn’t that a gift worth giving yourself?
So, let’s check those lists, fill those stockings, and here’s to a prosperous New Year!
Happy Holidays from Nothing But Numb3rs!
JoAnna Laiscell, December 19, 2023
America’s Most Trust Tax Strategist
