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Tips for Financial End of Year Wrap Up
Happy New Year from Creative Performance! Now that 2010 is behind us, there are several things agencies need to remember to do to close out last year. We’ve put together a list of a few things that tend to get forgotten in the excitement of the new year.
1099s
Due to vendors by January 31
TIP: remember, you’re required to send 1099s to LLCs & LLPs, not just individual contractors!
Click here for instructions from the IRS.
1096
Due to IRS by February 28
TIP: avoid having to submit a corrected 1096; wait until late February to send this out to give your contractors time to review their 1099s and advise you of any changes.
Click here for a sample form and instructions from the IRS.
W2s
Due to employees by January 31
TIP: prior to running, update employee addresses to avoid delivery mistakes.
TIP: remember, for principals of S-corps with greater than 2% ownership, you must add as additional wages any health benefits paid by the agency.
TIP: remember to add as additional wages any personal vehicle use mileage on a company car.
Click here for instructions from the IRS.
W3 Audit
Due to IRS by February 28
TIP: make sure the gross wages from your W3 match your quarterly payroll tax payments; if they don’t, the error could either be in your accounting system or that you incorrectly filed quarterly tax payments. A common example would be a payroll check that was voided after quarterly tax payments and filings were made.
Click here for instructions from the IRS.
View Circlular E on the IRS website for additional information on tax dates, codes and rates.
About: CPI
Creative Performance Inc. (CPI) is a marketing operations consultancy for the marketing services industry (both Agency + In-House). We specialize in improving our client’s Organizational Agility and Operational Resilience, through a seamless integration of industry best practices, mar-tech and business intelligence. CPI is an AgencyStory®, Deltek®, Oracle Agile and Workamajig® partner.
About: Vanessa Vollum Edwards
Hailing from Portland, OR, Vanessa graduated from university with a degree in Philosophy. An amateur helicopter and fixed wing pilot since age sixteen, she began her first career as a pilot for LifeFlight. Upon completing her MBA, Vanessa was recruited by a fellow classmate into becoming the CFO/COO for a digital agency experiencing rapid growth. The agency was acquired in 2010. Over the last decade, Vanessa has built a strategic consultancy focused on empowering agency principals, accelerating growth, increasing profitability and deploying agency management software.