January 10: Employees who rely on tips need to report any amount exceeding $20 earned in December to their employer using Form 4070.
January 17: Employers are required to deposit Social Security, Medicare, and withheld income tax for December 2011 if the monthly deposit rule is applicable. Individuals who haven’t paid or underpaid their income tax for 2011 through withholding should make the final estimated tax payment using Form 1040-ES. However, this payment can be skipped if you file your 2011 tax return and pay any due taxes by January 31, 2012.
Nonpayroll tax for December 2011 should also be deposited by employers if the monthly deposit rule applies. Farmers and fishermen are also required to make an estimated tax payment for 2011 via Form 1040-ES and have until April 17 to file their 2011 tax return. However, to evade estimated tax penalties, the tax return should be filed and any due taxes paid by March 1, 2012, if the estimated tax is not paid by January 17.
January 31: Employers are required to provide their employees with Form W-2 for 2011 by this date. If the employee has opted for electronic delivery, it should be uploaded to an accessible website and the employee should be notified about the same. Businesses must distribute annual information statements to recipients of any 1099 payments made in 2011.
Federal unemployment taxes for 2011 should be filed using Form 940. If the undeposited tax is $500 or less, it could either be paid with the return or deposited. However, if it exceeds $500, it must be deposited. Those who have already fully and timely deposited the years’ tax have until February 10 to file the return.
Employers should also file Form 941 for Q4 of 2011 covering Social Security, Medicare, and withheld income tax, and any undeposited tax. If the tax liability is less than $2,500, full payment can be made with a timely submitted return. However, if tax for the quarter has been fully and promptly deposited, filing of the return can wait till February 10.
Nonpayroll income tax withheld for 2011 must be reported by employers using Form 945. This includes backup withholding and withholding from pensions, annuities, IRAs, gambling winnings, and tribal members’ Indian gaming profits. Any undeposited tax must be deposited.
For individuals required to make estimated tax payments, filing of 2011 income tax return (Form 1040) is possible if the last installment of estimated tax was not paid by January 17. An avoidance of late payment penalty demands filing the return and paying any due tax by January 31.
Providers of gambling winnings need to offer the winners their copies of Form W-2G if reportable gambling winnings were paid or income tax was withheld from gambling winnings.
Certain small employers need to report Social Security, Medicare taxes, and withheld income tax for 2011 using Form 944. If tax liability for 2011 is $2,500 or more but less than $2,500 for Q4, any undeposited tax must be deposited or paid in full with a timely filed return per the accuracy of deposit rules.
