W-2 & 1099 Changes in Reporting for 2013
Date:
Tuesday, January 7, 2014
2013 W-2 & 1099 Changes in Reporting
Form W-2
Report the value of employee health insurance coverage.
These amounts are informational only. Report as follows;
Amount is the total for the group health insurance including employer amounts
Report in Box 12 and Use Code DD
For detailed information on W-2 reporting use the following link;
www.irs.gov/uac/Form-W-2-Reporting-of-Employer-Sponsored-Health-Coverage
Health Insurance premiums paid for greater than 2% S-Corp shareholder
-employees
Amounts must be reported on the W-2 in order to receive the business deductions for the health insurance premiums. Report as follows;
Amount reported is the amount paid for health insurance premiums by the S-Corporation for shareholder-employees
Include amount in Federal Wages (Box1)
Include amount in State Wages (Box 16)
Report amount paid for health insurance premiums by the S-Corporation for shareholder-employee in Box 14 – Use code S-Corp MP
These amounts are not subject to Social Security or Medicare:
Do not report as Social Security or Medicare Wages (Box 3 & 5)
Form 1099 – Misc.
For 2013 DO NOT report payments that you made with a
debit or credit card on Form 1099-Misc
These payments will now be reported by
credit card merchants using the Form 1099-K.
We are thankful to Julian Warren II Certified Public Accountant @ Griggs & Associates, for helping us stay informed!
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