SS-4 Application for Employer Identification Number
Submit form SS-4 to obtain your federal taxpayer identification number (also called "EIN"-employer identification number or "TIN"-tax identification number). You will then automatically receive federal employment tax forms. As a new business, you should also receive a business tax kit explaining federal tax requirements. After an EIN has been assigned, the IRS will send you a booklet of federal tax deposit coupons (Form 8109). Reorders will arrive automatically. You can now submit On-line - Click here and you will automatically be linked: www.irs.gov or see our "Links" page. Single person LLC's are generally "disregarded entities" and cannot submit SS-Y online, but must either fax or mail.
Submit form SS-4 to obtain your federal taxpayer identification number (also called "EIN"-employer identification number or "TIN"-tax identification number). You will then automatically receive federal employment tax forms. As a new business, you should also receive a business tax kit explaining federal tax requirements. After an EIN has been assigned, the IRS will send you a booklet of federal tax deposit coupons (Form 8109). Reorders will arrive automatically.
You can now submit On-line - Click here and you will automatically be linked: www.irs.gov or see our "Links" page. Single person LLC's are generally "disregarded entities" and cannot submit SS-Y online, but must either fax or mail.
8109 Federal Tax Deposit Slip (coupon booklet)
This form is used to make your applicable federal tax deposits. Use one coupon to deposit combined federal withholding and employee/employer's FICA (941). Use a separate coupon to deposit FUTA taxes (940). Withholding and FICA deposits are due for small employers either monthly (on the 15th of the following month) or semiweekly (see Circular E available online@IRS.gov). Monthly depositers are those who reported less than $50,000 in total tax on Forms 941 for the previous year. NEW EMPLOYERS ARE GENERALLY MONTHLY DEPOSITERS. Semiweekly depositers are those who reported more than $50,000 in total taxes on Forms 941 during 2005. Established employers should have received notification from the IRS in November regarding their deposit schedule or need to become an electronic filer. For 941 deposits, darken the 941 circle as well as the circle corresponding to the calendar quarter. All payroll is done on calendar year, not your fiscal year. Most major banks accept tax deposits. Make your check payable to your bank and write your EIN on the face of the check, along with "941 deposit, Qrt - 2006". If your total payroll is less than $2,500.00 for the quarter, you may remit all the payroll tax with your quarterly 941 report (see next section). Your are required to make separate deposits for specific types of withholding that are considered by the IRS as "nonpayroll" related. The nonpayroll items are: backup withholding; withholding for pensions; annuities; IRAs; and withholding for gambling winnings. Box "945" should be darkened when depositing the withholdings listed in this paragraph. An annual report, Form 945, also is required.
This form is used to make your applicable federal tax deposits. Use one coupon to deposit combined federal withholding and employee/employer's FICA (941). Use a separate coupon to deposit FUTA taxes (940). Withholding and FICA deposits are due for small employers either monthly (on the 15th of the following month) or semiweekly (see Circular E available online@IRS.gov). Monthly depositers are those who reported less than $50,000 in total tax on Forms 941 for the previous year. NEW EMPLOYERS ARE GENERALLY MONTHLY DEPOSITERS. Semiweekly depositers are those who reported more than $50,000 in total taxes on Forms 941 during 2005. Established employers should have received notification from the IRS in November regarding their deposit schedule or need to become an electronic filer. For 941 deposits, darken the 941 circle as well as the circle corresponding to the calendar quarter. All payroll is done on calendar year, not your fiscal year.
Most major banks accept tax deposits. Make your check payable to your bank and write your EIN on the face of the check, along with "941 deposit, Qrt - 2006".
If your total payroll is less than $2,500.00 for the quarter, you may remit all the payroll tax with your quarterly 941 report (see next section).
Your are required to make separate deposits for specific types of withholding that are considered by the IRS as "nonpayroll" related. The nonpayroll items are: backup withholding; withholding for pensions; annuities; IRAs; and withholding for gambling winnings. Box "945" should be darkened when depositing the withholdings listed in this paragraph. An annual report, Form 945, also is required.
941 Employers Quarterly Federal Tax Return
This form reconciles the federal withholding and FICA deposits made during the quarter with the actual tax liability for the quarter. The return is due by the end of the month following each calendar quarter (April 30, July 31, October 31, and January 31).
940 Federal Unemployment (FUTA) Taxes Deposit and Return
Form 940 reconciles the amount paid for federal unemployment taxes with the actual tax liability for the year. Because the federal unemployment tax generally is .8% (multiplier of .008) of the first $7,000 of wages annually, the maximum amount paid by the employer is $56.00 per employee per year. You must remit 940 deposits on Form 8109 coupons if you have accrued $100 or more for FUTA payroll tax expense in any quarter of the year (based on .008 x the first $7,000 of wages per employee per year). Darken the 940 circle, and the circle corresponding to the calendar quarter. The actual report Form 940 is due by the last day of January.
W-4 Employee's Withholding Allowance Certificate
The employee fills out this form to indicate the number of withholding allowances to be used by the employer for computing payroll withholdings. The W-4 should be updated annually by February 15 and retained in the employee's personnel file. For all newly hired Colorado employees, you must fax the completed W-4 to 303-297-2595 to comply with federal "deadbeat parent" laws. The fax must be sent within 10 days of hire. There is a noncompliance penalty. Be sure to fill out boxes 8 and 10 on the W-4 before faxing.
W-2 Employee Wage and Tax Statement
At the end of each calendar year (no later than January 31 of the following year), employees must receive a wage and tax statement from the employer on Form W-2. Please refer to Circular E for a description of what the IRS considers reportable as wages. The employee should receive at least three legible copies. The employer must then submit a copy to the Colorado Department of Revenue with Form DR 1093 (found in the State tax coupon booklet-last page) by March 15, and to the Social Security Administration with Form W-3 by February 28.
W-2C Statement of Corrected Income and Tax Amounts
If a W-2 is filed with the State and Social Security with errors, it is necessary to file the corrections on Form W-2C. The employee also must receive three copies of Form W-2C.
W-3 Transmittal of Income and Tax Statements
When the employer sends copies of the W-2s to Social Security, it is necessary to submit Form W-3, which simply totals the amounts found on the W-2s. TOTALS FOR W-2s MUST AGREE WITH THE TOTALS OF ALL FOUR QUARTERLY 941s AND FORM 940. IF THE THREE SETS OF REPORTS DO NOT AGREE, THE IRS WILL REQUEST AN EXPLANATION. K EEP COPIES OF ALL REPORTS FILED WITH GOVERNMENT.
When the employer sends copies of the W-2s to Social Security, it is necessary to submit Form W-3, which simply totals the amounts found on the W-2s.
TOTALS FOR W-2s MUST AGREE WITH THE TOTALS OF ALL FOUR QUARTERLY 941s AND FORM 940. IF THE THREE SETS OF REPORTS DO NOT AGREE, THE IRS WILL REQUEST AN EXPLANATION. K EEP COPIES OF ALL REPORTS FILED WITH GOVERNMENT.
W-3C Transmittal of Corrected Income and Tax Statements
If errors are made on the W-2s or W-3, it is necessary to file Form W-3C (i.e. filed with W-2C). 1099 There are numerous types of Form 1099, all of which are submitted on an annual basis by payers to recipients of income and compensation not considered to be wages. Because there are penalties for noncompliance, it is critically important for payers to comply with the requirements for submitting 1099s. Employers should be aware of two common uses for 1099s. The first involves the reporting of money in excess of $600 per year paid to independent contractors who provide services (use Form1099- MISC- Nonemployee Compensation box). The IRS has specific rules regarding the definition of employees versus contractors. If you are unsure of a worker's status,please call us for assistance. The second involves payments made from annuities, pensions, retirement plans and IRAs (use Form 1099R). 1099s must be postmarked by January 31. You must use the name of the contractor as printed on his/her social security card. Business names ARE NOT ACCEPTABLE. You MUST NOT file 1099s for corporations or business entities that are NOT sole proprietors.
If errors are made on the W-2s or W-3, it is necessary to file Form W-3C (i.e. filed with W-2C).
1099
There are numerous types of Form 1099, all of which are submitted on an annual basis by payers to recipients of income and compensation not considered to be wages. Because there are penalties for noncompliance, it is critically important for payers to comply with the requirements for submitting 1099s.
Employers should be aware of two common uses for 1099s.
1099s must be postmarked by January 31. You must use the name of the contractor as printed on his/her social security card. Business names ARE NOT ACCEPTABLE. You MUST NOT file 1099s for corporations or business entities that are NOT sole proprietors.
1096 Transmittal of 1099s
Use Form 1096 as a cover transmittal sheet when submitting copies of 1099s to the IRS. Publication 916 has detailed information regarding filing requirements. Important: if you fail to include a recipient's social security number that agrees with his/her name as it appears on his/her social security card, a penalty can be assessed. And you will hear from the IRS.
Pub 15 Circular E: Employers' Tax Guide
This booklet provides detailed instructions to employers concerning their tax responsibilities for employees. It explains the requirements for withholding, depositing, reporting and paying employment taxes. Also, it contains tables to compute the applicable taxes. As an employer, you should automatically receive a copy each year. Be sure to use the edition with the proper revision date (i.e. January 2006 for 2006 withholding). Keep the booklet as a reference. You may also find it online or see our "Links" page.
I-9 Employer Eligibility Verification Form
Employers must verify each employee's legal eligibility to work. After documenting the verification of eligibility on an I-9, the form should be retained in each employee's personnel file. Forms can be obtained from the Immigration and Naturalization Service, or from our office. As far as we know, you cannot find the I-9 for free online. So, call us.
945 Annual Return of Withheld Federal Income Tax
Income tax withheld on nonpayroll items, including backup withholding, income tax withholding from pensions, annuities and IRAs, and income taxes withheld on gambling winnings, will NOT be reported on Form 941, but on Form 945. You must make separate deposits on separate coupons for taxes related to Form 941 and those related to Form 945. Your 945 deposit schedule will be the same as your 941 deposit schedule. The actual report, Form 945, will be due on an annual basis, by January 31 of the following year. For retirement distributions, remember: Employees receiving eligible rollover distributions must be given a choice between receiving the distribution directly or having the distribution placed directly into an IRA or other qualified plan. If you pay the employee directly, YOU MUST WITHHOLD 20% OF THE DISTRIBUTION AND DEPOSIT IT WITH A FORM 8109 COUPON MARKED "945." The employee must receive an explanation of the choice in writing within a "reasonable" time before the distribution is made. If you have questions about these laws, please call us before making any retirement distributions.
Income tax withheld on nonpayroll items, including backup withholding, income tax withholding from pensions, annuities and IRAs, and income taxes withheld on gambling winnings, will NOT be reported on Form 941, but on Form 945. You must make separate deposits on separate coupons for taxes related to Form 941 and those related to Form 945. Your 945 deposit schedule will be the same as your 941 deposit schedule. The actual report, Form 945, will be due on an annual basis, by January 31 of the following year.
For retirement distributions, remember:
Employees receiving eligible rollover distributions must be given a choice between receiving the distribution directly or having the distribution placed directly into an IRA or other qualified plan. If you pay the employee directly, YOU MUST WITHHOLD 20% OF THE DISTRIBUTION AND DEPOSIT IT WITH A FORM 8109 COUPON MARKED "945." The employee must receive an explanation of the choice in writing within a "reasonable" time before the distribution is made. If you have questions about these laws, please call us before making any retirement distributions.
Important IRS Phone Numbers:
www.irs.gov Internal Revenue Service Federal Tax Information: 1-800-829-1040 To order payroll forms from the IRS - use the order blank on the last page of Circular E or call 1-800-TAX-FORMS.
To order other forms: 1-800-TAX-FORMS (829-3676)
CR-100
Colorado Business Registration Tax Application and Trade Name Registration Unemployment Insurance Colorado Business Registration is submitted to obtain a Colorado identification number for employment taxes, a sales tax collection permit, trade name registration and to establish an unemployment insurance account. You should file Articles of Incorporation or Articles of Organization with the Secretary of State prior to submitting this form (if entity is a corporation, LLC or LLP). You can obtain CRIOD online See our Links page. Be aware that some business sites require owners to provide workers compensation insurance on themselves, as well as their employees. The CR-100 can also be obtained On-line at http://www.revenue.state.co.us/.
Colorado Business Registration Tax Application and Trade Name Registration Unemployment Insurance
Colorado Business Registration is submitted to obtain a Colorado identification number for employment taxes, a sales tax collection permit, trade name registration and to establish an unemployment insurance account. You should file Articles of Incorporation or Articles of Organization with the Secretary of State prior to submitting this form (if entity is a corporation, LLC or LLP).
You can obtain CRIOD online See our Links page. Be aware that some business sites require owners to provide workers compensation insurance on themselves, as well as their employees. The CR-100 can also be obtained On-line at http://www.revenue.state.co.us/.
Workers' Compensation Insurance To obtain worker's compensation insurance for employees, contact either the Pinnacol Assurance or your business insurance broker. When obtaining workers' comp. insurance for employees, owner/employees may request an exemption by submitting the appropriate application which is generally included in the package.
DR 1094 Colorado Income Withholding Tax Return (coupon book)
Use this form when you remit state income taxes withheld. The coupon booklet will be sent to you annually after you have filed Form CR-100 (see above). Generally, remittances are made quarterly (April 30, July 31, October 31, and January 31) and accompanied by a coupon.
DR 1093 Colorado Transmittal of State W-2s
This form reconciles the total amounts of state taxes withheld and remitted during the year. It is due by February 28 of the following year, and is submitted with the applicable copies of your annual employee wage and tax statements (Form W-2). It is the last page in your coupon booklet.
UITR-1 Colorado Unemployment Insurance Tax Report
Submit this form quarterly with payment of unemployment insurance. The form is automatically mailed to you if you have registered with the state as an employer. The UITR is due by the last day of the month following each calendar quarter -- same date as 941s. It is submitted with the amount due for the state unemployment fund. It is important to note - employees pay unemployment tax on ONLY the first $10,000 of wages per employee per year. Rates differ from one employer to another. You are assigned a new rate each year based on incidence of employees collecting unemployment.
Important CDR Phone Numbers:
-Taxpayer Service Division: 303-232-2416 - 1375 Sherman St. Room 204, Denver CO. 80261 -Trade Name Information: 303-238-SERV (7378)-State Corporations: 1-800-829-3676-Forms 303-238-FAST (3278)
TD 210 Application for Denver Sales, Use, Lodger's Tax License and/or Occupational Privilege (Head) Tax Registration
All employers in the city and county of Denver must submit this form to register to pay sales, use, lodgers and/or occupational privilege tax. Occupational Privilege Tax (Head Tax) After filing the application, you will receive quarterly report forms to be remitted by the last day of the month following each quarter. If you have more than ten employees, you must remit payments monthly. Occupational privilege tax due equals $5.75 withheld from each employee per month plus the employer's share, which is $4.00 for each employee per month. IF YOU ARE SELF-EMPLOYED WITH NO EMPLOYEES, YOU MUST PAY $4.00 PER MONTH FOR YOURSELF (Annual Return)! Occupational privilege tax is applicable to all local employees of Denver employers, including employees who work outside of the City and County of Denver. It also is applicable to employers OUTSIDE of Denver who send workers into Denver. BE AWARE THAT OTHER CITIES ALSO ASSESS OCCUPATIONAL PRIVILEGE TAXES FOR WORK DONE WITHIN THEIR BOUNDARIES. AURORA AND GREENWOOD VILLAGE HAVE OCCUPATIONAL PRIVILEGE TAXES.
All employers in the city and county of Denver must submit this form to register to pay sales, use, lodgers and/or occupational privilege tax.
Occupational Privilege Tax (Head Tax)
After filing the application, you will receive quarterly report forms to be remitted by the last day of the month following each quarter. If you have more than ten employees, you must remit payments monthly. Occupational privilege tax due equals $5.75 withheld from each employee per month plus the employer's share, which is $4.00 for each employee per month. IF YOU ARE SELF-EMPLOYED WITH NO EMPLOYEES, YOU MUST PAY $4.00 PER MONTH FOR YOURSELF (Annual Return)! Occupational privilege tax is applicable to all local employees of Denver employers, including employees who work outside of the City and County of Denver. It also is applicable to employers OUTSIDE of Denver who send workers into Denver.
BE AWARE THAT OTHER CITIES ALSO ASSESS OCCUPATIONAL PRIVILEGE TAXES FOR WORK DONE WITHIN THEIR BOUNDARIES. AURORA AND GREENWOOD VILLAGE HAVE OCCUPATIONAL PRIVILEGE TAXES.
Important Denver Phone Numbers: City and County of Denver Department of Revenue Sales and Use, Occupational Privilege Tax: 303-640-2644 Property Tax: 303-640-3792
Social Security (FICA) for 2006: FICA taxes are 6.2% of employee wages up to $94,200. Medicare taxes are 1.45% of ALL employee wages! The employer matches the employee's contributions.
Reporting Requirements: At the end of each year, corporate entities will be required to file Federal Form 1120/1120S, along with State corporate income tax returns and supporting schedules. Partnerships and LLCs are required to file annual information returns (Form 1065) with supporting schedules. Sole proprietors report annual activity on Form 1040 Schedule C. Single member LLCs also file on Schedule C as "disregarded entities".
Estimated Tax Payments: Estimated quarterly tax payments may be required by corporate entities and individuals dependent on a variety of factors. Fiscal year taxpayers may be subject to additional reporting and payment provisions. Generally, for Federal income tax purposes, you must cover the lessor of 90% of the current year's tax liability, or 100% of last year's tax liability. However, if your income has increased substantially from last year's, it may be necessary to pay estimates that exceed 110% of last year's tax liability to avoid the assessment of penalties and interest. For Colorado income tax purposes, corporations must file and remit estimated tax deposits if tax liability will exceed $5,000. Individuals must file and remit estimated tax deposits if tax is to exceed $1,000. Please contact our office for assistance in determining your estimated tax payments. For individual filers, quarterly payments are due:
For calendar year corporation filers, quarterlies are due:
Qualified Profit Sharing/Retirement Plans: If you contribute to a qualified profit sharing/retirement plan, you may need to file information tax returns (Form 5500) for each plan year. Contact us if you are unsure about whether or not you must file.
Note: This list is for reference purposes only and is not meant to be all-inclusive nor can it be relied upon for all circumstances. Related non-compliance penalties can be severe and those responsible for such compliance and tax remittance are urged to seek competent tax advice.
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