December 15, 2023

Dear Client and Friends:

As 2024 approaches, there are several items of which you need to be aware.

1099s and W-2s

The reporting deadline for 1099-NECs and W-2s is January 31^st. The deadline to distribute W-2/1099 forms to recipients is also January 31st. The deadline for filing 1099-MISC and 1099-S is February 15, 2024. Late filing fees may be assessed if you are audited and found to not have filed or omitted some 1099s or W-2s. Please contact our office if you have questions on 1099 reporting.

If our firm is preparing your 1099/W-2s, we must receive your information by January 19^th to meet the January 31st deadline. If you do not have your payee’s taxpayer identification numbers, please have them complete IRS form W-9, which is available at http://www.irs.gov/pub/irs-pdf/fw9.pdf.

Minimum Wage Change

The NYS minimum wage for Upstate NY will increase to $15 on 12/31/23. The minimum for executive and administrative exempt employees is $1,124.20 per week ($58,458.40).

Social Security Wage Base

The taxable wage base for Social Security will increase to $168,600 on January 1, 2024.

New York Sexual Harassment Mandate

Employees must complete sexual harassment prevention training at least annually.

Medical Insurance Premiums and S Corporation Shareholders

Health and accident insurance premiums paid on behalf of a greater than 2-percent S corporation shareholder-employee are deductible by the S corporation and reportable as wages on the shareholder-employee’s Form W-2, subject to income tax withholding. However, these additional wages are not subject to Social Security, or Medicare (FICA), or Unemployment (FUTA) taxes if the payments of premiums are made to or on behalf of an employee under a plan.

A 2-percent shareholder-employee may be eligible for an above-the-line deduction in arriving at Adjusted Gross Income (AGI) for amounts paid during the year for the medical care premiums if the medical care coverage was established by the S corporation.

2023 Mileage Reimbursement Rate

The IRS standard mileage rate for 2024 is 67 cents per mile for business use, 21 cents per mile for medical use, and 14 cents per mile for charitable use.



If we can be of any assistance, or if you have questions, please do not hesitate to contact us.

Best Regards,

Bailey, Carr CPAs, P.C.

Disclaimer

Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. If desired, Bailey, Carr CPAs would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.

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