2022 S-Corporation Critical Year-End Action Items

2023 S-Corporation Critical Year-End Action Items
Please click here to fill out the S-Corp action items form for 2023 EOY.
S-Corp year-end action items need to be processed before the end of 2022. Please read and respond carefully to each question below. Even if you do not need our help, it is important for you to complete this form.

If we do not hear from you by FRIDAY, NOVEMBER 18th, we will assume you do not need our help with the end of year action items this year.

As an S-Corporation owner (including LLC’s that are treated as S-Corporations for income tax purposes and file a federal 1120-S corporate income tax return), there are several critical year-end items that need to be considered to make sure you are in compliance with federal and local laws. We have listed many of these in the form below, to make sure that you are considering them for 2022 year-end, and to determine whether you need our assistance with any of them.
Business Name:*
Owner/Manager Name:*

First NameLast Name
1. Owner Salary
As an S-Corporation employee-owner, you are required to pay yourself reasonable compensation for services you provided to your business in 2022. Be aware the IRS has been looking at this more closely, and we highly recommend documenting your process to calculate your adequate salary. Do you need our assistance in calculating and/or processing your personal (business owner) payroll for 2022? If yes, we will contact you.

YesNo
2. Shareholder Health Insurance
There is a federal income tax deduction available for self-employed health insurance premiums paid by a business for the owner (and their family). In order to take advantage of this deduction, neither spouse can be offered group health insurance through an employer, and the premiums paid have to be reported on the owner’s W-2. (Note: if you use a payroll service, you will need to communicate and determine the correct figures with your payroll service, by the date they require to avoid surcharges). Do you need our assistance with determining whether you qualify for this deduction, the amount of shareholder health insurance deduction, or the steps necessary to reflect this deduction on your W-2? If yes, we will contact you.

YesNo
3. Safe Harbor
The IRS and most states require a minimum amount of income taxes to be paid on behalf of a taxpayer during the year. This is called a safe harbor, and varies depending on your prior year and current year tax situation. For many S-Corporation employee-owners, the annual salary/W-2 is a good way to meet your safe harbor. Do you need our assistance in determining how much Federal and State taxes should be withheld from your pay to cover your Safe Harbor for 2022? If yes, we will contact you.

YesNo
4. Retirement Plan
YesNoI don't have a retirement planI would like to discuss a retirement plan
5. Payroll Filings
Do you need our assistance to process your 4th quarter or year-end forms in January (Federal 941 and 940, state withholding, state unemployment, W-2, and W-3)? If you are currently using Journey Payroll through A Wych Tax and Accounting, answer yes to this question. Please make sure to also provide your 2023 SUTA rate change, you should receive this notice in November/December from your state's Department of Employment.

YesNo
6. 1099-NEC Forms
The IRS requires businesses to issue a Form 1099-NEC to any non-corporate vendor to which you pay at least $600 during a calendar year for services. This includes payments made for services to any attorney, even if they are incorporated. (Note: If a business pays for services using virtual currency, this is subject to the same 1099 reporting requirements as if it was paid by cash). You will be required to answer a question on your signed income tax return whether any 1099’s were required, and if so whether you filed all required forms. Do you need our assistance in preparing and filing your 2022 1099-NEC forms?

YesNo
7. Other Informational Returns
YesNo
8. Local Tax/Regulations
Due to a recent U.S. Supreme Court decision that vastly increased the complexity of interstate sales tax rules, we have determined that we no longer have the expertise or the capacity to prepare sales tax returns for our clients who sell any products outside of Colorado.

There are several other types of local business taxes/regulations for which you may be liable, as described in our Annual Business Checkup. Please indicate whether you need our assistance with any of the following:
YesNo
YesNo
YesNo
9. Employee Personal Use of Business Vehicles
YesNo
10. Tax Extension
YesNo
Comments
Should be Empty:

2023 S-Corporation Critical Year-End Action Items

1. Owner Salary

2. Shareholder Health Insurance

3. Safe Harbor

4. Retirement Plan

5. Payroll Filings

6. 1099-NEC Forms

7. Other Informational Returns

8. Local Tax/Regulations

9. Employee Personal Use of Business Vehicles

10. Tax Extension