Recap: Ask the Greenshades Experts Year-End Forms Q&A Session

As part of our Year-End Forms Webinar Series, Greenshades hosted a special event, “Ask the Greenshades Experts: Year-End Forms Q&A Session,” to provide timely guidance on filing year-end forms, including 1099s, W-2s, and ACA forms. The session was led by Greenshades experts, who walked attendees through the latest compliance updates, best practices, and tools for ensuring a smooth year-end filing process.

Watch the full session here:

Addressing Key Changes in Filing Requirements

The webinar began by educating attendees on the significant reduction in the federal e-filing threshold for IRS forms. Effective January 1, 2024, the threshold dropped from 250 to 10 forms, requiring businesses to file electronically if they exceed this count across return types such as W-2s, 1099s, and ACA forms. Attendees were reminded to also review state-level e-filing requirements, as these may vary and often align with federal thresholds.

1099-K Reporting Updates

The webinar then transitioned to the upcoming changes impacting Third-Party Settlement Organizations (TPSOs) as detailed in IRS Notice 2024-85. These updates were presented alongside actionable advice on how businesses can prepare for the phased implementation of these requirements.

Benefits of Early Preparation

Attendees were guided through the importance of early filing preparation, emphasizing the benefits of starting the process well before the deadline. Greenshades provided a practical overview of how their solutions streamline these tasks, saving both time and effort.

SSN/TIN Verification Process

The session highlighted a key change in the IRS’s Social Security Number (SSN) and Taxpayer Identification Number (TIN) verification timelines. Where verification previously took up to 24 hours, it now requires approximately 48 hours. Attendees were urged to account for this in their planning and were shown how Greenshades helps expedite the verification process to avoid delays.

Q&A With our Experts

As part of the Ask the Greenshades Experts session, our team addressed several pre-submitted questions to provide clarity on year-end payroll and tax filing requirements. Below are the highlights from the session, summarizing key topics covered:

1. Withholding State Income Taxes for Out-of-State Construction Drivers

The federal law specifies that states cannot impose income tax on non-residents driving commercial vehicles if their earnings are sourced from services performed in the state. For example, a Louisiana-based construction driver hauling equipment to Mississippi or Alabama would generally only be subject to Louisiana state income tax, provided their services fall under the criteria of the federal exemption. Employers are encouraged to consult the detailed federal law (49 USC § 14503) for guidance and verify specific state-level requirements.

2. Filing State Exemptions for Employees Residing Out of State

An employee living in Mississippi but working in Louisiana must pay Mississippi state income tax on all wages earned. Additionally, if Louisiana requires withholding for services performed within the state, the employer must withhold Louisiana taxes as well. Employees can claim a tax credit on their Mississippi return for taxes paid to Louisiana, ensuring they are not double-taxed. Employers must ensure compliance with both states’ withholding requirements based on residency and work location.

3. Proper W-2 Reporting for Multi-State Workers

When an employee earns wages across multiple states, the W-2 must list state wages, taxes, and state account numbers for each state where income taxes were withheld. For example:

• Louisiana: Includes wages earned in Louisiana and any taxes withheld on those wages.
• Mississippi: Includes wages earned in Mississippi with applicable withholding.
• Florida: No state taxes are withheld, so it does not need to be listed unless specific wages are attributed solely to Florida.

Employers must separate and accurately report wages and taxes for each state on the W-2 to ensure compliance.

4. Formatting W-2s for Multi-State Taxes

The correct W-2 format depends on the specific states and their withholding rules. However, with Greenshades we ensure your forms are in the correct format based on your reporting needs.

5. Greenshades Year-End Form Availability and Deadlines

Sample 2024 W-2s can be uploaded for verification starting January 2, 2025, with guaranteed on-time mailing if submitted by January 24, 2025. Employers missing the deadline can still print and mail forms, but late submissions may incur penalties.

6. Using Greenshades for QuickBooks and Dynamics GP Data

Greenshades supports data uploads from QuickBooks and Dynamics GP. Employers can use an Excel template to format year-end data for 1099s, W-2s, and 1095s. For Dynamics GP users, syncing year-end data to the Greenshades Year-End Forms portal enables seamless form generation and submission.

7. W-2 Verification Tools in Greenshades

Greenshades provides a dedicated section to identify errors and warnings in W-2 data. This tool scans for issues such as mismatched totals, missing SSNs, or incorrect state information, ensuring accurate reporting before submission.

Closing and Key Takeaways

The session concluded with actionable insights to streamline year-end form processes:

• Early preparation is essential to meet tightened deadlines and avoid penalties.
• Leveraging tools like Greenshades simplifies form management, from data imports to SSN/TIN verification.
• Flexible, robust solutions ensure compliance with evolving federal and state regulations.

Ready to simplify your year-end filing? Greenshades offers a comprehensive platform to handle your 1099s, W-2s, and ACA forms with accuracy and ease. Contact us at sales@greenshades.com to learn more or get started today!