Bookkeeping

Ecommerce is big business, a wave that has revolutionized most industries. You must therefore ensure that you are aware if any documentation required for the type of goods you are sending as well as for the country you are sending the goods to.

The same timing would also apply to the shipper, as they can claim that the goods have been sold after delivering them to the port of departure. Should any loss or damage occur during transit, the buyer can file a claim since they are the company that holds the title at that time. FOB is only used in non-containerized sea freight or inland waterway transport.

Other Incoterms

The liability transferred as the cargo made it safely over the rail. Incoterms last included the term “passing the ship’s rail” before its 2010 publishing. Shipping terms are important because of the massive worldwide volume shipped, and the need to have a common understanding of these terms for contracts.

CIF is used by sellers to maintain primary ownership of their products until they are delivered to their destination. The seller also assumes all responsibility for the shipment of these goods, so they’ll cover the cost of insurance until the goods are in the buyer’s hands. Once the shipment passes the buyer’s port of destination, all liability will then shift from the seller to the buyer. The ecommerce business is truly making a great impact in the world economy. For an ecommerce business owner like you, it is a must to know and get full understanding of the International commercial laws, especially if your business is catering to overseas customers.

What is FOB Shipping? Understanding FOB Shipping Point vs. Destination

Further to that, it has been found in the US court system that “Freight On Board” is not a recognized industry term. Use of the term “Freight On Board” in contracts is therefore very likely to cause confusion. The phrase passing the ship’s rail is no longer in use, having been dropped from the FOB Incoterm in the 2010 revision. Harold Averkamp has worked as a university accounting instructor, accountant, and consultant for more than 25 years. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Investopedia does not include all offers available in the marketplace.

When you are shipping internationally, there may be documents which you first need to clear at customs. When all these costs are added up, the shipping cost becomes far more expensive than what it would cost you to ship the same goods domestically.

FOB (shipping)

This means that when you receive your goods, they will already be delivered to your destination port. It’s important that you have a clear understanding of this term so that you know what your rights and obligations are from the start of your contract. Projects the amount of cargo transport that will increase each year at around 1.4% until 2045,” According to data from the U.S. Department of Transportation’s Bureau of Transportation Statistics . The term free on board simply refers to freight that is being shipped over water instead of land or air.

• It has made it easier for even people who are not in business to buy things from other countries.
• With the FOB shipping point the buyer takes the responsibility for lost or damaged goods.
• Once the products are delivered to the FOB address stated as the buyer’s address, it will be counted as a complete sale on the seller’s inventory while an increase on the buyer’s warehouse stock.
• She has participated in numerous events dedicated to business management and marketing.
• However, a CPA preparing GAAP financial statements will put in more scrutiny.
• Alternatively, FOB destination places the burden of delivery on the seller.
• The title of ownership is transferred at the buyer’s specified address, loading dock, office address, etc.

FCA. Free Carrier, which symbolizes that the seller is obligated to deliver goods to the railway terminal, shipping port, or on the airport where the buyer has an operation and can take delivery there. Under DES or Delivered Ex Ship, the seller has to deliver the shipment to a specific shipping port, where the buyer would take the delivery. FCA or Free Carrier means it is the seller’s responsibility to deliver the shipment at the port or airport, or railway terminal where the buyer has an operation. On the other hand, FOB Destination allows the buyer to add the inventory only when the purchase shipment reaches perfect condition. Also, under FOB Destination, the buyer has to take care of fewer things. On December 30, the journal entry in the books of the seller will be accounts receivable debit and sales credit. For the buyer, the journal entry will be purchase debit, freight debit and accounts payable, and cash credit.

Transfer of sale

Under delivered duty paid , the seller is responsible for the cost of transporting goods until customs clears them for import at the destination. Shipping terms affect the buyer’s inventory cost because inventory costs include all costs to prepare the inventory for sale. This accounting treatment is important because adding costs to inventory means the buyer does not immediately expense the costs and this delay in recognizing the cost as an expense affects net income. It may be difficult to record delivery precisely when the goods have arrived at the shipping point. Due to constraints to an information system or delays in communication, it is more realistic that there is a slight timing difference between the legal arrangement and the accounting arrangement. If your business buys or sells goods overseas, choosing the best Incoterms for your cargo can sometimes be confusing, especially if you are new to the world of overseas freight shipping. Freight Collect – Buyer pays and bears freight charges once goods are received.

• This means that when you receive your goods, they will already be delivered to your destination port.
• Do you have enough slack built into your inventory control processes to tolerate a lost or delayed shipment?
• The question about who will be held accountable for the shipment, between the buyer and the seller, is certainly an important matter to discuss.
• Instead of receiving ownership when the goods are loaded onto the ship at the shipping point, the buyer receives shop when the goods reach him.
• So, if the goods get damaged in transit, the buyer must file a claim with the insurance company.

While domestic trade is straightforward, shipping to other countries is not as clear-cut, since the international trade laws you have to deal with will depend on which country you are shipping to or from. If in your sales there is FOB destination inventory which was shipped just before the cutoff , or any inventory that is yet to be shipped, the business will not record the sale until the next fiscal year begins. In the case of FOB shipping point, the sale becomes complete when the shipment is sent off. As for FOB destination, the sale becomes complete when the goods are delivered and come into the buyer’s possession. The buyer is charge of all costs after the goods are loaded onto the vessel at the port of shipment.

Type YES/NO Is Required Y If the price varies throughout the state because of different delivery destinations, please indicate the price FOB Shipping Point. If the price varies throughout the state because of different delivery destinations, please indicate the price FOB Shipping Point. F.O.B. Shipping Pointmeans freight on board the place from which DexCom ships the Products to Distributor. Only after the seller begins the actual shipping process do they bill you.

While ecommerce business is one of the best opportunities for people who are passionate about serving the world with the best products and services, it is with greater importance to get into honorable agreements. Having said that, we take great honor to serve you with the best web services and tools you need to start your ecommerce business now. You are definitely giving your customers a clearly indicated information on how you charge for fob shipping point meaning shipping and on how they can get the items shipped. Transparency is one of the best marketing strategies that work for most ecommerce businesses. If your customers are fully aware of the shipping process, there will be no misunderstanding between sellers and buyers. Also, the best thing about the shipping feature with Strikingly is that you have the option to grant free shipping for every order of at least a certain amount before taxes.

Common Attributes of FOB Shipping

Sold” after they’ve transferred title and responsibility to the buyer, this is an important distinction. Due to potential confusion with domestic North American usage of “FOB”, it is recommended that the use of Incoterms be explicitly specified, along with the edition of the standard. Incoterms https://online-accounting.net/ apply to both international trade and domestic trade, as of the 2010 revision. Transfer of ownership occurs when the goods have been delivered to the point of origin . FOB contracts have become more sophisticated in response to the increasing complexities of international shipping.

Sale is recorded in the general ledger when the goods have arrived at the point of origin. Timothy Li is a consultant, accountant, and finance manager with an MBA from USC and over 15 years of corporate finance experience. Timothy has helped provide CEOs and CFOs with deep-dive analytics, providing beautiful stories behind the numbers, graphs, and financial models. It’s never been easier to own and operate a beautiful, fully-featured online store.

As you get closer to the end of the accounting period, you’ll need to add adjusting entries – or end-of-period adjustments – to your journal. These entries ensure your accounts reflect the correct expenses and revenues for the accounting period. Many business owners focus on the balance sheet and income statements.

Historically when accounting systems existed entirely on paper, transactions entered the records when a bookkeeper hand-wrote entries into a journal soon after they occurred. It was and still is a rule that “transactions” go into the journal in the order they occur, shortly after they happen. As a result, entries in the journal appear in chronological order. In this way, should anyone ask which transactions occurred on a given day, they can turn to the journal for an answer. Transactions enter the journal as the first and second steps in the accounting cycle. The journal is a chronological record, where entries accumulate in the order they occur.

• But intercompany profit needs to be eliminated as a worksheet adjustment because these transactions are not third-party transactions with outsiders.
• The accounting cycle protects assets from loss and theft by keeping track of your assets and revenue.
• Balance sheets pool accounting records on assets, liabilities and owners’ equity to shed light on a company’s holdings.
• These include white papers, government data, original reporting, and interviews with industry experts.
• The purpose of these entries is to close out temporary items by transferring income and expense items to the balance sheet.
• As a forensic accountant, that dream might just be possible.

It is easy to understand theaccounting cycle definition with the steps involved in the process. The steps include identifying and recording transactions to use them for further collective analysis to be aware of a company’s current financial scenario. It is the responsibility of a bookkeeper to maintain and keep a check on the accounting process. Cash flow statement, income statement, balance sheet and statement of retained earnings; are the financial statements that are prepared at the end of the accounting period. After accountants and management analyze the balances on the unadjusted trial balance, they can then make end of period adjustments like depreciation expense and expense accruals. These adjusted journal entries are posted to the trial balance turning it into an adjusted trial balance. Transactions can also be recorded using single-entry accounting or double-entry accounting.

Modifying The Accounting Cycle

At the end of the year, financial statements are generally prepared, which are often required by regulation. Public entities are required to submit financial statements by certain dates. All public companies that do business in the U.S. are required to file registration statements, periodic reports, and other forms to the U.S.

Apart from identifying errors, this step helps match revenue and expenses when accrual accounting is used. Any discrepancies should be addressed by making adjustments, which happens in the next step. Companies also modify the accounting cycle’s steps to fit their business models and accounting procedures. One of the major modifications is made according to the type of accounting method a business uses. Companies may follow cash accounting or accrual accounting, or choose between single-entry and double-entry accounting. We’ve pointed out areas where technology has pushed some aspects of the accounting cycle into the background. Stakeholders, including management, the Board of Directors, lenders, shareholders, and creditors, can analyze the financial statement results for the accounting cycle period.

You can use the accounting cycle to make accounting easier by breaking your bookkeeping responsibilities down into smaller, bite-sized tasks. Is one operating cycle of a business, which could be a month, quarter, or year. Free AccessFinancial Modeling ProUse the financial model to help everyone understand exactly where your cost and benefit figures come from. The model lets you answer “What If?” questions, easily and it is indispensable for professional risk analysis. Modeling Pro is an Excel-based app with a complete model-building tutorial and live templates for your own models. See Financial Metrics Pro for financial statement templates, form examples, and complete coverage of business ratios. The accounting cycle is all about accounts and the Chart of Accounts.

Completing The Accounting Cycle

The second step in the accounting cycle is to analyze the source documents. The purpose of this is to look them over and then decide what effect they have had on company accounts.

Having 8 steps in the overall accounting cycle may seem pretty straightforward, but it also means there are 8 chances for your process to go awry. Locating and solving problems early will be a defining task in making sure your process is carried out with much more ease and efficiency. This can be done by setting up proper procedures for each step, and creating checks and balances to catch unwanted errors along the way. Missing transaction adjustments help you account for the financial transactions you forgot about while bookkeeping—things like business purchases on your personal credit. An accounting cycle records, analyses, and summarizes accounting events for the details to be shared with internal and external stakeholders as they are affected by those activities. On the contrary, a budget cycle is a process where the records are internally used to decide future actions within the company. In short, all transactions that occur within an accounting period must find a record in a journal.

Steps one and two occur as often as needed during an accounting period. Steps three, four, five, and six occur at the end of each accounting period. Steps seven and eight usually occur only at the end of each fiscal year, but these steps may be completed at the end of each accounting period if the company chooses to do so. At the end of the accounting period, you run a trial balance to see if all the numbers balance. The transactions are then posted to the account in the general ledger, which is the list of all the business’ financial accounts, that it impacts, such as rent or wages or marketing. A balance sheet can then be prepared, made up of assets, liabilities, and owner’s equity.

General Ledger

When accounting issues customer invoices, these invoices are issued in numerical sequences for internal control. If a company still issues paper checks, they’re controlled and recorded in sequential numerical series. Any erroneous checks are voided and retained to control the numerical sequence.

• As soon as the books are closed for one accounting period, the bookkeepers and accountants start recording transactions for the next accounting period.
• Adjusting Entries are made to adjust income and expense accounts so that they comply with the accrual concept of accounting.
• Use of a checklist with deadlines in the accounting cycle improves accountability and process management.
• In the meantime, start building your store with a free 14-day trial of Shopify.
• All debits are listed in the left column, and all credits in the right column.
• They consider every part of the accounting cycle, including original source documents, looking through journal entries, general ledgers, and financial statements.

It is a crucial step as the discrepancy, if not handled correctly, could mislead internal and external stakeholders while making business decisions. In addition, by adjusting entries, the accountant will ensure the information seekers receive crystal clear accounting details from the trial balance. Financial StatementsFinancial statements are written reports prepared by a company’s management to present the company’s financial affairs over a given period . Accounting cycle is a process of a complete sequence of accounting procedures in appropriate order during each accounting period. Accounting process is a combination of a series of activities that begin when a transaction takes place and ends with its inclusion in the financial statements at the end of the accounting period.

The Trial Balance Error Check: Does The Sum Of Debits Equal The Sum Of Credits?

Through the accounting cycle (sometimes called the “bookkeeping cycle” or “accounting process”). Unadjusted records lead to accounting errors, requiring rectification. Thus, the companies prepare a worksheet to track the errors in the record.

An accounting cycle starts when a business transaction takes place. If there are no transactions, there won’t be anything to keep track of.

Accounting Cycle Flow Chart

Companies must systematically process financial information and must have staff who prepare financial statements on a monthly, quarterly, and/or annual basis. To meet these primary objectives, a series of steps is required. Collectively these steps are known as the https://www.bookstime.com/.

Give your staff the tools they need to succeed in implementing the accounting cycle. This could mean providing quarterly training on best practices, meeting with your staff each cycle to find their pain points, or equipping them with the proper accounting tools. The better prepared your staff is the more efficient they can be.

The final step is to document the post-closing trial balance to review debits and credits before beginning the next accounting period. Since this step zeroes out your revenue, the post-closing trial balance would only include balance sheet accounts. Now that your adjusting entries are posted, create an adjusted trial balance and complete your financial statements. The adjusted trial balance should list all ending balances for your general ledger accounts. The last step in the accounting cycle is to prepare a post-closing trial balance.

• This can include all journals, as well as source documents for major journal entries, such as the depreciation calculations.
• Each step in the accounting cycle is designed to act as a check and balance along the way to prevent errors and mistakes that could have been made in a previous step.
• Fixed assets except for land must be adjusted for depreciation.
• Their main objective is to match incomes and expenses to the relevant accounting periods.
• Prepare an adjusted trial balance, which incorporates the preliminary trial balance and all adjusting entries.

The Accounting Cycle is a sequence of steps or actions with an organization’s financial transactions and accounts. Each iteration of the cycle runs across a complete accounting period, usually a fiscal quarter or year. In an ongoing business, these activities are part of a cyclic, iterative process known as the Accounting Cycle. Ask any accountant and they will confirm that finally closing the books is extremely satisfying. This happens at the end of each accounting period, signifying that the next accounting cycle can begin. Through this 8-step process, accountants will use the accounting cycle as a checklist to run through a set of well-planned procedures to determine which step to perform next to complete the cycle. When completed correctly, the accounting cycle ultimately delivers an accurate set of financial statements.

Usually, this listing is prepared at the end of a financial period. This step is important, as after all entries are shown, the bookkeeper will check and make sure that the total debit and credit balances are equal. Performing this step will ensure the record is accurate before moving on to the following steps. Based on the transactions recorded as part of the accounting cycle, financial statements such as cash flow reports, profit and loss statements, and balance sheets can be prepared. Once all the business accounts have been balanced, they are closed out for that period and new ones created for the next accounting period.

As your business grows, so will the number of people who complete accounting tasks. Accountants, on the other hand, supervise bookkeepers and produce financial statements.

With the reconciliation process, for instance, they ensure that the firm’s bank cash account balances—as the bank reports them—agree with the firms own accounting system. And, they confirm that the firm’s liability accounts for bank loans agree with the lender’s account statements.

Forensic Accounting

Like other asset accounts, Cash on hand is said to carry a debit balance.Figures under “Debits” and “Credits” have been posted to the T-account from the journal . Because Cash on Hand is an Asset account, it carries a so-called Debit balance. For accounts with a debit balance, debit entries increase the balance and credit entries decrease it.

Preparing The Adjusted Trial Balance

The first two steps in the accounting cycle – identifying and analyzing transactions — depend on data from primary transaction sources, such as cash register tapes and cashiers’ daily reports. Sales information is routed from sales outlets directly into the accounting department, where an accounting clerk performs the next two steps in the process. Mark Summers from Supreme Cleaners needs to organize all of his accounts and their balances, including the $200 sale, onto a trial balance.

There is no one-size-fits-all solution when it comes to accounting practices. You may find early on that your system needs to be tweaked in order to accommodate your accounting habits. In the meantime, start building your store with a free 14-day trial of Shopify.

If an individual filed an initial claim for regular UC during calendar year 2020, the most recent taxable year is 2019. Thus, such individuals must have received at least $5,000 in self-employment income during taxable year 2019 to be eligible for MEUC. The work search question is required under Kansas law, but was temporarily waived at the height of the pandemic. Claimants that wish to continue to receive unemployment benefits will once again be required to perform work search activities each week. If you were previously filing for PEUC benefits, you do not have to file a new application for the additional weeks. You just need to continue filing weekly claims each week you are unemployed. First, KDOL is required to withhold mandatory child support obligations just as it does for regular unemployment benefits.

For example, if you said on your application that you were fired from your job, we’ll need to find out more about those circumstances before we can decide if you’re qualified for benefits. All reasons other than lack of work will trigger adjudication. (These include getting fired, quitting, taking a leave of absence and or being involved in a labor dispute.) There are a number of eligibility factors that will also trigger adjudication. If you have questions that cannot otherwise be answered by the weekly claim system or online, you will have to speak to an Unemployment Insurance Contact Center representative.

Remove or Reduce a Penalty

A card will be mailed to your home address when your first payable week is processed. Each year, employers pay unemployment taxes which are deposited into the Unemployment Insurance Trust Fund. Some unemployment benefits are paid out from this fund to workers who have lost their jobs through no fault of their own. Employers’ tax rates are affected when workers make claims against their account. Fraud can have a negative impact on these employers. Fraud may also reduce the balance of the UI Trust Fund which impacts payments to those who are unemployed. The Kansas Department of Labor wants to ensure unemployment benefits are not being diverted from the UI Trust fund to those who are not eligible.

• If you wish to file for approved training, complete the School Attendance/Approved Training Application (K-BEN 317) form below.
• A penalty of 75% will be added to the fraudulent claim or unpaid tax for fraudulent claims or willful failure to file a return.
• On the other side of the coin, the payee is an individual or a business entity that receives such payments.
• Your client or payer forgot to file it and/or send it to you– your clients are human too… well not counting business entities, but the ones in charge of filing 1099 forms are human.
• Contract law is generally doesn’t favor contracts agreed upon verbally.
• Next, don’t forget to compile all of your 1099s and submit them to the IRS with a 1096 form by the following month.

“If the individual or tax preparer does not make a manual adjustment and record the QCD, the entire IRA distribution could be reported as taxable,” he said. As the year 2023 approaches, the 1099 deadlines will loom closer. Being a responsible employer, it’s important to prepare and issue 1099s to the recipients, and file them to IRS responsibly without any delay. If the payer has already dispatched the incorrect form to the IRS, ask the payer to send a corrected form. There’s a special box on the form to show it is correcting a prior 1099 to ensure the IRS doesn’t add the amounts together.

Failing to File With the IRS

When I click on the “additional questions” link nothing happens. Your application is Not Complete until you reach the “Claimant Determination” page. If you have lost your Social Security card or changed your name, you may request a duplicate card from the Social Security Administration website. All new applications will have an identity verification conducted with the Social Security Administration. After we verify your identity, you can begin filing your application again from the point where you left off. For example, if you are making it available to download via your company’s website, you must tell them at what point in time the form will be removed from your servers. They may withdraw consent at any time in writing, electronically or on paper.

If the interest was received while a resident of NC, the income is taxable to NC. Beginning in tax year 2018, you will only receive a Form 1099-INT from the Department if you received refund interest of at least $600. If you did not receive refund interest of $600 or more during 2018, you will not receive a Form 1099-INT from the Department. Use Form 1099-INT in the calculation of your federal adjusted gross income. For details on how to comply with the 1099 reporting rules, download the Form 1099 instructions from the IRS website or consult with your tax professional.

Pay a Penalty

Check in with your CPA and ensure you’re compliant with your state’s 1099 filing requirements. During tax season, it’s up to you to send him a Form 1099-NEC, recording the amount you paid him, and the service you’re paying him for.

We provide the most cost-effective 1099 filing services. To know more about our filing service to file 099-MISC, visit eFile360 e-filing service. If the IRS determines that you have intentionally disregarded the filing, then the penalty is $550 per https://www.bookstime.com/ form. In some cases, the IRS can impose an additional penalty. The IRS sets the maximum penalty as $500,000 for small businesses, which are defined as having average annual gross receipts of less than $5 million for the three preceding tax years.

What if I’m expecting to receive an IRS Form 1099 from a certain client but I didn’t receive any?

The 1099-NEC form reports payments to non-employees, including independent contractors, freelancers, and professionals, to the Internal Revenue Service . It’s important to note that the IRS does not look favorably upon employers sending 1099s to workers who should really be classified as employees.

The penalty is 20% of the amount that you failed to report. Penalties for forms 1099-MISC and 1099-NEC apply to these forms and other types of information returns. Penalties apply for failing to file these reports with the IRS and failing to give the reports to payees. You must report backup withholding for all payment amounts. For example, if you withheld taxes totaling $500 for the year from a payee whose income is reported on Form 1099-NEC, you must report the payment, even though it’s under the usual $600 minimum. Businesses may need to file different types of information returns on 1099 forms to report payments.

I’m a payer. What happens if I forgot to provide an IRS Form 1099 to my service provider?

If he or she is operating a full-time business, he or she is not eligible. If this is a part-time occupation such as selling cosmetics or vitamin supplements, the income must be reported and it might reduce any benefits to which he or she is entitled.

Simply start a new form with the correct information to make up for the voided one. Voiding lets you cancel out a form that is printed on the same sheet of paper as other forms . If you have mistakes on a completed or partially completed 1099 and haven’t submitted it to the IRS, you can void it. To void a 1099, enter an “X” in the “VOID” box, which is next to the “CORRECTED” box. How you issue a 1099 correction depends on the type of error. The IRS splits errors into two categories, Type 1 and Type 2. Unlike Form W-2’s correction form, Form W-2c, there is not a separate 1099 correction form.

How much can you pay someone without having to file a 1099?

KDOL will approve the WIA training and waive the requirement that you seek work provided you make satisfactory progress while in approved training. Approved training is any training program found by the Kansas Department of Labor to meet approved training guidelines. Training must be vocational or technical in nature and short-term to be considered for approved training.

• It is your responsibility to verify that the worker is indeed a non-U.S.
• You can’t get an automatic extension for filing 1099-NEC and W-2 forms, and you can’t file the the extension application electronically.
• Availability of Refund Transfer funds varies by state.
• Also, there are many exceptions to the $600 rule, meaning you may receive a 1099 even if you were paid less than $600 in non-employment income during the tax year.
• If you’re not sure how a business is classified, you refer to the Form W-9 you should have received from the vendor when you started working with them.
• If your case is cleared for payment and you have met all eligibility requirements, you’ll get back payments for any weeks you claimed and were eligible to receive, in one lump sum.
• If your wages in the last 18 months are solely from Kansas, you can file online at GetKansasBenefits.gov.

The exact deadline may change in a year if the deadline falls on a weekend or holiday. In this case, the deadline is the next business date. For example, if January 31 falls on a Sunday, the deadline would be Monday, February 1.

File electronically when required

I provided the links to the instructions for these other types of Form 1099s. Even if you have all the most common forms, you may accidentally skip some of less familiar ones, resulting in an incomplete return, tax experts say. For example, if a taxpayer does not receive a 1099-R and contacting the payer has not resolved the issue, the IRS suggests you contact them. The IRS will, in turn, contact the payer or employer on your behalf. It is wise to consult a tax professional since the proceeds realized from a real estate transaction could be exempt from taxes, depending on the taxpayer’s particular financial situation. A 1099-Bis sent to a taxpayer listing the various transactions from a broker, such as the sale of stocks, commodities, and other securities. Also, some types of bartering transactions executed through a barter exchange would be listed and reported on a 1099–B form.

How long does it take to file a 1099-MISC?

As of May 12, we are now accepting applications for PUA benefits. Apply for benefits online atPUA.GetKansasBenefits.gov. Yes, provided your unemployment was caused directly by COVID-19, you may be eligible for PUA. Like all unemployment programs there must be a What to Do If You Missed 1099 Deadline connection to the labor market either by showing work history or showing concurrent attempts to join the labor market. Those who lack sufficient work history to file a claim or have been disqualified for state benefits but who are impacted directly by COVID-19.

KDOL will respond to questions and inquiries regarding your debt. If you have not received a notice about your debt, your debt may not be eligible for federal offset.

To get more time for your IRS filing, you can file Form 8809 for an automatic 30-day extension. Again, you must file your extension request by January 31st. You’ll need to either file online or order the forms you need (Copy A of 1099-MISC and Form 1096).

Also, prepare early for the next year and make sure you collect W-9 forms from your vendor before making any payments. The late filing penalty is $50 per form if you file within the 30 days of the due date. If you file after 30 days, but before August 1 of the filing year, the penalty is $110 per form. If you file after that or do not file at all, then the penalty is $280 per form.