CPP Review Course. Section 8 Depositing and Reporting Withheld Taxes Part 2. 8.7 Penalties for Late Reporting and Paying Tax. Late filing of employment tax returns results in an “addition to tax”
Depositing and Reporting Withheld Taxes
Six-part form sent to the employee, the SSA, state, local taxing agencies & employer copy
Employee copy must be made available to the employee by January 31st of the year following the reporting year.
Annual statement sent to a nonemployee payee & a copy is sent to the IRS (not SSA) along with a transmittal Form 1096. Helps the IRS determine whether individuals are reporting all their taxable nonwage income on their personal return.