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Corporate Compliance

Many business owners are unaware that incorporation requires corporate compliance. When you incorporate you become a legal entity. Becoming a legal entity requires registering with state and federal agencies. Federal agencies will require a Federal Tax Identification number. State agencies will require employment ID numbers. Registration with any state or federal entity will require different forms of upkeep to keep your corporation compliant.

State Corporate Compliance

When you incorporate, you register the name you want to use with the state. The state approves your entity and assigns a corporate identification number. Once registered, the state will require you to file an annual report. Annual reports are part of corporate compliance. Annual reports are intended to update the state on changes to your corporation. If an annual report is not filed, you may be subject to penalties.

If you have employees, the state will require you to pay payroll taxes. Keeping compliant with state regulations for operating a business will also require compliance in the following areas;

  • Workers Compensation insurance coverage in case employees get injured
  • Registration for a sales tax ID number if subject to sales tax
  • Registration for an employer ID number if subject to payroll taxes
  • Quarterly and/or annual tax filings for employer taxes and/or payroll taxes
  • OSHA requirements for workplace and jobsite safety
  • Registration with state entities for specialized industries such as law, accounting, construction and health care
  • Reporting of newly hired employees to state employment agencies
  • Obtain a business license or occupational permit from your local city or county allowing you to conduct business in that area
  • Paying W-2 employees the required minimum wage
  • File annual income tax return for corporation

Federal Corporate Compliance

The federal government will not require you to file an annual report. The federal government will require the following to keep your corporation compliant;

  • File annual income tax return for corporation
  • Registration for FEIN (Federal Employer Identification Number)
  • Maintain accurate and detailed records of expenses and income
  • File annual employment tax forms 1099’s and W-2’s
  • File quarterly and annual employer payroll tax returns

When you incorporate it is a great idea to research corporate compliance in your state. Part of many incorporation services is help and advice regarding corporate compliance. Avoid fees and penalties from late filings by understanding what your state and government require to maintain your corporate protections.

If you need help with incorporation don’t hesitate to call us at 1-800-572-4419 or email [email protected] to get a quote for incorporation services. Feel free to subscribe to our blog for more accounting, tax, bookkeeping and HR tips.

New Employee Paperwork

What is it and when to fill it out?

When you begin hiring employees you are required by government entities to have them fill out paperwork. This is often referred to as new-hire paperwork. The paperwork you have your employee fill out will depend on what type of employee you hired.

Subcontractors

A subcontractor is also known as a 1099 employee. For more about what a 1099 employee is please visit our post here: https://www.genesisaccountingsolutions.com/w-2vs1099/
1099 employees must fill out at W-9 Form. You can find the federally required 1099 form here: https://www.irs.gov/pub/irs-pdf/fw9.pdf
Make sure that if you search for the W-9 form online, you obtain it from the IRS website. Many other sites will sell you a pdf fillable form when you can get it for free from the IRS. Subcontractors do not need to fill out any state forms.

W-2 Employees

W-2 employees tend to be any workers that work in your physical place of business. Employers are required to pay matching taxes on W-2 workers. Employers are also required to run pay for W-2 employees through payroll. W-2 employees must fill out paperwork according to federal requirements. Proper employee paperwork establishes an employee’s citizenship and identity. The US Federal government requires employees to fill out a W-4 which you can find here: https://www.irs.gov/pub/irs-pdf/fw4.pdf and an I-9 which you can find here: https://www.uscis.gov/i-9

Other paperwork that your W-2 employees should submit within three days of being hired;

  • Either a copy of the employee’s drivers license and a copy of the employee’s social security card/or a copy of the employee’s birth certificate or a copy of the employee’s passport will cover both the requirement to establish citizenship and identity.
  • A copy of the employee’s insurance policy card if the employee will drive a company vehicle.
  • Research your state, they may have a special tax calculation that will require its own form.
  • An authorization from the employee to conduct a background check if your company handles sensitive information or requires background checks.
  • An employment application that shows the employee’s background information and employment history and 1 to 2 emergency contacts.
  • Offer letter if your company wants to outline the position and terms of employment.

If you have further questions about employee paperwork or need other bookkeeping and accounting services, please feel free to contact us for a free consultation at 800-572-4419 or email [email protected]. Subscribe to our blog today for more useful information about accounting and HR.

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