2020 Payroll Reporting Changes You Need To Know

4 Critical Filing Updates For 2020 

With the impact of Covid-19 on virtually all payroll tax reporting and year-end looming, this is a great time to review some of the most significant changes that have occurred.

Aatrix has tracked all of these changes and provided detailed information on each one throughout 2020. 

  1. W-2 field changes
  2. 1095 C&B requirements
  3. 1099 form changes (NEC)
  4. 941 & 940 changes

Here is a quick review of the critical changes and information on how year-end 2020 payroll reporting may affect you. 

IRS Form W-2

The SSA has issued a number of changes for the 2020 W-2. The change that affects most employers is the ability to truncate SSN’s for the first time.

Other changes were made regarding Deferred Social Security Taxes, Military Spouse Residency Relief Act, The Railroad Retirement Tax, and Disaster Tax Relief.

For more information, you can read the complete story at What Has Changed On The 2020 W-2 (aatrix.com)

IRS Form 1095 B&C (ACA)

The two most significant changes regarding ACA reporting is the advent of several State filing requirements and the approval of HRA’s.

Aatrix published a story regarding State individual mandates and the reporting requirements they have implemented on August 4. 

There are currently six States with individual mandates and as many as eight more considering legislation to impose individual insurance mandates.

For more information, you can read the complete story at Are You Prepared For State ACA Reporting? (aatrix.com)

Aatrix published a story highlighting the changes to the 2020 1095 B&C on November 10. The information included details of the deadline extension and the requirements for handling HRA’s. 

The deadline for filing has been extended from January 31 to March 2, 2021.

For plan years beginning on or after January 1, 2020, employers may offer HRAs integrated with individual health insurance coverage or Medicare, subject to certain conditions (individual coverage HRAs).

For more information, you can read the complete story at What You Need To Know About The 2020 ACA Instructions (aatrix.com)

IRS Form 1099 NEC

The Form 1099 NEC was resurrected from the ’80s to solve the issue of mixed deadlines for non-employee compensation reporting and regular 1099 MISC reporting. The IRS decided to create a separate form to report the Box 7 revenue. The 1099-NEC form is now used to report non-employee compensation and the 1099-MISC will be used to report all other types of compensation.

Aatrix published a story detailing the change on May 14, 2020. For more information you can read the complete story at Why Did The IRS Make The New 1099 NEC Form? (aatrix.com)

New IRS Form 941

Aatrix issued its first update on the new 941 on June 3rd. This update included information on the impact of changes made by the Families First Coronavirus Response Act and the Coronavirus Aid, Relief, and Economic Security Act that added various types of payroll tax relief.

For more information, you can read the complete story at Revised 2020 IRS 941 Form (aatrix.com)

Aatrix published a second story detailing the additional changes released for the third quarter. The Changes to the 941 have been made to accommodate the executive order allowing businesses to defer both employer and employee payroll taxes.

For more information, you can read the complete story at 941 Changes For The Third Quarter 2020 (aatrix.com)

You can find more information and continual updates at Aatrix.