Tax

IRS Form 941 is the Employer’s Quarterly Federal Tax Return. It’s used by most businesses with employees to report federal income, Social Security, and Medicare taxes withheld from employee paychecks. The form is filed four times a year and also includes the employer’s portion of Social Security and Medicare taxes. It’s a crucial part of managing payroll and ensuring your business is compliant with federal tax laws.

S corporations generally do not receive 1099 forms (1099-NEC or 1099-MISC) for services they provide. The IRS exempts payments to corporations from 1099 reporting, unlike payments to individuals, sole proprietors, partnerships, or LLCs taxed as partnerships. However, there are important exceptions: S corporations must still receive 1099s for certain types of payments, such as attorney’s fees, medical and healthcare payments, and other specific categories required by the IRS. In short, if you pay an S corp for ordinary services like consulting, design, or construction, no 1099 is needed—unless the payment falls under one of the exception categories.

The 1095-B form is a tax document that shows you had health insurance during the year. It lists who was covered in your household, the type of plan, and the months it applied. You do not need to send it with your tax return, but keep it for your records. Its main purpose is to confirm that you and your family had qualifying health coverage.

A 1099-K is a tax form used in the United States to report payments you’ve received through payment processors and online platforms. Services like PayPal, Stripe, Square, or marketplaces issue it if your transactions cross certain thresholds. The form shows the gross amount of money collected, not what you actually earned after fees or refunds. You’ll need it when filing taxes because the IRS also receives a copy and expects you to report that income.

An S Corporation is a tax designation allowing businesses to avoid double taxation. Profits pass through to shareholders and are taxed at individual rates rather than corporate rates

Nonprofits must pay payroll taxes for employees, including Social Security and Medicare taxes. However, they may be exempt from certain federal unemployment taxes depending on their status.

Net tax refers to the amount remaining after all applicable taxes have been deducted from gross income or revenue. It represents the actual value of income, profits, or returns after accounting for tax obligations. In business contexts, net tax is crucial for understanding a company’s true financial position and available funds for reinvestment or distribution. For individuals, net tax is synonymous with take-home pay, representing the amount received after income tax and other deductions. The concept applies to various financial transactions, helping both businesses and individuals make more informed financial decisions

A 1095-C is a tax form that large employers (those with 50+ full-time employees) must provide to their workers and file with the IRS. This form reports information about the health insurance coverage your employer offered you during the tax year.

The 1095-C shows whether your employer offered you affordable health insurance that meets minimum coverage standards. It also indicates which months you were enrolled in employer-sponsored coverage, if any.

You’ll receive your 1095-C by March 31st following the tax year. You don’t need to attach this form to your tax return, but keep it for your records. The information helps you determine if you qualify for premium tax credits when filing your taxes.

If you didn’t receive health insurance through your employer, you might still get a 1095-C showing that coverage was offered but declined. This documentation protects you from potential penalties under the Affordable Care Act requirements.