Category: obamacare

Everything You Need to Know 1099 vs. W2

Posted on October 2, 2018 by - 2290, affordable care act, ExpressIRSForms, Form 1099-MISC, Form W-2, Form W-9, independent contractor, IRS, obamacare, owner operator, Personal Tax Extension

Everything You Need to Know 1099 vs. W2

As a fleet owner should you give your drivers a 1099 or W-2 Form? We hear this question a lot from drivers and fleet managers alike. You might think you have a ton of time before the tax season, however, now is the time to get your documents in order. The last thing you want is the IRS on your case about the classification of your drivers.

While we do tend to focus on Form 2290, we understand the personal taxes of a professional truck driver can make a huge difference for both companies and drivers.

Do Your Drivers Need a 1099 or W-2?

Misclassifications continue to be a subject for concern among both companies and drivers, so it is a point that needs particular attention. So how should your fleet approaches classification?

When you bring on a new driver, you should determine if they are a full-time employee or an independent contractor. This should be priority number 1!

This will determine if they will receive a 1099 or W-2. Now, we’ve heard stories from some drivers where companies won’t discuss employee status until tax forms are due, but we suggest clear and open communication with your drivers from the very beginning.

Some fleets might be tempted to put the burden of taxes on drivers and send them a Form 1099, but that route can only be traveled with specific conditions geared towards independent contractors.

My point is that treating a full-time employee as an independent contractor will lead the IRS to your front door. Plus, the IRS get their money one way or another. Might as well keep your classifications kosher. 

Independent Contractor or Company Driver?

The status of your drivers needs to be determined before the hiring process even starts. There are specific guidelines set by the IRS on what classifies as a contractor and which 1099 to file.

If you’re an independent contractor, you will have to cover your end of government expenses, but you also have more choice in how you haul.

Don’t Wait Until The Last Minute

If you have any questions about your business tax forms, contact our sister product, TaxBandits. It is their mission to help your business save time and money this upcoming tax season. Their bilingual support team is available via phone, live chat, and email. Click here to learn more.

Learn More About TaxBandits

What’s New With Us?

Posted on November 12, 2015 by - affordable care act, ExpressACAForms, expressacaforms.com, obamacare

Getting right to it–we’re excited to introduce a new product in our software family: ExpressACAForms. We’re taking all the guesswork out of a big part of the Affordable Care Act (or ObamaCare) for you. Under the ACA, if you have employees working for you, regardless of the size of your business, you have to give the IRS proof that you’ve provided those employees with what’s called the minimum essential coverage. (MEC) of health insurance.

This means that any trucking business owner that has at least one employee must show that they’ve provided this MEC to all employees. That’s why we made a solution to help all of you out!

What is ExpressACAForms?

Through ExpressACAForms.com, you can e-file the information returns necessary to prove that you’ve provided your employees with the minimum essential coverage. Like all of our e-filing solutions, we’re secure, IRS-authorized, and affordable! (In fact, you can prepare your 2014 filing for free!)

What Forms are Used?

The forms that are used to report this information are the 1094-B and 1094-C, and the 1095-B and 1095-C. ExpressACAForms gives you access to all these forms and a way to file them. (At this point, however, the IRS is not receiving these forms yet, so the filing portion of ExpressACAForms is not operable, but will be soon.)

How Do I Fill Out These Forms?

With ExpressACAForms, filling out these forms is quick and easy. We’ve taken the difficulty out of tax filing. Just fill out a few simple fields, and that’s it. You’ll have all your information ready to go when the IRS does start accepting 1094’s and 1095’s, which should be very soon. And ExpressACAForms automatically checks for any errors in your forms, so there’s no need to worry about making any mistakes.

How Do I File These Forms?

You’ll be able to e-file these forms for free for the 2014 tax year when the IRS begins accepting them. In addition, you’ll also have the option of us delivering your forms by postal mail, if that’s your preference.

When are These Forms Due?

There are deadlines for filing Forms 1094-B & C and 1095-B & C for the 2014 tax year.

  • January 31, 2016: All recipients must have been provided with forms 1095-B & C 
  • February 29, 2016: Paper filing of Forms 1094-B & C and 1095-B & C to the IRS
  • March 31, 2016: E-filing of Forms 1094-B & C and 1095-B & C to the IRS

We hope this has helped you gain a better understanding of how to remain compliant with ACA regulations. Click here for the ExpressACAForms website.

As always, our ExpressTruckTax team is also available to help you with any questions or concerns you may have about Form 2290 (HVUT) or IFTA as well. You can reach us by phone at 704.234.6005 and email us any time at support@expresstrucktax.com. Happy Trucking!