This is the first year you’ll be filing Form 1099-NEC, Nonemployee Compensation, to report payments of $600 or more to independent contractors. Snag: This form isn’t among the forms the IRS is including in its Combined Federal/State Filing program.
The standard deduction amounts are now baked into the percentage method tables, which means employees should consider those amounts when they’re determining the adequacy of their withholding. On the other hand, low-income employees should take into account their eligibility for the earned income credit.
Beginning Jan. 1, 2021, the minimum hourly wage for nonexempts who work on or in connection with new federal contracts or replacements for expiring contracts, including employees with disabilities who work under special certificates, increases 15¢, to $10.95 an hour.

Fax extension of time requests

November 18, 2020

If you need a 15-day extension of time to provide employees with their W-2s or a 30-day extension to provide independent contractors with their 1099-NECs, the IRS wants you to fax your request letter to (866) 477-0572.
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December is a good time for all employees to review their W-4s and check their withholding. This is especially important now, since final regulations add six items to the list of circumstances requiring employees to refile their W-4s within 10 days.
The IRS has not yet released the official 2021 withholding adjustment amount, but we can extrapolate it, based on inflation adjustments to other provisions.

2021 inflation adjustments

October 27, 2020

This page presents the 401(k) COLA amount and other pension adjustments and the qualified transportation fringe benefits amount (crucial for your corporate deduction disallowance for providing employees with QTFs).
If you’re mailing Form 940 to the IRS without including a payment, be sure to check the last four digits of the ZIP Code.
If you want to waste money, stand in the middle of the street and set some on fire. That’s what happens when ineligible employees collect unemployment benefits. However, there are steps you can take to prevent unwanted benefits charges to your account.