e-News for Payroll Professionals Issue 2025-01

Useful Links:

IRS.gov

Payroll Professionals
Tax Center

Employment Taxes

Reporting Agents File

Employment Tax Forms

Employment Tax Publications

Online Ordering

SSA - Employer Web Page

Taxpayer Advocate Service

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Issue Number:  2025-01

Inside This Issue

1. E-filing required for most information returns
2. Business Tax Accounts expands features and availability
3. Form 1099-K threshold is $5,000 for 2024; IRS provides transition relief
4. ETAAC member application period open through Jan. 31
5. IRS offers tools for digital platform managers and workers
6. Social Security Administration news
7. Updates to forms, instructions, and publications

 1.  E-filing required for most information returns

The IRS reminds taxpayers that file 10 or more information returns that they must file them electronically. This includes Forms W-2, e-filed with the Social Security Administration.

Businesses should prepare soon to e-file information returns by applying for a Transmitter Control Code (TCC), as processing may take up to 45 days.
A TCC is not required to electronically file Form W-2, but registration with Business Services Online at SSA.gov is required. Taxpayers that need more time to file information returns can submit Form 8809, Application for Extension of Time to File Information Returns. Go to IRS.gov/inforeturn for e-filing options.

More information:
Topic no. 801, Who must file information returns electronically
Topic no. 802, Applying to file information returns electronically
Topic no. 803, Electronic filing waivers and exemptions and filing extensions
About general instructions for certain information returns

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 2.  Business Tax Accounts expands features and availability

In a December fact sheet the IRS shared the latest expansion to Business Tax Account (BTA) features and new availability for C corporations. This tool also expanded access to designated officials (DO) who can use BTA on behalf of an S or C corporation. The fact sheet includes details about other BTA services and planned releases.

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 3.  Form 1099-K threshold is $5,000 for 2024; IRS provides transition relief

A November news release explains the transition relief provided to third-party settlement organizations and the filing thresholds for calendar years 2025 and 2026. Notice 2024-85 provides details of the IRS’s position to not assert penalties for 2024.

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 4.  ETAAC member application period open through Jan. 31

The IRS issued a news release about the Electronic Tax Administration Advisory Committee, qualifications and how to apply for membership. Qualified individuals will serve three-year terms on the board starting in September 2025.

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 5.  IRS offers tools for digital platform managers and workers

The IRS has a landing page to help those operating digital platforms, marketplaces, or businesses in the gig economy find information help them meet their tax obligations. The new page has information on classifying workers, reporting payments and how to file and pay taxes. It also has resources for workers.

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 6.  Social Security Administration news

• Electronic filing webinar - Social Security will host a webinar on Electronic Filing with Business Services Online (BSO) on Jan. 9. Registration will be open through Jan. 6. Note: No Continuing Professional Education (CPE) credits will be given for attending this webinar.

• Social Security now accepting 2024 wage reports - Tax year 2024 wage reports must be filed with the Social Security Administration by Jan. 31, 2025.

• Social Security’s BSO access and registration - Register to use Business Services Online (BSO) employer services to file wage reports online. To get started, visit the BSO Welcome page, scroll to “Employers Box,” then either “Log in” or “Create account.” SSA recommends businesses start the registration process now as it can take up to two weeks to complete.

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 7.  Updates to forms, instructions, and publications

The following information may be of interest to individuals and groups related to payroll professionals:

Forms
• Form 943-A, Agricultural Employer’s Record of Federal Tax Liability
• Form 1099-DA, Digital Asset Proceeds From Broker Transactions (Info Copy Only)
• Form W-4S, Request for Federal Income Tax Withholding from Sick Pay
• Form 1099-NEC, Nonemployee Compensation (Info Copy Only)

Instructions
• Instruction 941, Instructions for Form 941, Employer's Quarterly Federal Tax Return
• Instruction 945-A, Instructions for Form 945-A, Annual Record of Federal Tax Liability
• Instruction 1099-MISC and 1099-NEC, Instructions for Forms 1099-MISC and 1099-NEC, Miscellaneous Information and Nonemployee Compensation
• Instruction 1099-A and 1099-C, Instructions for Forms 1099-A and 1099-C, Acquisition or Abandonment of Secured Property and Cancellation of Debt
• Instruction 1099-DA, Instructions for Form 1099-DA, Digital Asset Proceeds from Broker Transactions

Publications
• Publication 15-B, Employer's Tax Guide to Fringe Benefits
• Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans
• Publication 4163, Modernized e-File (MeF) Information for Authorized IRS e-File providers for Business Returns
• Publication 5252, Enroll in the IRS eLevy Program today

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