PAYROLL and 1099s
We provide a full range of payroll services:
provide calculations for paychecks for any number of employees in any payroll time periods. We can prepare the checks and/or
assist with direct deposit (ACH) transactions.
Payroll Tax Deposits-
The amount of taxes withheld from employees paychecks that are due on a weekly, biweekly, monthly, quarterly
or annual basis. Deposit requirements vary based on total taxes due.
Larger amounts of tax will, generally, require more frequent deposits.
We can prepare payroll tax deposits for payment either by bank deposit or electronic deposit.
These are the only two options for depositing payroll taxes, however amounts
less than $2,500.00 per quarter may be paid with the 941 tax return.
Payroll Tax Returns-
The Federal, State and sometimes Local governments require (typically) quarterly filing of returns reporting the gross payroll, withholding, etc and sometimes require payment with the return.
The typical returns we prepare are:
941 - Federal
Quarterly Payroll Tax Return
940 - Federal
Annual Unemployment Tax Return
DR 1094 -
Colorado Monthly or Quarterly Payroll Tax Deposit Coupon
DR 1093 -
Colorado Annual W-2 Transmittal Return
Colorado Quarterly Unemployment Tax Return
Greenwood Village and Sheridan Occupational Tax Returns
with similar versions of payroll and unemployment tax returns
W-2 and 1099 Forms-
The payment of wages, contract work, dividends and many other kinds of income must be reported on W-2
forms or any of several different 1099 forms with the IRS or Social Security
Administration. We also provide W-2 form and 1099 form preparation
services. These forms can be filed electronically with the IRS and Social Security Administration,
but it must be done through an intermediary.
Wage and Contract Work Payments
Whenever wages or other compensation are paid to an individual or company, the proper documentation must be obtained. In the case of an employee, a
W-4 form must be filled out as well as an
form. In addition, the employee's information must be reported to the state upon hiring
and it would be well advised to verify the social security number.
In the case of an independent contractor or subcontracting company, a
should be obtained. Even if you think the company is a corporation and
does not require a 1099 to be issued, you should still obtain one for your
protection. You can be fined for failing to issue a 1099, even if you were
told that you did not have to do so.
Who is an employee?
Before you can know how to treat payments that you make for
services, you must first know the business relationship that exists between you
and the person performing the services. The person performing the services may
an independent contractor, a common-law employee,
statutory employee, or
An employer must generally withhold income taxes, withhold and
pay social security and Medicare taxes, and pay unemployment tax on wages paid
to an employee. An employer does not generally have to withhold or pay any taxes
on payments to independent contractors.
To determine whether an individual is an employee or an
independent contractor under the common law, the relationship of the worker and
the business must be examined. In any employee-independent contractor
determination, all information that provides evidence of the degree of control
and the degree of independence must be considered.
Facts that provide evidence of the degree of control and
independence fall into three categories: behavioral control, financial control,
and the type of relationship of the parties.
For detailed information, please see Section 1 of
IRS Publication 15-A
Additional Employment Information and
Order Number 23 (2007) (PDF)
Order Number 22 (OLD) (PDF)
W-4 Form-2007 (PDF)
I-9 Form-2007 (PDF)
Colorado New Hire Reporting Info
W-9 Form-2007 (PDF)
Number Verification Page
Additional Forms Page
Additional Links Page
General Liability Insurance and Workers Comp Audits
Many employers are required to provide information on a yearly basis for audits of payroll and subcontract payments. These reports are usually based on the past year's payroll reports and general ledger reports from
the bookkeeping. In addition, you may be required to provide certificates of coverage for all subcontractors. We perform many of these audits for our clients and can provide these services as a supplement to bookkeeping and payroll services.