Tax Season Prep

Tax season will be here soon! Nextep will make W-2s available online and send them directly to employee homes no later than January 31, 2021

Here’s how you can prepare for the upcoming tax season. 

Get Organized

Take a look at last year’s tax return and make a note of any forms or technology you used to file. You’ll want to gather receipts if you plan to claim deductions for charitable donations, business expenses, or medical expenses.

Be sure to have dependent info with the rest of your tax documents if you have any and, if you’ve moved recently, double-check that your employer has your current address for prompt W-2 arrival. If you have the option, take advantage of an electronic copy of your W-2 — you’ll be able to get started on tax filing as soon as your W-2 is ready instead of waiting on a paper copy. 

Review COVID-19 Relief Info

The IRS wants you to be prepared; see their COVID-19 tax tips. If you didn’t get the full amount of the CARES Act Stimulus Check – $1,200 for individuals or $2,400 if married filing jointly, plus $500 for each qualifying child – you may be eligible for a Recovery Rebate Credit

Check Your Withholding Status

In addition to checking your last paystub, you can look at your tax withholding to prep for tax filing. Use the IRS tax withholding calculator to get an estimate of your income tax return this year and make sure you’re withholding enough taxes. 

Decide How You’ll File

You have options for how you file your taxes. One popular choice is using a tax software service to make electronic filing easy and cost-effective. The IRS offers a free file tool to help you find free tax software if you earn $72,000 or less per year.

If you have more complicated tax situations, professional tax preparers can help make sense of your tax return for a fee. They may even find deductions or tax credits you might not have received or known about when preparing your own. 

The deadline to file 2020 tax returns and pay any tax owed is Wednesday, April 15, 2021. Take a look at the IRS FAQs to get more info about tax filing. While Nextep cannot provide personal tax advice, we’re here to help if you have questions. Contact us online or call us at 888-811-5150.

Also on Nextep

Along with the new year comes new minimum wages for several states on January 1, 2021. As a reminder, when state law differs from federal law, employers must use the one that benefits the employee the most. In this case, the state minimum wages are higher than the $7.25 federal minimum wage; therefore, the state’s […]
Read more
It’s important to know about upcoming changes to tax laws and Nextep is here to make sense of them all and help you prepare for next year’s budget. Here are the changes at a glance: Social Security wage base: First $142,800 of wages in 2021 (Was $137,700) FICA – Social Security (OASDI): 6.2%, up to […]
Read more
Please visit our COVID-19 resources page with more information for business owners and employees. Updates from the U.S. Department of Treasury and SBA. On June 10, 2020, the U.S. Department of Treasury and Small Business Administration (SBA) released additional guidance to provide clarity on the recently passed Paycheck Protection Program Flexibility Act (PPPFA). Here are […]
Read more
On June 5, 2020, the president signed H.R. 7010, the Paycheck Protection Program Flexibility Act, into law. This law clarifies terms of the PPP loan, eligibility, and loan forgiveness. Highlights include: Expanded repayment period There is now an expanded, five-year repayment period for the PPP loan for those who did not receive loan forgiveness, an […]
Read more
Please visit our COVID-19 resources page with more information for business owners and employees. Updates from the SBA and Department of Treasury On May 22, the Small Business Administration (SBA) and Department of Treasury released two interim final rules for loan forgiveness under the Paycheck Protection Program (PPP). While they clarified parts of the loan forgiveness application, […]
Read more
Please visit our COVID-19 resources page with more information for business owners and employees. PPP loan forgiveness application and instructions are available On Friday, May 15th, the Treasury and Small Business Administration released an application and instructions for Paycheck Protection Program (PPP) loan forgiveness, available here. Please note that the SBA has also stated that additional […]
Read more
The Department of Labor (DOL) recently announced its final decision on the calculation of the regular rate of pay, effective on January 15, 2020. The new rule clarifies common overtime pay issues and will allow employers to offer perks and benefits to their employees more efficiently.   Previous rules about the regular rate of pay Under […]
Read more
It’s National Payroll Week — a time during which payroll professionals celebrate their work and share their paycheck-stretching knowledge. Getting paid accurately and on time is important to employees and those who depend on them. That’s why it’s important to have the knowledge to make educated decisions about your payroll withholdings and deductions and a payroll […]
Read more
Here’s what it means to your company and employees. The Tax Cuts and Jobs Act has passed Congress. Today, the president signed the bill into law.  Here are some of the key changes that may impact your company or employees. Changes that impact your company: Corporate tax breakPerhaps the biggest news is the corporate tax […]
Read more
Women make up almost half of the workforce. They are the equal, if not main, breadwinner in four out of ten families. They also receive more college and graduate degrees than men. However, it is still evident today that women only earn about 79% of what men earn. (Source: iwpr.org) To some, it may seem […]
Read more
Occasionally Nextep’s Payroll Department and even company worksite supervisors are asked by an employee, What should I claim on my W-4? This question is certainly confusing, especially since the answer varies widely from one employee to another. Personal taxes differ greatly from one individual to the next and depend on a number of household demographics […]
Read more
When an employee makes the switch from a salary-based job to one that’s paid by the hour, some habits could keep them from receiving all of the pay they’re entitled to. Those who are exempt from overtime pay or paid on a salary basis tend to develop working habits that accommodate their job expectations, such […]
Read more

Download Our App