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Some Changes being contemplated for small businesses by way
of the “Small Business Owners’
Tax Simplification Act of 2019”.
These changes include Quarterly reporting timeframes,
reporting thresholds, and employee classification.
Quarterly Reporting Timeframes:
It extends the Quarterly reporting of estimated tax
payment. It
changes the date of 15 June to 15 July and 15 September to
15 October.
These changes will affect tax years beginning after December
31, 2019.
Reporting Thresholds:
Change the reporting requirement under Section 6041
of the Internal Revenue Code of 1986.
The IRS Code of 1986 requires that all persons
engaged in a trade or business and making payment in the
course of such trade or business to another person, of rent,
salaries, wages, premiums, annuities, compensations,
remunerations, emoluments, or other fixed or determinable
gains, profits, and income of $600 or more to report it to
the IRS. This
bill would change the requirement from $600 to $1,500.
These changes will affect tax years beginning after
December 31, 2019.
Employee Classification:
Another proposed change how someone gets classified
as an employee.
According to the proposed bill if an employer offers to take
on someone in a training status that individual would not be
classified as an employee.
Also, someone may note be automatically be classified
as an employee by virtue of such individual being offered,
or takes advantage of, a discount on goods and services
available by reason of such individual performing services.
Sources:
Tax Simplification Act of 2019
26 USC Section 6654
26 USC Section 6041
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