12/26/2025
Dear Business Clients & Friends,
As the year winds down, we wanted to remind you of some of the year end procedures that your company should consider, now that we are in the final month of the calendar year.
Form 1099 Reporting: The first issue to consider is if your company is required to prepare Form 1099’s for vendors and service providers that have been paid in 2025. Please refer to the general requirements for Form 1099/1096 reporting, under the Resources/Wittenberg CPA Forms page of our web site to determine the circumstances under which your company needs to file them.
Annual Meeting: Another consideration is to hold your company’s annual meeting. If your company is incorporated (C or S Corporation) the officers are required to hold at least an annual meeting, in order to determine matters that are essential to the management and operations of the company. Limited Liability Companies (LLC’s) are not required to hold annual meetings however this practice is recommended to clarify company policies and make changes in operational matters.
Retirement Plan Options: If you haven’t already set one up, you might want to consider establishing an employee benefit type of plan, in which the employees, as well as the owners/officers of the company can participate. As the employer you can establish a retirement type of plan, such as a 401k or SIMPLE IRA plan, which allows employees to defer a portion of their wages, along with a company matching contribution, as a means of deferring the taxable income the employee, as well as allowing a deductible, non-payroll taxable form of compensation for your employees.
Health Savings Accounts: Another consideration is to set up a health saving account (HSA) plan, which when combined with a lower premium cost “high deductible” type of medical insurance plan, allows the employees of the company, as well as the company, at the discretion of the ownership, to contribute toward a health savings account. This type of account can be either used by the employee during the year of contribution, or else carried over indefinitely for future medical costs, and/or eventually as a retirement type of fund, similar to a traditional Individual Retirement Account (IRA).
New This Year: Overtime and Tip Income Reporting: The recent tax law included an exclusion from income taxation relative to certain levels of overtime and tip compensation paid to eligible employees, effective in 2025. So, even though this tax law change does not impact the payroll tax reporting of overtime and tip compensation, employers, and/or their payroll reporting service providers will need to track this type of compensation on behalf of their employees.
Best Regards and Happy Holidays,
Wittenberg CPA
