Hi guys, this is Vanessa with Chris Consulting. Today, I wanted to go over tax reporting for incentive stock options (ISOs) and non-qualified stock options (NQSOs). This is a common question we receive in December and January each year. So, what should you be doing with all the employees and contractors you've given ISOs and NQSOs to? Firstly, it's important to note that these forms are due by January 31st. You have a relatively short period of time to ensure you file all these things for your employees and contractors. Let's start by understanding the two different types of stock options: ISOs and NQSOs. ISOs can only be given to employees. To report ISOs, you will need to fill out Form 3921. Your accountant can assist you with this, or if you have a special subscription on Carta or Capshare, they can also help you out. On the other hand, NQSOs can be given to both employees and contractors. If you have given NQSOs to employees, you will need to make an adjustment on their W-2 form, specifically on 12. This means you'll have to reach out to your payroll provider, whether it's Gaston or TriNet, to ensure the adjustment is made and the updated W-2 is delivered by January 31st. For contractors who have received NQSOs, you will need to file Form 1099-MISC for tax reporting. This ensures the proper reporting of ISOs and NQSOs. For more information, please visit our website at pleaseconsulting.com. Thank you.
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3921 Form: What You Should Know
It is used to Form 3921—How to file & What to provide in Form 3921 Filed By IRS Form 3921 A Form 3921 is a form you file with the IRS when you intend to pay, directly or indirectly, non-qualified deferred compensation to a specified employee for purposes of section 403(b)(7) — Unqualified Deferred Compensation or Section 422(b) IRS Form 3921 A Form 3921 is a form you file with the IRS when you intend to pay, directly or indirectly, non-qualified deferred compensation to a specified employee for purposes of section 403(b)(7) — Unqualified Deferred Compensation or Section 422(b) What are the specific facts that you need to support your statement of facts in Section 529(c), Employer's Contributions to 529 Plans If you are offering an eligible child for adoption, the IRS offers this form for the purposes of Section 529(c) — What You Need to Do Forms 8863 and 8864 — Special Instructions for Investors in Certain High-Cost Investment Companies (I have written more about this form here and here.) Form W-8BEN — Wage and Tax Statement for Foreign Employees (I have written more about this form here and here.) Form W-2G — Wages, Wages, and Deductions Form W-2G is used if you know that at least 50% of your workers are residents of foreign countries, but your foreign tax credit is negative. Form 4030 — Taxation of Benefits and Perquisites An important and often overlooked form is Form 4030. This is a return which provides information about all of your fiscal benefits and qualifying perquisites for a calendar year. This form is not filed with the IRS until the taxpayer has been engaged in business for at least six months during the tax year. Form 4797 — Supplemental Employer's Tax Information for Individuals Form 4797 is an information statement that companies must file for every employee receiving more than 2,000 in cash tips or reimbursements in a given calendar year. The form is sent out to every employee, not necessarily your people at my company. The form requires that every single person filing this form provide proof of identity for their Social Security number. Form 709 — U.S.
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