Another amazing year has come to an end and with the year end comes the inevitable tax return preparation. As a temporary, part-time employee of The Hype Agency you have, or will be receiving a W-2 Form. This form documents the total pay you received from HYPE during 2016. Also on your W-2 Form you will see the total taxes that have been withheld from your paychecks and submitted on your behalf, along with Social Security Tax and Medicare Tax that HYPE has contributed toward your benefits.
Giving you the option of being an employee of The Hype Agency versus being treated as an Independent Contractor is a great advantage, especially at tax time. Your taxes are withheld each week from your pay and having these taxes withheld from your pay take much of the worry out of trying to come up with taxes that may be due at the end of the year.
Here are a few things to remember as you prepare to file your 2016 taxes:
- Think back, or check your 2016 calendar to see all the companies you worked with. Many of you work with other agencies and may need to be on the lookout for multiple W-2 Forms.
- Be sure to notify your past employees if you have changed your address. It can take up to two months for the post office to return mail back to the sender if it has an incorrect address on it.
- Be aware of any 1099 Forms you may be receiving. A 1099 Form reports to the IRS payments totaling over $600 you have received from companies that you did events with, but were not an employee of that company. The amount reported on this 1099 Form must be included as income on your tax return.
- Make sure to double check all of your amounts and calculations as you are entering them on your tax return. An incorrect amount may result in an incorrect tax liability.
- There are many free, on-line filing services but be sure you are using a secure site.
- Taxes must be filed by April 15th, unless you file for an extension.
- Don’t guess! If you are not sure what to put on your tax return, check with a tax professional.
- And don’t forget to keep copies of your tax returns for at least seven years.