Planning For Enrolled Agent Job Opportunities With Employers at the End of 2012

February 27, 2012 by  Filed under: Taxes 

With the passing of January each year, employers have completed annual submission of written wage and tax statements. All workers in the prior year are entitled to receive a Form W-2. This is the basic form well known during enrolled agent exam preparation for its many details about compensation. The deadline for every employer to provide this information is January 31.

Most importantly, W-2 forms are submitted to the government. Employees are only obtaining their copies. Employers mail W-2s to the Social Security Administration. From there, the reporting data ends up with the IRS. Enrolled agents who do not involve themselves with many payroll matters may want to expand their practices by including the subject in their upcoming EA CE. That’s because W-2s are about to become a lot more complicated and preparation is likely to demand assistance from tax professionals.

A 2012 Form W-2 – which is given by employers before the end of January 2013 – will disclose new facts about employee compensation. Some employers voluntarily complied with the new W-2 standards when completing 2011 forms. Advance warning from the IRS about this mandate for 2012 forms gives businesses more time to prepare their employee reporting systems. It also presents enrolled agent job opportunities to render help with this process.

An employer providing health insurance coverage to employees must begin reporting the cost on W-2s for 2012. The original plan was for every W-2 to convey the amount spent for healthcare coverage of the named employee. However, the IRS has issued further guidance that impacts exactly who is subject to this requirement with 2012 forms. In addition, specific explanations by the IRS clarify exactly what reporting is mandated. As new guidance is released, enrolled agent tax help for employers becomes increasingly valuable.

The types of employee insurance affected by the new W-2 rules are coverage for hospital or other fixed indemnity plus coverage for only a specified disease. New W-2s will reveal the aggregate cost of these employer-sponsored programs, regardless of whether an employee pays any of the cost. Consequently, jobs for enrolled agents on this matter will necessitate knowing the full amounts remitted by employers – even if some is reimbursed by employees.

The new reporting requirement is informational only and has no effect on gross income or any other factors regarding W-2s. Conveying the cost of health care coverage is intended to report which individuals have such employee benefits and show relative comparisons among workers. For now, the IRS has exempted employers with fewer than 250 employees from meeting these rules on 2012 forms. But, enrolled agents should present this as a chance for small employers to establish systems for anticipated mandatory compliance in future years.

IRS Circular 230 Disclosure

Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of

(a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or
(b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.

Fast Forward Academy is a leading publisher of education for enrolled agent exam preparation and tax professionals. Access to free questions for the EA CE is available on their website.

Article Source:

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

You must be logged in to post a comment.

Prev Post:
Next Post: