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FTM E-Newsletter for January, 2020

Nonprofit Forum Topic for January 21st - What's Your Nonprofit Tax IQ for Year End Tax Compliance?
The next Nonprofit Forum will focus on year-end tax compliance and what your organization should know and do about it.  In this presentation, we will review the various tax deadlines for the Internal Revenue Service, Employees, Vendors, and Donors.

Does your organization have knowledge about required tax forms like the Form 990, W-2, W-4, 1099, W-9, Unemployment, 941’s, Affordable Care Act, and other tax forms.

Those attending the forum will receive handouts.  Also, the forum will be recorded and attendees will be provided access to video link.
Detailed Agenda:
11:30 to 12:30-What's Your Nonprofit Tax IQ for Year End Tax Compliance
12:30 to 12:50-MIP User Group-Year End Tax Compliance Refresher for 1099's and W2's
12:50 to 1:00-FTM Updates and Closing

The webinar will help Nonprofit Leaders, Treasurers, Executive Directors, Finance Directors, and Finance Staff.

The upcoming schedule for 2019 FTM Nonprofit Forums:
We look forward to seeing you at an upcoming Nonprofit Forum and MIP User Group Meeting.

We also provide the following FREE financial management training each month as follows:

Overlooked Benefits of Outsourcing Nonprofit Accounting-Last Friday-11:30 to 12:30 EST
Why your Nonprofit should be using Nonprofit Accounting Software?-Last Friday-1:00 to 2:00 EST
What is your Nonprofit Tax IQ?
What's your Nonprofit Tax IQ?
By Jim Simpson, CPA and director, Financial Technologies & Management
What should your organization know about Nonprofit Taxes?  Aren’t nonprofit organizations exempt from nonprofit tax issues except employment related taxes?   The answer is no, but many organization’s make this assumption.  With limited accounting and finance staff, there is a tendency to rely too much on other professionals for this knowledge.

It is also important to develop internal capacity to deal with nonprofit tax issues as the board and management are ultimately responsible.  If these nonprofit tax issues aren’t dealt with proactively, they can take significant effort and resources to resolve later, reducing your ability to serve others.   Keep in mind that just because an organization has received tax-exempt status from the federal government does not mean it is exempt from state and local taxes, property taxes, sales taxes, payroll taxes, or other taxes.

We hope you will find this blog article helpful for the board and management to use within your organization to help expand its nonprofit tax knowledge.

Click on the orange button below for more.
Forms 1099, W-2, and W-3 due by January 31, 2020
Forms 1099, W-2, and W-3 due by January 31, 2020
By Jim Simpson, CPA and director, Financial Technologies & Management
There Employers must file wage statements and independent contractor forms by January 31, 2020.  Certain Forms 1099-MISC, Miscellaneous Income, filed with the IRS to report non-employee compensation to independent contractors are also due at this time. Such payments are reported in box 7 of this form.

Hopefully, you collected your W-9 forms from independent contractors to whom you paid $600 or more this year.  The information on W-9’s can help you compile the information you need to send 1099-MISC to recipients and file them with IRS.

Form 1099-MISC should be provided to each non-corporate service provider who was paid at least $600 for services during 2019.

Automatic extensions of time to file Forms W-2 and 1099-MISC  must meet extreme criteria to request an extension.
Click on the orange button below for more.
IRS issues 2020 standard mileage rates and parking tax is repealed
IRS Issues 2020 standard mileage rates and parking tax is repealed
By Jim Simpson, CPA and director, Financial Technologies & Management
For business use of a car, van, pickup truck, or panel truck, the rate for 2020 will be 57.5 cents per mile in 2020, down from 58 cents per mile last year after increasing from 54.5 cents per mile in 2018.  The rate for service to a charitable organization is unchanged, set by statute at 14 cents per mile (Sec. 170(i)).

As part of a bipartisan year-end spending and tax package agreed to this week, Congress repealed IRC Section 512(a)(7) that required tax-exempt organizations to pay a 21% unrelated business income tax (UBIT) on qualified transportation benefits provided to employees (the "Parking Tax").
Click on the orange button below for more.
Abila MIP Fund Accounting Training, Version 2020 Available including access to user guides, knowledge base articles, and video to assist with Year End Processing
As your local business partner and reseller for Abila MIP, we wanted to let you know that Abila has released a software update.  You will need to upgrade to Version 2020 to do your year end tax forms including your 1099's and W-2's from Aatrix.  Please contact us for help with your annual software upgrades or assistance to produce your year end tax forms.  Keep in mind you may need to upgrade your SQL Server 2008 as Abila will stop supporting this SQL Server Version March 31, 2019.  Our firm recommends that you upgrade to SQL Server 2014 or SQL Server 2016.
This release includes key updates to the Federal Tax tab and W-4 information screens in Payroll, HR and EWS enabling employees to keep their pre-2020 withholding on file or submit updated 2020 W-4 information. New employees and existing employees updating their Federal Tax withholding will be required to use the 2020 W-4 method. More details are available in the Payroll, HR and EWS online help. ?Additionally, this release includes changes to federal tax withholding tables and FICA withholding updates necessary for the 2020 tax year.  State Tax Updates for: California, Colorado, Illinois, Iowa, Kentucky, Maine, Maryland, Michigan, Missouri, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, Rhode Island, South Carolina, & Vermont.

Form more information on processing W2s and 1099s, please reference the following guides:

1099 User Guide
W2 User Guide

MIP Fund Accounting Training Schedule-Please review our event schedule and 2020 Newsletters for MIP Training Schedule starting in February, 2020

1099 Processing Training-January 16 or January 28 from 11:00 to 1:00 EST-FTM Client Scholarships Available
W2 Processing Training-January 16 or January 28 from 3:00 to 5:00 EST-FTM Client Scholarships Available

Product Help Files

Our documentation team maintains in-product help for all modules, including several
checklists around year-end processes.

Help > Checklists > Payroll > Tax Reporting and Tax Worksheet Reports

1099 and W2 Processing are available for download from full blog article

Trending Support Topics

Below is a list of current trending support topics. You can use the links below to quickly access the associated Abila Knowledgebase Article or how-to video. You must be logged in to the Abila Knowledgebase to view KB Articles.

1099 and W-2 Articles
Aatrix has a support team available Monday-Friday for technical or e-Filing issues.
Support (Phone): 701-746-6017
Chat support is also available from their website.

Download / Installation / Technical
  • Download: Abila MIP Fund Accounting version 2020.x - (Article)
If you have any questions, please contact Abila Support or Financial Technologies & Management.  You might want to contact Abila support first especially if you have an active maintenance and support agreement as we will need to charge you for our time.  However, we process quite a few W-2's and 1099's for our clients so you can contact us if we can provide assistance or if you would like for us to do the year end processing on your behalf.
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