aasbo 2010 winter conference irs audits

AASBO 2010 WINTER CONFERENCEIRS AUDITS

FSLG

KIM SAVAGE

THE EXAMINATION PROCESS

Examination Selection ProcessExamination Issues and PeriodsExamination Outcomes and/or Sanctions

FORM W-4 COMPLIANCE

Exempt CertificatesInvalid CertificatesNone U.S. Person Employees

STUDENT FICA EXCLUSION

Summer Employment

MISCLASSIFIED WORKERSOR PAYMENTS

CoachesSport or Special Event WorkersPart-time Hourly Wage EarnersSection 3401(d) Employees

GROUP TERM LIFE INSURANCE

Employer Paid Benefit >$50,000Employee Paid Elective 125 Plan Benefit

CASH EQUIVALENTFRINGE BENEFITS

Gift CardsAwards Paid as 3401(d) Employer

Employee Allowances

VehicleCell PhoneOther

Employer Provide Cell Phone Personal Use Policy w/ Substantial Restrictions Employee Explicit Acknowledgement of the Policy Employee Procedure/Process to Monitor Policy

Compliance Policy Requirement for Employee Disclosure of Personal

Use Procedure to Identify, Compute, and Include Taxable

Wage Amount

EMPLOYEE TAKE HOME VEHICLES

Condition of Employment Requirement to Commute in an Employer Vehicle

Written Policy Prohibiting Other Personal Use Employee Compliance w/ the Policy Non-Personal Use Vehicle Permissible Valuation Methods for Taxable

Benefit

SAME DAY MEAL REIMBURSEMENTS/ALLOWANCES

General Rule – Taxable Fringe Benefit Exceptions:

1. Qualified Business Entertainment

2. Meeting Attendance – Meals in Kind

3. Qualified De Minimus Meal Reimbursements

See State Department of Administration Policy www.gao.az.gov

EMPLOYER PROVIDEDEMPLOYEE HOUSING

General Rule = Taxable Fringe BenefitInternal Revenue Code Section 119(a)Internal Revenue Code Section 119(d)Campus Housing Adequate RentEmployer Paid Utilities

INFORMATION RETURNCOMPLIANCE

Payments Subject to ReportingRecipient “Types” Subject to ReportingSanctions for Non- Compliance – Civil

Penalties and Back-up Withholding TaxesSchool District Area of Compliance Failures

– Auxiliary and/or Activity Accounts

FORM 1099MISC

Verify TINS Used are Possible Numbers Verify Recipients’ Names and TINs are Consistent Impose Back-up Withholding if No Valid TIN on

File when Possible Payments Reportable to Corporations Payments for Services to LLCs

FORM 1099MISC

Deceased Employee’s Wages Paid to Estate or Beneficiary

Not Used for Payments to Non-Resident Aliens

For More InformationInstructions: Forms W-2, W-3, W-4 & 941Pub 15 Employer’s Tax GuidePub 15-A Employer’s Supplemental Tax

GuidePub 15-B Employer’s Tax Guide to Fringe

BenefitsPub 963 Federal-State Reference GuideFSLG Fringe Benefit Guide

Need Help?www.socialsecurity.gov/employer

“How to Reach Us”

SSA National Employer Information Line800 772-6270

Phone your FSLG Specialist-Kim Savage 928-214-3309-Wayne Woods 602-636-9124-Robert Reinart 602-636-9657

THANK YOU