Pub. 2 2021 Issue 3

17 ISSUE 3 | 2021 employers that submit a payment of $100,000 or less before 1 p.m. ET on a business day may make same-day payments. Employers that do not meet these requirements must have payments set up at least one day before the taxes are due. The IRS will then make the debit request the day the payments are due. Income Tax Payments: Individuals can make a same-day tax payment if they submit • A payment of $100,00 or less before 1 p.m. ET on a business day, or • The payment through EFTPS before 11:45 p.m. ET and select “current business day” as the payment date. Reporting Prior-Year Contributions Now that we’ve covered the contribution deadlines and whether it’s OK to accept contributions after the deadline, let’s review the reporting requirements. IRA, HSA, and ESA Contribution Reporting Requirements Your organization must report IRA, HSA, and ESA contributions for the year for which they are made. For example, you must report all prior-year contributions made from Jan 1, 2021, through April 15, 2021, as follows. • Report Traditional IRA contributions in Box 1 and Roth IRA contributions in Box 10 of the 2020 Form 5498, IRA Contribution Information. • Report HSA contributions twice — the first year (2020 Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information) in Box 3 and the following year (2021 Form 5498-SA) in Box 2. • Report ESA contributions in Box 1 of the 2020 Form 5498-ESA, Coverdell ESA Information. • SEP and SIMPLE IRA Employer Contribution Reporting Requirements Your organization must report SEP and SIMPLE IRA employer contributions for the year in which they are made. So if an employer makes a SEP or a SIMPLE IRA contribution in 2021 for 2020, your organization must report the contribution on a 2021 Form 5498 — even if the employer plans to deduct the contribution on its 2020 tax return. You must report all Jennifer Bassett, CIP, CISP, QKA, CHSP SEP contributions in Box 8 of Form 5498 and all SIMPLE IRA contributions in Box 9. Next Steps If you haven’t already, take some time now to review your organization’s procedures for accepting prior-year contributions. Ensure that everyone understands the deadline for each contribution type and whether it’s OK to accept contributions delivered after that deadline. 