This time of year, William Douglas’ Accounting Department is in high gear preparing for our clients’ financial year-end along with getting dues payment coupons out for the coming fiscal year. A great deal of focus is on closing the year-end books.

One aspect that makes HOA’s financials different is that corporation tax returns, in most instances HOAs are nonprofit corporations, with a December 31 fiscal year are due by March 15.

The Internal Revenue Service requires corporations to complete Form 1099 for independent contractors who have performed services for the HOA if certain requirements are met. A 1099 does not need to be completed by our Accounting Department if the contractor is incorporated. Once 1099’s are completed, they must be mailed out to the independent contractor by January 31. The Internal Revenue Service’s copy of the 1099s must be filed by the last day of February.

If the HOA has employees, year-end filings include the quarterly and the year-end payroll reports for both federal and state. In addition, a W-2 must be completed for the HOA’s employee. Employee earnings also have to be reported to the Social Security Administration and the Employment Security Commission.

William Douglas’ Accounting Department will be obtaining proposals from three outside accounting firms to complete our clients’ tax returns along with an estimate for either a financial review or financial audit of the HOA’s financial records.

William Douglas Management, providing excellent management services to HOAs and condominium associations since 1980.

Copyright 2018 William Douglas Management, Inc.