In the United States and Canada, when a legal entity is sold or goes out of business mid-year, employers must generate, print, and distribute tax forms to employees within 30 days of notifying the government. Also, within these 30 days, employers must send the completed tax forms to the government for processing. In Dayforce, you can update the legal entity with an end date and update the status to report an out of business, lost tax form, or new seasonal operation status for government mid-year reporting for early filers.
Note: Amendments aren’t available for early filers until February of the following year. Also, US 1099 and D2X tax forms aren’t eligible for early filing.
To configure a legal entity for early filing:
- Go to Org Setup > Org Payroll Setup > Legal Entity and select the US or Canadian legal entity.
- In the Legal Entity Status drop-down list, select the applicable status such as Lost with Tax Forms and Filing or Out of Business (Accelerated).
- In the Effective End field, enter an end date.
- Go to Year End > Canada Year End or Year End > USA Year End, select the applicable year from the Year drop-down list to run the year end process for the affected legal entity.
- In the Process Job drop-down list, select a filing option such as Generate Preview, Request Print, or Distribute for Filing.
- Click Save.