[SchoolFinance] Deceased Employees

[Sue Lambert]

>From what I have read the W2 has to be adjusted to not be taxable for
Federal (if paying in same year as death) and a 1099 has to be issued to
the beneficiary or estate whether paid in same year or next year but maybe
I'm overlooking something. Or maybe this guidance is old.
https://www.irs.gov/pub/irs-utl/decedent-tax-guide.pdf
[image: image.png]
~Sue
Sue Lambert
MSAD #49
Accounting Coordinator
8 School St
Fairfield,  ME 04937
207-453-4200 x3109
207-453-0110 FAX
For in-district direct dial: 3109





On Thu, Jul 20, 2023 at 8:55 AM Lucie Tabor <ltabor at vuesc.org> wrote:

> When this has happened, we have paid out any remaining funds earned and
> deposited to their regular bank account or mailed a check in their name to
> the address we have on file, same as we would had they still been alive.
> We also informed the Health Insurance (if they participated) and MePers
> (if they were a member).
> Lucie
> VUESC
> (SAD27, SAD33 and Madawaska)
>
> On Thu, Jul 20, 2023 at 7:54 AM Sue Lambert <slambert at msad49.org> wrote:
>
>> Do any of you have employees/new-hires complete a beneficiary form for
>> payroll (not benefits)? I have found a few online.
>>
>> We have unfortunately had a few employee's pass away this year and there
>> seems to be a lot of complications about doing the 1099 form and getting a
>> W9 in order to do that 1099. Not everyone gets an EIN # for the Estate. All
>> of the research I have done says that the wages get paid to the Estate
>> using the Estate EIN or to the beneficiary. With no Estate EIN, how do you
>> legally determine the Beneficiary if there is no form? Do you ask for a
>> copy of the will and use that to determine the beneficiary? Then that
>> beneficiary would need to do a W9 form and I would think they should sign
>> some type of beneficiary affidavit.
>>
>> Curious what your process is and if it would be simpler to have a
>> "payroll beneficiary" form on file for all staff.
>>
>> I am familiar with the iRS rules about what is taxable and reported on
>> the W2/1099 depending on payment in the same year or another. My question
>> is really about determining who you should be paying out the wages to and
>> what to get for documentation of that especially so you can file the 1099
>> and also whether to start using a Beneficiary form for final wages.
>>
>> ~Sue
>> Sue Lambert
>> MSAD #49
>> Benefits Specialist
>> 8 School St
>> Fairfield,  ME 04937
>> 207-453-4200 x3109
>> 207-453-0110 FAX
>> For in-district direct dial: 3109
>>
>>
>>
>> _______________________________________________
>> SchoolFinance mailing list
>> SchoolFinance at maillist.informe.org
>> http://maillist.informe.org/mailman/listinfo/schoolfinance
>
>
>
> --
> Lucie Tabor
> *Director of Finance*
> *Valley Unified Educational Service Center (VUESC)*
> *Serving the School Districts of MSAD 27, MSAD 33 and Madawaska School
> Dept.*
> *Upper St. John Valley*
> _______________________________________________
> SchoolFinance mailing list
> SchoolFinance at maillist.informe.org
> http://maillist.informe.org/mailman/listinfo/schoolfinance
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://maillist.informe.org/pipermail/schoolfinance/attachments/20230720/91f28896/attachment-0001.htm>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image.png
Type: image/png
Size: 131421 bytes
Desc: not available
URL: <http://maillist.informe.org/pipermail/schoolfinance/attachments/20230720/91f28896/attachment-0001.png>