Here's the step-by-step guide to 1042-S process in Calculus.
Preparing the 1042-S data
- Review if there are foreign nationals that need to receive a 1042-S form, but are missing from Calculus.
If there are foreign nationals who need to be provided a 1042-S form, but are missing from Calculus, please add them. For more information, please visit Bulk Import Users and Bulk Import Payments.
- Prepare/Review 1042-S data
- If you're using Payments Entry Module (PEM) make sure all payments are entered into Calculus that need to be reported on 1042-S forms and have the expected tax results.
Export payments from Calculus.
a. Export all payments
Login to Calculus, access the Payments Tab in the left-hand panel, select Reports and then click Export.
Info: In the Reports list, you can edit the columns and filter to create different reports which can then be exported.
The export file will contain all payments entered for the given year with all the columns visible in the Payments Reports list. For more information, please visit Payments Report.
b. Login to Calculus, access the Payments Tab in the left-hand panel, select Add Payment and click on Export. You can choose whether you wish export payments reportable on 1042-S; W2/1098-1099 or all:
The export will contain yearly gross amount for all foreign nationals payments were entered for with the gross income, gross tax and whether the income is exempt from treaty.
- If you are not using the Payments Entry Module (PEM) you'll need to prepare and import a 1042-S import file.
For more information, please visit 1042-S Import Function.
Generate 1042-S Forms
Once you have reviewed your foreign nationals' 1042-S data you can proceed with generating the 1042-S forms.
For a detailed guide how to generate 1042-S Forms, please visit Form 1042-S List Overview.
Export 1042-S Forms
Once forms are generated, you can export into CSV, PDF and the TXT file to review. For a detailed guide, please visit Exporting 1042-S Information.
Finalize Tax Year
Once you are ready to make the recipient 1042-S copies available in the foreign nationals' profiles you can proceed to finalize the tax year. For more information, please visit Finalize Tax Year and Email 1042-S Recipients.
File 1042-S Data with the IRS
Generally, 1042-S Forms need to be filed by March 15th following the year forms are filed for, unless extension has been filed and accepted by the IRS. Please, note extension to file 1042-S forms is not extension to pay tax, if there's tax underpaid for the year in question.
If you have your own TCC details for FIRE, please make sure you enter them in Settings > 1042-S Form and that you have entered a Contact Person in Account Data:
For more information, please refer to Export TXT File section in Exporting 1042-S Information.
If you don't have your own TCC details, please reach out to your Sprintax contact to request assistance with filing the 1042-S forms with the IRS.
E-File Form 1042
Generally, 1042 Form needs to be filed by March 15th following the year form is filed for, unless extension has been filed and accepted by the IRS. Please, note extension to file 1042 form is not extension to pay tax, if there's tax underpaid for the year in question.
You can e-file the 1042 Form directly in Calculus. For more information, please visit E-File Form 1042.
Additional resources that you may find helpful:
Making Changes After The Year Has Been Finalized