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IMPORTANT
CLIENT YEAR-END
NOTIFICATION
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It's the time of
year to begin thinking about payroll year end processing and related
items. To ensure a successful year end, the following are
suggested activities to keep in mind to meet the deadlines for your
final payroll of the year, year end
adjustments, 4th quarter tax filings, and all W-2
processing.
· Review
all Dates as it relates to payroll processing and last check
date. Please contact customer service if you need to move any
scheduled payroll dates to meet your holiday schedule. Please
note: you MUST process 2 business days prior to
check date.
·
W-2 Edits - Please review your current and terminated
employee's SSN, names, addresses, and other demographic
information. It is recommended that employees review and update
their W-4 information. Any employee's setup as exempt on their
W-4 are required by law to submit a new form no later than 02/15/2012,
otherwise, change their status to Single and 0 allowances until a new
form has been submitted.
·
IRS Federal Deposit Notice and Unemployment
Insurance Rate Change for 2012 - Please forward all notices immediately
to the tax department via email to tax@employeemax.com
or by fax at 832-204-8421. Any untimely notices submitted could
result in incorrect deposit frequency setup and incorrect tax
calculations for Unemployment taxes.
· Void / Manual Checks with a Check date of 2011 - Please
make sure all voided and manual checks have been recorded into the
EmployeeMax payroll system. Contact customer support if you need
assistance.
· Medical /Dental /Vision premiums - Please make sure any
adjustments to employee's premiums are updated in the payroll system
after the final payroll, but prior to the first payroll of 2012 to
ensure accurate employee deductions. This is only applicable to
clients following a calendar year. Contact Customer Service if
you need assistance.
· Reconcile your taxes by comparing the amounts submitted
each quarter on the form 941 and your state forms to your year to date
payroll records using your last payroll summary for the year.
Your reports will be reconciled by the IRS.
ü Remember
that the IRS will compare W3 totals with the totals of your 941 quarterly
reports for the year and with your 940 annual reports.
ü Your 940 annual reports will be compared with a report that
your state submits to the IRS summarizing your quarterly unemployment
tax reports.
· W-2 and Year End Delivery Process 2011- Year End
processing will begin within 48 hours of your last scheduled payroll
unless you notify us to place your account on hold pending further
adjustments. All W2's will be delivered via FedEx unless
otherwise specified.
·
PLEASE NOTE: All year end changes, corrections, and adjustments
need to be entered by the last pay date of the 2011 calendar
year. There is a risk of incorrect data on your year end and 4th
qtr tax returns including incorrect W2's, if
this is not met. Any concerns with meeting this deadline, please
contact customer service prior to your last payroll for special
arrangements.
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News For employeeMAX Clients
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We strive to provide our clients with pertinent information
on our Company, the Payroll Industry, and other Human Resource
information.
In particular, in this issue, we discuss all our changes to
our new version of EmployeeMax, New Guidance on Cell Phones as Fringe Benefits, and our ongoing feature article from
our benefits partner, The Business Benefits Group (BBG) Fairfax VA.
On behalf of the entire EMPLOYEEMAX team, I thank you for
your business and we look forward to providing you with superior payroll
and HR services and exceeding your expectations.
Sincerely, Bob Curran,
President & CEO
Upcoming Classes
Report
Writer 11/10/2011 11
AM ET
12/08/2011 11 AM ET
01/19/2012 11 AM ET
HR
& Benefits Class
11/17/2011 11 AM ET
12/15/2011 11 AM ET
01/26/2012
11 AM ET
To register or for more information, please contact Bobbie
Smith at Bobbie.Smith@EmployeeMax.com
We
have launched our New version of EmployeeMax (11.10.21.1)
Changes Include:
1. This version cannot log
onto old servers (Live 1).
2. QuickCheck
requires user to enter a check number if company is setup for PositivePay.
3. QuickChecks checktypes can now only be "Normal"
4. The Tax Location
Code lookup is now done by street address + zipcode,
instead of just zipcode.
This applies to Emp General screen, New
Employee screen and Import Employees from file (setup).
The lookup will also check the spelling of the street name, so the user
may be prompted to change the street name to the correct spelling.
5. Removed this
restriction on the Adjustment screen: "This employee was
terminated in a previous year. No adjustments are
permitted."
6. On Position
screen, added a combo box to select by position Status.
7. F8 brings up the
Payroll Reports screen.
8. Payroll Reports screen was
modified slightly. Grid now has Company column and the report names are
shorter.
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NOW
You Choose When Your Employees Can View Their Paystubs
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On Emp
General screen, Work Eligibility tab
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New
Enforcement Efforts Aimed at Employee Misclassification; Avoid Payroll
Tax Penalties by Reclassifying
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Business Benefits Group
The U.S. Department
of Labor (DOL) has entered into agreements with the Internal Revenue
Service (IRS), as well as several state labor commissioners and other
department leaders, which will enable those agencies to share
information and coordinate law enforcement to end the business practice
of misclassifying employees in order to avoid providing employment
protections.
Voluntary
Classification Settlement Program
At the same time, the IRS has launched a program
which will enable many employers to resolve past worker classification
issues and achieve certainty under the tax law at a low cost by
voluntarily reclassifying their workers.
Who
is eligible to participate in the program?
The Voluntary Classification Settlement Program (VCSP)
is available to many businesses, tax-exempt organizations and
government entities that currently erroneously treat their workers or a
class or group of workers as nonemployees or independent contractors,
and now want to correctly treat these workers as employees.
To be
eligible, an applicant must:
- Consistently have
treated the workers in the past as nonemployees.
- Have filed all required
Forms 1099 for the workers for the previous 3 years.
- Not currently be under
audit by the IRS, the DOL or a state agency concerning the
classification of these workers.
How
does the program work?
Employers accepted into the program will pay an
amount effectively equaling just over 1% of the wages paid to the
reclassified workers for the past year. No interest or penalties will
be due, and the employers will not be audited on payroll taxes related
to these workers for prior years. Participating employers will, for the
first 3 years under the program, be subject to a special 6-year statute
of limitations, rather than the usual 3 years that generally applies to
payroll taxes.
How
can employers apply for the program?
Interested employers can apply for
the program by filing Form 8952, Application for Voluntary
Classification Settlement Program, at least 60 days before they
want to begin treating the workers as employees.
BBG, offering a full line of services
from integrated HRIS to full business insurance products, is a proud
Payroll Partner with Employer Services Online. For
further information, please contact Anthony
Stefanakis 703.385.7200
ext 101 or toll free at 877-785-7200 ext 101. You can also email Anthony at Anthony@bbgbroker.com. Feel free
to visit BBG's websites at www.bbgbroker.com
and www.bbghr.com.
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When
do Cell Phones Qualify as a Fringe Benefit?
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The
IRS has issued new guidance designed to clarify the tax treatment of
employer-provided cell phones and similar telecommunications devices.
The
guidance relates to a provision in the Small Business Jobs Act of 2010,
enacted last year, that removed cell phones from the definition of
"listed property," a category under tax law that normally
requires additional recordkeeping by taxpayers. Prior to the legislation, cell phone use triggered the
same strict substantiation rules that apply to business use of vehicles.
In other words, you had
to track your business and personal use in order to claim deductions.
The 2010 law removed these requirements for cell phones and similar
communication devices and treats employer-provided devices as tax-free
fringe benefits -- as long as certain requirements are met.
The IRS states that
when an employer provides an employee with a cell phone
primarily for non-compensatory business reasons, the business and personal
use of the cell phone is generally not taxable to the employee. The IRS
will not require recordkeeping of business use in order to receive this
tax-free treatment.
Bottom
line: When employers provide cell
phones to employees or when employers reimburse employees for business
use of personal cell phones, tax-free treatment is available without
burdensome recordkeeping requirements. The guidance does not apply to
the provision of cell phones or reimbursement for cell-phone use that
is not primarily business related, as such
arrangements are generally taxable.
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We
Appreciate Your Referrals
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Employer Services Online would like
to thank you for being a valued customer. We appreciate your
business and enjoy servicing your payroll and HR needs. In
addition to building relationships throughout our business communities,
referrals are the heart of ESO. The biggest compliment
we can receive is having our existing clients refer us to others, so if
you have enjoyed the EmployeeMAX experience
and savings, we would appreciate you telling others! Thank you
again for your continued commitment to Employer Services Online.
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