YEAR-END PAYROLL Mike Weller, CPA (517)

Transcription

1 YEAR-END PAYROLL 2015 Mike Weller, CPA (517)

2 YEAR-END CHECKLIST Prepare a calendar for year-end review and processing Review your holiday processing schedule (Thanksgiving, Christmas, New Year s Day) Identify last payroll(s) of the current year and first payroll(s) of the new year Determine when tax tables are updated for 2016 Schedule a year-end payroll adjustment schedule for input of items such as groupterm life insurance, personal use of company cars, educational assistance, YTD corrections, manual checks and third-party sick pay reporting These adjustments should occur prior to the last regular payroll run so that Social Security, Medicare and other applicable taxes can be withheld from the employee s pay, if necessary The adjustment run schedule should also consider tax deposit requirements Remember also employer health savings account contributions need to be reported on W-2s as well as the cost of employer-sponsored health coverage Research Federal and State tax forms and magnetic media for revisions Order applicable Federal and State tax forms (W-2, W-2c, W-3, W-3c, W-4, W-5, 1099 Misc, etc) Notify all employees (by December 1, 2014) to review their W-4 status, reminding those claiming exempt to file a new Form W-4 in order to maintain their exempt status Schedule a time to process a preliminary printing of Forms W-2 on regular paper Verify totals against Annual Tax Reconciliation Worksheets Make sure you have enough postage to mail W-2's Review a payroll disaster recovery plan wwwmanercpacom (517)

3

4 Updates from the IRS have a timetable that can be predicted but is never cast in stone One year they release information as early as October 15 th and other years as late as November 10 th This year the information for 2016 is coming in within this range STATE MINIMUM WAGE Between 2015 and 2019 Michigan will begin linking its minimum wage to the consumer price index As a result of this linkage, the minimum wage is likely to increase each year, generally around January 1 st Projected Wage Increase 9/1/ /1/ /1/ /1/ REPORTING FOR HEALTH CARE ACT Affordable Care Act required all employers to report the cost of coverage under an employer-sponsored group health plan Box 12 Code DD o This includes both employee paid and employer paid premiums Requirement optional for small employers at least for 2014 o Employers that filed less than 100 W-2 s in 2014 o Employers that filed less than 50 W-2 s in 2015 o Employers that filed less than 25 W-2 s in 2016 This reporting is for informational purposes only The amount reported does not affect tax liability wwwmanercpacom (517)

5 ANNUAL CHANGES Social Security Wage Base and Tax Rates The following are the Social Security wage base and tax rate (approved 10/16/2015) OASDI Tax OASDI Tax wage base rate wage base rate Social Security employee Social Security employer Social Security Tax 118, ,500 62% 62% 7,347 7, , ,500 62% 62% 7,347 7,347 Medicare Tax Rate tax maximum tax maximum rate tax w/h rate tax w/h Medicare employee 145% N/A 145% N/A Additional employee Medicare Tax on wages over 200,000 09% N/A 09% N/A Medicare employer 145% N/A 145% N/A 401(k), 403(b) (k), 403(b) 18,000 18,000 Catch-up age 50 or over 6,000 6, Simple Table Simple plan 12,500 12,500 Catch-up age 50 or over 3,000 3,000 Automobile Rates Type of Use Business 0575 Charitable activities 014 Relocation related 023 Medical related 023 wwwmanercpacom (517)

6 WHERE TO GET INFORMATION Internal Revenue Service Blank form orders (800-TAX-FORM) FAX for forms E-help desk Social Security Administration General Special Help Line Department of Labor US Citizenship and Immigration Services (USCIS) INTERNET WEB SITES Internal Revenue Service EFTPS Social Security Administration Department of Labor US Citizenship and Immigrations Services (USCIS) Department of Health and Human Services State of Michigan Payroll website links HSA website wwwirsgov wwweftpsgov wwwsocialsecuritygov wwwdolgov wwwuscisgov wwwdhhsgov wwwstatemius wwwpayroll-taxescom wwwsbagov/hsa wwwmanercpacom (517)

7 Department of the Treasury Internal Revenue Service Contents What's New 1 Reminders 2 Publication 15 Cat No 10000W Calendar 8 (Circular E), Employer's Tax Guide Introduction 9 For use in Employer Identification Number (EIN) 10 2 Who Are Employees? 11 3 Family Employees 12 4 Employee's Social Security Number (SSN) 13 5 Wages and Other Compensation 14 6 Tips 17 7 Supplemental Wages 18 8 Payroll Period 20 9 Withholding From Employees' Wages Required Notice to Employees About the Earned Income Credit (EIC) Depositing Taxes Filing Form 941 or Form Reporting Adjustments to Form 941 or Form Federal Unemployment (FUTA) Tax Special Rules for Various Types of Services and Payments Third Party Payer Arrangements How To Use the Income Tax Withholding Tables 43 How To Get Tax Help 67 Index 69 Future Developments For the latest information about developments related to Publication 15 (Circular E), such as legislation enacted after it was published, go to wwwirsgov/pub15 What's New Get forms and other information faster and easier at: IRSgov (English) IRSgov/Spanish (Español) IRSgov/Chinese (中文) IRSgov/Korean (한국어) IRSgov/Russian (Pусский) IRSgov/Vietnamese (TiếngViệt) COBRA premium assistance credit Effective for tax periods beginning after December 31, 2013, the credit for COBRA premium assistance payments cannot be claimed on Form 941, Employer's QUARTERLY Federal Tax Return (or Form 944, Employer's ANNUAL Federal Tax Return) Instead, after filing your Form 941 (or Form Dec 22,

8 944), file Form 941-X, Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund (or Form 944-X, Adjusted Employer's ANNUAL Federal Tax Return or Claim for Refund), respectively, to claim the COBRA premium assistance credit Filing a Form 941-X (or Form 944-X) before filing a Form 941 (or Form 944) for the return period may result in errors or delays in processing your Form 941-X (or Form 944-X) For more information, see the Instructions for Form 941 (or the Instructions for Form 944), or visit IRSgov and enter COBRA in the search box Social security and Medicare tax for 2015 The social security tax rate is 62% each for the employee and employer, unchanged from 2014 The social security wage base limit is 118,500 The Medicare tax rate is 145% each for the employee and employer, unchanged from 2014 There is no wage base limit for Medicare tax Social security and Medicare taxes apply to the wages of household workers you pay 1,900 or more in cash or an equivalent form of compensation Social security and Medicare taxes apply to election workers who are paid 1,600 or more in cash or an equivalent form of compensation 2015 withholdng tables This publication includes the 2015 Percentage Method Tables and Wage Bracket Tables for Income Tax Withholding Withholding allowance The 2015 amount for one withholding allowance on an annual basis is 4,000 Medicaid waiver payments Notice provides that certain Medicaid waiver payments are excludable from income for federal income tax purposes See Notice , IRB 445, available at wwwirsgov/irb/ _IRB/ar06html For more information, including questions and answers related to Notice , visit IRSgov and enter Medicaid waiver payments in the search box Leave-based donation programs to aid victims of the Ebola Virus Disease (EVD) outbreak in Guinea, Liberia, and Sierra Leone Under these programs, employees may donate their vacation, sick, or personal leave in exchange for employer cash payments made before January 1, 2016, to qualified tax-exempt organizations providing relief for the victims of the EVD outbreak in Guinea, Liberia, and Sierra Leone The donated leave will not be included in the income or wages of the employee The employer may deduct the cash payments as business expenses or charitable contributions For more information, see Notice , IRB 842, available at wwwirsgov/irb/ _irb/ar11html Online payment agreement You may be eligible to apply for an installment agreement online if you have a balance due when you file your employment tax return For more information, see the instructions for your employment tax return or visit the IRS website at wwwirsgov/ payments Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans extended The work opportunity tax credit is now available for eligible unemployed veterans who began work after December 31, 2013, and before January 1, 2015 Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans For more information, visit IRSgov and enter work opportunity tax credit in the search box Reminders No federal income tax withholding on disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States Disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies) are not included in income Because federal income tax withholding is only required when a payment is includable in income, no federal income tax should be withheld from these payments Voluntary withholding on dividends and other distributions by an Alaska Native Corporation (ANC) A shareholder of an ANC may now request voluntary income tax withholding on dividends and other distributions paid by an ANC A shareholder may request voluntary withholding by giving the ANC a completed Form W-4V, Voluntary Withholding Request For more information see Notice , IRB 632, available at wwwirsgov/irb/ _irb/ar10html Change of responsible party Beginning January 1, 2014, any entity with an employer identification number (EIN) must file Form 8822-B, Change of Address or Responsible Party Business, to report the latest change to its responsible party Form 8822-B must be filed within 60 days of the change For a definition of responsible party, see the Form 8822-B instructions Same-sex marriage For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage For more information, see Revenue Ruling , IRB 201, available at wwwirsgov/irb/ _irb/ar07html Notice provides special administrative procedures for employers to make claims for refunds or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations Notice , IRB 432, is available at wwwirsgov/ irb/ _irb/ar10html Additional Medicare Tax withholding In addition to withholding Medicare tax at 145%, you must withhold a 09% Additional Medicare Tax from wages you pay to an employee in excess of 200,000 in a calendar year You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of 200,000 to an employee and continue to withhold it each pay period until the end of the calendar year Additional Page 2 Publication 15 (2015) 7

9 Department of the Treasury Internal Revenue Service Publication 15-A Contents What's New 1 Reminders 2 Cat No 21453T Introduction 4 Employer's Supplemental Tax Guide 1 Who Are Employees? 5 (Supplement to Publication 15 (Circular E), Employer's Tax Guide) For use in Employee or Independent Contractor? 7 3 Employees of Exempt Organizations 10 4 Religious Exemptions and Special Rules for Ministers 10 5 Wages and Other Compensation 11 6 Sick Pay Reporting 15 7 Special Rules for Paying Taxes 21 8 Pensions and Annuities 23 9 Alternative Methods for Figuring Withholding 24 Formula Tables for Percentage Method Withholding (for Automated Payroll Systems) 26 Wage Bracket Percentage Method Tables (for Automated Payroll Systems) 31 Combined Federal Income Tax, Employee Social Security Tax, and Employee Medicare Tax Withholding Tables Tables for Withholding on Distributions of Indian Gaming Profits to Tribal Members 69 How To Get Tax Help 71 Index 73 Future Developments For the latest information about developments related to Publication 15-A, such as legislation enacted after it was published, go to wwwirsgov/pub15a What's New Get forms and other information faster and easier at: IRSgov/Korean (한국어) IRSgov (English) IRSgov/Spanish (Español) IRSgov/Russian (Pусский) IRSgov/Chinese (中文) IRSgov/Vietnamese (TiếngViệt) New Form 8922 replaces the Third-Party Sick Pay Recap Form W-2 New Form 8922 replaces the Third-Party Sick Pay Recap previously done on Form W-2, Wage and Tax Statement For wages paid in 2014, new Form 8922, Third-Party Sick Pay Recap, is used to reconcile employment tax returns (for example, Form 941) with Forms W-2 when third-party sick pay is paid Third party payers of sick pay (and in certain cases, employers) file Form 8922 with the IRS instead of filing a Third-Party Sick Pay Recap Form W-2 and Third-Party Sick Pay Recap Form W-3, Transmittal of Wage and Tax Statements, Dec 22,

10 Department of the Treasury Internal Revenue Service Publication 15-B Contents What's New 1 Reminders 2 Cat No 29744N Introduction 2 Employer's Tax Guide to Fringe Benefits 1 Fringe Benefit Overview 2 For use in Fringe Benefit Exclusion Rules Accident and Health Benefits Achievement Awards Adoption Assistance Athletic Facilities De Minimis (Minimal) Benefits Dependent Care Assistance Educational Assistance Employee Discounts Employee Stock Options Employer-Provided Cell Phones Group-Term Life Insurance Coverage Health Savings Accounts Lodging on Your Business Premises Meals Moving Expense Reimbursements No-Additional-Cost Services Retirement Planning Services Transportation (Commuting) Benefits Tuition Reduction Working Condition Benefits 3 Fringe Benefit Valuation Rules General Valuation Rule Cents-Per-Mile Rule Commuting Rule Lease Value Rule Unsafe Conditions Commuting Rule Rules for Withholding, Depositing, and Reporting 27 How To Get Tax Help 29 Index 31 Future Developments For the latest information about developments related to Publication 15-B, such as legislation enacted after it was published, go to wwwirsgov/pub15b Get forms and other information faster and easier at: IRSgov (English) IRSgov/Spanish (Español) IRSgov/Chinese (中文) IRSgov/Korean (한국어) IRSgov/Russian (Pусский) IRSgov/Vietnamese (TiếngViệt) What's New Cents-per-mile rule The business mileage rate for 2015 is 575 cents per mile You may use this rate to reimburse an employee for business use of a personal vehicle, and under certain conditions, you may use the rate under the Dec 10,

11

12 RECONCILIATIONS Reconcile 1st, 2nd, and 3rd quarter payroll tax returns with your year to date earnings report, dated as of Reconcile the payroll bank accounts at least through November and if possible December before processing your Forms W-2 Outstanding payroll checks and electronic payments should be researched Verify that the general ledger liability accounts are also in balance, especially the employee/ employer tax withholding accounts before Forms 941 and W-2 are completed QUARTERLY RECONCILIATION WORKSHEET 941/W-2/W-3/6559 ITEMS QTR 1 QTR 2 QTR 3 YTD Federal wages Federal income tax withheld Social Security wages Social Security tax withheld Social Security tips Medicare wages and tips Medicare tax withheld Advance EIC payments STATE TOTALS QTR 1 QTR 2 QTR 3 YTD State wages State income tax withheld State disability tax withheld SUI tax withheld Local wages Local income tax withheld wwwmanercpacom (517)

13

14 PAYROLL TAX RECONCILIATION CLIENT NAME CLIENT NO YEAR ENDING (1) (2) (3) (4) (5) (6) (7) (8) (10) (11) PAYROLL GROSS FEDERAL FICA FICA TAX SS SS TIPS MEDICARE MEDICARE TAX STATE CITY EARNINGS REPORT WAGES WITHHELD WAGES WITHHELD TIPS TAX W/H WAGES WITHHELD WITHHELD WITHHELD FEDERAL WAGES W/O BENEFITS AUTO INS RETIREMENT CAFÉ OTHER TOTAL GROSS WAGES (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) GROSS FEDERAL FICA FICA TAX SS SS TIPS MEDICARE MEDICARE TAX TOTAL FORM PERIOD WAGES LIABILITY WAGES LIABILITY TIPS TAX LIAB WAGES LIABILITY ADJUSTMENTS LIABILITY 941 1ST QTR ND QTR 3RD QTR 4TH QTR TOTAL (1) (2) (3) (4) (5) FORM PERIOD GROSS OVER TAXABLE MESC AMOUNT FORM PERIOD FORM PERIOD RATE: WAGES 9,50000 WAGES LIABILITY PAID L 941 1ST QTR 160 1ST QTR MESC 1ST QTR ND QTR 2ND QTR ND QTR 3RD QTR 3RD QTR 3RD QTR 4TH QTR 4TH QTR 4TH QTR includes café & 401 (k) TOTAL - TOTAL - TOTAL (1) (2) (3) (4) (5) MONTHLY MONTHLY GROSS OVER TAXABLE FUTA AMOUNT FORM PERIOD WAGES 7,00000 WAGES LIABILITY PAID L ST QTR ND QTR RD QTR TH QTR includes 401 (k) 5 5 TOTAL PREPARED BY DATE REVIEWED BY DATE CAFÉ 401 (K) st QTR 1st QTR nd QTR 2nd QTR TOTAL - TOTAL - 3rd QTR 3rd QTR 4th QTR 4th QTR 11

15

16 REPORTING AND TAXATION OF FRINGE BENEFITS The amount you must include in the employee s gross income is the amount by which the fair market value of the benefit exceeds the amount the employee paid after taxes for the benefit, less any amount the law excludes The employer should determine the value of fringe benefits before December 31 of the calendar year to avoid tax deposit penalties Employer-provided non-cash taxable fringe benefits are subject to federal income, social security, Medicare and unemployment tax rules You may elect to handle fringe benefits as paid by the pay period, monthly, quarterly or annually Any fringe benefit paid in cash must be included in income subject to withholding, depositing and reporting when paid The employer has two options in determining how to withhold federal income taxes from fringe benefits: 1 Aggregate method - add the value of the benefit to the employee s regular wages for a payroll period and calculate the taxes to be withheld on the total wages or 2 Withhold federal income tax on the value of the benefit at the supplemental rate of 25% and withhold state income tax at the supplemental rate of 425% Taxable fringe benefits must be reported in box 1 (wages, tips and other compensation) of Form W- 2, Wage and Tax Statement If applicable, benefits are also included in boxes 3 (social security wages) and 5 (Medicare wages and tips) Nontaxable employer provided benefits No-additional-cost services Qualified employee discounts Working condition fringe benefits De minims fringe benefits Qualified transportation benefits Qualified moving expense reimbursements wwwmanercpacom (517)

17 GROUP-TERM LIFE INSURANCE PREMIUM RATES 5-year age bracket Cost per 1,000 of protection for one month Under to to to to to to to to to and above 206 The cost of group-term life insurance in excess of 50,000 is subject to federal income tax and reporting on Form W-2, it is not subject to federal income tax withholding IRS allows employers to impute the taxable group-term life insurance amounts on any basis so long as they are treated as paid by December 31, 2015 Group Life Insurance is reported in Box 12 Code C on the W-2 wwwmanercpacom (517)

18 8888 CORRECTED FILER'S name, street address, city or town, province or state, country, ZIP or foreign postal code, and telephone no OMB No Form 8922 DRAFT AS OF June 24, 2015 OTHER PARTY'S name (see instructions before entering) OTHER PARTY'S employer identification number (see instructions before entering) Filer is an (check one): Employer Insurer/Agent FILER'S employer identification number 1 Sick pay subject to federal income tax 3 Sick pay subject to social security tax 5 Sick pay subject to Medicare tax 2 Federal income tax withheld from sick pay 4 Social security tax withheld from sick pay 6 Medicare tax withheld from sick pay Third-Party Sick Pay Recap DO NOT FILE Instructions for Form 8922 Section references are to the Internal Revenue Code unless otherwise noted Future Developments For the latest information about developments related to Form 8922 and its instructions, such as legislation enacted after they were published, go to wwwirsgov/form8922 General Instructions! CAUTION Do not send this form to the Social Security Administration This form is processed solely by the IRS for third-party sick pay reporting Purpose of Form Form 8922 is filed to reconcile employment tax returns (for example, Form 941) with Forms W-2 when third-party sick pay is paid For more information, see Sick Pay Reporting in Pub 15-A Who Must File Generally, if the liability for the employer s share of social security tax and Medicare tax is reported on the employer s employment tax return, Form 8922 must be filed by: The employer, if sick pay is reported on Forms W 2 under the name and EIN of the insurer or agent The insurer or agent, if sick pay is reported on Forms W 2 under the name and EIN of the employer For more information on who must file Form 8922, see Pub 15 A When To File File Form 8922 by February 29, 2016 Where To File Send Form 8922 to the following: If your principal business, office, or agency is located in Alabama, Alaska, Arizona, Arkansas, Colorado, Florida, Georgia, Hawaii, Kansas, Louisiana, Mississippi, Missouri, Nevada, New Mexico, Oklahoma, Tennessee, Texas, Utah, Washington Use the following address Internal Revenue Service Memphis Service Center PO Box 87 Mail Stop 814D6 Memphis, TN California, Connecticut, Delaware, District of Columbia, Idaho, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Montana, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Vermont, Virginia, West Virginia, Wisconsin, Wyoming Internal Revenue Service IRS SSA CAWR Philadelphia, PA If your principal place of business is outside the United States, file with the Internal Revenue Service, IRS SSA CAWR, Philadelphia, PA Substitute Forms The IRS accepts quality substitute tax forms that are consistent with the official forms and have no adverse impact on our processing The official Form 8922 is the standard for substitute forms Because a substitute form is a variation from the official form, you should know the requirements of the official form for the year of use before you create a substitute version For details on the requirements for substitute forms, see Pub 1167 Specific Instructions Check box for employer or insurer/agent Check the appropriate box to state whether you are the employer or the insurer/agent filing Form 8922 Filer's name If the Employer box is checked, the employer for whom the sick pay was paid by the insurer or agent will complete the information with the employer's name, address, and phone number If the Insurer/Agent box is checked, the insurer or agent who paid the sick pay will complete the information with the insurer/agent's name, address, and phone number Filer's EIN If the employer box is checked, enter the EIN of the employer If the Insurer/Agent box is checked, enter the EIN of the insurer or agent Other party's name and EIN If the Employer box is checked, the employer must provide the name and EIN of the insurer or agent If the employer has contracts with more than one insurer or agent, the employer must file a separate Form 8922 for the wages and taxes related to each contract If the Insurer/Agent box is checked, the insurer or agent may, but is not required to, provide the name and EIN of the employer If it is providing this information, and if it has contracts with more than one employer, it must file a separate Form 8922 for the wages and taxes related to each employer Alternatively, it may file a separate Form 8922 for the wages and taxes related to each employer for which it is Form 8922 Cat No 37734T IRSgov/form8922 Department of the Treasury - Internal Revenue Service 14

19 VERIFYING EMPLOYEE S SOCIAL SECURITY NUMBERS (SSN) IRS Regulation (b)-2(b)(I)(i) requires that employees provide employers with their social security card when requested If Form W-2 does not contain the correct name and social security number, the employer may be penalized up to 100 for each incorrect Form W-2 Changes in Social Security Number Assignment June 2011 SSA will no longer issue SSN s based on geography (state and local area) SSA will issue SSN s beginning with the number 8 SSA will include all possible SSN s with the number 7 in position 1 The following are examples of invalid SSN s ; ; SSN s having 000 or 666 as the first three left-most digits SSN s beginning with the number 9 SSN s having 00 as the fourth and fifth digits SSN s having 0000 as the last four digits BENEFIT STATEMENTS WILL BE MAILED AGAIN SOCIAL SECURITY STATEMENT (Formerly called Personal Earnings and Benefit Estimate Statement) Employees who are 60 years and older will receive this statement beginning February 2012 SSA also plans to resume first-time mailings to workers at age 25 Online statement access will be available for individuals not receiving statements For more information call or visit website wwwssagov Social Security Number Verification Services (SSNVS) 1) Verify up to 10 names and SSNs (per screen) online and receive immediate results Upload overnight batch files of up to 250,000 names and SSNs and usually receive results the next government business day wwwmanercpacom (517)

20 ( SSNVS Overview There are two Internet verification options you can use to verify that your employee names and Social Security numbers (SSN) match Social Security's records You can: Verify up to 10 names and SSNs (per screen) online and receive immediate results This option is ideal to verify new hires Upload overnight files of up to 250,000 names and SSNs and usually receive results the next government business day This option is ideal if you want to verify an entire payroll database or if you hire a large number of workers at a time While the service is available to all employers and third-party submitters, it can only be used to verify current or former employees and only for wage reporting (Form W-2) purposes Why Should I Verify Names and SSNs Online Correct names and SSNs on W-2 wage reports are the keys to the successful processing of your annual wage report submission It's faster and easier to use than submitting your requests paper listings or using Social Security's telephone verification option Results in more accurate wage reports Saves processing costs and reduces the number of W-2c's Allows Social Security to give the proper credit to your employees' earnings record, which will be important information in determining their Social Security benefits in the future wwwmanercpacom (517)

21 Steps to Register for SSNVS Step 1: Register to Use SSNVS Step 2: Request Access and Activation Code Step 3: Activation Code is Mailed to Your Employer Step 4: Login to Use the Service NOTE For more detailed instructions on registering and/or using SSNVS, see the Social Security Number Verification Service Handbook wwwmanercpacom (517)

22 Social Security Official Social Security Website Social Security Number Verifications Verifying Social Security Numbers Employers, organizations or third-party submitters can verify Social Security numbers for wage reporting purposes only Social Security offers three options to verify Social Security numbers: 1 The Social Security Number Verification Service - This free online service allows registered users to verify that the names and Social Security numbers of hired employees match Social Security s records 2 The Consent Based Social Security Number Verification Service - This fee-based Social Security number verification service is available to enrolled private companies, state and local government agencies to provide instant automated verification and can handle large volume requests Verifying Social Security Numbers 11/2/

23 Social Security Number Verification Service Handbook Social Security Number Verification Service Pamphlet Critical Links Employer Responsibilities When Hiring Foreign Workers High Group List and Other Ways to Determine if a Social Security Number is Valid Social Security Number Allocations Frequently Asked Questions Consent Based Social Security Number Verification Service User s Guide E-Verify - US Citizenship and Immigration Services Social Security Number Randomization What is Social Security Number Randomization? Social Security Number Randomization Frequently Asked Questions Determining a Valid Social Security Number Register to Use the Social Security Number Verification Service Enroll in Consent Based Social Security Number Verification 11/2/

24 Social Security Official Social Security Website AccuWage Software How does AccuWage work? Software Policy Download Options More Information What's New? IMPORTANT NOTE: Some internet browsers are not allowing Java plugins or require Java plugins to be enabled Below you will find a list of browsers that are and are not compatible with AccuWage TY15 AccuWage TY15 is not compatible with Google Chrome version 45 or higher Please use a different browser such as Firefox or Internet Explorer 90 or higher Edge, the Windows 10 default browser Please use Internet Explorer 11 available on Windows 10 AccuWage TY15 is compatible with Firefox when Java plugin is allowed Internet Explorer 90 or higher if Active X and Java SSV helper plugin are enabled For more information on the System Configuration Requirements, please click here For more information on how to enable the java plugins in Firefox or Internet Explorer, please see the Troubleshooting page For additional information, please see the FAQ document 10/26/15 - A new version of AccuWage 2015 has been released to address the download issues reported on Friday, October 23rd 9/21/15 - The AccuWage 2015 application is available to test wage reports in the current EFW2-EFW2C formats The most current version of AccuWage 2015 works with current and 11/2/

25 prior year wage submissions We recommend that wage submitters uninstall prior versions of AccuWage before downloading the software for the current tax year The Quick Links on the top right hand corner provides two links to download AccuWage 2015 application If using any assistive software such as Dragon, Jaws or Magic, please download AccuWage using the second link marked compatible with assistive software To navigate the table for the first time using the JAWS screen reader, please select insert and right arrow and use the arrow keys for navigation in the table Please Note: The first link requires a Java Runtime of 176 or higher The second link requires a Java Runtime of 1840 or higher For additional information regarding the minimum system configuration, please see the AccuWage 2015 Help Guide For additional information regarding Java, please see the FAQ link for the Frequently Asked Questions For general assistance using AccuWage, including navigation or results, call Employer Reporting Assistance at (toll free) for TTY call Monday Friday 7:00 am to 7:00 pm Eastern Time If you experience problems installing or running AccuWage and need technical assistance, call (toll free) Below is a series of links that provide more information about AccuWage: Visit our Troubleshooting page for help with downloading problems The AccuWage 2015 Help Guide contains extensive information regarding viewing, testing and correcting errors in wage report files System Configuration Checklist is a listing of questions to include in your to accuwagehelp@ssagov that will enable us to find the root cause and provide solutions to installation issues Visit the FAQ link for the Frequently Asked Questions and Solutions document It contains the most common questions about downloading AccuWage and some of the more difficult installation questions What is AccuWage? AccuWage is a free software from Social Security Administration AccuWage is for use with Electronic Filing W-2/W-2C - EFW2 or EFW2C 11/2/

26 The software allows you to check W-2 (Wage and Tax Statement) and W-2c (Corrected Wage and Tax Statement) reports for correctness before you send them to Social Security Administration How does AccuWage work? First, you need to download and install AccuWage software on your PC Then, specify the directory where your W2REPORT or W2CREPORT file is located AccuWage reads the file and informs you of any errors it detects Software Policy The AccuWage software identifies most of the common format errors in wage submissions Using this software greatly reduces submission rejections Please be aware that even if no errors are identified by AccuWage, your submission could be returned because of other errors The user explicitly acknowledges that all shareware obtained from this site is provided 'as is' without warranty of any kind, expressed or implied, including, but not limited to the warranties of merchantability and fitness for a particular purpose and that the risk of using shareware obtained from this site, including the entire costs of all necessary remedies, is with that user Download Options To test wage reports created in the 2015 EFW2/EFW2C format for submission during calendar year 2016 using a Java Runtime of 176 or higher - Download AccuWage Tax Year To test wage reports created in the 2015 EFW2/EFW2C format for submission during calendar year 2016 using a Java Runtime of 1840 or higher and assistive software - Download AccuWage Tax Year (compatible with Assistive Software) To test wage reports created in the 2014 EFW2/EFW2C format for submission during calendar year Download AccuWage Tax Year More Information For more information about the EFW2 and EFW2C formats, or for answers to other questions about wage reporting, please contact an Employer Services Liaison Officer or visit How to Reach Us 11/2/

27 Quick Links Download AccuWage Tax Year Download AccuWage Tax Year (compatible with Assistive Software) Download AccuWage Tax Year EFW2 - EFW2C AccuWage 2015 Help Guide AccuWage 2014 Help Guide Installation Guide Troubleshooting System Configuration Checklist FAQ Help and Information AccuWage General Assistance: AccuWage Installation Assistance: Contact Employer Services Liaison Officers AccuWage Help Mailbox Employer W-2 Filing Instructions & Information 11/2/

28 EMPLOYEE NOTICES REQUIRED UNDER FEDERAL LAW December 1- Form W-4 Notice Deadline IRS regulations require employers to remind their employees to file an amended Form W-4, if their filing status, exemption allowances or exempt status has changed since the last filing of their Form W-4 This notice must be provided by December 1 each year Form W-2 information memo Distribute an information memo to each employee or post it in each business location before year-end that will notify employees about: Employees claiming exempt from withholding during the prior year on their W-4 must complete a new Form W-4 by February 2, 2016 to keep their exempt status If employment ends before December 31, 2015 and employee asked for Form W- 2 they must receive the completed copies within 30 days of the request or within 30 days of final wage payment, whichever is later wwwmanercpacom (517)

29 Form W-4 (2015) Purpose Complete Form W-4 so that your employer can withhold the correct federal income tax from your pay Consider completing a new Form W-4 each year and when your personal or financial situation changes Exemption from withholding If you are exempt, complete only lines 1, 2, 3, 4, and 7 and sign the form to validate it Your exemption for 2015 expires February 16, 2016 See Pub 505, Tax Withholding and Estimated Tax Note If another person can claim you as a dependent on his or her tax return, you cannot claim exemption from withholding if your income exceeds 1,050 and includes more than 350 of unearned income (for example, interest and dividends) Exceptions An employee may be able to claim exemption from withholding even if the employee is a dependent, if the employee: Is age 65 or older, Is blind, or Will claim adjustments to income; tax credits; or itemized deductions, on his or her tax return The exceptions do not apply to supplemental wages greater than 1,000,000 Basic instructions If you are not exempt, complete the Personal Allowances Worksheet below The worksheets on page 2 further adjust your withholding allowances based on itemized deductions, certain credits, adjustments to income, or two-earners/multiple jobs situations Complete all worksheets that apply However, you may claim fewer (or zero) allowances For regular wages, withholding must be based on allowances you claimed and may not be a flat amount or percentage of wages Head of household Generally, you can claim head of household filing status on your tax return only if you are unmarried and pay more than 50% of the costs of keeping up a home for yourself and your dependent(s) or other qualifying individuals See Pub 501, Exemptions, Standard Deduction, and Filing Information, for information Tax credits You can take projected tax credits into account in figuring your allowable number of withholding allowances Credits for child or dependent care expenses and the child tax credit may be claimed using the Personal Allowances Worksheet below See Pub 505 for information on converting your other credits into withholding allowances Nonwage income If you have a large amount of nonwage income, such as interest or dividends, consider making estimated tax payments using Form 1040-ES, Estimated Tax for Individuals Otherwise, you may owe additional tax If you have pension or annuity income, see Pub 505 to find out if you should adjust your withholding on Form W-4 or W-4P Two earners or multiple jobs If you have a working spouse or more than one job, figure the total number of allowances you are entitled to claim on all jobs using worksheets from only one Form W-4 Your withholding usually will be most accurate when all allowances are claimed on the Form W-4 for the highest paying job and zero allowances are claimed on the others See Pub 505 for details Nonresident alien If you are a nonresident alien, see Notice 1392, Supplemental Form W-4 Instructions for Nonresident Aliens, before completing this form Check your withholding After your Form W-4 takes effect, use Pub 505 to see how the amount you are having withheld compares to your projected total tax for 2015 See Pub 505, especially if your earnings exceed 130,000 (Single) or 180,000 (Married) Future developments Information about any future developments affecting Form W-4 (such as legislation enacted after we release it) will be posted at wwwirsgov/w4 Personal Allowances Worksheet (Keep for your records) A Enter 1 for yourself if no one else can claim you as a dependent A You are single and have only one job; or B Enter 1 if: { You are married, have only one job, and your spouse does not work; or B Your wages from a second job or your spouse s wages (or the total of both) are 1,500 or less C Enter 1 for your spouse But, you may choose to enter -0- if you are married and have either a working spouse or more than one job (Entering -0- may help you avoid having too little tax withheld) C D Enter number of dependents (other than your spouse or yourself) you will claim on your tax return D E Enter 1 if you will file as head of household on your tax return (see conditions under Head of household above) E F Enter 1 if you have at least 2,000 of child or dependent care expenses for which you plan to claim a credit F (Note Do not include child support payments See Pub 503, Child and Dependent Care Expenses, for details) G Child Tax Credit (including additional child tax credit) See Pub 972, Child Tax Credit, for more information If your total income will be less than 65,000 (100,000 if married), enter 2 for each eligible child; then less 1 if you have two to four eligible children or less 2 if you have five or more eligible children If your total income will be between 65,000 and 84,000 (100,000 and 119,000 if married), enter 1 for each eligible child G H Add lines A through G and enter total here (Note This may be different from the number of exemptions you claim on your tax return) H { If you plan to itemize or claim adjustments to income and want to reduce your withholding, see the Deductions For accuracy, and Adjustments Worksheet on page 2 complete all If you are single and have more than one job or are married and you and your spouse both work and the combined worksheets earnings from all jobs exceed 50,000 (20,000 if married), see the Two-Earners/Multiple Jobs Worksheet on page 2 to that apply avoid having too little tax withheld If neither of the above situations applies, stop here and enter the number from line H on line 5 of Form W-4 below Separate here and give Form W-4 to your employer Keep the top part for your records Employee's Withholding Allowance Certificate Form W-4 Department of the Treasury Whether you are entitled to claim a certain number of allowances or exemption from withholding is Internal Revenue Service subject to review by the IRS Your employer may be required to send a copy of this form to the IRS 1 Your first name and middle initial Last name OMB No Your social security number Home address (number and street or rural route) 3 Single Married Married, but withhold at higher Single rate Note If married, but legally separated, or spouse is a nonresident alien, check the Single box City or town, state, and ZIP code 4 If your last name differs from that shown on your social security card, check here You must call for a replacement card 5 Total number of allowances you are claiming (from line H above or from the applicable worksheet on page 2) 5 6 Additional amount, if any, you want withheld from each paycheck 6 7 I claim exemption from withholding for 2015, and I certify that I meet both of the following conditions for exemption Last year I had a right to a refund of all federal income tax withheld because I had no tax liability, and This year I expect a refund of all federal income tax withheld because I expect to have no tax liability If you meet both conditions, write Exempt here 7 Under penalties of perjury, I declare that I have examined this certificate and, to the best of my knowledge and belief, it is true, correct, and complete Employee s signature (This form is not valid unless you sign it) Date 8 Employer s name and address (Employer: Complete lines 8 and 10 only if sending to the IRS) 9 Office code (optional) 10 Employer identification number (EIN) For Privacy Act and Paperwork Reduction Act Notice, see page 2 Cat No 10220Q Form W-4 (2015) 25

30 Form W-4 (2015) Page 2 Deductions and Adjustments Worksheet Note Use this worksheet only if you plan to itemize deductions or claim certain credits or adjustments to income 1 Enter an estimate of your 2015 itemized deductions These include qualifying home mortgage interest, charitable contributions, state and local taxes, medical expenses in excess of 10% (75% if either you or your spouse was born before January 2, 1951) of your income, and miscellaneous deductions For 2015, you may have to reduce your itemized deductions if your income is over 309,900 and you are married filing jointly or are a qualifying widow(er); 284,050 if you are head of household; 258,250 if you are single and not head of household or a qualifying widow(er); or 154,950 if you are married filing separately See Pub 505 for details 1 12,600 if married filing jointly or qualifying widow(er) 2 Enter: { 9,250 if head of household } 2 6,300 if single or married filing separately 3 Subtract line 2 from line 1 If zero or less, enter Enter an estimate of your 2015 adjustments to income and any additional standard deduction (see Pub 505) 4 5 Add lines 3 and 4 and enter the total (Include any amount for credits from the Converting Credits to Withholding Allowances for 2015 Form W-4 worksheet in Pub 505) 5 6 Enter an estimate of your 2015 nonwage income (such as dividends or interest) 6 7 Subtract line 6 from line 5 If zero or less, enter Divide the amount on line 7 by 4,000 and enter the result here Drop any fraction 8 9 Enter the number from the Personal Allowances Worksheet, line H, page Add lines 8 and 9 and enter the total here If you plan to use the Two-Earners/Multiple Jobs Worksheet, also enter this total on line 1 below Otherwise, stop here and enter this total on Form W-4, line 5, page 1 10 Two-Earners/Multiple Jobs Worksheet (See Two earners or multiple jobs on page 1) Note Use this worksheet only if the instructions under line H on page 1 direct you here 1 Enter the number from line H, page 1 (or from line 10 above if you used the Deductions and Adjustments Worksheet) 1 2 Find the number in Table 1 below that applies to the LOWEST paying job and enter it here However, if you are married filing jointly and wages from the highest paying job are 65,000 or less, do not enter more than If line 1 is more than or equal to line 2, subtract line 2 from line 1 Enter the result here (if zero, enter -0- ) and on Form W-4, line 5, page 1 Do not use the rest of this worksheet 3 Note If line 1 is less than line 2, enter -0- on Form W-4, line 5, page 1 Complete lines 4 through 9 below to figure the additional withholding amount necessary to avoid a year-end tax bill 4 Enter the number from line 2 of this worksheet 4 5 Enter the number from line 1 of this worksheet 5 6 Subtract line 5 from line Find the amount in Table 2 below that applies to the HIGHEST paying job and enter it here 7 8 Multiply line 7 by line 6 and enter the result here This is the additional annual withholding needed 8 9 Divide line 8 by the number of pay periods remaining in 2015 For example, divide by 25 if you are paid every two weeks and you complete this form on a date in January when there are 25 pay periods remaining in 2015 Enter the result here and on Form W-4, line 6, page 1 This is the additional amount to be withheld from each paycheck 9 Table 1 Table 2 Married Filing Jointly All Others Married Filing Jointly All Others If wages from LOWEST paying job are Enter on line 2 above 0-6, ,001-13, ,001-24, ,001-26, ,001-34, ,001-44, ,001-50, ,001-65, ,001-75, ,001-80, , , , , , , , , , , ,001 and over 15 If wages from LOWEST paying job are Enter on line 2 above 0-8, ,001-17, ,001-26, ,001-34, ,001-44, ,001-75, ,001-85, , , , , , , ,001 and over 10 Privacy Act and Paperwork Reduction Act Notice We ask for the information on this form to carry out the Internal Revenue laws of the United States Internal Revenue Code sections 3402(f)(2) and 6109 and their regulations require you to provide this information; your employer uses it to determine your federal income tax withholding Failure to provide a properly completed form will result in your being treated as a single person who claims no withholding allowances; providing fraudulent information may subject you to penalties Routine uses of this information include giving it to the Department of Justice for civil and criminal litigation; to cities, states, the District of Columbia, and US commonwealths and possessions for use in administering their tax laws; and to the Department of Health and Human Services for use in the National Directory of New Hires We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism If wages from HIGHEST paying job are Enter on line 7 above 0-75, , ,000 1, , ,000 1, , ,000 1, , ,000 1, ,001 and over 1,580 If wages from HIGHEST paying job are Enter on line 7 above 0-38, ,001-83,000 1,000 83, ,000 1, , ,000 1, ,001 and over 1,580 You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law Generally, tax returns and return information are confidential, as required by Code section 6103 The average time and expenses required to complete and file this form will vary depending on individual circumstances For estimated averages, see the instructions for your income tax return If you have suggestions for making this form simpler, we would be happy to hear from you See the instructions for your income tax return 26