Dear Payroll Client, Thank you, Precision Payroll of America Team. Table of Contents

Transcription

1 At Your Service.

2 Dear Payroll Client, It is that time of year again and year-end is upon us! This document is a crucial part of our fourth quarter and year-end processing which will guide you to a smooth and successful year end. Please read this document carefully and respond to us with any notifications and/or adjustments as soon as possible. As always, if you have any questions that are not addressed in these documents, or need further clarification, you may contact your Payroll Specialist. Thank you, Precision Payroll of America Team Table of Contents Important Deadlines, Holidays & Addresses Page 3 Year-End Adjustment Processing Deadline (Dec. 12 th ) Page 3 How to Review Employee Information and Schedules Page 4 Vacation, Sick, PTO Review Page Miscellaneous Forms Page 5 Bonus/Holiday Checks Things to Consider Page 5 Health Care Reporting for W-2 s (Large Employers) Page 6 Tax Changes for 2015 Page 6 Do s and Don ts Page 7 State Unemployment and Deposit Frequency Notices Page 8 W-2 and 1099 Deadlines Page 8 Important Tips about your W-2 Verification Report Page 8 End of Year CD Page 9 Additional Services Order Form Page 10 2 P a g e

3 Important Deadlines for Year-End December 12 Review year-end guide and respond with any changes or adjustments December 31 Last day to process 2014 Payrolls January 26 W2 s and 1099 s delivered to clients no later than this date Upcoming Holidays November 27 Thanksgiving Holiday; PPA and Banks are closed November 28 PPA office hours are 9am to 1pm CST (Payrolls need to be submitted by 12pm CST) December 24 PPA Closes at 12pm CST December 25 Christmas Day; PPA and Banks are closed January 1 New Year s Day; PPA and Banks are closed January 19 Martin Luther King, Jr. Federal Holiday; Banks are closed Important Addresses Web Department Payroll Processing Department Tax Department payroll@precisionpayroll.com payinput@precisionpayroll.com taxcentral@precisionpayroll.com Year-End Adjustment Processing Deadline Notify us no later than December 12, 2014 of any year-end payroll adjustments. This will provide sufficient time to record adjustments prior to your last payroll of We understand that some information related to closing your 2014 payroll records may not be available by this date, but keep in mind that reporting adjustments after your last payroll in 2014 could delay your 4 th quarter and year-end returns as well as incur additional processing fees. Examples of adjustments are as follows: Void and/or manual checks Third Party Sick Payments Fringe Benefits (Example: Auto Allowance, Life Insurance Premiums, SubS Health Insurance) Year-End Distributions Bonuses and other gifts given to employees Health Insurance Premiums (only for employers who filed 250 or more W-2 s in 2013) Vendor 1099 payment recording 3 P a g e

4 How to review and confirm accuracy of your company and employees information Employee W2 Information Internet Clients (Web Clients) 1. Log into the Payroll Module 2. Select Web Reports 3. Select Emp. W2 and SSN 4. Select to open the report in PDF, Excel or Word 5. Print and review report 6. Make updates in payroll prior to processing your final payroll of 2014 Non-Internet Clients: Contact your Payroll Specialist for your company s Employee W2 Verification Report. Incorrect information can affect your employee s W2 filing and Social Security Wage benefits. This can also incur additional fees for corrections made after the 2014 payroll year has closed. ACA Reports If your company filed 250 or more W-2 s in 2013, you will be required by the IRS to report the amount paid in medical insurance premiums for each employee on their W-2 s. Consult Box C on your 2013 Form W-3 to confirm the number of W-2 s filed in 2013 so you can prepare to report premiums if necessary. For employers who filed fewer than 250 W-2 forms in 2013, the effective date of this W-2 reporting has been delayed by the government for an unknown period of time. Payroll Schedules for 2015 Schedules are determined based on your current company policy but can be thrown off when holidays occur and when check dates fall on weekends. Your 2015 Schedules are available for review now. Internet Clients (Web Clients) 1. Log into the Payroll Module 2. Select Payroll 3. Select Dates 4. Select View Company Schedule 5. Select to open the report in PDF, Excel or Word 6. Print and review the report and notify Precision Payroll of any changes that need to be made. Non-Internet Clients: Contact your Payroll Specialist for your Company s 2015 Payroll Schedule 4 P a g e

5 Vacation, Sick and/or PTO Balances The system default is that all employee vacation, sick and PTO balances will be reset to zero after the first payroll in January, unless prior communication regarding carry-over has been received. If you have communicated your carry-over preference in past years, your balances will carry forward accordingly. If you have not carried forward balances in the past years but would like to start doing so this year, contact your Payroll Specialist prior to the end of December Miscellaneous Forms If you have paid 1099 Miscellaneous Income through the payroll system in 2014, Precision Payroll will produce these forms. If you have additional 1099 s (for vendors or contractors who were paid earlier in the year and not reported), enter them using manual adjustments before you process your last payroll in Always use 1099 Earnings codes to pay 1099 contractors and/or vendors in the payroll system to ensure that the 1099 tax forms are generated properly. Bonus/Holiday Checks Things to Consider 1. Run bonus checks as separate checks on the same payroll run or as a separate pay run altogether. Run them as a separate payroll altogether so you can use global settings to make the process more efficient. If you run them on the same payroll as your normal checks, the bonus amounts are going to show in the YTD s on the check stub, and you give away the surprise. 2. If you are running a separate payroll, clearly communicate what the check date for the bonus payroll run should be. Should it be the same as your normal payroll check date? Should it be the date of your holiday party? Should it be a different date entirely? 3. Tell us which deductions, if any, should come out of the bonus checks. Some employers withhold only taxes on bonuses, whereas some employers have 401(k) contributions calculate on bonuses. 4. Pick a tax frequency or percentage. Do you want to take out a lot of withholding taxes, a little bit or none at all? This is particularly important on larger amounts, which you may want to tax on a quarterly or annual frequency rather than your normal one. If you go the percentage option for federal withholding which is 25% of gross (that is the IRS guidelines for supplemental wage taxation.) State withholding percentage varies depending on the state. 5. Let us know if the checks should be grossed-up. Do you want employees to receive a nice, round figure (and no, we re not talking about 0 ) as their net check? If you do, would you like us to grossup the check for just FICA/MEDICARE taxes or for withholding taxes as well? Contact your Payroll Specialist. 5 P a g e

6 6. Specify whether you would like the bonus checks to be Paper Checks or Direct Deposit Vouchers. 7. Keep in mind that if your employees access their checks stubs online, those bonus check stubs will be posted when payroll is run. If you do not want the employees to see the bonus check stubs online, let us know in advance so we can turn off the Check Stub View for the employees that week. Health Care Reporting on W-2 Requirement for Large Employers If your company filed more than 250 W-2 s in 2013, the ACA W-2 reporting requirement applies and you are responsible for reporting the total costs (regardless of employee-paid portion vs. employerpaid portion) of health insurance on employee s 2014 W-2 s. Typical costs to include are those on behalf of the employees for group health insurance plans. Since this information may not be available until after the close of the 2014 calendar year, we ask that you compile a list of employees and their premiums in January 2015 and send us the spreadsheet by January 15 th so we can add those values to their W-2 s. Tax Changes for K Contribution Limits: Increases to $18,000 for 2015 with Catch-Up to $6,000 for employees age 50+ Simple IRA Limits: Increases to $12,500 for 2015 with a Catch-Up to $3,000 for employees age 50+ HSA Limits: Self Coverage increases to $3,350; Family Coverage increases to $6,650 Look for the December 2014 Newsletter for further tax announcements. 6 P a g e

7 Voided Checks Manual Checks Address Changes Topic Do Don't Do void 4th Quarter checks on or before your last payroll process for Do enter them on or before your last payroll for Do make all address changes on or before your last payroll process in Do not void prior quarter checks. Contact your Payroll Specialists to let them know about prior quarter checks to be voided. Do not enter negative manuals for prior quarter without contacting your Payroll Specialist. Address changes made in 2015 will not change the address on the W-2 in Contact your Payroll Specialist to make any 2014 address change. Payroll Calendar Do verify payroll processing schedule/calendar by 12/12/2014. Verification Report Web Clients Only: Do review the following under Web Reports and Company Setup: -Emp W2 and SSN Report -Emp W-2 Verification Report -Tax ID's and Rates Non Web Client: Contact your Payroll Specialists for report Information Before you process the last payroll in 2014: Web Clients enter 1099 earnings online Non-Web Clients submit 1099 earnings to your Payroll Specialist Payroll Tax Information Do send all payroll tax documents received from Federal, State and/or Local Tax Authorities to the Tax Department. Group Term Life (GTL) Do enter on or before your last payroll Do not enter GTL on terminated process in employees or use manual adjustments for 2014 figures after the last 2014 payroll. Contact your Payroll Specialist for instructions. Third Party Sick Pay Send all 3rd Party Sick Pay to your Payroll Specialist on or before your last payroll process for Fringe Benefits Do report any additional fringe items on or before your last payroll process for Do not enter manul adjustments after the last 2014 payroll process. Contact your Payroll Specialist for processing. 7 P a g e

8 State Unemployment Rate and State Deposit Frequency You will be receiving your 2015 State Unemployment Rate and your Federal and/or State deposit frequency change during the next two months. Once you receive these notices, fax them to the Tax Department at This will ensure the accuracy of your tax liability calculation and timely deposits to the tax agencies. W-2 and 1099 Deadlines W-2 s will be shipped to your offices no later than January 26, The form will be in a separate package labeled W-2 s enclosed. If you are a paperless client, paper W-2 s will be delivered to the address on file Year-End CD In February 2015, we will prepare a CD with 2014 payroll information. The disc contains: Reports of every payroll run Quarterly Tax Returns Employee Check Stubs Copies of all W-2 s and/or 1099 s Employers are required by law to retain copies of all payroll information for seven (7) years. Attached is an order form for the 2014 CD (page 9). IMPORTANT TIPS ABOUT YOUR W-2 VERIFICATION REPORT All Terminated employees will be deleted from the Payroll Master File on the first payroll run of To retain any Terminated employees, the employee s status must be changed from Terminated to Inactive status. Inactive employees are not deleted from the Payroll Master File. W-2 Pension will automatically switch to Yes if the employee has a 401K, Simple Plan, or any other retirement plan deduction from their paycheck. Anything other than that will need to be switched by the payroll processor or you can do that yourself (if you are on the web.) 8 P a g e

9 STORE A YEARS WORTH OF PAYROLL ON A CD WITH VIEWCHOICE! ViewChoice, designed for Precision Payroll clients, enables you to view, gather, and store payroll records. Imagine storing an entire year of payroll records for your company electronically! Save time from accessing, printing and sending records, plus gain vital storage space. ViewChoice CD contains all payroll documents including: Payroll reports Check stubs W-2 forms Tax returns Don t miss your opportunity to get easy access to your records today! For more information, contact Gary Young, gyoung@precisionpayroll.com Yes! Please send me my 2014 Payroll on CD! Company size: Price 1-25 employees $ employee $ employee $ Company name: Company code (4-digits): Contact name: Fax order form to or to gyoung@precisionpayroll.com. 9 P a g e

10 ORDER FORM Order no. Date: Ordered By: Company: Telephone: Fax #: Shipping Address: Item Price Quantity Sub-total W-4 Forms (for each employee) $23 base, plus $0.45 per employee Employee Attendance Record $23 base, plus $0.45 per employee Automatic Check Signing $85.00 (one time charge) Personalized Checks with Logo $ (one time charge) Check Stuffing Tax Pay Service Direct Deposit Employee Annual Benefit Statements Custom Reports 401K Reports Check Reconciliation File (positive pay file) Payroll Binders Time Card Labels Blank Payroll Checks HR HelpDesk Federal & State Labor Law Posters, laminated $0.24 per envelope $85.00 base, plus $3.65 per statement $6.50 per report $17.00 per binder $32.00 per 20 checks $49.00 Total $ Questions? Contact your Payroll Specialist at Fax completed form to P a g e