our business is growing yours Deadline for 2009 Adjustments As The Close Of Another Year Approaches

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1 December 2009 Vol 1, No. 4 CBIZ Payroll Quarterly 2009 YEAR END EDITION Don t let year end catch you by surprise Deadline for 2009 Adjustments It is very important to transmit all year end adjustments before your last payroll of Timely submission of this information allows you to review for accuracy and compliance and ensures timely delivery of W-2 forms. The last day to make changes to your 2009 payroll information is December 31, If you anticipate a 2009 adjustment after December 31, 2009, please contact your client services team to have year end processing placed on hold. We will begin printing W-2s on January 6, Adjustments received after December 31, 2009, may result in additional processing fees as well as tax agency penalties and interest. For this reason, CBIZ requires that clients complete an adjustment agreement before processing any backdated or same-day payroll adjustment. Note to PC Input/Payentry.com clients: CBIZ must make all changes or additions to your calendar to ensure timely creation of tax deposits. Since you must sync to obtain these changes, please let your client service team know of any additional check dates as soon as possible. Quarterly an d year -end p ackets will b e r ead y fo r p ick -u p o n January 18, Courier packages will start leaving our office on January 11, our business is growing yours CBIZ P A Y R O L L Hwy 111 Palm Desert, CA TEL FAX HOURS OF OPERATION Monday Friday 8AM to 5PM PST Adjustment Deadlines...1 Year End Processing...1 Holiday Schedule Rate/Tax Limits...4 As The Close Of Another Year Approaches The close of another year is fast approaching and CBIZ is busy planning year-end. Every December, CBIZ sends out this Year- End Packet designed to expedite the closing of the year for your company and employees. The holidays are a very busy time of the year for everyone; therefore, it is important that you respond to the information in this packet. We need your cooperation by quickly returning the requested data to CBIZ in the time specified. This will avoid delays in the closing out of the calendar year for your company. In the Year-End Packet you will find: Year-End Form: Please review this form and follow all directions carefully. W-2 Edit Report: Verify your company s Federal & State ID Numbers and each employee s name, social security number and address. Make your corrections directly on the report and return to CBIZ with the YE Form. Remember, information must be correct on active and terminated employees for the year Please check CBIZ s website for 2010 W4 s and i9 s after December 15, Calendar 2010: Review your check dates and input dates to ensure they are correct. Direct Deposit & Tax Service clients must process two (2) business days before check date. Make adjustments on the calendar and return to CBIZ with the Year- End Form. (Continued on page 2)

2 (Continued from page 1) Bonus Run Setup Form: If you are planning to pay bonuses to your employees, you must complete this form in its entirety and return to your customer service team. Employee Benefit Statements: If you would like CBIZ to provide your employees with a detailed Benefit Statement, please check the box on the YE Form and a Customer Service Representative will contact you to gather the information needed. W-2s on CD or PDF Format: CBIZ is offering your company s 2009 W-2s on CD- ROM for only $ If you would like a copy of your 2009 W-2s, please check the box on the YE Form and fax back to CBIZ. Having your W-2s on disk is an added convenience and saves you money per W-2 to have CBIZ reprint them. these earnings according to your normal payroll frequency unless we receive prior notification from you. In order to ensure CBIZ is processing your bonus runs correctly, we ask that you carefully fill out the form attached. Qualified Business Expense Reimbursements can be issued to employee s tax free, but may still need to be reported in box 12. These expenses can be reported to CBIZ any time throughout the year; however, please adhere to adjustment deadlines to report any remaining expenses. W-2 Reissue Tip: If an employee misplaces his/her W-2, you can reissue the form from your employer copies. Simply make a photocopy and mark it REISSUED and the employee may use this for their federal, state, or local filings MISC Processing: If you would like for us to process your forms 1099-M, you must notify your payroll service team by December 31, CBIZ Payroll s 1099 services will include the filing of your 1099s with Federal and State agencies. All individual copies of the Form 1099M, as well as the employer copies, will be shipped to your company for distribution. All 1099M payroll information must be transmitted on or before your last payroll of To Our Full Tax Service Clients: Tax Notice Resolution In the event that you should receive a letter from a tax agency requesting correspondence, immediately fax this document to the tax department at Please be sure to include your address on the fax cover sheet. Upon receipt of your fax, the tax department will log your issue into a web-based software, which will send you periodic updates when the status of your notice changes. Account Numbers In an effort to improve efficiency and accuracy, CBIZ has made great strides to ensure that all of our clients tax payments are sent via electronic funds transfer (EFT). In order to send our clients payments EFT, it is imperative that we have a valid account number for each state in which we are filing. In order to properly register your company for an account number, you can either contact the state by phone or visit their website. Year End Processing and W-2 Information The value of Group Term Life Insurance in excess of $50,000 must be included in income. Our payroll system can automatically calculate GTL throughout the year, eliminating the need to manually calculate the taxable figure at the end of the year. If you are interested in setting this up for your company, please contact your payroll service team. Third Party Sick Pay (short/long term disability) must also be included on the employee s W-2, possibly as taxable wages. Your disability administrator will mail you statements, which should be recorded in the payroll system. Some Moving Expense Reimbursements are considered taxable. Please contact your tax advisor for information on the IRS definition of these benefits. Any Personal Use of an Employer Provided Vehicle is taxable income and must be reported in taxable gross wages. Please consult your tax advisor for the proper taxability of Bonuses and Commissions. If CBIZ keys your payroll, CBIZ will tax Accounts in an Applied For status result in 15% of all tax notices we receive. Agencies misapply the deposits or do not apply the deposits at all when a valid account number is not available. In order to minimize the number of tax notices you receive and allow us to better serve you, please apply for these account numbers as soon as possible. State Unemployment Rates Unemployment taxes submitted to an agency with an incorrect rate result in approximately 25% of unemployment tax notices. Once you receive your 2010 state unemployment rates, please forward the documentation to CBIZ immediately to ensure accurate filing and payment of state unemployment insurance. These rates may come in the form of a state issued rate notice or a blank unemployment form. If you do not receive a rate notice from the state, please contact the agency to obtain the 2010 rate. Local Taxes If CBIZ Payroll is filing local taxes for you, it is very important to forward us a copy of any local tax information you receive from the agency. Localities change collectors frequently and unless we are notified of the change, payments may be sent to the incorrect collector and payment postings will be delayed, which creates a tax notice.

3 Employee Benefit Statements Do your employees realize how much it costs you to employ them? Want to let them know? CBIZ can do this by providing a Benefit Statement for each of your employees that you distribute with their W-2s. The Benefit Statement not only shows all the taxes the employer paid on the employee s behalf, but can also include Employer-paid Health Insurance premiums, Workers Compensation premiums, Employer 401K Match, or any number of other benefits the employer provided. The opening paragraph can be a personal message or greeting to your employees. You select the Earnings, Taxes, and Benefits you want included. The fee for this statement is $50.00 set-up and $2.50 per employee. Call your CSR by December 15, 2009 for more information on how you can share this valuable information with your employees. Year-End Checklist Verify the employer data that is used in processing your quarterly tax reports. Review the employee data for accuracy and completion: addresses, state and local tax setups, and social security numbers. You can use your Quarterly Edit Report for this. Determine amounts to be reported and tax to be withheld for employee taxable fringe benefits and submit before last processing of the year. Verify 2010 processing calendar is accurate and schedule any special bonus payments for the remainder of Request any special reports needed for year-end. Remind employees to complete a new W-4, if necessary. Confirm that all manual checks written during the year and any voided paychecks have been recorded in the system. Submit your new employer s state unemployment tax rate once received.

4 Holidays Christmas Labor Day Thursday, December 24, 2010 Monday, September 6, 2010 Friday, December 25, 2010 New Year s Day Thanksgiving Friday, January 1, 2010 Thursday, November 25, 2010 Friday, November 26, 2010 Memorial Day Christmas Monday, May 31, 2010 Friday, December 24, 2010 Independence Day Monday, July 5, RATES / LIMITS Social Security Wage Base $106, Social Security Max EE tax $6, (k) Annual EE Deferral $16, (k) Catch-Up Contribution (over 50) $5, For all other rates please check the following: Year-End Fee Schedule The following year-end fees will be charged on an invoice with a payroll processing during the month of January: 2010 Standard YE Fees Employee W-2 PDF Copies (Full Company) W-2 Base Processing Fee... $60.00 Paper Reprints..$75.00 W-2 Fee...$4.00 per W-2 W2 Copies on CD $75.00 W-2 Shipping & Handling... $15.00 W2 PDF Copies sent FTP... $ Base Processing Fee... $ Fee... $4.00 per Adjustment - before Shipping & Handling... $15.00 Processing Fees...Full Payroll Processing Fees Base Fee..$30.00 Per W-2 or 1099 Form... $ Adjustment - after (Full Payroll Processing Fees) W-2C Employer W-2 Copies (No initial charge-paper copies) Base Fee... $80.00 Reprints... $75.00 Per W-2C Form... $5.50 Employee Benefits Statements Base Fee... $50.00 Per employee... $2.50 Amended Tax Returns 941c, 940, SUI, State W/H...$ per return

5 2010 PAYROLL TAX RULES TAXES % Max Wages Max $ Employee Employer Federal Withholding N/A N/A N/A X State Withholding N/A N/A N/A X CASDI State Disability 1.10 $ $ X OASDI 6.2 $ $ X X Medicare 1.45 N/A N/A X X FUTA Federal Unemployment.8 $ $56.00 X CA SUI State Unemployment Varies $ Varies X CA ETT Employment Training.1 $ $7.00 X Workers Comp Varies with the type of work and past claims N/A N/A N/A X MINIMUM WAGE FEDERAL MILEAGE RATES Federal Minimum Wage $7.25 per hour Business $0.55 cents per mile California Minimum Wage $8.00 per hour Charitable $.014 cents per mile Medical $0.24 cents per mile DEFERRED COMPENSATION Limit Catch up (50 or older) 401k $16,500.00* $5,500.00* 403B $16,500.00* $5,500.00* 457 $16,500.00* $5,500.00* Simple IRA, Simple 401k $11,500.00* $2,500.00* *verify all limits with your plan administrator SUPPLEMENTAL TAX RATES Percent Federal Up to $1,000, % Federal $1,000, and over 35% California All amounts 10.23% SOCIAL SECURITY # VERIFICATION Verify up to 5 SSN s Phone: IMPORTANT PHONE NUMBERS IRS Practitioners Hotline (866) Employment Development Department (866) Department of Labor (San Bernardino) (909)