02 Dec The Most Wonderful Time Of The Year
The end of the year is fast approaching! We have compiled a list of important dates and reminders for your reference. Please take the time to review this information, and complete and return the attached checklist by Friday, Dec 3rd. Contact your specialist should you have any questions or require additional information.
The items below affect your year-end payrolls and 2021 W-2s. Please pay special attention to these items:
Due to Federal banking holidays, the days you need to process payrolls may be affected. Check the calendar for the dates/times you need to submit payroll information.
Please Note – The Federal Reserve will NOT be closed on Friday, December 24th and Friday, December 31st, however, some banks will choose to close on those days. Direct deposits will not be affected, but this could affect the ability to cash lives checks. If you would like to move your check date to Thursday on either of those weeks, please let your payroll specialist know.
UPS DOES NOT guarantee next-day delivery in December. If you need to make other arrangements, contact your specialist.
Bonus or Special Payroll Runs
If you’ll need a bonus or special payroll run in December, please notify us as soon as possible. Due to the increased workload in December, we require at least 3 days for processing prior to the check date. Include:
- Check date needed
- Taxation – Regular or Supplemental tax rate (22%), grossed up for taxes
- Payment method – paper checks, direct deposit (paper stubs), $0 net checks
- Deduction treatment – deduct employee retirement contributions?
Special transactions for 2021 W-2s
Some require wages, so these must be submitted prior to the last payroll of the year.
NOTE: If we need to reprocess a payroll to include these items, additional fees start at $50:
- Employer-Paid Health Insurance premiums
- 3rd Party Sick Pay
- 1099 Payments
- Allocated Tips
- 2% Shareholder Insurance
- Life Insurance Premiums over $50,000
- Taxable Fringe Benefits (auto allowances, moving expenses, etc.)
- Voided checks and manual checks that have not been reported to Payroll Plus HCM
2021 W-2 Processing
W-2s will be processed and sent as quickly as possible. Contact us to check on the status of W-2s ONLY if you haven’t received them by January 22nd. Employers must keep copies of all W-2s for four years from January 31.
W-2 Verification Report
You should have received this report. Use it to check the spelling of employees’ names, their Social Security Numbers and Addresses and notify your specialist of any changes immediately. Correcting these items on W-2s after the fact can be costly.
Notices from the IRS and State Taxing Agencies
You will receive a letter with your 2021 state unemployment rate, and you’ll get a letter if your IRS tax payment frequency changes at the beginning of the year. Send any notices to us immediately as it affects your payroll tax calculations, and we do not automatically receive this information.
Affordable Care Act (ACA)
If you have 50 full-time employees or full-time equivalents, you are required to offer your full-time employees (work >30 hours/week) affordable health coverage that meets the minimum standards. If you don’t offer insurance or submit reports to the IRS, you could experience significant fines. Contact us if you are unsure as to whether this applies to you. We have solutions to help you with this.
Update Contact Information
Please update contact information for anyone we are allowed to talk to about payroll. For security reasons, if they are not on our list, we will not discuss the payroll with them.
As always, contact your specialist if you have any questions.
Your people are our priority.
Happy Holidays from the staff at Payroll Plus HCM!