Dear Valued Payroll Plus Client:
The time has come again to start thinking about the end of the year. We have compiled a list of reminders and important dates for your reference as this busy time approaches. Please do not hesitate to contact us should you have any questions or require additional information; it will be our pleasure to assist you.
Please refer to the following dates as guidelines for processing payrolls that fall at the end of December 2013/early January 2014. Please keep these dates in mind as you prepare your final payrolls for the year. The calendar which has Christmas and New Year’s Day landing on a Wednesday creates some additional challenges for those of us in the payroll world.
Calendar for Year End 2013
Direct Deposit Deadline for checks dated 12/21/12
Direct Deposit Deadline for checks dated 12/27/12
Payroll Plus will close at 12:00pm
Payroll Plus and UPS CLOSED
Direct Deposit Deadline for checks dated 1/3/13
Payroll Plus will close at 2:00pm
New Year’s Day Payroll Plus and UPS CLOSED
Semi-Weekly Taxes Due for checks dated 12/31
Will you have a special year-end payroll?
We know that many of our clients choose to process bonus payrolls during the holiday season. Please contact us as soon as you know when you will need these runs so that we can add the additional dates to your schedule. When you submit these bonus payrolls, we will need to know the following information:
- Check Date Needed
- Special Taxation: tax frequency, supplemental rate 25%, etc.
- Method of Payment: paper Checks, direct deposit, net to advance – $0 checks.
- Handling of Scheduled Deductions (ie. 401k) – block?
Reminder for Last Payroll of the Year
Some special transactions need to be processed on a payroll containing other wages and, therefore, must be submitted on or before your last payroll for 2013.
- 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.)
Should you discover adjustments that are needed after December 31, 2013, please call us immediately!! We will need to reprocess your quarterly tax returns and W-2s and there will be additional processing fees of at least $50. Please allow additional time for processing of these requests and be prepared for a possible delay in preparing your W-2s.
Reminders about Form W-2
Employers are required to keep copies of W-2s for four (4) years after the filing date of February 28th. Duplicate copies can be printed for an additional fee. Copies of all W-2s will also be included on the Year-End CD that will be produced and sent to you in the 2nd Qtr 2014.
In an effort to reduce corrections to W-2s for incorrect employee name and spelling, Social Security Number errors, and address changes, we are including a “W-2/1099 Verification Report” for your review. Please make sure all employee data is current and notify us immediately of any necessary changes.
Federal and State Filing Changes
The IRS and State withholding agencies will begin to send out notifications regarding changes in filing status for the 2014 tax year. Please be sure to forward a copy of these notifications to us, as we DO NOT automatically receive this information. The unemployment agencies also send out rate notifications beginning November 20th, so please forward a copy to us immediately upon receipt of the notice. Thank you for your assistance with this.
IMPORTANT TAX ALERT: FUTA Credit Reduction
Several states will be subject to the FUTA credit reduction, which will cause additional FUTA tax calculations for payment. NC has an additional .9% credit reduction per employee for 2013. This will calculate to a maximum of $63 per employee. The amount the employer will need to pay will be calculated after your last payroll of 2013, and will be deducted from the employer’s account on January 24, 2014. We will notify you of this amount by January 10, 2014.
** Thank you for your assistance in these matters. Your business is important to us. **
Happy Holidays from the Staff at Payroll Plus!