ANNUAL PAYROLL RECONCILIATION

Transcription

1 cantonincometax.com ANNUAL PAYROLL RECONCILIATION EMPLOYER I.D. NO City City of of Canton, Canton, Income Income Tax Tax Department Department P.O. BOX MARKET N., CANTON, OHIO PHONE (330) P.O. cantonincometax.com BOX MARKET N., CANTON, OHIO PHONE (330) cantonincometax.com OTHER EIN USED EMPLOYER I.D. NO. All W-2 s, or a computer printout OTHER or magnetic EIN media USED containing W-2 data MUST BE ENCLOSED. EMPLOYER I.D. NO. HOURS: 8:00-4:00 Monday through Friday KIM R. PEREZ KIM R. PEREZ TREASURER, CITY OF CANTON TREASURER, CITY OF CANTON HOURS: 8:00 4:00 Monday HOURS: through 8:00 Friday - 4:00 Monday through Friday PART 1 - ACCOUNT INFORMATION OTHER EIN USED TYPE OF ACCOUNT: TYPE OF ACCOUNT: Contact Person Resident Employer Withholding Canton Tax Only Non-Resident Employer Employer Withholding Doing Business Canton All W-2 s, Tax in Canton Only or a computer printout Contact Phone or magnetic No. Personmedia Non-Resident Employer (Either Employer Resident Doing or Non-Resident) Business containing Canton doing W-2 data MUST Phone BE ENCLOSED. Fax No. No. Employer Business in (Either Canton Resident and other or Non-Resident) Ohio Cities/JEDDS/Townships doing Courtesy Withholding Account Fax No. Address PART Business 1 - ACCOUNT in Canton and INFORMATION other Ohio Cities/JEDDS/Townships Courtesy Withholding Account Address TYPE OF ACCOUNT: PART 2 RECONCILIATION OF OF FEDERAL WAGES WAGES Contact Person Resident Employer Withholding Canton Tax Only Medicare Taxable Wages (From Box 5 of Forms W-2) Non-Resident Employer Doing Business in Canton Phone No. Add: - Ordinary income from the exercise of stock Employer (Either Resident or Non-Resident) doing options excluded from Medicare wages. Fax No. Business in Canton and - Supplemental other Ohio Cities/JEDDS/Townships unemployment compensation Courtesy ( sub-pay ) Withholding excluded Account Address from Medicare wages. Less: - Wages Not Subject to Canton Tax PART 2 RECONCILIATION (Explain) - Other OF FEDERAL WAGES (Explain) Medicare Canton Taxable Taxable Wages Wages (From Box 5 of Forms W-2) Add:NNo. - Ordinary of W-2 s income Attached from the exercise of stock No. options of 1099 excluded Statements from Medicare Attached wages. Total - Supplemental 1099 Amount unemployment compensation PART 3 RECONCILIATION ( sub-pay ) excluded OF from TAX Medicare WITHHELD wages. Less: - Wages Not Subject to Canton Tax (Explain) PART 3 WAGES DETAIL Canton Taxable - Other Wages (Explain) Subject To Tax at 2% (From Part 2) X 2% Add: Canton Wages Taxable Subject Wages To Tax At Less Than 2% X % Add:NNo. (i.e. courtesy of W-2 s withholding, Attached other, explain) Add: Total No. of Canton 1099 Statements Income Tax Attached Due Add: Total 1099 Canton Amount Income Tax Withheld PART PART 43 RECONCILIATION OF OF DEPOSITS TAX WITHHELD Canton Quarter Taxable Ended 03/31 Wages Subject To Tax at 2% (From Part 2) X 2% Add: Wages Subject To Tax At Less Than 2% X % WAGES Quarter to Ended 06/30 (i.e. 06/30 x 2%= courtesy withholding, A other, explain) WAGES 07/01-12/31 x 2.5%= B A+B= C Quarter Ended 09/30 Tax Liability Add: Total Canton Income Tax Due Quarter Add: Ended Total 12/31 Canton Income Tax Withheld Total Canton Income Tax Paid PART 4 DEPOSIT DETAIL Greater PART WAGES: of 4 Tax RECONCILIATION Due Enter or on Withheld lines 1 through (From 24 OF the Part DEPOSITS amount 3) paid for each Semi-Monthly filling period. Balance Due / Overpayment [Transfer Credit] Quarter Ended 03/31 Quarter Under Penalties Ended 06/30 of perjury, I declare that I have examined this return and accompanying documents, and, Quarter to the best Ended of my 09/30 knowledge and belief, they are true, correct, and complete. Quarter Ended 12/31 Total Canton Income Tax Paid Signature Title Date Greater of Tax Due or Withheld (From Part 3) Balance Due / Overpayment [Transfer Credit] DEPOSITS to 06/30=D DEPOSITS 07/01-12/31=E D+E= F Total Deposits Under Penalties of perjury, I declare that I have examined this return and accompanying documents, and, to the best of my knowledge and belief, they are true, correct, and complete. C-F= Balance Signature Title Date

2 Annual Payroll Reconciliation Instructions If you are not filing digitally, either on magnetic media or electronically, please fill out this form completely, and file it on or before the last day of February. You may mail it to the Canton City Income Tax Department, PO Box 9940, Canton OH , or hand deliver it deliver to our it office to our at office 424 Market at 424 Market Ave., North (4th Ave., Floor). North (4th The Floor). form must The be form signed, must and be signed, all W-2s and and all 1099 s W-2s and (or a 1099 s detailed (or computer a detailed print-out computer of print-out each employee s of each W-2/1099 employee s information) W-2/1099 information) must be attached, or must the be filing attached, cannot or be the accepted. filing cannot Feel free be accepted. to call our Feel office free with to call any our questions office ( ), with any questions or visit ( ), us online: or visit us online: Part 1 Account Part 1 Information Account Information Enter current EIN, and any other EIN used by a directly related company for Enter Canton current City EIN, Income and any Tax other reporting EIN purposes used by a in directly the past related year. company for Canton City Income Tax reporting If purposes an entity in is the acting past as year. a pay agent for affiliated companies, pursuant to Rev. Proc. If an entity 70-06, is please acting attach as a pay a list agent of the for names affiliated and companies, EINs of the pursuant affiliates to which Rev. currently Proc , are conducting please attach business, a list of or the are active names accounts, and EINs in of Canton. the affiliates which currently are conducting business, or Enter are active account accounts, type. in Canton. Enter contact account information. type. Most issues and questions we have regarding the Annual Enter contact Payroll information. Reconciliation Most can issues be and addressed questions with we have a quick regarding phone call the or Annual . Payroll Please Reconciliation help us to be more can efficient, be addressed by including with a quick this phone important call information. . Please help us to be more efficient, by including this important information. PLEASE FILE DIGITALLY Part 2 Reconciliation Part 3 Wages of Federal Details Wages Canton City Income Tax is imposed on qualifying wages as defined in Section 3121(a) of the Internal Revenue Code, without regard to the Social Security wage limitation, adjusted as follows: DEDUCT: 3 any amount included in wages if if the amount constitutes compensation attributable to a plan or program described in Section 125 of the Internal Revenue Code. ADD: ADD: any amount not included in wages 3 any amount not included in wages because the amount arises from the because the amount arises from the sale, exchange, or other disposition of sale, exchange, or other disposition of stock option, or the sale, exchange, a stock option, or the sale, exchange, or other disposition of stock or other disposition of stock purchased under stock option. purchased under a stock option. any employee contribution or 3 any employee contribution or elective deferral that is not included elective deferral that is not included in wages if the amount is an amount in wages if the amount is an amount described in Section 401(k) or 457 of described in Section 401(k) or 457 of the Internal Revenue Code. the Internal Revenue Code. any supplemental unemployment 3 any supplemental unemployment compensation benefits not included in compensation benefits not included in wages, described in Section 3402(o) wages, described in Section 3402(o)(2) (2) of the Internal Revenue Code. of the Internal Revenue Code. any amount excluded from wages 3 any amount excluded from wages solely because the employee was solely because the employee was employed by the employer prior to employed by the employer prior to April 1, April 1, Be sure to note, on the appropriate line, the number of W-2s being totaled Be and sure reconciled, to indicate and the the number of of W-2s being Forms totaled 1099MISC and reconciled, and their total and dollar the number amount. of Forms 1099MISC and the 1099MISC total dollar amount. Part 3 Reconciliation of Tax Withheld The taxable wages are reconciled with local tax withholdings by reporting separately the wage amount subject to 2 Canton s tax at 2%, and the amount taxed at less than 2%. Begin with the Canton Taxable Wages from Part 2. The wages Subject to tax at 2%, The and taxable Subject wages to tax are at reconciled less than 2% with local should tax add withholdings up to this amount. by reporting For separately wages Subject the wage to tax amount at less subject than 2%, to Canton s enter the tax amount at 2%, of (i.e., wages 01/01 for which 06/30), and Canton the amount is not receiving subject to the Canton s full 2% tax at tax 2.5% (i.e., (i.e., when 07/01 Canton 12/31). residents Use are the red working blocks in to a report city where wages the if you tax rate filed quarterly, is less than the 2%, green and and the red difference blocks if you filed between monthly, that and city s all rate the and blocks 2% if is you being filed withheld semi-monthly. and remitted Show to the Canton). wage and tax Enter totals the on percentage the appropriate which line. represents Add the tax the from difference both date between periods Canton s get the total tax tax liability rate (2%) for and the tax rate of the other city for which taxes have been Part withheld. 4 Add Deposits the two tax amounts Details to determine the Total Canton Income Tax due. Add tax withheld for Canton, Use the red blocks to report deposits if from block 21 of all subject W-2s, you remitted quarterly, the green and to derive Total Canton Income Tax red blocks if you remitted monthly, withheld. and all the blocks if you remitted semimonthly. Show the deposit totals the Part 4 Reconciliation appropriate line. Add the lines together to get total deposits for of Deposits Subtract Add quarterly total deposits amounts from of tax total remitted tax liability. to Canton, If the to difference calculate Total is a positive Canton number, Income you Tax have paid. a balance Subtract due. from Remit this payment amount, with the greater this form. of the Total tax due or Total tax withheld from Part If 3. the difference is a negative number, you If the have difference overpaid is your a negative withholding number, for the you year. have If a the balance overpayment due. Please is greater remit than payment $10.00, with will this be reconciliation. refunded. Any If the difference between is a positive wages number, and the you applicable have overpaid Canton your tax withholding rate will be billable for the to year. the employer. The overpayment will be used refunded. to credit subsequent payroll Be withholdings. sure to fill out (Transfer all 4 parts Credit) of the form COMPLETELY. Please provide a detailed statement of If explanation. there will be no more with-holdings, No the taxes overpayment of less than ten dollars can be ($10.00) refunded. shall be collected Please or provide refunded. a detailed statement of explanation. Be sure to fill out all 4 parts of the Be form sure COMPLETELY. to fill out all parts of the form COMPLETELY. No taxes of less than ten one dollars ($1.00) 0.00) shall be No collected taxes of or less refunded. than one dollar ($1.00) shall be collected or refunded.

3 PLEASE FILE YOUR PAYROLL RECONCILIATION DIGITALLY, EITHER ON A CD OR FLASH DRIVE, OR BY UPLOADING THE FILE ELECTRONICALLY TO W3 Formats There are four acceptable formats for electronic filing. Federal Filing Format MMREF and EFW2 Information about the Federal MMREF and EFW2 format is available on the Social Security Administration website at: Both formats are very similar and can both be read. Note that the record with local information is not required for filing federally. The RS record must be included to provide city information. Old Federal Formats 1A and A The previous Federal formats continue to be supported. CityTax Proprietary Format (CTP) This is a simple format for a single employer. It may be created using Microsoft Excel. It is a Comma Delimited format. Details are on a later page. The following table lists critical fields, with the location in that format Local Entity Code Local Withholding Local Taxable MMREF 1A A CTP Record RS 2S S CTW Start Position Length Record RS 2S S CTW Start Position Length Record RS 2S S CTW Start Position Length

4 CityTax Proprietary This is a comma-delimited format. That means that each field is separated by a comma. See below for instructions on creating this file from Microsoft Excel. All text must be in upper case. If leading zeros on TaxIds or Zipcodes do not show, this is all right. FIRST LINE: EMPLOYER A. CTE text exactly as shown B. Employer FEIN or TaxID 9 digits no spaces or punctuation C. Tax Year 4 digits D. Employer name E. Corporate C if a corporation, blank otherwise F. Employer street address No commas G. Employer City H. Employer State 2 characters I. Employer Zipcode 5 digits (or 6 characters if foreign country) J. Employer Plus4 4 digits REMAINING LINES: ONE PER EMPLOYEE A. CTW text exactly as shown B. Employee SSN 9 digits no spaces or punctuation C. Employee Last Name D. Employee First Name E. Employee Middle Name F. Employee street address No commas G. Employee City H. Employee State 2 characters I. Employee Zipcode 5 digits (or 6 characters if foreign country) J. Employee Plus4 4 digits K. Federal Wages Box 1 L. Local Entity Code See table above M. Local Withholding Entered as normal number with decimal point N. Social Security Wages Box 3 O. Medicare Wages Box 5 P. Local Wages Box 18 Q. Total Deferred Included in Box 12 How to Create CTP format using Microsoft Excel NOTE: All dollar amounts should be entered as normal number with decimal point, such as Open a new spreadsheet. 2. On the first line, enter the Employer data as specified above, entering one value per column. The letter shown at the start of each line must match the letter at the top of the column in Excel. Skip the column if blank. Insure all entries are upper case. To start, enter CTE in the first column. 3. For each employee, enter another line, entering CTW in the first column (A) and entering one field per column. 4 Click on the Save button (or select Save from the File menu). At the bottom is a drop down box for Save as type. Click on this drop-down and select: CSV (Comma delimited)(*.csv) Then enter a file name and click save. 5. Copy this file to a diskette or compact disc and send to the Income Tax office. Mailing the formats to Employers The following page mirrors the information above, and is intended to be sent to Employers when desired. It does not include the older formats that should not be used any longer. There are certain options that each site should modify before sending: The Local Entity should be set to the site abbreviation (maximum of five letters), such as ERAPD for Eaton Rapids. Set this in the table on the front page, and in the CTP instructions on the second page. For CTP: Columns N through Q are optional, and should be removed if the site does not use the extra wage information. 4

5 Submitting W2s electronically The City of Canton, Ohio The following formats are acceptable for filing W2 information electronically. Federall Filing Format - MMREF-1 or EFW2 Information about the Federal MMREF and EFW2 formats are available on the Social Security Administration website at: Note that the record with local information is not required for filing federally. The RS record must be included to provide city information. CityTax Proprietary Fromat (CTP) This is a simple format for a single employer. It may be created using Microsoft Excel. It is a Comma Delimited format. Details are shown below. The following table lists critical fields with local information in that format Local Entity Code Local Withholding MMREF CTP Record RS CTW Start Position 5 12 Length 5 -- Value {{Entity}} {{Entity}} Record RS CTW Start Position Length Local Taxable Record RS CTW Start Position Length

6 The City of Canton, Ohio Using Excel to Submit W2s electronically - All text must be in upper case. - If leading zeros on Social Security Numbers or Zipcodes do not show, this is all right. - All dollar amounts should be entered as normal number with decimal point, such as Do not leave blank lines between information. 1. Open a new spreadsheet. 2. On the first line, enter the Employer data as specified below, entering one value per column. The letter shown at the start of each line must match the letter at the top of the column in Excel. Skip the column if blank. Insure all entries are upper case. To start, enter CTE in the first column. 3. For each employee, enter another line, entering CTW in the first column (A) and entering one field per column. 4. Click on the Save button (or select Save from the File menu). At the bottom is a drop down box for Save as type. Click on this drop-down and select CSV (Comma delimited)(*.csv) Then enter a file name and click save. 5. Copy this file to a diskette or compact disc and send to the Income Tax office. FIRST LINE: EMPLOYER A. CTE text exactly as shown B. Employer FEIN or Tax ID 9 digits no spaces or punctuation C. Tax Year 4 digits D. Employer name E. Corporate C if a corporation, blank otherwise F. Employer street address No commas G. Employer City H. Employer State 2 characters I. Employer Zipcode 5 digits (or 6 characters if foreign country) J. Employer Plus4 4 digits REMAINING LINES: ONE PER EMPLOYEE A. CTW text exactly as shown B. Employee SSN 9 digits no spaces or punctuation C. Employee Last Name D. Employee First Name E. Employee Middle Name F. Employee street address No Commas G. Employee City H. Employee State 2 characters I. Employee Zipcode 5 digits (or 6 characters if foreign country) J. Employee Plus4 4 digits K. Federal Wages from Box 1 L. Local Entity Code {{Entity}} M. Local Withholding N. Social Security Wages from Box 3 O. Medicare Wages from Box 5 P. Local Wages from Box 18 Q. Total Deferred Included in Box 12 6