Welcome to our Annual Payroll Update Webinar

Transcription

1 2018 Payroll Year End Update Presented by: Tammy Mearig & Beth Landis December 18, 2018 Welcome Welcome to our Annual Payroll Update Webinar 1

2 Agenda Payroll Information Brochure Review What s New and What s Changed Fringe Benefits Review Salaried Exempt OT Rules Update Labor Law issues 1099 Reporting Questions? 2

3 CPE Certificate Please Beth Landis at Include your full name in the and a certificate will be ed to you within several days. Payroll Compliance Resources Accessed on the Resources tab under the Business Compliance section on our website: Payroll Resources includes General Payroll Brochure and Benefits Chart The Payroll Year End Webinar Materials has its own page for PowerPoint & recorded presentation Payroll Manual - Password to access: acuity8q5g3p 3

4 General Payroll Information Brochure Year End Planning & Preparation Review & Reconcile YTD Wages Run preliminary W-2 s Confirm Name & SSN for Employees Order supplies Calculate fringe benefits to be added to W2 s 4

5 New SSN & Name Match Beginning in 2018, W-2 s with Name/SSN mismatches will trigger a notice to employers Differences will need to be resolved or penalties assessed at $270 per return Ask new employees to show you the SS card and make a copy Remind workers to report changes due to marriage or divorce Use SSN Verification System W-2 Due Dates January 31, 2019 W-2 s due to recipients January 31, 2019 W2s due to SSA January 31, 2019 W-2 s due to PA February 28, 2019 W-2 s due to LCTCB Extensions available but no longer automatic Must apply with request for extension 5

6 New W-2 Filing Requirement for PA Threshold for requirement to file W-2 s electronically is now 10 or more W-2 s Effective for 2018 Waiver granted for 2018 tax period Encouraged to file electronically Format specifications have changed for EFW2 &.csv files for the electronic filing available in Etides What s New Use I-9 form dated 7/17/2017 with 8/31/19 expiration date MUST use this new form Complete form online with drop down screen assistance 6

7 New Hires W-4 Forms 2019 Form is available Encourage employees to complete a new form Use IRS Withholding Calculator as tool to assist with preparing the W-4 New W-4 required each year by 2/15/18 for employees filing exempt New Hire Reporting within 20 days FORM 941 MAILING ADDRESS CHANGE FOR Mailing addresses are changing for PA filers For quarter ending March 31, 2019 Without payment Department of the Treasury Internal Revenue Service Cincinnati, OH With payment Internal Revenue Service PO Box Cincinnati, OH For quarters ending June 30, September 30, and December 31 Department of the Treasury Internal Revenue Service Kansas City, MO Internal Revenue Service PO Box Cincinnati, OH

8 Updates FLSA Salaried Exempt Overtime Rules changed Effective Date 12/1/16 Delayed due to Preliminary Injunction Pending legislation for PA proposed to increase salary minimum over a four-year period from the current $23,660 to $31,720 in 2020 $39,832 in 2021 $47,892 in 2022 then automatic updates every 3 years Labor Law Posters Labor Law Posters Required to display most recently issued poster Must be Posted in an area accessible to ALL employees 8

9 Affordable Care Act ACA What you need to know for 2018 Due date to issue Form 1095-B or 1095-C to employees extended to March 4, 2019 Due to IRS via paper by February 28, 2019 Due to IRS electronically filed by April 1, 2019 Fringe Benefits Fringe Benefits De Minimis Benefits Company Vehicles Adoption Assistance Parking Qualified Transportation Benefits Educational Assistance Cell Phones Group Legal Services Moving Expenses Gifts, Prizes and Awards Dependent Care Assistance Uniforms Health Insurance Group Term Life Insurance Whole Life Insurance Section 125 HSAs Retirement Plans Third Party Sick Pay Expense Plans S Corporation Shareholders 9

10 S-Corp Health Insurance Report health insurance costs for a 2% or more shareholder in an S-corporation as wages for Federal withholding purposes in Box 1 of Form W-2 Family attribution rules apply Health Insurance Report Health Insurance cost in Box 12 with a code DD for more than 250 employees Health Insurance Reimbursements for Individual Health plans for employees are wages to the employee. Exception for one employee only in a company 10

11 Health Insurance Reimbursements for Health Insurance Not part of group plan Must include in wages Important to characterize as wages only not reimbursement Consider New QSERA Accounts for reimbursing employees for their individual coverage QSERA defined Qualified Small Employer Reimbursement Arrangement designed to reimburse employees tax free for Individual Health Ins and other medical expenses Official plan must be set up < 50 Full-time employees and No Group Health Plan Employees submit substantiation for reimbursement each month Maximum reimbursement 2018 $5,050 annual for Single $10,250 annual for Family 11

12 Auto Allowance Report personal use as inclusion to income Annual Lease value method Commuting Method Cents per Mile Method Life and Disability Insurance Group Term Life Ins Up to 50,000 excludable from income Report amounts over 50,000 as calculated from IRS tables Disability Ins Tax free to employees S corp shareholder 2% or more shareholders do not get same treatment as employees life and disability ins pmts treated as wages 12

13 Retirement Plan Benefits Box 12 reporting of employee contributions to plan Box 13 Retirement plan check box Health Savings Accounts (HSA) Report employee contributions in Box 14 Report Employer and Employee contributions through a S125 plan in Box 12 code W 13

14 Gifts and Prizes Generally taxable Cash and gift cards are always taxable Use judgment on Deminimus items Exclusions for Safety and Length of Service awards if tangible property with value less than $ Moving Expenses Starting 1/1/18, qualified moving expense reimbursements previously treated as nontaxable are now taxable to the employee Exception for military-related moving expenses PA still considers qualified moving expenses tax free but specific reporting applies 14

15 Other Fringe Benefits Transportation Fringe Benefits Loans to employees Dependent care or Adoption Assistance Education Programs 1099s Employees vs. Independent Contractors Are you filing ALL required 1099s? Due Date 1099 Misc only Due to Recipients by January 31, 2019 Due to IRS by January 31, 2019 Paper or Electronic filing Due to PA Dept of Revenue by January 31, 2019 Use W-9 to collect recipient information Report SSN and Individual s Name correctly 15

16 1099s 1099 Misc - Types of Payments to report Rents (Box 1) Royalties (Box 3) Nonemployee compensation (Box 7) Subcontract Labor Services Repairs Director Fees 1099 Interest Payments made in the normal course of business to an individual or other business Not to a bank PA 1099 Backup Withholding Effective 1/1/18, Implemented 7/1/18 Requires backup withholding from 1099 payments to certain non-resident recipients only Taxable on PA-source income reported on a federal form 1099-Misc and, Lease payments for PA real estate Withholding required on payments over $5,000 annually 16

17 Contact Information Tammy Mearig Thank you for attending! Merry Christmas and Happy New Year 17

18 Questions and Answers 18