YEAR-END PAYROLL Mike Weller, CPA (517)

Transcription

1 YEAR-END PAYROLL 2014 Mike Weller, CPA (517)

2 YEAR-END CHECKLIST Prepare a calendar for year-end review and processing Review your holiday processing schedule (Thanksgiving, Christmas, New Year s Day) Identify last payroll(s) of the current year and first payroll(s) of the new year Determine when tax tables are updated for 2015 Schedule a year-end payroll adjustment schedule for input of items such as groupterm life insurance, personal use of company cars, educational assistance, YTD corrections, manual checks and third-party sick pay reporting These adjustments should occur prior to the last regular payroll run so that Social Security, Medicare and other applicable taxes can be withheld from the employee s pay, if necessary The adjustment run schedule should also consider tax deposit requirements Remember also employer health savings account contributions need to be reported on W-2s as well as the cost of employer-sponsored health coverage Obtain SSA s publication (formerly MMREF-1) which details SSA s technical specifications for electronic filing of W-2 s ( Apply for pin and password or update your password at least every 90 days when filing W-2 s electronically Also download SSA s AccuWage program, which will help to verify the accuracy of your EFW2 file layout prior to filing your Forms W-2 Research Federal and State tax forms and magnetic media for revisions Order applicable Federal and State tax forms (W-2, W-2c, W-3, W-3c, W-4, W-5, 1099 Misc, etc) Notify all employees (by December 1, 2014) to review their W-4 status, reminding those claiming exempt to file a new Form W-4 in order to maintain their exempt status Schedule a time to process a preliminary printing of Forms W-2 on regular paper Verify totals against Annual Tax Reconciliation Worksheets Make sure you have enough postage to mail W-2's Review a payroll disaster recovery plan wwwmanercpacom (517)

3 Updates from the IRS have a timetable that can be predicted but is never cast in stone One year they release information as early as October 15 th and other years as late as November 10 th This year the information for 2015 is coming in later than expected VIRTUAL CURRENCY Notice describes the treatment of virtual currency for federal tax purposes Bitcon is an example of virtual currency The fair market value of virtual currency paid as wages is subject to federal income tax withholding, Federal Insurance Contributions Act (FICA) tax and Federal Unemployment Tax Act (FUTA) tax and must be reported on Form W-2, Wage and Tax statement STATE MINIMUM WAGE Between 2015 and 2019 Michigan will begin linking its minimum wage to the consumer price index As a result of this linkage, the minimum wage is likely to increase each year, generally around January 1 st Projected Wage Increase 9/1/2014 $ 815 1/1/2016 $ 850 1/1/2017 $ 890 1/1/2018 $ 995 REPORTING FOR HEALTH CARE ACT Affordable Care Act required all employers to report the cost of coverage under an employer-sponsored group health plan Box 12 Code DD o This includes both employee paid and employer paid premiums Requirement optional for small employers at least for 2014 o Employers that filed less than 250 W-2 s in 2013 o Employers that filed less than 100 W-2 s in 2014 o Employers that filed less than 50 W-2 s in 2015 o Employers that filed less than 25 W-2 s in 2016 This reporting is for informational purposes only The amount reported does not affect tax liability wwwmanercpacom (517)

4 ANNUAL CHANGES Social Security Wage Base and Tax Rates The following are the Social Security wage base and tax rate (approved 11/4/2014) OASDI Tax OASDI Tax wage base rate wage base rate Social Security employee Social Security employer Social Security Tax $117,000 $117,000 62% 62% $7,25400 $7,25400 $118,500 $118,500 62% 62% $7,347 $7,347 Medicare Tax Rate tax maximum tax maximum rate tax w/h rate tax w/h Medicare employee 145% N/A 145% N/A Additional employee Medicare Tax on wages over $200,000 09% N/A 09% N/A Medicare employer 145% N/A 145% N/A 401(k), 403(b) (k), 403(b) $17,500 $18,000 Catch-up age 50 or over 5,500 $6, Simple Table Simple plan $12,000 $125,500 Catch-up age 50 or over 2,500 $3,000 Automobile Rates Type of Use Business $056 $0575 Charitable activities $014 $014 Relocation related $0235 $023 Medical related $0235 $023 wwwmanercpacom (517)

5 WHERE TO GET INFORMATION Internal Revenue Service Blank form orders (800-TAX-FORM) FAX for forms E-help desk Social Security Administration General Special Help Line Department of Labor US Citizenship and Immigration Services (USCIS) INTERNET WEB SITES Internal Revenue Service EFTPS Social Security Administration Department of Labor US Citizenship and Immigrations Services (USCIS) Department of Health and Human Services State of Michigan Payroll website links HSA website wwwirsgov wwweftpsgov wwwsocialsecuritygov wwwdolgov wwwuscisgov wwwdhhsgov wwwstatemius wwwpayroll-taxescom wwwsbagov/hsa wwwmanercpacom (517)

6 Department of the Treasury Internal Revenue Service Publication 15 Contents What's New 1 Reminders 2 Cat No 10000W Calendar 7 (Circular E), Employer's Tax Guide Introduction 8 For use in Employer Identification Number (EIN) 10 2 Who Are Employees? 10 3 Family Employees 12 4 Employee's Social Security Number (SSN) 12 5 Wages and Other Compensation 13 6 Tips 17 7 Supplemental Wages 18 8 Payroll Period 19 9 Withholding From Employees' Wages Required Notice to Employees About the Earned Income Credit (EIC) Depositing Taxes Filing Form 941 or Form Reporting Adjustments to Form 941 or Form Federal Unemployment (FUTA) Tax Special Rules for Various Types of Services and Payments How To Use the Income Tax Withholding Tables 41 How To Get Tax Help 65 Index 67 Future Developments For the latest information about developments related to Publication 15 (Circular E), such as legislation enacted after it was published, go to wwwirsgov/pub15 What's New Get forms and other Information faster and easier by Internet at IRSgov Dec 18, 2013 Social security and Medicare tax for 2014 The social security tax rate is 62% each for the employee and employer, unchanged from 2013 The social security wage base limit is $117,000 The Medicare tax rate is 145% each for the employee and employer, unchanged from 2013 There is no wage base limit for Medicare tax 5

7 Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation Social security and Medicare taxes apply to election workers who are paid $1,600 or more in cash or an equivalent form of compensation 2014 withholdng tables This publication includes the 2014 Percentage Method Tables and Wage Bracket Tables for Income Tax Withholding Withholding allowance The 2014 amount for one withholding allowance on an annual basis is $3,950 Voluntary withholding on dividends and other distributions by an Alaska Native Corporation (ANC) A shareholder of an ANC may now request voluntary income tax withholding on dividends and other distributions paid by an ANC A shareholder may request voluntary withholding by giving the ANC a completed Form W-4V, Voluntary Withholding Request For more information see Notice , IRB 632, available at wwwirsgov/irb/ _irb/ar10html Change of responsible party Beginning January 1, 2014, any entity with an employer identification number (EIN) must file Form 8822-B, Change of Address or Responsible Party Business, to report the latest change to its responsible party Form 8822-B must be filed within 60 days of the change If the change in the identity of your responsible party occurred before 2014, and you have not previously notified the IRS of the change, file Form 8822-B before March 1, 2014, reporting only the most recent change For a definition of responsible party, see the Form 8822-B instructions Same sex marriage For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage For more information, see Revenue Ruling , IRB 201, available at wwwirsgov/irb/ _irb/ar07html Notice provides special administrative procedures for employers to make claims for refunds or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations Notice , IRB 432, is available at wwwirsgov/ irb/ _irb/ar10html Reminders Additional Medicare Tax withholding In addition to withholding Medicare tax at 145%, you must withhold a 09% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year Additional Medicare Tax is only imposed on the employee There is no employer share of Additional Medicare Tax All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 For more information on Additional Medicare Tax, visit IRSgov and enter Additional Medicare Tax in the search box Work opportunity tax credit for qualified tax exempt organizations hiring qualified veterans The work opportunity tax credit is available for eligible unemployed veterans who began work on or after November 22, 2011, and before January 1, 2014 Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans For more information, visit IRSgov and enter work opportunity tax credit in the search box Outsourcing payroll duties Employers are responsible to ensure that tax returns are filed and deposits and payments are made, even if the employer contracts with a third party to perform these acts The employer remains responsible if the third party fails to perform any required action If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer such as a payroll service provider or reporting agent, visit IRSgov and enter outsourcing payroll duties in the search box for helpful information on this topic COBRA premium assistance credit The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008, and May 31, 2010, and to premiums paid for up to 15 months See COBRA premium assistance credit under Introduction Federal tax deposits must be made by electronic funds transfer You must use electronic funds transfer to make all federal tax deposits Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS) If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf EFTPS is a free service provided by the Department of Treasury Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee For more information on making federal tax deposits, see How To Deposit in section 11 To get more information about EFTPS or to enroll in EFTPS, visit wwweftpsgov or call or (TDD) Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started You must receive written notice from the IRS to file Form 944 If you have been filing Forms 941, Employer's Page 2 Publication 15 (2014) 6

8 Department of the Treasury Internal Revenue Service Publication 15-A Contents What's New 1 Reminders 2 Cat No 21453T Introduction 4 Employer's Supplemental Tax Guide 1 Who Are Employees? 4 (Supplement to Publication 15 (Circular E),Employer's Tax Guide) For use in Employee or Independent Contractor? 7 3 Employees of Exempt Organizations 9 4 Religious Exemptions and Special Rules for Ministers 10 5 Wages and Other Compensation 11 6 Sick Pay Reporting 15 7 Special Rules for Paying Taxes 21 8 Pensions and Annuities 23 9 Alternative Methods for Figuring Withholding 24 Formula Tables for Percentage Method Withholding (for Automated Payroll Systems) 25 Wage Bracket Percentage Method Tables (for Automated Payroll Systems) 30 Combined Federal Income Tax, Employee Social Security Tax, and Employee Medicare Tax Withholding Tables Tables for Withholding on Distributions of Indian Gaming Profits to Tribal Members 68 How To Get Tax Help 70 Index 72 Future Developments For the latest information about developments related to Publication 15-A, such as legislation enacted after it was published, go to wwwirsgov/pub15a What's New Get forms and other Information faster and easier by Internet at IRSgov Dec 23, 2013 Social security and Medicare tax for 2014 The social security tax rate is 62% each for the employee and employer, unchanged from 2013 The social security wage base limit is $117,000 The Medicare tax rate is 145% each for the employee and employer, unchanged from 2013 There is no wage base limit for Medicare tax Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation Social security and Medicare taxes apply to election workers who are paid 7

9 Department of the Treasury Internal Revenue Service Publication 15-B Contents What's New 1 Reminders 2 Cat No 29744N Introduction 2 Employer's Tax Guide to Fringe Benefits 1 Fringe Benefit Overview 2 For use in Fringe Benefit Exclusion Rules Accident and Health Benefits Achievement Awards Adoption Assistance Athletic Facilities De Minimis (Minimal) Benefits Dependent Care Assistance Educational Assistance Employee Discounts Employee Stock Options Employer-Provided Cell Phones Group-Term Life Insurance Coverage Health Savings Accounts Lodging on Your Business Premises Meals Moving Expense Reimbursements No-Additional-Cost Services Retirement Planning Services Transportation (Commuting) Benefits Tuition Reduction Working Condition Benefits 3 Fringe Benefit Valuation Rules General Valuation Rule Cents-Per-Mile Rule Commuting Rule Lease Value Rule Unsafe Conditions Commuting Rule Rules for Withholding, Depositing, and Reporting 27 How To Get Tax Help 28 Index 31 Future Developments For the latest information about developments related to Publication 15-B, such as legislation enacted after it was published, go to wwwirsgov/pub15b Get forms and other Information faster and easier by Internet at IRSgov Dec 04, 2013 What's New Cents-per-mile rule The business mileage rate for 2014 is 56 cents per mile You may use this rate to reimburse an employee for business use of a personal vehicle, and under certain conditions, you may use the rate under the 8

10 RECONCILIATIONS Reconcile 1st, 2nd, and 3rd quarter payroll tax returns with your year to date earnings report, dated as of Reconcile the payroll bank accounts at least through November and if possible December before processing your Forms W-2 Outstanding payroll checks and electronic payments should be researched Verify that the general ledger liability accounts are also in balance, especially the employee/ employer tax withholding accounts before Forms 941 and W-2 are completed QUARTERLY RECONCILIATION WORKSHEET 941/W-2/W-3/6559 ITEMS QTR 1 QTR 2 QTR 3 YTD Federal wages Federal income tax withheld Social Security wages Social Security tax withheld Social Security tips Medicare wages and tips Medicare tax withheld Advance EIC payments STATE TOTALS QTR 1 QTR 2 QTR 3 YTD State wages State income tax withheld State disability tax withheld SUI tax withheld Local wages Local income tax withheld wwwmanercpacom (517)

11 PAYROLL TAX RECONCILIATION CLIENT NAME CLIENT NO YEAR ENDING (1) (2) (3) (4) (5) (6) (7) (8) (10) (11) PAYROLL GROSS FEDERAL FICA FICA TAX SS SS TIPS MEDICARE MEDICARE TAX STATE CITY EARNINGS REPORT WAGES WITHHELD WAGES WITHHELD TIPS TAX W/H WAGES WITHHELD WITHHELD WITHHELD FEDERAL WAGES W/O BENEFITS AUTO INS RETIREMENT CAFÉ OTHER TOTAL GROSS WAGES (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) GROSS FEDERAL FICA FICA TAX SS SS TIPS MEDICARE MEDICARE TAX TOTAL FORM PERIOD WAGES LIABILITY WAGES LIABILITY TIPS TAX LIAB WAGES LIABILITY ADJUSTMENTS LIABILITY 941 1ST QTR ND QTR 3RD QTR 4TH QTR TOTAL (1) (2) (3) (4) (5) FORM PERIOD GROSS OVER TAXABLE MESC AMOUNT FORM PERIOD FORM PERIOD RATE: WAGES $9,50000 WAGES LIABILITY PAID L 941 1ST QTR 160 1ST QTR MESC 1ST QTR ND QTR 2ND QTR ND QTR 3RD QTR 3RD QTR 3RD QTR 4TH QTR 4TH QTR 4TH QTR includes café & 401 (k) TOTAL - TOTAL - TOTAL (1) (2) (3) (4) (5) MONTHLY MONTHLY GROSS OVER TAXABLE FUTA AMOUNT FORM PERIOD WAGES $7,00000 WAGES LIABILITY PAID L ST QTR ND QTR RD QTR TH QTR includes 401 (k) 5 5 TOTAL PREPARED BY DATE REVIEWED BY DATE CAFÉ 401 (K) st QTR 1st QTR nd QTR 2nd QTR TOTAL - TOTAL - 3rd QTR 3rd QTR 4th QTR 4th QTR 10

12 REPORTING AND TAXATION OF FRINGE BENEFITS The amount you must include in the employee s gross income is the amount by which the fair market value of the benefit exceeds the amount the employee paid after taxes for the benefit, less any amount the law excludes The employer should determine the value of fringe benefits before December 31 of the calendar year to avoid tax deposit penalties Employer-provided non-cash taxable fringe benefits are subject to federal income, social security, Medicare and unemployment tax rules You may elect to handle fringe benefits as paid by the pay period, monthly, quarterly or annually Any fringe benefit paid in cash must be included in income subject to withholding, depositing and reporting when paid The employer has two options in determining how to withhold federal income taxes from fringe benefits: 1 Aggregate method - add the value of the benefit to the employee s regular wages for a payroll period and calculate the taxes to be withheld on the total wages or 2 Withhold federal income tax on the value of the benefit at the supplemental rate of 25% and withhold state income tax at the supplemental rate of 425% Taxable fringe benefits must be reported in box 1 (wages, tips and other compensation) of Form W-2, Wage and Tax Statement If applicable, benefits are also included in boxes 3 (social security wages) and 5 (Medicare wages and tips) Nontaxable employer provided benefits No-additional-cost services Qualified employee discounts Working condition fringe benefits De minimis fringe benefits Qualified transportation benefits Qualified moving expense reimbursements wwwmanercpacom (517)

13 GROUP-TERM LIFE INSURANCE PREMIUM RATES 5-year age bracket Cost per $1,000 of protection for one month Under 25 $ to 29 $ to 34 $ to 39 $ to 44 $ to 49 $ to 54 $ to 59 $ to 64 $ to 69 $ and above $206 The cost of group-term life insurance in excess of $50,000 is subject to federal income tax and reporting on Form W-2, it is not subject to federal income tax withholding IRS allows employers to impute the taxable group-term life insurance amounts on any basis so long as they are treated as paid by December 31, 2014 Group Life Insurance is reported in Box 12 Code C on the W-2 wwwmanercpacom (517)

14 8888 CORRECTED FILER'S name, street address, city or town, province or state, country, ZIP or foreign postal code, and telephone no Filer is an (check one): Employer OMB No Insurer/Agent Form 8922 FILER'S employer identification number Third-Party Sick Pay Recap OTHER PARTY'S name (see instructions before entering) OTHER PARTY'S employer identification number (see instructions before entering) 1 Sick pay subject to federal income tax $ 3 Sick pay subject to social security tax $ 5 Sick pay subject to Medicare tax $ 2 Federal income tax withheld from sick pay $ 4 Social security tax withheld from sick pay $ 6 Medicare tax withheld from sick pay $ 2014 Instructions for Form 8922,Third-Party Sick Pay Recap Section references are to the Internal Revenue Code unless otherwise noted Future Developments For the latest information about developments related to Form 8922 and its instructions, such as legislation enacted after they were published, go to wwwirsgov/form8922 General Instructions! CAUTION Do not send this form to the Social Security Administration This form is processed solely by the IRS for third-party sick pay reporting Purpose of Form Form 8922 is filed to reconcile employment tax returns (for example, Form 941) with Forms W-2 when third-party sick pay is paid For more information, see Sick Pay Reporting in Pub 15-A, Employer's Supplemental Tax Guide Who Must File Generally, if the liability for the employer s share of social security tax and Medicare tax is reported on the employer s employment tax return, Form 8922 must be filed by: The employer, if sick pay is reported on Forms W 2 under the name and EIN of the insurer or agent The insurer or agent, if sick pay is reported on Forms W 2 under the name and EIN of the employer For more information on who must file Form 8922, see Pub 15 A, Employer s Supplemental Tax Guide (For use in 2015) When To File File Form 8922 by March 2, 2015 Where To File Send Form 8922 to the following: If your principal business, office, or agency is located in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Georgia, Hawaii, Kansas, Louisiana, Mississippi, Missouri, Nevada, New Mexico, Oklahoma, Oregon, Tennessee, Texas, Utah, Washington Use the following address Internal Revenue Service Memphis Service Center PO Box 87 Mail Stop 814D6 Memphis, TN Connecticut, Delaware, District of Columbia, Idaho, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Montana, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Pennsylvania, Rhode Island, South Carolina, South Dakota, Vermont, Virginia, West Virginia, Wisconsin, Wyoming Internal Revenue Service IRS SSA CAWR Philadelphia, PA If your principal place of business is outside the United States, file with the Internal Revenue Service, IRS SSA CAWR, Philadelphia, PA Substitute Forms The IRS accepts quality substitute tax forms that are consistent with the official forms and have no adverse impact on our processing The official Form 8922 is the standard for substitute forms Because a substitute form is a variation from the official form, you should know the requirements of the official form for the year of use before you create a substitute version For details on the requirements for substitute forms, see Pub 1167, General Rules and Specifications for Substitute Forms and Schedules Specific Instructions Check box for employer or insurer/agent Check the appropriate box to state whether you are the employer or the insurer/agent filing Form 8922 Filer's name If the Employer box is checked, the employer for whom the sick pay was paid by the insurer or agent will complete the information with the employer's name, address, and phone number If the Insurer/Agent box is checked, the insurer or agent who paid the sick pay will complete the information with the insurer/agent's name, address, and phone number Filer's EIN If the employer box is checked, enter the EIN of the employer If the Insurer/Agent box is checked, enter the EIN of the insurer or agent Other party's name and EIN If the Employer box is checked, the employer must provide the name and EIN of the insurer or agent If the employer has contracts with more than one insurer or agent, the employer must file a separate Form 8922 for the wages and taxes related to each contract If the Insurer/Agent box is checked, the insurer or agent may, but is not required to, provide the name and EIN of the employer If it is providing this information, and if it has contracts with more than one employer, it must file a separate Form 8922 for the wages and taxes related to each employer Alternatively, it may file a separate Form 8922 for the wages and taxes related to each employer for which it is 13 Form 8922 Cat No 37734T IRSgov/form8922 Department of the Treasury - Internal Revenue Service

15 VERIFYING EMPLOYEE S SOCIAL SECURITY NUMBERS (SSN) IRS Regulation (b)-2(b)(I)(i) requires that employees provide employers with their social security card when requested If Form W-2 does not contain the correct name and social security number, the employer may be penalized up to $100 for each incorrect Form W-2 Changes in Social Security Number Assignment June 2011 SSA will no longer issue SSN s based on geography (state and local area) SSA will issue SSN s beginning with the number 8, which has never been done before SSA will include all possible SSN s with the number 7 in position 1 The following are examples of invalid SSN s ; ; SSN s having 000 or 666 as the first three left-most digits SSN s beginning with the number 9 SSN s having 00 as the fourth and fifth digits SSN s having 0000 as the last four digits BENEFIT STATEMENTS WILL BE MAILED AGAIN SOCIAL SECURITY STATEMENT (Formerly called Personal Earnings and Benefit Estimate Statement) Employees who are 60 years and older will receive this statement beginning February 2012 SSA also plans to resume first-time mailings to workers at age 25 Online statement access will be available for individuals not receiving statements For more information call or visit website wwwssagov Social Security Number Verification Services (SSNVS) 1) Verify up to 10 names and SSNs (per screen) online and receive immediate results Upload overnight batch files of up to 250,000 names and SSNs and usually receive results the next government business day wwwmanercpacom (517)

16 ( SSNVS Overview There are two Internet verification options you can use to verify that your employee names and Social Security numbers (SSN) match Social Security's records You can: Verify up to 10 names and SSNs (per screen) online and receive immediate results This option is ideal to verify new hires Upload overnight files of up to 250,000 names and SSNs and usually receive results the next government business day This option is ideal if you want to verify an entire payroll database or if you hire a large number of workers at a time While the service is available to all employers and third-party submitters, it can only be used to verify current or former employees and only for wage reporting (Form W-2) purposes Why Should I Verify Names and SSNs Online Correct names and SSNs on W-2 wage reports are the keys to the successful processing of your annual wage report submission It's faster and easier to use than submitting your requests paper listings or using Social Security's telephone verification option Results in more accurate wage reports Saves processing costs and reduces the number of W-2c's Allows Social Security to give the proper credit to your employees' earnings record, which will be important information in determining their Social Security benefits in the future wwwmanercpacom (517)

17 Steps to Register for SSNVS Step 1: Register to Use SSNVS Step 2: Request Access and Activation Code Step 3: Activation Code is Mailed to Your Employer Step 4: Login to Use the Service NOTE For more detailed instructions on registering and/or using SSNVS, see the Social Security Number Verification Service Handbook wwwmanercpacom (517)

18 What's New? ( 8/25/14 - The AccuWage application has been updated with many additional features including a new look and feel for the application along with additional edits to help ensure accuracy before the wage file is uploaded to BSO The most noticeable change is located on the Test Results screen This screen will now allow you to filter the results by four types of issues: Critical, Error, Alert or Informational When you select Start Testing and run your file using AccuWage, all levels of issues found with your wage file will display on the Test Results screen If you want to filter your issues by level, click on the individual box(es) next to the issue level to display those records A Critical message will stop file processing immediately You must fix Critical issues before continuing to run the file A submission containing Error, Alert and/or Info messages will finish processing, however, Error(s) must be fixed before the Upload to BSO button is enabled allowing you to upload your file to the BSO website For additional information, please see the Help drop down menu in the top left hand corner of the software and select Contents For general assistance using AccuWage, including navigation or results, call Employer Reporting Assistance at (toll free) for TTY call Monday Friday 7:00 am to 7:00 pm Eastern Time If you experience problems installing or running AccuWage and need technical assistance, call (toll free) Below is a series of links for more information about AccuWage/AccuW2C: Visit our Troubleshooting page for help with downloading problems The Help Guide contains extensive information regarding viewing, testing and correcting errors in wage report files wwwmanercpacom (517)

19 The System Configuration Checklist is a listing of questions to include in your to accuwagehelp@ssagov that will enable us to find the root cause and provide solutions to installation issues Visit the FAQ link for the Frequently Asked Questions and Solutions document It contains the most common questions about downloading AccuWage/AccuW2C and some of the more difficult installation questions What is AccuWage/AccuW2C? AccuWage/AccuW2C is free software from Social Security AccuWage is for use with Electronic Filing W-2 - EFW2 ( AccuW2C is for use with Electronic Filing W-2c - EFW2C ( The software allows you to check W-2 (Wage and Tax Statement) and W-2c (Corrected Wage and Tax Statement) reports for correctness before you send them to Social Security How does AccuWage/AccuW2C work? First, you need to download and install AccuWage/AccuW2C software on your PC Then, specify the directory where your W2REPORT or W2CREPORT file is located AccuWage/AccuW2C reads the file and informs you of any errors it detects Software Policy The AccuWage/AccuW2C software identifies most of the common format errors in wage submissions Using this software greatly reduces submission rejections Please be aware that even if no errors are identified by AccuWage/AccuW2C, your submission could be returned because of other errors The user explicitly acknowledges that all shareware obtained from this site is provided 'as is' without warranty of any kind, expressed or implied, including, but not limited to the warranties of merchantability and fitness for a particular purpose and that the risk of using shareware obtained from this site, including the entire costs of all necessary remedies, is with that user wwwmanercpacom (517)

20 Download Options To test wage reports created in the 2014 EFW2 format for submission during calendar year 2015, download AccuWage Tax Year To test wage reports created in the 2013 EFW2 format for submission during calendar year 2014, download AccuWage Tax Year To test wage reports created in the 2013 EFW2C format for submission during calendar year 2014, download AccuW2C Tax Year More Information For more information about the EFW2 and EFW2C formats, or for answers to other questions about wage reporting, please contact an Employer Services Liaison Officer or visit How to Reach Us wwwmanercpacom (517)

21 EMPLOYEE NOTICES REQUIRED UNDER FEDERAL LAW December 1- Form W-4 Notice Deadline IRS regulations require employers to remind their employees to file an amended Form W-4, if their filing status, exemption allowances or exempt status has changed since the last filing of their Form W-4 This notice must be provided by December 1 each year Form W-2 information memo Distribute an information memo to each employee or post it in each business location before year-end that will notify employees about: Employees claiming exempt from withholding during the prior year on their W-4 must complete a new Form W-4 by February 2, 2015 to keep their exempt status If employment ends before December 31, 2014 and employee asked for Form W- 2 they must receive the completed copies within 30 days of the request or within 30 days of final wage payment, whichever is later wwwmanercpacom (517)

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24 Michigan Department of Treasury 3281(Rev 9-12) State of Michigan New Hire Reporting Form Federal law requires public (State and local) and private employers to report all newly hired or rehired employees who are working in Michigan to the State of Michigan 1 This form is recommended for use by all employers who do not report electronically Michigan New Hire Operations Center PO Box Lansing, MI Phone: (800) Fax: (877) OO A newly hired employee is an individual not previously employed by you, and a rehired employee is an individual who was previously employed by you but separated from employment for at least 60 consecutive days OO Reports must be submitted within 20 days of hire date (ie, the date services are first performed for pay) OO This form may be photocopied as necessary Many employers preprint employer information on the form and have the employee complete the necessary information during the hiring process OO When reporting new hires with special exemptions, please use the MI-W4 form OO Online and other electronic reporting options are available at: wwwmi-newhirecom OO Employers who report electronically and have employees working in two or more states may register as a multi-state employer and designate a single state to which new hire reports will be transmitted Information regarding multi-state registration is available online at: newhire/employer/private/newhirehtm#multi or call (410) OO Reports will not be processed if mandatory information is missing Such reports willl be rejected and you must correct and resubmit them OO For optimum accuracy, please print neatly in all capital letters and avoid contact with the edge of the box See sample below A B C EMPLOYEE Information (Mandatory) Social Security Number: First Name: Middle Initial: Last Name: Address: City: State: Zip Code: Hire Date: OPTIONAL Date of Birth: Driver s License No: EMPLOYER Information (Mandatory) Federal Employer Identification Number (FEIN): Employer Name: Address: City: State: Zip Code: OPTIONAL Contact Name: Contact Phone: Contact Fax: Contact Ref: Social Security Act section 453A and the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 (PL ), effective October 1, 1997

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29 Form W-9 (Rev August 2013) Department of the Treasury Internal Revenue Service Name (as shown on your income tax return) Request for Taxpayer Identification Number and Certification Give Form to the requester Do not send to the IRS Print or type See Specific Instructions on page 2 Business name/disregarded entity name, if different from above Check appropriate box for federal tax classification: Individual/sole proprietor C Corporation S Corporation Partnership Trust/estate Limited liability company Enter the tax classification (C=C corporation, S=S corporation, P=partnership) Other (see instructions) Address (number, street, and apt or suite no) City, state, and ZIP code Exemptions (see instructions): Exempt payee code (if any) Exemption from FATCA reporting code (if any) Requester s name and address (optional) List account number(s) here (optional) Part I Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box The TIN provided must match the name given on the Name line to avoid backup withholding For individuals, this is your social security number (SSN) However, for a resident alien, sole proprietor, or disregarded entity, see the Part I instructions on page 3 For other entities, it is your employer identification number (EIN) If you do not have a number, see How to get a TIN on page 3 Note If the account is in more than one name, see the chart on page 4 for guidelines on whose number to enter Social security number Employer identification number Part II Certification Under penalties of perjury, I certify that: 1 The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and 2 I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding, and 3 I am a US citizen or other US person (defined below), and 4 The FATCA code(s) entered on this form (if any) indicating that I am exempt from FATCA reporting is correct Certification instructions You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return For real estate transactions, item 2 does not apply For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN See the instructions on page 3 Sign Here Signature of US person General Instructions Section references are to the Internal Revenue Code unless otherwise noted Future developments The IRS has created a page on IRSgov for information about Form W-9, at wwwirsgov/w9 Information about any future developments affecting Form W-9 (such as legislation enacted after we release it) will be posted on that page Purpose of Form A person who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) to report, for example, income paid to you, payments made to you in settlement of payment card and third party network transactions, real estate transactions, mortgage interest you paid, acquisition or abandonment of secured property, cancellation of debt, or contributions you made to an IRA Use Form W-9 only if you are a US person (including a resident alien), to provide your correct TIN to the person requesting it (the requester) and, when applicable, to: 1 Certify that the TIN you are giving is correct (or you are waiting for a number to be issued), 2 Certify that you are not subject to backup withholding, or 3 Claim exemption from backup withholding if you are a US exempt payee If applicable, you are also certifying that as a US person, your allocable share of any partnership income from a US trade or business is not subject to the Date withholding tax on foreign partners share of effectively connected income, and 4 Certify that FATCA code(s) entered on this form (if any) indicating that you are exempt from the FATCA reporting, is correct Note If you are a US person and a requester gives you a form other than Form W-9 to request your TIN, you must use the requester s form if it is substantially similar to this Form W-9 Definition of a US person For federal tax purposes, you are considered a US person if you are: An individual who is a US citizen or US resident alien, A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States, An estate (other than a foreign estate), or A domestic trust (as defined in Regulations section ) Special rules for partnerships Partnerships that conduct a trade or business in the United States are generally required to pay a withholding tax under section 1446 on any foreign partners share of effectively connected taxable income from such business Further, in certain cases where a Form W-9 has not been received, the rules under section 1446 require a partnership to presume that a partner is a foreign person, and pay the section 1446 withholding tax Therefore, if you are a US person that is a partner in a partnership conducting a trade or business in the United States, provide Form W-9 to the partnership to establish your US status and avoid section 1446 withholding on your share of partnership income 28 Cat No 10231X Form W-9 (Rev )

30 Form 941 for 2015: (Rev January 2015) Employer s QUARTERLY Federal Tax Return Department of the Treasury Internal Revenue Service OMB No Employer identification number (EIN) Name (not your trade name) Report for this Quarter of 2015 (Check one) 1: January, February, March Trade name (if any) Address DRAFT AS OF October 1, 2014 DO NOT FILE Number Street Suite or room number City State ZIP code Foreign country name Foreign province/county Foreign postal code Read the separate instructions before you complete Form 941 Type or print within the boxes Part 1: Answer these questions for this quarter 1 Number of employees who received wages, tips, or other compensation for the pay period including: Mar 12 (Quarter 1), June 12 (Quarter 2), Sept 12 (Quarter 3), or Dec 12 (Quarter 4) 1 2: April, May, June 3: July, August, September 4: October, November, December Instructions and prior year forms are available at wwwirsgov/form941 2 Wages, tips, and other compensation 2 3 Federal income tax withheld from wages, tips, and other compensation 3 4 If no wages, tips, and other compensation are subject to social security or Medicare tax Check and go to line 6 Column 1 Column 2 5a Taxable social security wages 124 = 5b Taxable social security tips 124 = 5c Taxable Medicare wages & tips 029 = 5d Taxable wages & tips subject to Additional Medicare Tax withholding 009 = 5e Add Column 2 from lines 5a, 5b, 5c, and 5d 5e 5f Section 3121(q) Notice and Demand Tax due on unreported tips (see instructions) 5f 6 Total taxes before adjustments Add lines 3, 5e, and 5f 6 7 Current quarter s adjustment for fractions of cents 7 8 Current quarter s adjustment for sick pay 8 9 Current quarter s adjustments for tips and group-term life insurance 9 10 Total taxes after adjustments Combine lines 6 through Total deposits for this quarter, including overpayment applied from a prior quarter and overpayments applied from Form 941-X, 941-X (PR), 944-X, 944-X (PR), or 944-X (SP) filed in the current quarter Balance due If line 10 is more than line 11, enter the difference and see instructions Overpayment If line 11 is more than line 10, enter the difference Check one: Apply to next return Send a refund You MUST complete both pages of Form 941 and SIGN it Next For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment Voucher Cat No 17001Z Form 941 (Rev ) 29

31 Name (not your trade name) Employer identification number (EIN) Part 2: Tell us about your deposit schedule and tax liability for this quarter If you are unsure about whether you are a monthly schedule depositor or a semiweekly schedule depositor, see Pub 15 (Circular E), section 11 DRAFT AS OF October 1, 2014 DO NOT FILE 14 Check one: Line 10 on this return is less than $2,500 or line 10 on the return for the prior quarter was less than $2,500, and you did not incur a $100,000 next-day deposit obligation during the current quarter If line 10 for the prior quarter was less than $2,500 but line 10 on this return is $100,000 or more, you must provide a record of your federal tax liability If you are a monthly schedule depositor, complete the deposit schedule below; if you are a semiweekly schedule depositor, attach Schedule B (Form 941) Go to Part 3 You were a monthly schedule depositor for the entire quarter Enter your tax liability for each month and total liability for the quarter, then go to Part 3 Tax liability: Month 1 Month 2 Month 3 Total liability for quarter Total must equal line 10 You were a semiweekly schedule depositor for any part of this quarter Complete Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors, and attach it to Form 941 Part 3: Tell us about your business If a question does NOT apply to your business, leave it blank 15 If your business has closed or you stopped paying wages Check here, and enter the final date you paid wages / / 16 If you are a seasonal employer and you do not have to file a return for every quarter of the year Check here Part 4: May we speak with your third-party designee? Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS? See the instructions for details Yes Designee s name and phone number No Select a 5-digit Personal Identification Number (PIN) to use when talking to the IRS Part 5: Sign here You MUST complete both pages of Form 941 and SIGN it Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge Print your Sign your name here name here Print your title here Date / / Best daytime phone Paid Preparer Use Only Check if you are self-employed Preparer s name Preparer s signature Firm s name (or yours if self-employed) PTIN Date / / EIN Address Phone City State ZIP code 30 Page 2 Form 941 (Rev )

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36 W-2 Box 12 Codes: A B C D E F G H J K L M N Uncollected social security or RRTA tax on tips Include this tax on Form 1040 See Other Taxes in the Form 1040 instructions Uncollected Medicare tax on tips Include this tax on Form 1040 See Other Taxes in the Form 1040 instructions Taxable cost of group term life insurance over $50,000 (included in boxes 1, 3 (up to social security wage base), and 5) Elective deferrals to a section 401(k) cash or deferred arrangement Also includes deferrals under a SIMPLE retirement account that is part of a section 401(k) arrangement Elective deferrals under a section 403(b) salary reduction agreement Elective deferrals under a section 408(k)(6) salary reduction SEP Elective deferrals and employer contributions (including nonelective deferrals) to a section 457(b) deferred compensation plan Elective deferrals to a section 501(c)(18)(D) taxexempt organization plan See Adjusted Gross Income in the Form 1040 instructions for how to deduct Nontaxable sick pay (information only, not included in boxes 1, 3, or 5) 20% excise tax on excess golden parachute payments See Other Taxes in the Form 1040 instructions Substantiated employee business expense reimbursements (nontaxable) Uncollected social security or RRTA tax on taxable cost of group term life insurance over $50,000 (former employees only) See Other Taxes in the Form 1040 instructions Uncollected Medicare tax on taxable cost of group term life insurance over $50,000 (former employees only) See Other Taxes in the Form 1040 instructions P Q R S Excludable moving expense reimbursements paid directly to employee (not included in boxes 1, 3, or 5) Nontaxable combat pay See the instructions for Form 1040 or Form 1040A for details on reporting this amount Employer contributions to your Archer MSA Report on Form 8853, Archer MSAs and Long Term Care Insurance Contracts Employee salary reduction contributions under a section 408(p) SIMPLE plan (not included in box 1) T Adoption benefits (not included in box 1) Complete Form 8839, Qualified Adoption Expenses, to compute any taxable and nontaxable amounts V Income from exercise of nonstatutory stock option(s) (included in boxes 1, 3 (up to social security wage base), and 5) See Pub 525 and instructions for Schedule D (Form 1040) for reporting requirements W Employer contributions (including amounts the employee elected to contribute using a section 125 (cafeteria) plan) to your health savings account Report on Form 8889, Health Savings Accounts (HSAs) Y Deferrals under a section 409A nonqualified deferred compensation plan Z AA BB DD EE Income under a nonqualified deferred compensation plan that fails to satisfy section 409A This amount is also included in box 1 It is subject to an additional 20% tax plus interest See Other Taxes in the Form 1040 instructions Designated Roth contributions under a section 401(k) plan Designated Roth contributions under a section 403(b) plan Cost of employer sponsored health coverage The amount reported with Code DD is not taxable Designated Roth contributions under a governmental section 457(b) plan This amount does not apply to contributions under a taxexempt organization section 457(b) plan wwwmanercpacom (517)

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