YOUR GUIDE TO YEAR END 2013/2014 TABLE OF CONTENTS Page 2 BEFORE YOUR LAST PAYROLL W2 Edit List, Tax Letters Top 5 Items to Review Page 3 BEFORE YOUR FIRST PAYROLL Top 5 Items to Review Page 4 Page 5 2014 LIMITS & RESOURCES REMINDERS W2 Processing Companies at the tipping point need a highly TaxPayer s Liability efficient process to minimize inefficiencies and maximize profit. That is what we do and what we help you do. How soon to the next level? ASAP. DATES and Holidays Thursday, November 28, 2013 Thanksgiving Holiday (ASAP/Banks Closed) (ASAP closed Friday 11/29) 2014 Colorado Proposed Minimum Wage $ 8.00 per hour $4.98 for tipped employees *proposed www.businessasap.com Wednesday, December 25, 2013 Christmas Holiday (ASAP/Banks Closed) Wednesday, January 1, 2014 New Years Day Holiday (ASAP/Banks Closed) ASAP will be open Christmas Eve and New Year s Eve albeit with reduced staff and only for a portion of the day. January 31, 2014 - Final day to furnish W-2 Forms to your employees (and 1099s to vendors). February 28, 2014- Final day to file 1096 and 1099 Forms with the IRS.
BEFORE YOUR LAST PAYROLL Return to ASAP W2 Edit List The W2 Edit List Report will print with the last check date of November; this is a list of Employees current and former paid in 2013 who will receive a W- 2 in January. Please review and compare to your most recent HR files to spot any address changes which may need to be updated along with any potential typos which may have been mistakenly entered for a name or SS#. Alert ASAP of any changes prior to December 31, 2013 à Please deliver, fax, or scan/email us. It is important to have these returned before the W2s are mailed in early January. Updating these addresses will reduce your time spent fielding phone calls from former employees asking for additional copies of their W- 2 s, and will also reduce your costs for additional W2 processing services. Year End Tax Letters from the State and/or IRS 1. 2014 SUI/SUTA Rates - As many of you are accustomed to, you will start to receive your 2014 SUI/SUTA rates in the mail from the Colorado Department of Labor or corresponding state. Note: In Colorado, these letters should be received by the end of November. Your 2014 rates will appear within shaded or (teal green) colored boxes on the first page. à Please deliver, fax, or scan/email a copy to us for our records. 2. IRS/State Filing Frequency Changes The IRS and Department of Revenue may send you a wage withholding filing frequency change letter if this applies to your company. Note: you will only receive this letter if your frequency is changing. à Please deliver, fax, or scan/email a copy to us for our records. TOP 5 ITEMS to Recap and Review Employee Information: verify the addresses and SS#s on file for current & former employees paid in 2013 - See ASAP s W2 Edit List Supplemental Runs: schedule additional Payroll Runs (such as Bonus Runs, Owner/Adjustment Payrolls, confirm all bonuses were paid through payroll) must be processed in 2013. S- Corp Officers: Health/accident insurance premiums paid on behalf of a 2% or greater shareholder of an S- corp are deductible, but must be reported on an officer s W2s. Consult your CPA. Fringe Benefits: submit fringe benefits for proper reporting on W2 s Examples; value of the Personal Use of Company Car (PUCC), taxable portion of Group Term Life (GTL), Non- Accountable Expense Reimbursements., value of Ski Passes or other nonessential employer paid items. Retirement Benefits: evaluate 401K/IRA/403B plan contributions adjust as preferred for tax planning based on 2013 plan limits. 1099 Preparation: confirm W- 9 Form on file is accurate for all contractors paid in the year - ASAP can provide 1099 processing as an additional service visit our website for more details on this service, http://www.businessasap.com/accounting/1099processing/
BEFORE YOUR FIRST PAYROLL Return to ASAP Payroll Schedule 2014 (enclosed/attached); your 2014 payroll schedule will be included in the last check date of November. Please confirm pay period start/end, process dates, and check dates are as intended and fall before or after holidays or weekends per your company policy. Employee Changes allow employees the opportunity to update their W- 4 withholding amounts. 2014 W- 4 Forms will be updated on our website once IRS has released; for now continue using 2013 versions. 2014 SUI/SUTA Rate Change Notices and Disability Insurance rate, if applicable (as described above under Year End Tax Letters, Page 2). Filing Frequency Changes for Federal 941 and State based on look- back history, if applicable (as described above under Year End Tax Letters, Page 2). MORE ITEMS to Recap and Review for the New Year Minimum Wage Requirements; as of January 1, 2014 the new Colorado minimum wage rate will be $8.00 per hour (up from $7.78) and $4.98 per hour for employees receiving tips (up from $4.76). Be sure to review your responsibilities as an Employer and follow tip- reporting guidelines. Benefit Changes: medical/dental/vision coverage changes, retirement deferrals elections, vacation or sick accrual updates, verify current/updated policy and eligibility. Year End balancing; compare wages & taxes posted in your accounting program against the W- 3 total. HR Compliance; have you updated your Employee Handbook? ASAP s ehr Online HR Support Center is a great resource to jump start your forms & procedures. Contact us if you do not have a login to ehr. Healthcare Notice to Employees; not just a one- time event - - under the Affordable Care Act (ACA) Employers must notify each new hire of health coverage available (even when you do not offer coverage) sample notices available at www.businessasap.com Labor Law Compliance; have you ordered your 2014 labor law posters? If not, ASAP can help. Frequently Asked Questions We ve launched a new section of our website dedicated to answering some common questions. Not that we don t want to hear from you, but perhaps a quick resource might help. Don t find the answer you re looking for, give us a ring and we ll provide the best resource for you. Visit www.businessasap.com/payroll/faqs
2014 Payroll Limits and Information 401(k) and 403(b) limit - $ 17,500.00 (unchanged) - $ 22,500.00* 401(k) and 403(b) Catch- up - $ 5,500.00 (unchanged) SIMPLE (401(k) and IRA) limit - $ 12,000.00 (unchanged) - $ 14,500.00* HSA Single limit - $ 3,300.00** (up from $3,250) HSA Family limit - $ 6,550.00** (up from $6,450) *eligible for individuals age 50 and over **combined amount for Employee (EE) and Employer (ER) contributions **combined amount for entire household (EE + Spouse) HSA Catch- up* limit - $ 1,000.00** unchanged Minimum Wage Increase (Colorado) proposed January 1, 2014 new state minimum wage rate of $8.00 per hour (up from $7.78) and $4.98 per hour for employees receiving tips (up from $4.76). W2s/Employer Paid Health Insurance unless you issued 250 or more W2s in 2011, you are NOT required to report the amount of employer paid health insurance on your 2012 W2. IRS guidance for 2013 reporting has not yet changed from 2012 guidance. New Social Security Wage base effective 2014, the OASDI tax wage base will increase to $117,000 (up from $113,700). The Colorado Unemployment base will increase to $11,700 per employee per year (up from $11,300). Medicare Tax Surcharge as in 2013, if an individual makes more than $200,000 that individual will have an additional.9% of Medicare withholding (there is not employer match for this additional withholding amount). Tipped Employees the IRS will continue to enforcing segregation of tips as compared to service charges. This refers to when tips are no longer discretionary (such as banquets/catering) to mandatory tips (a party of X or more, a Y% gratuity will be added). The major clarification is these are not subject to FICA tip credit. Resources Labor Law Posters for 2014; posters will be available through ASAP. Pre- Order yours today by emailing asap@businessasap.com, or you can review and print free at www.dol.gov / www.coworkforce.com Employee / Employer Forms can be downloaded at http://www.businessasap.com/downloads/ Employers are required to retain (ASAP is not responsible for these records): W- 4 I- 9 Colorado Affirmation of Legal Work Status Healthcare Notice (New) under the ACA Employers must notify all current and newly hired employees of healthcare coverage. You should also retain the Direct Deposit Authorization Form (ASAP only requires a copy of this form).
REMINDERS W- 2 Processing ASAP begins our W- 2 Processing on Tuesday December 31, 2013. Any changes submitted on or after this date may be subject to additional service fees. We use pressure- seal W- 2 forms that provide added security. ASAP will file your federal W- 2s (Copy A) and state copies automatically. You, the Employer, will receive a copy of the W- 3 transmittal form along with employee copies of W- 2 (as per instructed). The Taxpayer s Liability - As your payroll service provider, ASAP Accounting & Payroll Services, Inc. guarantees the tax payments and returns are processed timely and accurately based upon the information provided for every payroll processed by our staff. However, this does not eliminate the employer s liability to file employment tax returns or remit employment taxes. Following the IRS s 2012 revised rules for reporting agents, ASAP Accounting & Payroll advises all employers to enroll and use the free Electronic Federal Tax Payment System (EFTPS) from which you can view and confirm tax payment histories. All new clients should receive an EFTPS PIN within 20 days of starting with ASAP Accounting & Payroll Services, Inc. If you did not receive this letter, please let us know and we will have a new EFTPS Pin letter sent. The letter will be sent directly from the IRS s EFTPS division*. Tax Payments Trust, But Verify Ronald Reagan As your service provider we know you trust ASAP to file your payroll tax returns and payments timely and completely. At ASAP we guarantee our payroll services with our word above all else. However, taxing authorities still hold you, the taxpayer/employer responsible for your employment taxes. Our service guarantee does not eliminate this liability. Thus, we encourage you to check behind us and verify we are paying/filing as we state. Following is a brief of how you can verify tax payments: State Tax payments and returns can be verified online or by phone in all states. The Colorado Dept. of Employment and Labor can only be verified by phone: 303-318- 9100 or 800-480- 8299. The Colorado Dept. of Revenue can be reached at 303-238- 7378 or you can register for online access at: https://www.colorado.gov/revenueonline/_/#1. For State Revenue or Unemployment contact and /or websites in the other 50 states, please email payroll@businessasap.com and we will be glad to provide you with designated contact information. Notices As Reporting Agents, we receive copies of any 940 and 941 tax notices, but we will not change the legal address for your entity to insure all employers are still directly notified and kept informed by the IRS of any potential notices or instructions sent from the IRS or any other State agencies. If you received ANY notices from the IRS, State Department of Labor and Employment, or State Department of Revenue regarding payroll, please forward a copy of all notices to payroll@businessasap.com or fax to 970-728- 6848. Retain the original for your records. *Invariably there have been many versions of spoofed emails purporting to be from EFTPS and/or the IRS. These are all fakes as the IRS and EFTPS do not send emails regarding payments or filings. Thank you for your trust in ASAP. Please contact our Payroll Team with any additional questions, email payroll@businessasap.com or call 877-728-6777