2018 Year End Guide. An electronic copy of this handbook can be found at:

Transcription

1 2018 Year End Guide We at Payroll Network would like to take this opportunity to thank you for your business and to wish you a Happy Holiday Season and a prosperous New Year. Please review this year end guide carefully to ensure you understand what procedures and steps will be necessary to process your year end reports and returns. Enforcement of the deadlines in this guide is essen al to ensure accurate year end reports and mely filings with the various tax authori es. An electronic copy of this handbook can be found at:

2 CONTENTS It s that me again... 1 Thanksgiving Week Payroll Schedule... 2 *Aten on* Federal Reserve Bank Holiday Schedule... 3 November and December 2018 Calendar Important Dates... 4 January 2019 Calendar Important Dates... 5 Contact Informa on... 6 final reports for 2018 year end... 7 Year End Checklist... 8 Payroll Processing Schedule for Employee W-2 and SSN Web Report Adjustment Processing Effect of Year End Adjustments on Taxable Wages & Taxes Employee w Other Year End Concerns Bonus Payrolls W-2 Preview Report Sample Reconciling W-2 Informa on to a Check Stub Dos and Don ts ACA Forms: 1094 and Preparing For Year End and 2018 Reply Form... 17

3 IT S THAT TIME AGAIN Another year end is fast approaching. In order to enable each of us to successfully navigate this year end, we are providing this guide to go over specific points of emphasis to follow for a successful year end. Please review the following reports, making all necessary changes (name/address/social security number) prior to your last payroll processing in Employee W-2 and SSN Report- This report is located in isolved under Reporting>Client Reports>Employee W2 Verifica on. 2. Actual W2 Form This report can be found under Repor ng> Year End Reports On Demand> Employee W2 Copy Schedule- Carefully review your 2018 Pay Endings and Check Dates. On the Client Landing Page, go to the bottom of the screen and click on View Report under the Processing Schedule column. A schedule of all bank holidays and Payroll Network closings is posted on our website. Approve your 2019 schedule. Please any changes to your 2019 schedule to: support@payrollnetwork.com or call ext. 0 If 2018 was the first year in which you had a leave plan with Payroll Network, please review your policy for carryover of any unused balances into 2019 prior to your last payroll processing in Contact Support so we can update your changes or make correc ons as necessary at support@payrollnetwork.com or call ext. 0. Failure to provide this informa on may result in incorrect carry over balances or the loss of leave balances. If you are planning on processing bonus payrolls outside of your normal processing, you must contact Support in advance to add the special payroll run to your schedule. We suggest bonus payrolls be processed on Thursdays and Fridays, not with your regular scheduled payroll. The last day to process a separate bonus payroll is Friday, December 14 th, Thank you in advance for your coopera on in this cri cal issue. Sincerely, Client Success Team Support@payrollnetwork.com ext. 0 Payroll Network Confiden al 1

4 THANKSGIVING WEEK PAYROLL SCHEDULE Dear Valued Payroll Network Client, If you are scheduled to process payroll the week of Thanksgiving, Thursday, November 22, 2018, your payroll must be processed one day earlier than normal. Please follow this schedule based on the date of your checks and/or direct deposits: Checks/Direct Deposits Date: Wednesday, November 21 st Friday, November 23 rd Monday, November 26 th Tuesday, November 27 th Input Must Be Received By: Monday, November 19 th Tuesday, November 20 th Wednesday, November 21 st Wednesday, November 21 st All payrolls processed on Wednesday, November 21 st, will be delivered on Monday, November 26 th. If you would like your payroll delivered on Friday, November 23 rd, please call or Support. Any payroll submissions on Wednesday, November 21 st, must be submited by noon to ensure mely processing. Our office will be closed on Thanksgiving Day and Friday, November 23 rd. We wish you and yours a blessed and Happy Thanksgiving! Sincerely, Client Success Team Payroll Network Confiden al 2

5 *ATTENTION* FEDERAL RESERVE BANK HOLIDAY SCHEDULE Listed below is the Federal Reserve Bank Holiday Schedule (most banks are closed- allow an EXTRA day for direct deposits). *Marks the days Payroll Network is CLOSED. 11/22/2018* Thanksgiving Day (Bank Holiday) 11/23/2018* Day a er Thanksgiving (not a bank holiday) 12/25/2018* Christmas Day (Bank Holiday) 01/01/2019* New Year s Day (Bank Holiday) 01/21/2019 Mar n Luther King Day (Bank Holiday) 02/18/2019 Presidents Day (Bank Holiday) 05/27/2019* Memorial Day (Bank Holiday) 07/04/2019* Independence Day (Bank Holiday) 09/02/2019* Labor Day (Bank Holiday) 10/14/2019 Columbus Day (Bank Holiday) 11/11/2019 Veterans Day (Bank Holiday) 11/28/2019* Thanksgiving Day (Bank Holiday) 11/29/2019* Day a er Thanksgiving (not a bank holiday) 12/25/2019* Christmas Day (Bank Holiday Observed) 01/01/2019* New Year s Day (Bank Holiday Observed) Please review your schedule and no fy Support of any changes that need to be made for 2019 by Friday, December 7 th, support@payrollnetwork.com Payroll Network Confiden al 3

6 NOVEMBER AND DECEMBER 2018 CALENDAR IMPORTANT DATES November 2018 S M T W T F S Veterans Day Thanksgiving Payroll Network Closed 24 December 2018 S M T W T F S Verify Calendars/C0 Legal Name and address/ Tax IDs Last Day to Process Bonuses/Complete Year End Reply Form Payroll Network Closed Last Day to Process Payroll for Payroll Network Confiden al 4

7 JANUARY 2019 CALENDAR IMPORTANT DATES January 2019 S M T W T F S 1 Payroll Network Closed 2 Amended Return Requests Due 3 4 W2 Pre List Review/W2 Adj Due/W2 Deferred Printing Deadline MLK Day Federal Holiday W2/1099/1095 forms & Quarterlies Delivered and Posted on the Web Payroll Network Confiden al 5

8 CONTACT INFORMATION For your convenience, the 2018 Year End Guide is available in isolved under Quick Links on the Client Landing page. If you have any ques ons related to year end processing, please submit your request to Support at TAX FILING SERVICE If you are a tax filing service client, Payroll Network: Is impounding your taxes directly from your bank account and paying payroll taxes on your behalf. Assumes the responsibility to deposit, reconcile, and file authorized payroll tax deposits and returns. Files forms 940, 941, W-2, W-3, and annual state and local returns. Assumes the responsibility of any penalties due to our error. If you are a tax filing service client, you: Are responsible for forwarding all tax notifications (i.e. unemployment rate changes, tax notices, etc.) to Support promptly upon receipt. Although we file taxes on your behalf, the tax authorities will not send the notices directly to Payroll Network. Obtaining this information promptly is imperative to our ability to provide accurate and timely tax services. Please refer to the calendars at the beginning of this guide for important deadlines. If you are not using our tax filing service, it is your responsibility to: Pay your taxes directly to the tax authorities. File authorized payroll tax deposits and returns (including forms 940 and 941). Payroll Network files W-2 and 1099 forms electronically for all clients (including those not using tax filing service) by the appropriate due dates. Please do not file any W-2 or 1099 forms that have been recorded in the Payroll System to the federal or state tax authorities. Payroll Network Confiden al 6

9 FINAL REPORTS FOR 2018 YEAR END W-2 and completed tax forms will be available in isolved Your W-2's, 1099's, tax returns, and reports will be available under Reporting>Year End Report Archive or Year End Reports On Demand. To view your quarterly reports in isolved, click on the Repor ng tab, and then click on Quarterly Reports On-Demand. This will bring up a list of your available quarterly reports. Then, under the Links column, click on Download File to open the report. Payroll Network Confiden al 7

10 YEAR END CHECKLIST Here is a checklist to assist you in keeping track of what must be completed to ensure a smooth year end process. Checklist Item Please locate the 2018 Year End Guide on the Client Landing page under Quick Links for forms, Frequently Asked Ques ons and updates. Verify Accuracy of Company Legal Name and Tax Iden fica on Numbers Verify the accuracy of your company legal name and each state tax iden fica on number that Payroll Network has on file. The Tax IDs & Rates can be found on the Payroll Summary report under Repor ng>report Archive or Client Reports. No fy Support of any updates and if your company mailing address has changed. Review Employee Addresses and Social Security Numbers Review the accuracy of all employee addresses and social security numbers using the Employee W-2 Preview found under Repor ng>client Reports and make updates as necessary. Verify your Payroll Processing Schedule for 2019 Please review your Payroll Processing Schedule for 2019 and contact Support to make any correc ons. Due Date ongoing 12/7/2018 No later than last scheduled 2018 payroll 12/7/2018 Last Day to Process Bonus Payrolls 12/14/2018 Third party sick pay Submit 3 rd party sick pay data to Support. Input W-2 Adjustments Input adjustments with final scheduled payroll of 2018 Review W-2 Reconcilia on Report Please review the W-2 Reconciliation Summary to assure that all W-2 data has been properly iden fied. Repor ng>client Reports>W-2 Reconcilia on Summary. Submit all required changes to Support. Request W-2 Adjustments If you require adjustments a er 12/31/2018, please prepare and submit the W-2 adjustments to Support. There will be an addi onal charge to process adjustments. Request W-2 Deferred Prin ng To request the deferred produc on of your W-2s, please submit a writen request for deferral to Support. No later than last scheduled 2018 payroll No later than last scheduled 2018 payroll 1/4/ /4/2019 1/4/2019 The last day for processing 2018 checks or direct deposits is Thursday, 12/27/2018 Payroll Network Confiden al 8

11 PAYROLL PROCESSING SCHEDULE FOR Schedule- Carefully review Pay Endings and Check Dates. To access the schedule, go to the Client Landing Page. At the botom right of the screen, click on View Report under Processing Schedule. A schedule of all bank holidays and Payroll Network Closings are posted on our website. Please review your 2019 company schedule and no fy Support of any changes at support@payrollnetwork.com. Payroll Network Confiden al 9

12 EMPLOYEE W-2 AND SSN WEB REPORT Go to the Employee W-2 Preview report to verify employee names, addresses, and social security numbers. You will also see the actual dollar amounts that will appear on the employees W-2 as of the payroll run you view. You will find the report under Client Reports, choose the Report Category as All, then enter W2 in the Search box and click on Filter. Click on the report on the le side. On the right side choose the payroll run you want to use to verify the informa on and click on Generate Report. Once you see the message that the report has generated, click on the Go to My Reports Queue and click View Report. Review and enter all changes prior to the last payroll processing in Payroll Network Confiden al 10

13 ADJUSTMENT PROCESSING Before you process a payroll with a 2019 pay date, you may schedule an adjustment process for any 2018 entries that were not completed. Contact Support to schedule an adjustment process. Once scheduled, adjustments can be entered in isolved. Your payroll informa on will be available for download immediately a er the adjustment process is run. Void and Manual Checks You CANNOT enter manual checks or void checks a er your last payroll of If you have void or manual checks to process a er you have processed your first payroll for 2019 you must send the informa on to Support. You will be billed $ plus normal processing for these adjustment runs. Amended Return charges may also apply. The last day for processing 2018 checks or direct deposits is Thursday, 12/27/2018. EFFECT OF YEAR END ADJUSTMENTS ON TAXABLE WAGES & TAXES Before entering adjustments: Determine the type of adjustment needed (e.g., fringe benefits, group term life, personal use of company car, etc.). It is highly recommended you input these items before your last payroll of If you input these special W-2 Items before your last payroll of 2018, the system will adjust the appropriate taxable wages up to their limits. Input these items on the me entry grid if you are running a regular or bonus payroll process. Otherwise, contact Support. Do not enter these items as manual checks. If an employee s Social Security tax is accrued due to these adjustments, it will create a variance and Support will contact you regarding resolu on. If the employee has no further pay, the system can only adjust the employer taxes. Special adjustments must be made to accommodate Social Security taxes. These special adjustments must be processed by submi ng the informa on to Support. Payroll Network Confiden al 11

14 EMPLOYEE W-2 The Employee W-2 Preview Report represents what will be reported on your W-2 forms. Please review this report carefully to be certain that all the informa on required on the W-2's has been properly iden fied. If further adjustments are required, please process by the deadlines noted on the calendars (pages 4-5) and/or the checklist (page 8). A sample Employee W-2 Preview is available on page 13. FINAL PAYROLL SUMMARY REPORT Pay par cular aten on to any state(s) that are missing tax iden fica on numbers. This indicates that Payroll Network does not have the state iden fica on number on file for this state. Failure to provide Payroll Network with the iden fica on number before your W-2's are requested will result in a delay of their processing. OTHER YEAR END CONCERNS 1099 Miscellaneous Forms If you have paid 1099 Miscellaneous income through the payroll system in 2018, Payroll Network will produce these forms. If you have addi onal 1099 employees, enter them before you process your last payroll for BONUS PAYROLLS Are you planning a special year end bonus payroll run? If so: Schedule processing on a Thursday or Friday apart from your regular payroll Contact Support to schedule your separate bonus run Inform us of any special handling of taxes and deduc ons Process any special pays on or before 12/14/2018 Year End Payrolls that include bonuses will have a higher than usual tax liability. Please remember that a wire may be required to fund the payroll taxes for any payroll with a federal tax liability greater than $100,000. This allows Payroll Network to make mely tax payments with cleared funds. The Tax Department will no fy you of the amount and wiring instruc ons when the payroll is processed. Payroll Network Confiden al 12

15 W-2 PREVIEW REPORT SAMPLE Payroll Network Confiden al 13

16 RECONCILING W-2 INFORMATION TO A CHECK STUB The following is an example of common reconciling items between an employee s final check stub and the W-2. This example provides guidelines for reconciling your W-2 to your last pay stub. If you s ll have ques ons, please submit them to Support at support@payrollnetwork.com. EXAMPLE 2018 W-2 Common Reconciling Items Gross Per Check Stub $51, Less non-taxable Reimbursements (1,500.00) Sub-Total 50, Add non Cash Taxable Income: Group Term Life Pers Use Co Car 2, Employer Pd Fringes 1, , Sub-Total 53, Deduct Pre-Tax Items: Cafeteria Plan 4, HSA Deduction 1, Other pre-tax Plans (6,500.00) *W-2 Box 3 Social Security Wages 47, *W-2 Box 5 Medicare Wages 47, K. 403B, IRA Deductions (10,500.00) W-2 Box 1 Federal Taxable Income 36, NOTE: W-2 Box 3 FICA Wage Limit is $128, (excludes non-taxable earnings/ reimbursements, cafeteria plans and pre-tax deduc ons) Please Note: Any employee who lived in more than two states during the year will receive mul ple W-2s. The W-2 for their current state of residence will have all of their federal, state and/or local tax informa on. The second W-2 will only contain the state and/or local tax informa on for the previous state(s). Payroll Network Confiden al 14

17 DOS AND DON TS Topic Do Don't Void Checks Do void fourth quarter checks on or before your last payroll process for Do not void prior quarter checks. Contact Support. Manual Checks Do enter them on or before your last payroll process for Do not enter a nega ve manual check for a prior quarter, fringe or company benefits. Contact Support. Group Term Life (GTL) Do enter on or before your last payroll process for Do not enter GTL on terminated employees or use manual adjustments a er the last 2018 payroll. Contact Support for instruc ons. Address Changes Fringe Benefits Do make all address changes on or before your last payroll process for Do report any addi onal fringe items on or before your last payroll process for Address changes made in 2019 do not update W-2s for 2018 Do not enter manual adjustments a er the last 2018 payroll process. Contact Support. Third Party Sick Pay Send all 3 rd Party Sick Pay Statements to Support on or before your last payroll process for Payroll Calendar Verifica on Do verify payroll processing schedule/calendar by 12/07/2018. Do review the following: W-2 Prelist Tax IDs and Rates Screen Employee W-2 and SSN Web Report 1099 master file informa on Do enter clients into the system before you process the last payroll of informa on Do enter clients into the system before you process the last payroll of Payroll Tax Informa on Do send all payroll tax documents received from federal, state, and/or local tax authori es to the Tax Department. Do not overlook any tax documents received. If you are unsure about sending it, send it to Support. The Tax Department will determine its validity. Payroll Network Confiden al 15

18 2018 ACA FORMS: 1094 AND 1095 To determine if you re an Applicable Large Employer (ALE) in 2018: Repor ng > Client Reports > ACA Large Employer Compliance Test From Date 1/1/2017, To Date 12/31/2017 (use 2017 dates/counts to determine whether you need to file forms in 2018) Previewing & Approving Forms Client Management > ACA Setup Op ons > ACA Forms Approval Preview Report: Condensed PDF version of forms; 5 employees per page with no dependents Preview Forms: Full PDF version of forms; recommended for first- me viewing; 1 employee per page with dependents (selfinsured only) Approve Forms: Required; click buton at year-end to approve your forms Payroll Network Confiden al 16

19 PREPARING FOR YEAR END AND 2018 REPLY FORM If you have NOT submited the Online Year End Reply Form, please complete this reply form and to Ac on Item: To avoid tax and penal es, please complete and return no later than Friday, December 14, Company Name Client Number Date Completed By Signature Verifying W-2 Informa on A. Please verify your Company Legal Name, address, and Account #'s My Company's Legal Name & Address My Federal ID # My State ID #'s My Local ID #'s Are correct Is correct Are correct Are correct W-2 Mailing Address - Confirm that this is the same as your company address or supply us with where you want us to send your W-2s. B. I have reviewed my Employee Informa on including W-2 Pension Status. I understand the IRS may assess penal es for inaccurate information: ACTION ITEM: Have you verified that the name and social security number on every employee's paycheck matches his/her Social Security card exactly? DO NOT use shortened or nick names (ex. Beth for Elizabeth). The IRS may assess penal es against employers whose W-2 Forms have mismatched employee names and social security numbers. The penalty for W-2s with incorrect information is $50.00 (maximum $250,000). I have keyed all necessary changes in my Payroll Network software OR No changes are required- my employee informa on is correct as shown Payroll Network Confiden al 17

20 Year End Adjustments A. Outstanding void/manual checks I DO NOT have any unprocessed 2018 manual or void checks. I DO have unprocessed manual void checks. I will forward all void/manual checks to Payroll Network before my last scheduled payroll. ***Remember checks issued in 2018 cannot be voided in 2019*** B. Third Party Sick Pay I WILL report Third Party Sick Pay for All third party sick pay amounts should be reported to us before your last payroll of For those clients who are concerned about receiving mely informa on from their providers, please be aware that interim statements are available and can be used. Please contact your third-party provider to obtain this informa on. Note: We will produce and file all Employee Third Party Sick Pay W-2 s unless you notify us in writing that you or your third-party administrator will be responsible for these forms. I will NOT report Third Party Sick Pay for I understand if I need to make any changes AFTER MY LAST PAYROLL in 2018, I must call Support IMMEDIATELY to request the processing of my W-2 s be put on HOLD. Otherwise, Payroll Network, will begin processing my 4th quarter reports. Submi ng changes or addi onal informa on a er this will result in addi onal charges. Payroll Network Confiden al 18

21 As a reminder, we have resources for you: htps:// Electronic Delivery Alert your employees about the availability and benefits of Electronic Delivery and encourage them to Accept the terms: Eliminates the task of distribu ng paper tax documents, and Gives employees the ability to retrieve their tax documents electronically, any me they choose. Because there is no paper to misplace, it increases the security of employees sensi ve data. Electronic Delivery is environmentally friendly! Download the action plan here Here are two s to use to educate your employees about the benefits of isolved Electronic Delivery: Download #1 Download #2 Payroll Network Confiden al 19