isolved 2017 YEAR END GUIDE

Transcription

1 isolved 2017 YEAR END GUIDE We at Payroll Network (PNI) 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: Gaither Road, Suite 200 Rockville, MD payrollnetwork.com

2 CONTENTS IT S THAT TIME AGAIN!!!...1 ***URGENT*** THANKSGIVING WEEK PAYROLL SCHEDULE... 2 *ATTENTION* FEDERAL RESERVE BANK HOLIDAY SCHEDULE... 3 NOVEMBER AND DECEMBER 2017 CALENDAR... 4 JANUARY 2018 CALENDAR... 5 CONTACT INFORMATION... 6 TAX FILING SERVICE... 6 FINAL REPORTS FOR 2017 YEAR END... 7 YEAR END CHECKLIST... 8 PAYROLL PROCESSING SCHEDULE FOR EMPLOYEE W-2 VERIFICATION REPORT ADJUSTMENT PROCESSING EFFECT OF YEAR END ADJUSTMENTS ON TAXABLE WAGES & TAXES W-2 PRELIST REPORT FINAL TAX LIABILITY REPORT OTHER YEAR END CONCERNS W-2 PRE LIST REPORT SAMPLE RECONCILING W-2 INFORMATION TO A CHECK STUB DOS AND DON'TS PREPARING FOR YEAR-END AND 2017 REPLY FORM RESOURCES.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 the following points of emphasis. 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 2017 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 2018 schedule. Please any changes to your 2018 schedule to: support@payrollnetwork.com or call If 2017 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 2018 prior to your last payroll processing in Contact isolved Support so we can update your changes or make correc ons as necessary at support@payrollnetwork.com or call Failure to provide this informa on may result in incorrect carry over balances or the loss of leave balances. If you are planning on year end bonus payrolls outside of your normal processing, you must schedule them in advance with isolved Support. 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 15 th, Thank you in advance for your coopera on in this cri cal issue. Sincerely, Payroll Network Client Success Team THANKSGIVING WEEK PAYROLL SCHEDULE Dear Valued Client:

4 If you are scheduled to process payroll the week of Thanksgiving Thursday, November 23rd, 2017, 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 22 nd Friday, November 24 th Monday, November 27 th Tuesday, November 28 th Input Must Be Received By: Monday, November 20 th Tuesday, November 21 st Wednesday, November 22 nd Wednesday, November 22 nd All payrolls processed on Wednesday, November 22 nd, will be delivered on Monday, November 27 th. If you would like your payroll delivered on Friday, November 24 th, please call or the isolved Support Department. Any payroll submissions on Wednesday, November 22 nd, must be submited by noon to ensure mely processing. Our office will be closed on Thanksgiving Day and Friday, November 24 th. We wish you and yours a blessed and Happy Thanksgiving! Sincerely, Payroll Network Client Success Team

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, Inc. is CLOSED. 11/23/2017* Thanksgiving Day (Bank Holiday) 11/24/2017* Day a er Thanksgiving (not a bank holiday) 12/25/2017* Christmas Day (Bank Holiday) 01/01/2018* New Year s Day (Bank Holiday) 01/15/2018 Mar n Luther King Day (Bank Holiday) 02/19/2018 Presidents Day (Bank Holiday) 05/28/2018* Memorial Day (Bank Holiday) 07/04/2018* Independence Day (Bank Holiday) 09/03/2018* Labor Day (Bank Holiday) 10/08/2018 Columbus Day (Bank Holiday) 11/11/2018 Veterans Day (Bank Holiday) 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 Observed) 01/01/2019* New Year s Day (Bank Holiday Observed) Please review your schedule and notify isolved Support any changes that need to be made for 2018 by Friday, December 8 th, support@payrollnetwork.com Thank you in advance for your help.

6 NOVEMBER AND DECEMBER 2017 CALENDAR IMPORTANT DATES November 2017 Sunday Monday Tuesday Wednesday Thursday Friday Saturday Veterans Day Observed Thanksgiving PNI Closed Day December 2017 Sunday Monday Tuesday Wednesday Thursday Friday Saturday Verify Calendars/C0 Legal Name/Tax IDs Last Day to Process Bonuses PNI Closed Last Day to Process Payroll for 2017 JANUARY 2018 CALENDAR IMPORTANT DATES

7 January 2018 Sunday Monday Tuesday Wednesday Thursday Friday Saturday New Year s Day PNI Closed Amended Return Requests Due W-2 Pre-List & W-2 Adjustments Due Martin Luther King, Jr. Day Federal Holiday W2/1099 forms & Quarterlies Delivered and Posted on the Web

8 CONTACT INFORMATION For your convenience, the 2017 Year End Guide is available in isolved under Quick Links on the Client Landing page. If you have any ques ons rela ng to year end processing, please submit your request to your isolved Support Team via or call ext. 0. 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 to forwarding all tax notifications (i.e. unemployment rate changes, tax notices, etc.) to Payroll Network s Tax Department 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.

9 FINAL REPORTS FOR 2017 YEAR END W-2 and completed tax forms now 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.

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 Due Date Please locate the 2017 Year End Guide on the Client Landing page under Quick Links for forms, Frequently Asked Ques ons and updates. Ongoing 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. Contact isolved Support to make any corrections. 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 Reporting>Client Reports and make updates as necessary. 12/18/2017 No later than last scheduled 2017 payroll Verify your Payroll Processing Schedule for 2018 Please review your Payroll Processing Schedule for 2018 and contact isolved Support to make any corrections. 12/08/2017 Last Day to Process Bonus Payroll Third party sick pay Submit 3 rd party sick pay data to isolved Support. Input W-2 Adjustments Input adjustments with final scheduled payroll of Review W-2 Reconcilia on Report Please review the W2 Reconciliation Summary to assure that all W-2 data has been properly identified. Reporting>Client Reports>W2 Reconciliation Summary. Submit all required changes to isolved Support. Request W-2 Adjustments If you require adjustments a er 12/31/2017, please prepare and submit the W-2 adjustments to our isolved Support Department. There will be an additional 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 the isolved Support Department. 12/15/2017 No later than last scheduled 2017 payroll No later than last scheduled 2017 payroll 1/05/2018 1/05/2018 1/05/2018 The last day for processing 2017 checks or direct deposits is Wednesday, 12/27/2017

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 2018 company schedule and no fy isolved Support of any changes at support@payrollnetwork.com.

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 W2 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 then click on Generate Report. Once you see the message that the report has generated click on Go to My Reports Queue and click on View Report. Review and enter all changes prior to the last payroll processing in 2017.

13 ADJUSTMENT PROCESSING Before you process a payroll with a 2018 pay date, you may schedule an adjustment process for any 2017 entries that were not completed. Contact the isolved Support Department to schedule an adjustment process. Once scheduled, adjustments can then 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 2018 you must send the informa on to the isolved Support Department. You will be billed $ plus normal processing for these adjustment runs. Amended Return charges may also apply. The last day for processing 2017 checks or direct deposits is Wednesday, 12/27/2017 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 2017, 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 the isolved Support Department. Do not enter these items as manual checks. If any employee Social Security tax is accrued due to these adjustments, it will create a variance and the isolved Support Department will contact you regarding resolu on. If the employee has no further pay, the system can only adjust the employer taxes and special adjustments must be made to accommodate Social Security taxes. These special adjustments must be processed by submi ng the informa on to our isolved Support Department.

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 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). Sample Employee W-2 Preview is available on page 13. FINAL PAYROLL SUMMARY REPORT Pay par cular aten on to any state(s) which 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 2017, 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 isolved Support Department to schedule your separate bonus run Inform us of any special handling of taxes and deduc ons Process any special pays on or before 12/15/2017 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. We will no fy you of the amount and wiring instruc ons when the payroll is processed.

15 W-2 PREVIEW REPORT SAMPLE

16 RECONCILING W-2 INFORMATION TO A CHECK STUB The following is an example of common reconciling items between the employee s final check stub and the W- 2. This example provides guideline for reconciling your W-2 to your last pay stub. If you s ll have ques ons, please submit your ques ons to isolved Support at support@payrollnetwork.com EXAMPLE 2015 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 $118, (excludes non-taxable earnings/ reimbursements, cafeteria plans and pre-tax deduc ons) Please Note: Any employee who lived in more than three states during the year will receive mul ple W- 2s. The 2017 W-2 s will contain mul ple states on one W2 if the employee lived in 2 states throughout the year. The W-2 for their current state of residence and prior state for the year will have all of their federal, and state and/or local tax informa on for both states. A second W-2 will only contain the state and/or local tax informa on for more than 2 previous state(s).

17 DOS AND DON TS Topic Do Don t Void Checks Manual Checks Group Term Life (GTL) Address Changes Fringe Benefits Third Party Sick Pay Payroll Calendar Verifica on 1099 Master File Informa on 1099 Informa on Payroll Tax Informa on Do void fourth quarter checks on or before your last payroll process for 2017 Do enter them on or before your last payroll process for Do enter on or before your last payroll process for 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 Send all 3 rd Party Sick Pay to the isolved Support Department on or before your last payroll process for Do verify payroll processing schedule/calendar by 12/8/2017. Do review the following: W-2 Prelist Tax IDs and Rates Screen Employee W-2 and SSN Web Report isolved clients enter into the system before you process the last payroll of isolved clients enter into the system before you process the last payroll of Send all payroll tax documents received from federal, state and/or local tax authori es to the Tax Department. Do not void prior quarter checks. Send them to the Support Department. Do not enter a nega ve manual check for a prior quarter, fringe or company benefits. Send them to the isolved Support Department. Do not enter GTL on terminated employees or use manual adjustments a er the last 2017 payroll. Call the isolved Support Department for instruc ons. Address changes made in 2018 do not update W2 s for 2017 Do not enter manual adjustments a er the last 2017 payroll process. Send them to the isolved Support Department. Do not overlook any tax documents received. If you are unsure about sending it, send it and the Tax Department will determine its validity.

18 PREPARING FOR YEAR-END AND 2017 REPLY FORM If you have NOT submited the online year end reply form, please complete this reply form and to Company Name Client ID Date Completed By Signature Verifying W-2 Informa on A. Please verify your Company legal name, address and Account #'s ACTION ITEM: To avoid tax and penal es, please complete and return no later than: Friday, December 15, 2017 My Company's Legal Name & Address My Federal ID # My State ID #'s Are correct Is correct Are correct My Local ID #'s Are correct W2 Mailing Address-confirm that this is the same as your company address or supply us with where you want us to send your W2 s. B. I have reviewed my Employee Informa on including W-2 Pension Status. I understand the IRS may assess penal es for inaccurate informa on: 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-2's with incorrect informa on 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. Year End Adjustments A. Outstanding VOID/MANUAL CHECKS I DO NOT have any unprocessed 2017 manual or void checks. I DO have unprocessed manual void checks. I will forward all void/manual checks to Payroll Network, Inc. before my last scheduled payroll. ***Remember- checks issued in 2017 cannot be voided in 2018*** 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 W2's unless you no fy us in wri ng 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 2017, I must call isolved Support IMMEDIATELY to request the processing of my W2s be put on HOLD. Otherwise, Payroll Network, Inc. will begin processing my 4th quarter reports. Submi ng changes or addi onal informa on a er this will result in addi onal charges.

19 As a reminder, we have resources for you! Year End Resources: Download Year End Tips Here! 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. Also, because there is no paper to misplace, it increases the security of employees sensi ve data. And, of course, Electronic Delivery is environmentally friendly! Download the action plan here Here are two s and three posters to use to educate your employees about the benefits of isolved Electronic Delivery: Download #1 Download #2