by Mark Ward, Payroll Experts, Inc.
Spring is here! April 1st marks the start of the 2nd Quarter, which also means we are all receiving a slew of tax forms from the different tax agencies. Payroll Experts completes and files all the required payroll returns for you, but I thought this would be a good time to review which forms you’ll be receiving and also give a few quarter-end tips.
- Form 941: This is a Federal Return known as the Employer’s Quarterly Federal Tax Return. This form is used to report Wages, Federal Withholding (employee paid tax), Social Security (employee tax is 4.2% and employer tax is 6.2%) and Medicare (employee tax is 1.45% and employer tax is 1.45%). This form also reconciles the tax deposits that we have made on your behalf.
- State Withholding: Most states have State Income tax and require employers to withhold State Withholding from Employees paychecks (employee paid tax). The State Withholding Return is used to report Wages and State Withholding to the applicable states. For example, Utah State requires businesses to submit the TC-941 Form reporting wages and state withholding figures.
- State Unemployment: States require employers (employer paid tax) to pay unemployment taxes on wages paid to employees. Quarterly unemployment reports are used to report Wages along with the tax liability for the quarter. The tax rate varies from State to State. For example, Utah State requires businesses to submit the Utah Employer Quarterly Wage List and Contribution Report summarizing wages and total Liability for the quarter.Payroll Experts completes and files all these returns for you.
Along with each end-of-quarter, other payroll related items I always like to follow-up on are:
- Review Employee Deductions – Have any employees been added to insurance plans, has an employee had a status change that would change the insurance cost? The end of the quarter is a good time to verify the employee deduction amounts are correct and updated.
- Review PTO, Vacation, Sick Balances- Verify balances are correct and all used hours have been reported to payroll.
- Employee Manual- Are there any updates/ changes that need to be made? Do all employees have the employee manual?
- Workers Compensation- Make sure your workers compensation poliicy is active and current.
- Employee Reviews
- Verify you have the required employment posters posted.
As always, it is our goal to simplify payroll for you. If there is anything we can do to assist you with any of these items, or if you would like to review your payroll process- from submitting to receiving your payroll, please contact us. We love working with you and are committed to you and your business.