By: Mark Ward | Payroll Experts, Inc
To ensure a smooth transition into the 3rd quarter here are some reminders about our quarter end procedures. Please report all 2nd Quarter 2014 payroll changes/adjustments by Monday, June 30th or before you process a payroll with a July check date, whichever comes first. Changes or adjustments reported after this date will require a reopening of your prior quarter payroll files along with the reprocessing of your tax returns. The minimum charge to reopen, reprocess, amend any tax filings is $150. If the changes incur additional tax liability you will be responsible for all penalties and interest along with the tax liability.
Payroll Adjustments may include but aren’t limited to:
- Void Checks
- Manual checks
- 3rd Party Sick Pay
- Fringe Benefits: Some examples of fringe benefits are automobile use, travel, discounts on services, memberships, tickets, etc.
- Group Term Life: Premiums paid by employer for coverage in excess of $50,000.
- Sub-S Health Insurance: S Corporation health insurance premiums for owners that is paid by the corporation.
- Employer Health Care Cost
- Employer contributions to employee Health Savings Accounts (HSA)
Missing Information: Missing information can cause delays to the filing of your tax returns and will incur additional processing costs as well as potential tax penalties. Following are common items that may be missing and will cause a delay in your tax filings:
Employee Information: Common items that we may be missing for employees are social security numbers or addresses (please remember valid ssn’s do not start with a “9”). We provide you with a report every payroll detailing the missing employee information. This information is found on the “Missing New Hire Information Report.” This missing information causes our tax filings to reject and requires manual processing and may cause the new hire reports along with your tax returns to be late. Please report all missing employee information to your payroll specialist no later than Monday, June 30th. The charge for missing employee information (active or inactive employees) that delays tax processing is $50.
Company Information: Common items that we may be missing for your company is state withholding and/or State Unemployment ID numbers and rates. This missing information causes our tax filings to reject and requires manual processing. The processing charge for each missing Tax ID Number is $100. Please report all missing withholding and State Unemployment ID numbers to your payroll specialist no later than Monday, June 30th.