Year End Payroll Issues Bronwyn Betts

What This Session Will Cover Why worry about year-end in May? Employer Health Contributions Non-Monetary Fringes Third Party Sick Pay Bonus Payroll FICA and all their limits Bonus Payroll Electronic Filing – W2 and taxes Social Security Numbers

Dude…it’s like, May. Why do I care about all the year-end stuff NOW????? 1

Payroll Rock Stars must be like Boy Scouts. You must be PREPARED!!! ! Register for PIN numbers! Practice printing your W2s! Record the Employers Health Benefits w/each payroll! Understand the various limits before they happen! Record auto fringes with each payroll! Watch YE Payroll videos on the FSI Client Website! Know when & how to update your taxes!

Rock your year-end and track your Employer Health Benefits per pay. This allows you to expense and accrue Health Care Costs and have your W2s all prepped and ready for printing! 2 Employer Health Benefits

By changing the plan type to “Section 125”, the tab for “ER Contribution” becomes enabled.

This allows amount and descriptions to show on the employees’ check stub. This allows contributions to be reported on W2. (Retroactive) Identify the G/L Accounts to expense and accrue this benefit. Enter the amount PER PAY per employee. The amount you enter here can be overridden on each employee’s file.

Enter Health Deductions and the amount that EE deducts here. By entering the deduction for the EE, the “ER Contribution” tab is available. ONLY right-click and “Add” if you need to overwrite the employer amount that was set on the “ER Contribution” tab on the miscellaneous deduction.

Why wait for the Auto Fringes to be figured out for the last pay of the year! Parcel the amount out weekly, monthly or quarterly to give your employee(s) a chance to withhold taxes in smaller amounts just more frequently. 3 Auto Fringes

Set up your earn code as “non-monetary” and determine whether or not to withhold federal and/or state taxes. Employees MUST pay FICA on the amount. Enter the amount and fringe earn code on a time card Pre-Check Register will show a higher “taxable” amount than “gross” amount. This is correct Auto Fringes

Third Party Sick Pay. Learn how to take the “UGH” out of this process. 4 Third Party Sick Pay

Set up your earn code as TPS and mark the W2 tab to show in the 941 report. Enter History Adjustment #1 – Record the employer portion of FICA and taxable amounts. Post and do NOT bypass the GL. Enter History Adjustment #2 – Record the employee’s portion of FICA already paid. Post and DO bypass the GL. Third Party Sick Pay

Bonus Payroll When everyone loves you the most and then asks you for favors! 5 Bonus Payroll

Can be paid as a separate payroll Can be paid with current payroll You can adjust whether employee withholds Federal, State, and Local taxes or not You MUST, MUST withhold FICA You can gross up bonus to cover the FICA portion. This means that the employer is paying the FICA for the employee. You can figure out a flat percentage of tax withholding if you wish. Bonus Payroll

If YTD earnings $117,000 or less: Gross Bonus amount ÷.9235 If YTD earnings between $117, $200,000: Gross Bonus amount ÷.9855 If YTD earnings $200, or more: Gross Bonus amount ÷.9765 Grossing Up Bonus Checks

FICA has it’s Limits Make sure you know the limits BEFORE the boss comes questioning her/his paycheck! 6 FICA

If YTD earnings $117,000 or less: Social Security 6.2%, Medicare 1.45% = Total 7.65% If YTD earnings between $117, $200,000: Social Security 0%, Medicare 1.45% = Total 1.45% If YTD earnings $200, or more: Social Security 0%, Medicare 2.35% = Total 2.35% Grossing Up Bonus Checks

Electronic Filing It’s all fun and games until you need a PIN! 7 Electronic Filing

W2 Forms How to “rock” the new forms and “roll” out an easy W2 run. 8 W2 Forms

Social Security Numbers Big Brother may not be watching you, but he knows what isn’t real! 9 Social Security Numbers

Thank You!