Accounting

Your Guide to Holiday Bonuses & Gift Giving

christmas-xmas-gifts-presentsIf you are looking to pay your employees or contractors a Bonus for their outstanding performance, or as a gift, please read the link in this post. ADP has a very informative Blog going with some great tips. Click here to read what they have to say about Holiday Bonuses.

Latest Changes By The IRS For 2015

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Here’s the latest on what’s changing for 2015:

1. Social Security wage base increase – The 2015 Social Security wage base has increased from $117,000 to $118,500.
2. Additional Medicare Tax – Wages in excess of $200,000 will continue to be subject to an extra 0.9% Medicare tax in 2015.
3. Credit reduction states – If you pay wages in a credit reduction state, they will pay more in federal unemployment tax (FUTA) when you file Form 940 for 2014. The following states are credit reduction states: CA, CT, IN, KY, NC, NY, OH. Visit the IRS website for more information.

Ready for Payroll Tax Season?

Intuit has put together their annual checklist for Employers and Payroll Processors that use Intuit Payroll.

December 2014
  • Dec 11, 2014 (Recommended): Check direct deposit submission and payroll dates.
  • Dec 29, 2014 5 PM (PT): Last date to submit direct deposit checks for 2014.
  • Before year end: Confirm each employee’s social security number, name, and address.
  • Before year end: Record all paychecks including handwritten, termination, unscheduled, commissions, and bonuses.
  • Before year end: Check your mail for SUI rate or deposit schedule notices. 
January 2015
  • Before first payroll: Update state unemployment insurance (SUI) rates effective Jan 1, 2015.
  • Before first payroll: Ask employees to submit new W-4 forms for status/withholding changes.
  • Before filing Form 940: Record all SUI payments.
  • Jan 31, 2015: Last date to distribute W-2s to employees and 1099-MISC forms to contractors.
  • Jan 31, 2015: File other federal forms including 940/941.
  • Due dates vary by state: File annual state forms. 
February 2015
  • Feb 28, 2015: Last date to file employees’ printed W-2s and contractor 1099-MISC forms with the agency.
Important

If you are e-filing, W-2 forms are due by Apr 1, 2015 and 1099-MISC forms by Mar 31, 2015. In mid-March, start sending W-2 information in batches to the agency.

 

Checklist Courtesy of Intuit Online Payroll.