If 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.
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.
Intuit has put together their annual checklist for Employers and Payroll Processors that use Intuit Payroll.
- 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.
- 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.
- Feb 28, 2015: Last date to file employees’ printed W-2s and contractor 1099-MISC forms with the agency.
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.