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Critical Year-End Reminders

Please review the following year-end reminders and "best practices.”  Incorporating these items into your year-end planning process prior to your last payroll of 2014 will help ensure a successful year-end.  As always, please contact us at (800) 586-0549 if you have any questions.

Employee Reminder:  Request that all employees verify the accuracy of their name and address on their pay stubs or in Employee Self Service.  Any changes must be made prior to December 26, 2014.  

W-2 Review:  Run a W-2 Edit Report (MPI_4402) and review it for incomplete addresses and/or missing SSNs. The SSA website, www.socialsecurity.gov/employer, has additional helpful information on verifying employee SSNs. 

If you had new hires during 2014 you can run an Employee Profile report and filter it for active employees, preview the report and print out any new hire pages.  Each report can be given to the specific individual with instructions to review it for their name, address, and SSN. 

W-2 Billing: Clients that are billed separately for W-2s will see these charges on their last payroll invoice for December.  Current billing is $4.75 per W-2 with a $50.00 base fee.

Year-End Adjustments:  All adjustments, including manual checks, voided checks, bonuses, employer health care costs, owners’ health insurance, 1099 earnings, etc., that need to be included in the 2014 W-2s and 1099s  must be processed prior to December 26, 2014.  Any information received after that date may delay your Q4 tax returns and your W-2 or 1099 forms.  Please notify your third party sick pay vendor and your CPA of the December 26th deadline.  

Note: Manual and voided checks for employees that have been terminated in 2014 must be processed prior to December 26, 2014. 

Tax Forms: Send all preprinted Federal, State, and local withholding and/or unemployment forms, including 2015 unemployment rate notices, to the Tax Department.  We will verify that the correct tax rates, frequencies, and account numbers are being used to deposit and file your payroll taxes for 2015.  These forms can be faxed to the Tax Department at 702-796-3934 or sent by email to taxdept@qtspayroll.com

Negative Wages:  Run a Year-To-Date Report and review it for negative wages. Verify that deductions are applied to the correct taxable wage categories, i.e., 401(k) should not be included in Federal wages, but should be included in Social Security and Medicare wages. 

Company AddressIf your company address has changed, please send your new mailing address to clientsupport@qtspayroll.com by December 26, 2014.  Government agencies also need to be notified of any changes.      

Health Care Reform:  Employers who filed 250 or more W-2s in 2013 are required to report the cost of Health Care Benefits on the 2014 W-2.  If this applies to your company, QTS will contact you with instructions on how to get this information loaded. 

WHEN YOU RECEIVE YOUR W-2s:

Review all W-2 forms for accuracy.  Some common misunderstandings are that SS Wages do not include tips, the Retirement Plan box is not checked for contributions made to non-qualified or section 457 plans, the Third Party Sick Pay box does not need to be checked because QTS is not the third party that made payments to the employee, and if the employee address is incorrect and all other information is correct, no correction to the form is required.

  • Employer copies (copy D) need to be filed in a safe and accessible place according to IRS record retention requirements. 
  • Employee Copies (B, C, and 2) must be distributed to employees either in person or by mail no later than midnight January 31, 2015.
  • W-2 Deduction Mapping:  Only government required information is printed on W-2s.  However, you need to verify that all of your company deductions have been properly mapped to the appropriate W-2 boxes.  Box 12 has multiple codes as outlined on page 27 of the IRS Reference Guide. 
W-2 CDs: If you would like to receive a CD with your 2014 W-2s in addition to the paper copies, please notify Client Support by February 1, 2015.  The CD includes a copy of Adobe Acrobat Reader and is searchable by employee number or name.  CDs will be created and mailed by February 28th for a one-time charge of $60.00.  If you received a CD last year, it is not necessary to contact Client Support, since you will automatically receive the 2014 CD.

2014 FUTA Credit Reductions States: The Department of Labor has announced that 14 states/territories have outstanding federal loans that were taken to fund unemployment benefits programs. States with outstanding loans lose a portion of the credit that reduces Federal Unemployment Tax (FUTA), resulting in a higher employer tax rate on 2014 wages.  The following is a listing of all states with outstanding loans:


State

Reduction

State

Reduction

California

1.2%

New York

1.2%

Connecticut

1.7%

North Carolina

1.2%

Indiana

1.5%

Ohio

1.2%

Kentucky

1.2%

Virgin Islands

1.2%

Collection of Additional FUTA Taxes: Debits to employer bank accounts for the additional taxes will take place at the end of January 2014. All employers will be notified of the debit date by US Mail at least one week prior to the transaction. 

SOCIAL SECURITY – 2015

The wage base for Social Security tax for 2015 is $118,500.00 with a maximum withholding of $7,347.00.  Both the employee and the employer rate is 6.2%. The Medicare tax rate for all employee wages is 1.45%.  Individuals who earn $200,000 or more will be subject to additional tax of 0.9%. 

QTS will be incorporating changes to these wage bases and percentages in our software as of January 1, 2015.

Affordable Care Act – 2015 Requirements

As of January 1, 2014, employers with 50 or more full-time employees or 50 or more full-time equivalent employees, were required to offer affordable, minimum essential health care coverage or potentially be subject to tax penalties.  Effective with the tax year 2015, additional reporting to the IRS is required.

How does this affect your business?

Under the Affordable Care Act, the Federal government, State governments, insurers, employers, and individuals share the responsibility for health insurance coverage beginning in 2014. Many people already have qualifying health insurance coverage (called minimum essential coverage) and they do not need to do anything more than maintain that coverage.

What is QTS doing to assist with the new requirements?

The QTS software is being updated to: 

·        Capture and run reports to assist your company in determining if you meet the 50 or over 100 full time or full time and full time equivalent employees.

·        Capture employee insurance information your company has entered in our software.

·        Capture and produce the annual employee and employer forms 1095-C and 1094-C.

 

QTS will conduct webinar training sessions to introduce new ACA software features and instructions for data entry and running new reports that will ensure your compliance with all the requirements.  Notifications of training sessions will be sent by email to the primary contact for your company.  

For additional information on the ACA requirements and definitions of minimum essential coverage, potential penalties, shared responsibility, etc., visit the IRS link http://www.irs.gov/uac/Affordable-Care-Act-Tax-Provisions-Home.

Payroll Calendar – 2015: To ensure your payroll schedule for 2015 reflects the correct check dates and pay periods, please run the Calendar Report (MPI_2201) for 2015 and review these dates.  Changes to your calendar can be made by contacting client support at clientsupport@qtspayroll.com.

Holiday Schedule: In observance of the Christmas and New Year holidays, our office will be closed on Thursday, December 25, 2014 and Thursday, January 1, 2015.  Accelerating the submission of your payrolls during the holiday weeks will ensure that your employees receive their direct deposits on time.

We appreciate your business and look forward to servicing your payroll needs in the New Year!

Contact: Linda Hovasse (linda.hovasse@qtspayroll.com)



News Releases

Critical Year-End Reminders
Critical things to consider to ensure a successful year-end!Release Date: 12/6/2014

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Release Date: 6/16/2014

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Release Date: 1/16/2014

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Renewable Energy
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