Year End and ACA Preparations
Dear PayServ clients,
As PayServ prepares to close payrolls for this year all information that affects payroll must be identified before the final payroll is processed for 2019. Below is a list of important information!
Please also be sure to register for our November Work Smarter Webinar – which will help all clients prepare for a smooth year end! An email with registration link will be sent soon.
- We recommend that you process these adjustments with your payroll that will run in weeks ending 12/06 or 12/13. If any of these items are submitted after 12/13, we reserve the right to charge a late processing fee of $150.00. If you need special arrangements, please contact our service team by 12/13 to coordinate this. Please note January 3rd, 2020 is the final date to turn in adjustments to avoid amended Quarter 4/Annual return fees! The following items must be run with a standard payroll so that the proper taxes can be deducted from the employee and the W2 is accurate.
WHAT ARE THESE PAYROLL ITEMS?
*Group Term Life Insurance over $50,000
*Third Party Sick Pay
*Personal Auto Usage
*Shareholders Health Insurance
*End of Year Bonuses/Adjust
*ER Paid Health Insurance
- Group Term Life Insurance over $50,000 - If you as an employer cover any of the cost of life insurance, you must calculate the taxable portion of the premiums for coverage that exceeds $50,000. This is a taxable fringe benefit for the employee.
- Third Party Sick Pay - If you have not previously reported all Third-Party Sick Pay to PayServ to process with payrolls you must provide details by employee so that the employer FICA can be collected and paid and the employee W2 will be correct. It is always a good idea to contact your third-party administrator and request a summary of all checks issued throughout the year if you are unsure that all have been reported through payroll.
- Personal Auto Usage - If any of your employees are driving company owned vehicles you will need to calculate their personal use of the vehicle. This is a taxable fringe benefit for the employee.
- Shareholders Health Insurance - The health insurance premiums paid by an S Corporation for a 2% shareholder must to be included on the 2% shareholder’s W2.
- End of Year Bonuses – Bonus payments are classified as supplemental wages by the IRS and subject to the Supplemental Wage withholding rules; all bonus payrolls will be processed accordingly. All local taxes and employee unemployment contributions will be withheld from all bonuses – no exceptions.
- Adjustments – Any pay code, deduction code or void checks that need fixed prior to W2 print.
- Employer Paid Health Insurance – Any employers who have more than 250 employees are required to report the total premium paid (i.e. the employer portion and the employee portion) for medical insurance, dental and vision are optional, on the W2 form. For employers with fewer than 250 employees this is optional but encouraged.
2. Employee copies of W2’s will be processed and shipped and available in the Tax Document area of Thrive before January 15, 2020. W2 and W2 shipping charges (if applicable) will be billed on the last payroll invoice in January.
3. Please get with your PayServ Customer Service Representative before Friday December 13th, 2019 to confirm your W2 sort order!
4. W2-C (W2 Correction) forms will not be prepared until after February 1st.
5. To avoid additional fees related to W2-C forms please take the time to remind your employees to review their check stubs or employee profile for name, SSN and address accuracy. Any corrections after the Jan 3rd, 2020 deadline will require a W2-C form at a cost of $150.00.
6. Please take the time to reach out to your PayServ representative to ensure key contact names are up to date for 2019!
Thank you for your urgent attention to this matter. Please feel free to contact us at (877) 804-3286 with any questions!
We're here to help make this your best year end yet!
The PayServ Team