Ah, Fall. Time for pies, pumpkins, and payroll — third quarter payroll taxes, to be precise. Here are things to think about as you gather your information.
This year, payroll notices come in two formats. One is a letter you’ll get from the IRS if your Forms W-2 or 1099 contained errors. If you receive one of these 972-CG notices, give us a call. We’ll help you respond effectively and avoid penalties.
The second payroll notice is related to health care reform. If your business is covered under the Fair Labor Standards Act — and most are — you’ll need to give current employees an informational notice about the new health care “exchanges.” Exchanges are marketplaces, either on-line or off, where your employees can buy personal health insurance. This notice is required whether or not you offer health insurance and should also be given to new hires when they start work with your company.
Have you paid any employees $200,000 in wages? If so, it’s time to begin withholding the additional 0.9% Medicare surtax. Though you’re not required to match this new tax, you do need to include amounts withheld from employees with your payroll deposits.
Do you use an outside payroll service? Sign up for the Electronic Federal Tax Payment System. Then you can go online to review your account and make sure your federal payroll tax deposits are being made.
Check FUTA Liability
Generally, the 2013 federal unemployment net tax rate is 0.6% of the first $7,000 of wages you pay per employee. However, if the state in which your business operates has outstanding loans from the Federal Unemployment Trust Fund, your actual rate can be higher. While you can pay any extra amount with your fourth quarter FUTA deposit, you may want to run the calculation now to avoid surprises.
Do you have questions about payroll forms or reporting requirements? Contact us – we’re here to help year-round.