Below are some very important items for you to be aware of, and act upon, before this calendar year ends. Failure to follow appropriate timing could result in inaccurate data being filed, which could be time-consuming and costly to correct. Please take 5 minutes to read this letter completely.
Employee Information Verification
Please verify that employee information, specifically social security numbers and addresses, are correct and adjust in iSolved or notify us of any adjustments to be made before Wednesday, December 18, 2019. This will prevent W2s from being produced with incorrect information and reduce the chance of having to file W2 corrections. You can also run the “SSN Verification Report” to locate any duplicate, invalid or missing SSNs. We provide an SSN Verification Service, to assist in verifying the accuracy of employee data. If you are interested or would like more information, please contact your Relationship Manager.
Health Care Information on W2s
As a reminder, any employer with more than 250 employees is required to report the total cost of employer-sponsored health care on employee W2s in Box 12, Code DD. If you have over 250 employees, please be sure to get over to us the per-employee year-to-date employer contribution amounts before your last payroll of the year. These amounts will be added to the employee YTD health deductions to produce the informational-only line item in Box 12, Code DD, of the W2. ACA clients will be receiving an email with step-by-step instructions for the forms approval process.
Note: If we already have Benefits Administration setup for your company, the Health Costs are already available in iSolved and no further action is required.
Bonus Payrolls, S-Corp Medical Expenses, Fringe Adjustments
Any bonus payrolls, adjusted figures, or S-Corp medical expenses will need to be processed before Friday, December 20, 2019, to be recorded in 2020. Payrolls processed after the quarter has closed will incur additional processing fees.
Big Fish will be producing employee W2s & 1099s, on or around January 11, 2020. ACA & 1095 Forms have a later due date and will be produced in late January. Employee W2s and 1099s will be sent via courier by January 15, 2020. Again, if there are any corrections needed, please let us know ASAP. Once W2s are generated and filed with State and Federal agencies, adjustments can be time-consuming and potentially costly.
Quarterly and Annual Reports
Retrieve your Quarterly and Year-End reports on or before January 15, 2020. If your employees are set up with Employee Self Service, they will have access to view and print W2s/1099s/1095s at their convenience on or before January 31, 2020.
If you would like to change who receives or who has access to reports, please notify us before Friday, December 13, 2019.
Minimum Wage Increases
It is important to be ready for minimum wage increases for 2020. Some states, such as California (increasing to $12.00 per hour for Employers with 1-25 employees & increasing to $13.00 per hour with employers with 26 or more employees on 1/1/20) have already announced their increases. Each employee who is paid below minimum wage in their state will require a rate adjustment by you before the effective date of the new minimum wage in their state and/or city. As the employer, it is your responsibility to update rates in the system. Please contact your Relationship Manager if you have any questions.
Important Tax Information
The IRS requires that the following paragraph be communicated by all US payroll companies to their clients. We are required to communicate this to you at least quarterly, effective Nov. 2012:
“Please be aware that you are responsible for the timely filing of employment tax returns and the timely payment of employment taxes for your employees, even if you have authorized a third party to file the returns and make the payments. Therefore, the Internal Revenue Service recommends that you enroll in the U.S. Treasury Department’s Electronic Federal Tax Payment System (EFTPS) to monitor your account and ensure that timely tax payments are being made for you. You may enroll in EFTPS online at www.eftps.gov, or call (800) 555-4477 for an enrollment form. State tax authorities generally offer similar means to verify tax payments. Contact the appropriate state offices directly for details.”
(Rev. Proc. 2012 – 32 http://www.irs.gov/pub/irs-drop/rp-12-32.pdf)
If you have any questions about the topics above, please call us immediately at 714.769.3410 or email email@example.com.
Thank you for allowing Big Fish to be of service to you!