QUICK PAYROLL PROCESSING GUIDE FEDERAL & STATE (CALIFORNIA)

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QUICK PAYROLL PROCESSING GUIDE

FEDERAL & STATE (CALIFORNIA)

BASIC SET UP:

1. Set up Employer’s Information: Enter Employer’s general information, Federal & State Tax ID’s, UI rates, Workers Comp rates, Departments, Earnings Types, Pretax Deductions, Miscellaneous Deductions, Bank Account, Tax Form Signer and Preparer’s information.

Enter Employer’s general information

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Input FEIN, State TaxID’s, UI Rates, Workers Comp rates

Setup Department

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Setup Pretax Deduction

Setup Earnings

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Setup Misc. Deduction

Setup Bank Account

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Setup Preparer

Input Account Information

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2. Setup Employee’s Information: Enter employee’s information, filing status, federal & state allowances, wages and deductions. (Collect data from form W-4 Employee’s Withholding Allowance Certificate, I-9 Employment Eligibility Verification, use form CA DE 34 report a new hire).

Enter employee’s information

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Enter filing status, federal & state allowances...

Setup Wages, Deductions..

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DO PAYROLL:

1. QuickPay - Create Paychecks in just a few clicks: Automatically calculates earnings, payroll taxes and deductions. On each payday, just verify wages rates, hours and other deductions of the employees on QuickPay List and just a few clicks you will get all paychecks ready to print for all or selected employees.

1- From 1.1 Payroll QuickPay, select a pay period

1.1 Payroll Quick Pay Select a

Pay period

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2- After review/edit employees rates or hours: Click Create Paychecks

3- Click Yes to View Pay Checks List (see 2. Print Paychecks)

Edit Date

Edit Rate/Hours

H ours

Create Paycheck

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2. Print Paychecks: Save time and money with our Free MICR (Magnetic Ink Character Recognition). There is no need for preprinted checks, no check storage. Our software prints entire payroll checks (company, bank, payee and MICR encoded line) on blank check stock.

3.2 Print Paychecks

View/Print

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3. Pay Taxes: Our Payroll Summary Reports instantly calculate and guide you pay federal and state payroll taxes or make tax deposits easily.

Payroll Tax Payment Notification

View/Print

Edit Date

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4. File Tax Forms: just print, sign and mail. See FILE TAX FORMS

Example for Form 941:

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PAY TAXES:

• FEDERAL: Online EFTPS Or make a tax deposit using the Electronic Federal Tax Payment System (EFTPS). For more information on EFTPS, go to www.eftps.gov or call 1-800-555-4477.

• State (CALIFORNIA) CA-DE88 Use preprinted State Payroll Deposit Coupon CA-DE88 or our alternate Coupon to make a state tax deposit. http://www.edd.ca.gov/Payroll_Taxes/Required_Filings_and_Due_Dates.htm#PayrollTaxDepositDE88 Online EFT Or make a tax deposit using the Electronic Funds Transfer (EFT). For more information on EFT, go to http://www.edd.ca.gov/Payroll_Taxes/Electronic_Filing_Registration_and_Payment_Information.htm#EFT or call the EFT Helpline 1-916-654-9130.

http://www.eftps.gov/

http://www.edd.ca.gov/Payroll_Taxes/Required_Filings_and_Due_Dates.htm#PayrollTaxDepositDE88


http://www.edd.ca.gov/Payroll_Taxes/Electronic_Filing_Registration_and_Payment_Information.htm#EFT

http://www.edd.ca.gov/Payroll_Taxes/Electronic_Filing_Registration_and_Payment_Information.htm#EFT

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Monthly, Semiweekly, Quarterly Tax Deposits: Federal: http://www.irs.gov/publications/p15/ar02.html#en_US_publink100011711 California – Employment Development Department http://www.edd.ca.gov/Payroll_Taxes/Required_Filings_and_Due_Dates.htm#PayrollTaxDepositDE88

DEPOSITING TAXES:

In general, you must deposit federal income tax withheld and both the employer and employee social security and Medicare taxes plus or minus any prior period adjustments to your tax liability (minus any advance EIC payments). You must deposit by using the Electronic Federal Tax Payment System (EFTPS) or by mailing or delivering a check, money order, or cash with Form 8109, Federal Tax Deposit Coupon, to a financial institution that is an authorized depositary for federal taxes (Bank of America, etc...). Some taxpayers are required to deposit using EFTPS.

1. Monthly Deposit Schedule

You are a monthly schedule depositor for a calendar year if the total taxes on line 8 of Form 941 for the 4 quarters in your lookback period were $50,000 or less. Under the monthly deposit schedule, deposit employment taxes on payments made during a month by the 15th day of the following month

2. Semiweekly Deposit Schedule

You are a semiweekly schedule depositor for a calendar year if the total taxes on line 8 of Form 941 during your lookback period were more than $50,000. Under the semiweekly deposit schedule, deposit employment taxes for payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. Deposit taxes for payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday.

3. $100,000 Next-Day Deposit Rule

If you accumulate $100,000 or more of taxes (that is, line 10 of Form 941 or line 9 of Form 944) on any day during a deposit period, you must deposit the tax by the next banking day, whether you are a monthly or semiweekly schedule depositor.

4. Payment with return. Form 941 or Form 944 You may make a payment with Form 941 or Form 944 instead of depositing, without incurring a penalty, if one of the following applies.

http://www.irs.gov/publications/p15/ar02.html#en_US_publink100011711



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• You report less than a $2,500 tax liability for the quarter on line 10 of Form 941 (or for the year on line 9 of Form 944). However, if you are unsure that you will report less than $2,500, deposit under the appropriate rules so that you will not be subject to failure-to-deposit penalties.

• You are a monthly schedule depositor (defined below) and make a payment in accordance with the Accuracy of Deposits Rule discussed on page 23(Pub. 15). This payment may be $2,500 or more.

Employers who have been notified to file Form 944 can pay their fourth quarter tax liability with Form 944 if the fourth quarter tax liability is less than $2,500. Employers must have deposited any tax liability due for the first, second, and third quarters according to the deposit rules to avoid failure-to-deposit penalties for deposits during those quarters.

Form 940: If your FUTA (Form 940) is $500 or less in a quarter, carry it over to the next quarter. If it is over $500 you must deposit your tax for the quarter on or before the last day of the month after the end of the quarter.


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FILE TAX FORMS:

Quarterly Report: (Federal & State)

• Form 941 Employer’s Quarterly Federal Tax Return.

• CA-DE9 State (California) Quarterly Contribution Return and Report of Wages

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Your Federal Form 941 & State (California) DE 9,9C is due by the last day of the month that follows the end of the quarter. (April 30, July 31, October 31, and January 31) Form 941 & DE9 The Quarter Includes… Quarter Ends due on or before 1. January, February, March 03/31 04/30 2. April, May, June 06/30 07/31 3. July, August, September 09/30 10/31 4. October, November, December 12/31 01/31

Yearly Report: (Federal & State) • Form 940. Employer’s Annual Federal Unemployment (FUTA) Tax Return.

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• W-2 (Copy B, C, and 2) To Employees. • W-3 & W-2. Transmittal of Wage and Tax Statements. Send this entire page with the

entire Copy A page of Form(s) W-2 to the Social Security Administration (Copy A) To SSA (Social Security Administration).

Your Federal Form 940 is due January 1st, 2010 and delinquent if not postmarked by January 31st.

Form W-2 (Copy B, C, and 2) To Employees You must furnish Form W-2 (copy B, C, and 2) to your employees on or before January 31st.

Form W-3 & W-2’S (Copy A) To SSA (Social Security Administration):

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File the entire Copy A page of W-2 with the entire page of W-3 to Social Security Administration (SSA) on or before February 28th.

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TAX CALENDAR:

The following is a list of important dates. Also see Publication 509, Tax Calendars for 2012.

If any date shown below for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or federal holiday, use the next business day. A statewide legal holiday delays a filing due date only if the IRS office where you are required to file is located in that state. For any due date, you will meet the “file” or “furnish” requirement if the envelope containing the return or form is properly addressed, contains sufficient postage, and is postmarked by the U.S. Postal Service on or before the due date, or sent by an IRS-designated private delivery service on or before the due date. See Private Delivery Services on page 6 for more information.

By January 31 FEDERAL

Furnish Forms 1099 and W-2. Furnish each employee a completed Form W-2, Wage and Tax Statement. Furnish each other payee a completed Form 1099 (for example, Form 1099-MISC, Miscellaneous Income).

File Form 941 or Form 944. File Form 941, Employer's QUARTERLY Federal Tax Return, for the fourth quarter of the previous calendar year and deposit any undeposited income, social security, and Medicare taxes. You may pay these taxes with Form 941 if your total tax liability for the quarter is less than $2,500. File Form 944, Employer's ANNUAL Federal Tax Return, for the previous calendar year instead of Form 941 if the IRS has notified you in writing to file Form 944 and pay any undeposited income, social security, and Medicare taxes. You may pay these taxes with Form 944 if your total tax liability for the year is less than $2,500. For additional rules on when you can pay your taxes with your return, see Payment with return on page 21. If you timely deposited all taxes when due, you have 10 additional calendar days from the due date above to file the appropriate return.

File Form 940. File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. However, if you deposited all of the FUTA tax when due, you have 10 additional calendar days to file.

File Form 945. File Form 945, Annual Return of Withheld Federal Income Tax, to report any nonpayroll income tax withheld in 2008. If you deposited all taxes when due, you have 10 additional calendar days to file. See Nonpayroll Income Tax Withholding on page 5 for more information.

http://www.irs.gov/publications/p509/index.html




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By February 15 Request a new Form W-4 from exempt employees. Ask for a new Form W-4, Employee's Withholding Allowance Certificate, from each employee who claimed exemption from income tax withholding last year.

On February 16 Exempt Forms W-4 expires. Any Form W-4 previously given to you claiming exemption from withholding has expired. Begin withholding for any employee who previously claimed exemption from withholding, but has not given you a new Form W-4 for the current year. If the employee does not give you a new Form W-4, withhold tax as if he or she is single, with zero withholding allowances. See section 9 for more information. However, if you have an earlier Form W-4 for this employee that is valid, withhold based on the earlier Form W-4.

By February 28 File paper Forms 1099 and 1096. File Copy A of all paper Forms 1099 with Form 1096, Annual Summary and Transmittal of U.S. Information Returns, with the IRS. For electronically filed returns, see By March 31 below.

File paper Forms W-2 and W-3. File Copy A of all paper Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration (SSA). For electronically filed returns, see By March 31 below.

Mail Paper Form W-2/W-3 U. S. Postal Service

Social Security Administration Data Operations Center Wilkes-Barre, PA 18769-0001

(for Certified Mail Use ZIP code 18769-0002) Private Delivery Service (FedEx, UPS, etc.)

Social Security Administration Data Operations Center Attn: W-2 Process 1150 E. Mountain Drive Wilkes-Barre, PA 18702-7997




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File paper Form 8027. File paper Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, with the IRS. See section 6. For electronically filed returns, see By March 31 next.

By March 31 File electronic Forms 1099, 8027, and W-2. File electronic Forms 1099 and 8027 with the IRS. File electronic Forms W-2 with the SSA. For information on reporting Form W-2 information to the SSA electronically, visit the Social Security Administration's Employer W-2 Filing Instructions & Information webpage at www.socialsecurity.gov/employer. For information on filing information returns electronically with the IRS, see Publication 1220, Specifications for Filing Forms 1098, 1099, 5498, and W-2G Electronically, and Publication 1239, Specifications for Filing Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips Electronically.

By April 30, July 31, October 31, and January 31 Deposit FUTA taxes. Deposit federal unemployment (FUTA) tax due if it is more than $500.

File Form 941. File Form 941 and deposit any undeposited income, social security, and Medicare taxes. You may pay these taxes with Form 941 if your total tax liability for the quarter is less than $2,500. If you timely deposited all taxes when due, you have 10 additional calendar days from the due dates above to file the return.

STATE (CALIFORNIA)

File Form CA DE 9, 9C. File Form DE 9 Quarterly Contribution Return and Report of Wages.

If you paid no wages during a quarter, you are still considered an employer and required by law to sign and file the DE 9. Just check the "No Payroll" box in Item C, then sign and mail the DE 6. If you do not expect to pay wages within the next year, you may notify EDD by writing to us or by checking the "Out of Business/Final Report" box in Item D on the DE 6. We will send you a letter confirming that your account has been inactivated.

Mail DE 9 to:

Employment Development Department PO Box 826288 Sacramento CA 94230-6288

The postmark date is used to determine the timeliness of your DE 9. When the due date falls on a Saturday, Sunday, or legal holiday, the next business day is considered to be the last timely date.




http://www.irs.gov/app/scripts/exit.jsp?dest=http%3A%2F%2Fwww.socialsecurity.gov%2Femployer

http://www.edd.ca.gov/Payroll_Taxes/Legal_Holidays.htm

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If the DE 9 is not submitted on time, EDD will issue a written demand for the report. If the DE 9 is not submitted within 15 days of the demand date, a penalty of $10 for each unreported employee, plus interest, will be charged unless there is good cause for the delay. A penalty of $10 for each employee, plus interest, is also charged if an employer fails to report by magnetic media when required, unless good cause exists.

Before December 1 New Forms W-4. Remind employees to submit a new Form W-4 if their withholding allowances have changed or will change for the next year.

On December 31 Form W-5 expires. Form W-5, Earned Income Credit Advance Payment Certificate, expires each year on December 31. Eligible employees who want to receive advance payments of the earned income credit next year must give you a new Form W-5.

By January 31 FEDERAL

Furnish Forms 1099 and W-2. Furnish each employee a completed Form W-2, Wage and Tax Statement. Furnish each other payee a completed Form 1099 (for example, Form 1099-MISC, Miscellaneous Income).

File Form 941 or Form 944. File Form 941, Employer's QUARTERLY Federal Tax Return, for the fourth quarter of the previous calendar year and deposit any undeposited income, social security, and Medicare taxes. You may pay these taxes with Form 941 if your total tax liability for the quarter is less than $2,500. File Form 944, Employer's ANNUAL Federal Tax Return, for the previous calendar year instead of Form 941 if the IRS has notified you in writing to file Form 944 and pay any undeposited income, social security, and Medicare taxes. You may pay these taxes with Form 944 if your total tax liability for the year is less than $2,500. For additional rules on when you can pay your taxes with your return, see Payment with return on page 21. If you timely deposited all taxes when due, you have 10 additional calendar days from the due date above to file the appropriate return.

File Form 940. File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. However, if you deposited all of the FUTA tax when due, you have 10 additional calendar days to file.

File Form 945. File Form 945, Annual Return of Withheld Federal Income Tax, to report any nonpayroll income tax withheld in 2008. If you deposited all taxes when due, you have 10 additional calendar days to file. See Nonpayroll Income Tax Withholding on page 5 for more information.

http://www.edd.ca.gov/Payroll_Taxes/Interest_Rate.htm



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WHERE TO FILE YOUR FEDERAL & STATE PAYROLL TAXES

If you are located in CALIFORNIA FEDERAL "Where to File Your Taxes" (for Form 941) http://www.irs.gov/file/article/0,,id=111163,00.html

IF you are located in... Without a payment... With a payment... California Department of the Treasury

Internal Revenue Service Ogden, UT 84201-0005

Internal Revenue Service PO Box 105083 Atlanta, GA 30348-5083

"Where to File Your Taxes" (for Form 944) http://www.irs.gov/file/article/0,,id=165197,00.html




"Where to File your Taxes" (for Form 940) http://www.irs.gov/file/article/0,,id=111150,00.html




http://www.irs.gov/file/article/0,,id=111163,00.html



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“Where to File Your Taxes” (For Paper Form W-2/W-3) http://www.ssa.gov/employer/whereto.htm Mail Paper W-2/W-3 to:

U. S. Postal Service Social Security Administration Data Operations Center Wilkes-Barre, PA 18769-0001 (for Certified Mail Use ZIP code 18769-0002) Private Delivery Service (FedEx, UPS, etc.) Social Security Administration Data Operations Center Attn: W-2 Process 1150 E. Mountain Drive Wilkes-Barre, PA 18702-7997



http://www.ssa.gov/employer/whereto.htm

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STATE (CALIFORNIA) Mail DE 88 Mail all tax payments with Payroll Tax Deposit (DE 88/DE 88ALL) coupons to:

Employment Development Department P.O. Box 826276 Sacramento, CA 94230-6276

Mail DE 9 to:

Employment Development Department PO Box 826288 Sacramento CA 94230-6288

Mail DE 34 To report new employees, mail or fax information to:

Employment Development Department PO Box 997016 MIC 23 West Sacramento CA 95799-7016 Fax: (916) 319-4400

Other Links: Form SS-4 (FEIN) http://www.irs.gov/pub/irs-pdf/fss4.pdf Apply for an Employer Identification Number (EIN) Online http://www.irs.gov/businesses/small/article/0,,id=102767,00.html

http://www.irs.gov/pub/irs-pdf/fss4.pdf

http://www.irs.gov/businesses/small/article/0,,id=102767,00.html

Documents

QUICK PAYROLL PROCESSING GUIDE FEDERAL & STATE (CALIFORNIA)