Thank you for joining us! The webinar will begin shortly. @Lever_1 | #YearEnd | Year-End Planning

Thank you for joining us! The webinar will begin shortly.

@Lever_1 | #YearEnd |

Year-End Planning

• Attendee phone lines will be muted during today’s webinar

• A recording of today’s presentation will be available by request: [email protected]

• Q&A session will follow, please submit via: – Webinar Chat Box or Twitter(Tag @Lever_1 using hashtag #YearEnd)

Housekeeping


Erica Brune, Lever1 PresidentRecognized among KC’s Most Influential Women of 2015

Erica offers over 15 years of human resources and strategic fiscal reporting that has led to 45% financial growth year-over-year for her companies. Despite the rising cost of healthcare programs under the Affordable Care Act, she secured an unprecedented 5% decrease in costs for clients in 2014.

Angela Murphy, AEMurphy Consulting ServicesCPA, MBA, CGMAMore than 25 years of experience supporting the small to mid-sized businesses. She has guided and assisted both profit-motivated and nonprofit clients in accounting, payroll, payroll taxes, income taxes, forecasting and consulting services.

Scott Lepley, Heritage Benefits Services20 Year Insurance Industry ExpertHe has a background in product development, group compliance, and creative funding options for employers. Scott’s focus is employer sponsored benefits for groups with 2 – 2,000 employees.


Today’s Presenters

• What is a Small Employer?• Understanding Penalties in 2016• FT/PT Variable Hour Employee Tracking

Methods• Tax Form Basics: 1094/1095, W2/W3, 1099 &

1096• Important Payroll Questions You Need to Ask• Owner Fringe Reporting Tips• Year-End Checklist for Payroll, Benefits and

Compliance

Today’s Agenda


Understanding Penalties in 2016

What is a Small Employer?• 2 to 49 Full Time and Full Time Equivalent

Employees– 30 Hours on Average– No Exemption

• 50+ employees subject to penalties 2016– January 1 Start Date– Payment Due


Defining a Small Employer

Penalties for not having a group health plan apply to:• In 2016 fines will be $2,000 per eligible

employee• First 30 eligible employees are not counted

– Subject to fines at 31+ eligible employees


Variable Hour Employee Tracking

Determine Your Variable Hour Employee Tracking Method

• Look back, no longer, than 12 months at:– Measurement Period– Administrative Period– Stability Period

• Offer health insurance and have part time employees (variable)

130 hours per month over 12 months = 1,560 hours


Renewing Health Plans in 2016

Things to Remember:• Affordability

• Employees Prefer Marketplace

• Paying Employees Cash to Go to The Market

• Employee Misconceptions on Cheaper Options


1094/1095 Tax Return Form Basics

Did You Know: Individuals will be subject penalties on tax returns for not having health employer sponsored or

individual health insurance.

Be Prepared to File Before January Deadline• 1094/1095 Tax Return - Four Forms:

1. 1094 B2. 1094 C3. 1095 B4. 1095 C


1094/1095 Tax Return Form Basics

Which forms do you need?• 1094/1095 Form B

– For small employers– Files by insurance company on your behalf, unless self

funded

• 1094/1095 Form C– For applicable large employers, 50+ employees– Delivered to employees by January 31st

1094/1095 Forms are Due to the IRS by Feb 28th


Payroll Questions to Ask Yourself

• Did my situation change?

• Are my employee’s wages reported accurately?– Don’t pay tax on more than you actually earned.

• When is my last payroll of 2015?– No edits can be made after this point!

• Did I provide new payroll rates to my payroll provider?


Payroll Year-End Checklist• Request each employee review a current paystub

– Self-Checking for: address, tax withholdings, accurate wages

• Look out for new unemployment rate notes• Check for new minimum wage rates for 2016

– KS: no change– MO: $7.65– Minimum wage for exempt status, delayed until 2017

• Review New Year’s payroll calendar for holidays and distribute

• Bonus, gift cards and other “gifts” reported


Owner Fringe Reporting


• Company Owned Vehicles– Employees must be taxed on any personal use of a company

owned vehicle. The amount should be included in gross income, taxed and included on the W-2.

• Dependent Care Assistance– Dependent care assistance provided may be considered

taxable wages and included on the employee’s W-2. For non-highly compensated employees the first $5,000 may be excluded from income.

• Long Term Care Insurance– Cost of premiums paid by the employer is exempt from

taxes and not reported as taxable wages. However, after tax dollars that are deducted from an employee’s pay to purchase Long Term Care insurance are considered taxable wages.

W2/W3 Tax Form Basics

For Employees:• January 31st: W-2’s must be provided to employees

• February 28th: W-2’s and Form W-3 filed with the IRS

• February 28th: W-2’s must also be provided to the State

If you have 250 or more W-2’s, they must be filed electronically.


1099/1096 Tax Form Basics

For External Contractors: (Receiving $600+ in payment)• January 31: 1099 due to external contractor

• February 28th: 1099’s and 1096 due to IRS and State


Benefits & Compliance Year-End Checklist

Benefits:• Ensure all employees are enrolled• Update payroll with new deductions• Ensure bills come through correctly with new

rates

Compliance:• Circulate and post new compliance posters• Posted at every office/location in workplace a

common area


• In 2016 fines for not having a group health plan will be $2,500 per eligible employee, for 30+ employees

• Employers should determine variable hour employee tracking method

• Plan ahead, be prepared to file tax returns before their respective deadlines

• Be aware of when your last payroll is in December – this is your last chance to fix anything for 2015

• If you’re a business owner you need to report fringe benefits, bonuses, etc.

• Have employees self-check recent paystubs for accuracy

• Stay in compliance with your 2016 posters

Year-End Summary


Questions?

Email: [email protected]: 866-622-1511


Documents

Thank you for joining us! The webinar will begin shortly. @Lever_1 | #YearEnd | Year-End Planning