Year End Payroll IssuesBronwyn Betts
What This Session Will Cover Why worry about year-end in May? Employer Health Contributions Non-Monetary Fringes Third Party Sick Pay Bonus Payroll FICA and all their limits Bonus Payroll Electronic Filing W2 and taxes Social Security Numbers
Dudeits like, May. Why do I care about all the year-end stuff NOW?????
Payroll Rock Stars must be like Boy Scouts. You must be PREPARED!!!
Register for PIN numbers!Practice printing your W2s!Record the Employers Health Benefits w/each payroll!Understand the various limits before they happen!Record auto fringes with each payroll!Watch YE Payroll videos on the FSI Client Website!Know when & how to update your taxes!
Rock your year-end and track your Employer Health Benefits per pay. This allows you to expense and accrue Health Care Costs and have your W2s all prepped and ready for printing!
Employer Health Benefits
By changing the plan type to Section 125, the tab for ER Contribution becomes enabled.
This allows amount and descriptions to show on the employees check stub.This allows contributions to be reported on W2. (Retroactive)Identify the G/L Accounts to expense and accrue this benefit.Enter the amount PER PAY per employee. The amount you enter here can be overridden on each employees file.
Enter Health Deductions and the amount that EE deducts here.By entering the deduction for the EE, the ER Contribution tab is available.ONLY right-click and Add if you need to overwrite the employer amount that was set on the ER Contribution tab on the miscellaneous deduction.
Why wait for the Auto Fringes to be figured out for the last pay of the year! Parcel the amount out weekly, monthly or quarterly to give your employee(s) a chance to withhold taxes in smaller amounts just more frequently.
Set up your earn code as non-monetary and determine whether or not to withhold federal and/or state taxes. Employees MUST pay FICA on the amount.Enter the amount and fringe earn code on a time cardPre-Check Register will show a higher taxable amount than gross amount. This is correct
Third Party Sick Pay.Learn how to take the UGH out of this process.4
Third Party Sick Pay
Set up your earn code as TPS and mark the W2 tab to show in the 941 report.Enter History Adjustment #1 Record the employer portion of FICA and taxable amounts. Post and do NOT bypass the GL.Enter History Adjustment #2 Record the employees portion of FICA already paid. Post and DO bypass the GL.
Third Party Sick Pay
Bonus PayrollWhen everyone loves you the most and then asks you for favors!5
Can be paid as a separate payrollCan be paid with current payrollYou can adjust whether employee withholds Federal, State, and Local taxes or notYou MUST, MUST withhold FICAYou can gross up bonus to cover the FICA portion. This means that the employer is paying the FICA for the employee.You can figure out a flat percentage of tax withholding if you wish.
If YTD earnings $117,000 or less:Gross Bonus amount .9235
If YTD earnings between $117,000.01 - $200,000:Gross Bonus amount .9855
If YTD earnings $200,000.01 or more:Gross Bonus amount .9765Grossing Up Bonus Checks
FICA has its LimitsMake sure you know the limits BEFORE the boss comes questioning her/his paycheck!6
If YTD earnings $117,000 or less:Social Security 6.2%, Medicare 1.45% = Total 7.65%
If YTD earnings between $117,000.01 - $200,000:Social Security 0%, Medicare 1.45% = Total 1.45%
If YTD earnings $200,000.01 or more:Social Security 0%, Medicare 2.35% = Total 2.35%Grossing Up Bonus Checks
Electronic FilingIts all fun and games until you need a PIN!7
W2 FormsHow to rock the new forms and roll out an easy W2 run.8
Social Security NumbersBig Brother may not be watching you, but he knows what isnt real!9
Social Security Numbers