Fourth Quarter Year-End Payroll Reminders

Before the year ends and the New Year’s celebrations begin, make sure you have all your ducks in line for the end of year quarterly payroll reports.
• Check to see if you have any items to report.On or before your final payroll of the quarter, report in-house checks, voided checks, or sick/ disability payments to employees by a third party. Make sure to report any fourth quarter changes before the year-end deadline of 12/31/2010.
• Payroll LiabilitiesCheck with you payroll service provider to MAKE SURE all payroll liabilities for the year have been scheduled or paid. If not, attempt to get this taken care of as soon as possible to avoid any additional penalty or interest. Also verify that tax liabilities were collected for bonus checks.
• Confirm employee name and address list.Report employee changes to your payroll service provider and ensure that you have the necessary federal and state withholding forms available when reporting new employees. Verify correct name and social security numbers for each employee. Reminder: The IRS may charge employers a penalty of $50 for each returned W2 form that has a missing or incorrect SSN.

What’s New for 2011?
• In November, the IRS mails a notice that includes your deposit frequency for 2011. Be on the look out!
• Effective January 1, 2011 the IRS will discontinue accepting deposits made with Form 8109. If you are not registered to pay online via EFTPS, you will need to register.
• You should receive notification of your state unemployment insurance (SUI) tax rate for 2011. You need this rate to calculate the SUI tax and SUI expense correctly.