It’s that time of year again! Yes, the holiday season is upon us—and that also means that tax time is approaching. While the latter may not be your favorite, at Precision Payroll, we help make it as painless as possible.
With tax time ahead of us, here are some requirements you’ll want to know about.
- There are new wage limits for Social Security taxes: $117,000 is the threshold for the 6.2% tax (last year the threshold was $113,700).
- Medicare wage limits remain the same (1.45% up to $200,000), and there is an additional .9% tax for employees who earn over $200,000.
- Employers who filed more than 250 W2 forms in 2012 need to report the cost of employer-paid health insurance on their W2.
- The FUTA credit reduction is still effective in 13 states (Arkansas, California, Connecticut, Delaware, Georgia, Indiana, Kentucky, Missouri, New York, North Carolina, Ohio, Rhode Island and Wisconsin).
- Illinois Unemployment:
- Starting in 2014, electronic filing for employers with more than 25 employees is a requirement of the IDES (Illinois Department of Employment Security).
- IDES is phasing in a monthly wage-reporting requirement for employers with more than 25 employees.
- Unemployment rates for 2014 will be going down slightly. IDES mailed new unemployment rates on Dec. 2. Send your new rate to your payroll specialist so that we can update your rate in our system. If you have given us Power of Attorney (POA), the rates will be sent directly to us.
Also, please note these reminders:
- If you are doing bonus payrolls or additional year-end payrolls, send the information to your payroll specialist as soon as possible. We recommend that they be scheduled ahead of time and be run separately from normal payrolls.
- Employees must have W2s postmarked by Jan. 31. Precision Payroll will send your W2s to you by Jan. 25, giving you one week to get them to your employees.