Year-end Cutoff Date The year-end cutoff date for you to report changes for 2011 is December 30, 2011 at 1:00 p.m., or the day a payroll with a January 2012 check date is processed, whichever is earlier. We recommend that you run any adjustments with a payroll to ensure that the taxes are withheld correctly. Please remind your accountant to report payroll adjustments no later than your cut-off date. If payroll adjustments are necessary after the year-end cutoff date, we can rerun your tax returns. However, there will be an additional charge and a processing delay. Depending on when you [...]

States use one of four methods to determine an employer’s experience rate: reserve ratio (most common), benefit ratio, benefit wage ratio, and payroll stabilization. Reserve Ratio =     Unemloyment taxes paid – Benefits Charged Average Taxable Payroll Benefits Ratio =   Benefits Charged Total Taxable Payroll Benefit Wage Ratio =   Benefit Wages Paid Total Taxable Payroll Payroll Stabilization. Currently Alaska is the only state utilizing this method.  Under payroll stabilization, the employer’s tax rate is determined by quarter to quarter, and year to year payroll fluctuations. Essentially, as more employees are terminated and total payroll decreases, the employer’s tax rate will increase. [...]

Announcement 2011-82, issued December 16, 2011, outlines changes to the determination letter application process that will take effect next year. These changes eliminate features of the determination letter program that are of limited utility to plan sponsors in comparison with the burdens they impose. The changes also are expected to improve our efficiency by reducing the time it takes us to process determination letter applications. The changes include: eliminating coverage and nondiscrimination demonstrations, and, limiting Form 5307, Application for Determination for Adopters of Master or Prototype or Volume Submitter Plans, filings to those employers who have made limited changes to [...]

Many of you may have noticed that your payroll report delivery has been upgraded to Shugo FileGuardian. If you have not been upgraded yet, please contact your Account Manager at (704) 921-2730 so that we can upgrade your report delivery before your next payroll. However, If you prefer the ViewChoice software, no action needs to be taken and you will continue to receive reports via ViewChoice. You can change report methods at anytime with just a call or email to your account manager. We are pleased to offer an additional secure method of receiving payroll reports.   Some information on [...]

Do you truly understand your W-2 earnings statement? A common question we get here at DirectPay Payroll Services is "Why don't the gross wages on my last pay stub of the year match box 1 of my W-2"? The reason for this is simple, if your wages include non-taxable income, the non-taxable income will not be included on your W-2. Items such as 401K and Simple IRA contributions will be included in gross wages on your check stub, but will not be included as federal or state wages on your W-2. However, fully non-taxable items such as pretax health insurance [...]

Year-end Cutoff Date                          The year-end cutoff date for you to report changes for 2011 is December 30, 2011 at 1:00 p.m., or the day a payroll with a January 2012 check date is processed, whichever is earlier.  We recommend that you run any adjustments with a payroll to ensure that the taxes are withheld correctly.  Please remind your accountant to report payroll adjustments no later than your cut-off date. If payroll adjustments are necessary after the year-end cutoff date, we can rerun your tax returns.  However, there will [...]

December is flying by, the 15th is on Thursday. If your check date falls on the 15th, please make sure your payroll information is reported to your account manager no later than 3pm today, Tuesday the 13th. Also, please keep in mind that year end is just a few weeks away. If you have any information that needs to be included in 2011 and has not yet been reported to your account manager, please do so no later than 1pm on December 30th. Thank you! As always, if you have any questions please feel free to call us at (704) [...]

WASHINGTON — The Internal Revenue Service today issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 55.5 cents per mile for business miles driven 23 cents per mile driven for medical or moving purposes 14 cents per mile driven in service of charitable organizations The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, [...]