WASHINGTON — IRS Free File, which has been making taxes a little less taxing for a decade, opens today, Jan. 17. More than 33 million returns have been filed through Free File since its debut. Everyone can use Free File, either the brand-name software offered by IRS’ commercial partners or the online fillable forms. Individuals or families with 2011 adjusted gross incomes of $57,000 or less can use Free File software. Free File Fillable Forms, the electronic version of IRS paper forms, has no income restrictions. “Free File can save you time and money. You can prepare and e-file your [...]

Martin Luther King Jr. Day Monday, 1/16/2012 If you normally date your checks for Monday, you will need to submit payroll by 3pm on Wednesday the 11th. If you normally date your checks for Tuesday, you will need to submit payroll by 3pm on Thursday. If you normally date your checks for Wednesday, you will need to submit payroll by 3pm on Friday. Payrolls dated for Thursday or Friday of next week will not be affected. If you have any questions, please feel free to call (704) 921-2730 or send an email to payroll@directpaypayroll.com  

Issue Number: 01-2012 Inside This Issue 1. New Voluntary Classification Settlement Program 2. Repeal of Section 3402(t) 3. Guidance on Employer Provided Cell Phones 4. Changes to Form W-2 for 2011 5. Common FSLG Examination Issues 6. Ruling on Employer-Provided Clothing Revoked 7. Reissuance of Debt Obligations: Basic Concepts 8. Directory of FSLG Specialists To read the January 2011 Edition, please visit the Current Edition of the FSLG Newsletter page in the Government Entities section of the IRS.gov Web site. http://www.irs.gov/pub/irs-tege/p4090_0112.pdf  

We are currently processing 4th Quarter Reports and W-2s. You should have your packages within the next few weeks. At this time, 2011 has been closed. Any year end adjustments will be processed at an additional charge. If you need to add wages, fringe benefits, or anything else to 2011, please contact your Account Manager as soon as possible. If you do not receive your 4th Quarter Reports, W-2s/1099s by the end of January, please promptly alert your Account Manager. Thank you! DirectPay Payroll Services Contact Info: Phone: (704) 921-2730 Fax: (704) 921-2718 Email: payroll@directpaypayroll.com

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. [...]