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2020 Y/E is almost here!
As we near the year end, we are busy getting ready for the big push! This email is sent to all our payroll clients, small businesses, and any client that hires 1099 individuals. Therefore some items may not apply to your or your company.
Payroll To Do’s:
- Please confirm all employees have correct address submitted for W2 mailing for employees who do not have email or terminated employees.
- For clients that have their payroll completed by Taxsense, we are making a huge effort this year to have your employees download their own W2 from the online portal at www.Workforce.intuit.com. For all employees, we will be checking their employee profile to confirm email address and if they have accepted our invitation to view their paystubs and W2. If your employee has not accepted the invitation, we will inform you. This is a win for all: the employee gets their W2 faster, and we save time and paper. If you need a new W4, we can send this to you.
- Sub-S Shareholder Health Insurance: If you are a Sub-S corporation and pay health insurance with a policy through your business, we need the gross amount of health insurance paid for each 2% or greater shareholder for the year. If you have a personal health insurance policy, we do not need this information until tax time.
- Personal use of company car: provide percent of personal use, or total miles driven with personal use miles noted for each employee with a company car.
- IRS or State Tax rate or deposit notices: if you have received notices in the mail, please provide a copy to your Payroll Provider.
- Year-end bonus: If you are planning on year-end bonuses, please provide the amounts at least 1 week prior to when you want to pay. Also remember the taxes and retirement contributions need to be paid as soon as the bonuses are paid.
1099 To Do’s:
- 1099’s: For all payments to non-corporate individuals for services rendered >$600/year, if we prepare the 1099’s, we need a list comprised of their name, address, social security number, and total paid.
Payroll updates for 2021:
- 2021 Massachusetts Minimum Wage MA changes: effective January 1, 2021
- Minimum wage will increase by $0.75 cents/hr to $13.50/hr.
- Tipped minimum wage will increase by $0.60 cents/hr to $5.55/hr.
- Retirement plans:
- 401K maximum for 2021 is $19,500 with catch-up for over 50 is another $6500 (no change).
- SIMPLE IRA- new maximum for 2021 is $13,500 with catch-up over 50 is another $3000 (no change).
- If you have a plan, please notify us if the contributions will increase for all employees.
- Any other changes in pay rates, withholding, and health insurance deductions please provide information.
PPP Forgiveness
Businesses with outstanding PPP loans have 10 months from the end of their covered period to apply for forgiveness. Due to uncertainty regarding the taxability of forgiven loans, we have decided the best strategy will be to apply for forgiveness starting January 2021. However, we have begun the process of preparing the applications in the meantime. Please make sure you have loan documents and payroll records available as we work through this process.
Deadlines:
December 21, 2020: Payroll, Sub-S Shareholder Health Insurance and Personal use of company car. Email payroll@taxsense.com or fax 617-770-1817
January 15, 2021: 1099’s. Email joanne@taxsense.com or fax 617-770-1817
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