The 2020 Year End Guide was distributed in the November issue of the Hub. It provided important payroll and tax information for the end of the year, processing and year-end deadlines, upcoming holiday schedules, and other year-end information. If you have not yet had the chance to review it, click here to access the guide.
You should also take this time to verify your company and tax setup in iSolved. You can use the below information to guide you through a review of basic information. All fourth quarter payroll and tax information must be accurate and complete in iSolved by Dec. 31, 2020 to ensure timely filing.
Review company, tax, and employee information
It is crucial to confirm that your company and tax setup is correct in iSolved. Review each piece of information shown below by going to Reporting > Client Reports to run each report.
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Validate the company information below on the Client Profile Report.
- Name matches the legal company name registered with tax agencies
- FEIN matches the legal FEIN that is registered with tax agencies
- Address matches the legal company address registered with tax agencies
- Verify that a Tax Filing contact is listed and that their contact information (name, email address, and phone number) is correct as it should be reflected on tax forms
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Validate your company tax information on the Client Profile Report under the section for Authorized Tax Agencies and Taxes.
- Review the Federal and state tax ID numbers for accuracy
- Review the state filing frequencies and rates to ensure that they are correct
Please remember that tax agencies do NOT send any rate or filing frequency notices to Insperity, but they do send this information to you, the employer of record. If you have received these notices or see any discrepancies in your iSolved setup, please forward all information to your payroll specialist.
You must have a registered ID number with all appropriate state and federal agencies in order to file. Agencies do not accept “Applied For” ID numbers for filing and payments. Submitting your filings with an “Applied For” ID could cause delay and agency penalties and fees.
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Review employee information on the Employee W2 Verification Report.
- Verify employee names and social security numbers for accuracy
- Verify employee names and social security numbers for accuracy
Other important Q4 and year-end tax reminders
- Fourth quarter and year-end tax filings will be available on the Return Archive page of the Reporting menu in iSolved on Feb. 2, 2021.
- Pay items that have not been entered in iSolved yet OR payroll adjustments that will be reflected on Q4 returns MUST be reported to your payroll specialist by Friday, Dec. 11. These items include:
- In-house checks
- Voided checks
- Tax adjustments
- Year-end payroll, like bonus and fringe benefits
- Third-party sick/disability payments
- Additional items that may impact fourth quarter returns MUST be entered by Thursday, Dec. 31. These items include:
- Third-party sick/disability payments
- Ensure all FFCRA qualified sick and leave wages are entered correctly
- Most states review and update employers’ unemployment insurance rates effective Jan. 1 for the new year. You should receive a new rate notice in late 2020 or early 2021 from each state you are registered in. These unemployment rates and tax filing frequencies are mailed to the taxpayer, and it’s imperative these tax-related communications are forwarded to your Insperity payroll specialist as soon as you receive them. We require this information to ensure your taxes are paid accurately and timely in 2021.
- If you have chosen to receive your W-2s electronically, they will be available to you and employees who signed up for them on Jan. 20, 2021.
Remember, it is important for you to review the 2020 Year End Guide found here for all payroll processing deadlines and other important tax information for the end of the year. 2020 corrections needed after the stated processing deadlines will not begin until after Feb. 1, 2021 and additional charges may be applied.
Please contact your dedicated payroll specialist today if you have any questions or concerns regarding the information above.
If you use Insperity’s Workforce Optimization™ services for the bulk of your employees, you will have additional information and year-end responsibilities specific to the co-employment relationship.