Year End Payroll IssuesBronwyn Betts

What This Session Will Cover• Why worry about year-end in May?• Employer Health Contributions• Non-Monetary Fringes• Third Party Sick Pay• Bonus Payroll• FICA and all their limits• Bonus Payroll• Electronic Filing – W2 and taxes• Social Security Numbers

Dude…it’s like, May. Why do I care about all the year-end stuff NOW?????

1

Payroll Rock Stars must be like Boy Scouts. You must be

PREPARED!!!

!Register for PIN

numbers!

Practice printing your W2s!

Record the Employers Health Benefits w/each

payroll! Understand the various limits before they

happen!

Record auto fringes with each

payroll!

Watch YE Payroll videos on the FSI Client Website!Know when &

how to update your taxes!

Rock your year-end and track your Employer Health Benefits per pay.

This allows you to expense and accrue Health Care Costs and have your W2s all prepped and ready for printing!

2Employer Health Benefits

By changing the plan type to “Section 125”,

the tab for “ER Contribution” becomes

enabled.

This allows amount and descriptions to show on the

employees’ check stub.

This allows contributions to be reported on W2. (Retroactive)

Identify the G/L Accounts to expense and accrue this

benefit.

Enter the amount PER PAY per employee. The amount

you enter here can be overridden on each

employee’s file.

Enter Health Deductions and the amount that EE deducts here.

By entering the deduction for the

EE, the “ER Contribution” tab

is available.

ONLY right-click and “Add” if you need to overwrite the employer amount that was set on the “ER Contribution” tab on the

miscellaneous deduction.

Why wait for the Auto Fringes to be figured out for the last pay of the year!

Parcel the amount out weekly, monthly or quarterly to give your employee(s) a chance to withhold taxes in smaller

amounts just more frequently.

3Auto Fringes

• Set up your earn code as “non-monetary” and determine whether or not to withhold federal and/or state taxes. Employees MUST pay FICA on the amount.

• Enter the amount and fringe earn code on a time card

• Pre-Check Register will show a higher “taxable” amount than “gross” amount. This is correct

Auto Fringes

Third Party Sick Pay.Learn how to take the “UGH” out of this

process.

4Third Party Sick Pay

• Set up your earn code as TPS and mark the W2 tab to show in the 941 report.

• Enter History Adjustment #1 – Record the employer portion of FICA and taxable amounts. Post and do NOT bypass the GL.

• Enter History Adjustment #2 – Record the employee’s portion of FICA already paid. Post and DO bypass the GL.

Third Party Sick Pay

Bonus PayrollWhen everyone loves you the most and

then asks you for favors!

5Bonus Payroll

• Can be paid as a separate payroll• Can be paid with current payroll• You can adjust whether employee withholds

Federal, State, and Local taxes or not• You MUST, MUST withhold FICA• You can gross up bonus to cover the FICA portion.

This means that the employer is paying the FICA for the employee.

• You can figure out a flat percentage of tax withholding if you wish.

Bonus Payroll

If YTD earnings $117,000 or less:Gross Bonus amount ÷ .9235

If YTD earnings between $117,000.01 - $200,000:Gross Bonus amount ÷ .9855

If YTD earnings $200,000.01 or more:Gross Bonus amount ÷ .9765

Grossing Up Bonus Checks

FICA has it’s LimitsMake sure you know the limits BEFORE the

boss comes questioning her/his paycheck!

6FICA

If YTD earnings $117,000 or less:Social Security 6.2%, Medicare 1.45% = Total 7.65%

If YTD earnings between $117,000.01 - $200,000:Social Security 0%, Medicare 1.45% = Total 1.45%

If YTD earnings $200,000.01 or more:Social Security 0%, Medicare 2.35% = Total 2.35%

Grossing Up Bonus Checks

Electronic FilingIt’s all fun and games until you need a

PIN!

7Electronic Filing

W2 FormsHow to “rock” the new forms and “roll”

out an easy W2 run.

8W2 Forms

Social Security NumbersBig Brother may not be watching you, but

he knows what isn’t real!

9Social Security Numbers

Thank You!