Important dates and information to make note of during the busiest time of the year
The 2022 Holiday Schedule
PayDay will be closed on the following days:
Thursday, November 24th and Friday, November 25th
Friday, December 23rd after NOON
Monday, December 26
Monday, January 2
If your check date normally falls on Monday, and you want to move to the prior Friday, December 23/30, payroll should be processed by Wednesday, December 21/28 by 4:00PM. If you’d like to move it to Thursday, December 22/29, process by Tuesday, December 20/27 by 4:00PM.
As a reminder, on a regular basis, payroll must be submitted by 4:00PM (3:00PM Fridays) or it will not be processed until the next business day.
Large Payroll And Bonuses
If any of these conditions apply, please note that special processing and funding conditions exist:
- Bonuses/Payroll processed with tax liability exceeding $100,000 – the liability due must be wired the day of processing
- Payroll exceeds $500,000 (but it normally does not) – process four business days ahead (Monday for Friday check date) OR wire total payroll liability
- Payroll includes a net check of over $100,000 for one individual – process four business days ahead (Monday for Friday check date) OR wire total payroll liability
Preparing for Year End
ITEMS THAT AFFECT YEAR-END PAYROLL AND TAX PROCESSING
- Affordable Care Act – do you employ 50 F/T-F/T equivalents? Are you Self-Insured or own more than one company? Deadline for providing information is December 11; after that timely filing is not guaranteed and late fees will apply.
- Were any of your employees on disability in 2021?
- Did you pay any reportable fringe benefits, such as group term insurance over $50,000, dependent care, S-Corp insurance premiums, or personal use of company automobiles?
- Do you have a 100% company funded pension plan?
- Did you pay any subcontractors an amount exceeding $600 in 2021?
- Did you receive any notices from taxing authorities that you have not previously provided to us?
- Did you have an employer-sponsored health plan, AND do you have more than 250 employees?
If you answered “yes” to any of these questions, please contact your specialist immediately! Any of the above items may require special processing and/or may delay year-end tax and W-2 processing. If we are not made aware of special circumstances, there will be an additional charge to reprocess/amend year-end returns.
PLEASE ALLOW AN ADDITIONAL 2-3 DAYS TO PROCESS SPECIAL REQUESTS
Employee Retention Credit – If you have yet to request this credit of up to $26,000 per employee, your chances will start slipping away in 2023. The opportunity to claim 2nd quarter 2020 disappears August 1st 2023, and the opportunity to claim 3rd quarter 2020 disappears November 1st 2023. If you haven’t looked into this credit, please reach out ASAP.
PA Employers – 2023 PA employer withholding tax deposit frequencies and unemployment rates are being mailed directly to you. Please send both to us – we do not receive this information.
Philadelphia Employers – If you haven’t already provided the Letter ID mailed to you from the City of Philadelphia noting that Sandi Mitchell requested access, please forward to your specialist ASAP. We cannot comply with mandatory electronic filing requirements without access to your account.
NJ Minimum Wage is $14.13/hour, DE $11.75/hour and NY State $14.20 for most employers effective January 1, 2023. If you wish to split hours between old minimum wage and new, please provide the breakdown of hours at each rate to your specialist. Otherwise, we will pay the new minimum wage on all hours for checks issued on or after January 3, 2023.
W2 Submissions to Federal and State Authorities are due 1/31
You will find a W2 Edit Report in your last November payroll package. It is imperative that you REVIEW THE INFORMATION AND NOTIFY US IMMEDIATELY IF CHANGES ARE NECESSARY. The information on the W2s should agree exactly with employees’ Social Security cards.
The last day for entering and processing special payrolls including voids, payroll or employee social security corrections, 1099 subcontractor payments, 2% shareholder medical, taxable auto, and other items that must be included on year-end returns is Thursday, December 29, 2022.
The only exception to this deadline is disability reporting that PayDay has been made aware of. The State of NJ and third-party payors do not post year-end statements until the first week of January. Employers must log-in to NJ to download and print year-end summaries for use in preparing W2s. We do not have your PIN or access to your information. Kindly notify your specialist if processing needs to be delayed due to disability payments.
Reprocessing and amendment fees will apply if corrections are required after December 29 and/or returns have already been filed. Amendments will be completed in February/March 2023.
SOCIAL SECURITY ADMINISTRATION – W2 MISMATCHES
A reminder that the Social Security Administration continues to send notices to employers who filed W2s/1099s containing errors and mismatches and will request that corrections be made. Reasons for mismatch: typographical errors, unreported name changes, and inaccurate or incomplete employer records. SSNs never begin with a “000” or “666,” and a number beginning with “9” is not a valid Social Security Number, rather it is an “ITIN” (Individual Tax Identification Number). Within the next few years, penalties will be imposed for inaccurate filings.
Remember, if SSA cannot match the name and SSN reported, they cannot reconcile employer wage reports or credit earnings properly to an employee’s record.
Employers can create a Business Services Online account (www.ssa.gov/bso), which will allow them to verify social security numbers with names for new hires, or employees requesting name/social security number changes. PayDay offers this service to employers for a small monthly fee. Please ask your payroll specialist if you are interested.
If an employee’s Social Security card is inaccurate, the individual must address this with their local SSA Office.
As always, if you have any questions or concerns please contact your client service representative.
Happy Holidays from all of us at
PayDay Employer Solutions!