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Stambaugh Ness Payroll Manual 2009 2010

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Annual Payroll Manual for Federal and Pennsylvania Guidance.

Annual Payroll Manual for Federal and Pennsylvania Guidance.


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  • 1. PAYROLL AND PAYROLL TAX GUIDE 2009 – 2010 Presented By – Juanita Aubel, Tax Advisor E-mail: jaubel@stambaughness.com Phone: 717.757.6999 Fax: 717.840.5975 Contact Information: www.stambaugh-ness.com Phone 1-800-745-8233
  • 2. TABLE OF CONTENTS PAGE PART A - CHARTS AND PAYROLL SAVINGS TIPS Charts Payroll and Other Tax Data - 2010 A -1 Taxability of Compensation and Benefits A -2 Withholding Requirements for Specific Payments A -3 Household Employment Taxes A -5 Agricultural and Household Employees A -5 List of Helpful Government Publications A -6 Payroll Web Sites A -8 Essential Phone Numbers A -9 Indexed Employee Benefit Limits A -11 Payroll Savings Tips Use Independent Contractors A -12 What Factor's Determine a Worker's Classification? A -12 File Reports on Time A -15 Direct Deposit of Payroll A -16 Keep Up To Date A -16 Planning Ahead - Retirement and Social Security A -16 Watch Wage-Hour Exemptions A -18 Handle Garnishment Problems Smoothly A -19 Tax Credit for FICA Paid on Tip Income A -19 Employ Children/Spouses/Parents A -20 Reduce the Number of Payrolls A -20 Other Ways to Save A -20 - Work Opportunity Credit A -20 - PA Employment Incentive Credit A -21 - PA Job Creation Tax Credit A -21 - Credit for Employer-Provided Child Care Facilities A -22 - Small Business Credit for New Retirement Plan Expenses A -22 - Saver's Credit A -22 PART B - PROCESSING AND REPORTING • Federal Tax Deposit Requirements B -1 - Form 941 Deposit Rules B -1 - Form 940 Deposit Rules B -3 Federal Tax Deposit Coupon B -4 Electronic Federal Tax Payment Systems (EFTPS) B -5 Sample EFTPS Enrollment Form 9779 B -7 Pennsylvania Withholding Filing Requirements B -9 PA Electronic Funds Transfers B -11 PA Authorization Agreement for Electronic Payments B -13 PAe-Tides B -15 PA Credit Card Payments B -16 Multi-State Reporting B -17 Bonuses/Supplemental Wages B -18 How and When to Use Cumulative Withholding B -19 Other Benefits Exempt from Taxes B -20 Group Term Life Insurance B -21 Cafeteria Plans B -23 Personal Use of Company Provided Vehicle B -25 Sick Pay (Disability Income) B -31 Form 1099 - Miscellaneous Income B -32 Business Expense Reimbursements B -35 Moving Expense Reimbursements B -39
  • 3. TABLE OF CONTENTS -Continued PART C - PAYROLL START UP GUIDE: NEW EMPLOYERS - NEW EMPLOYEES • Employer Responsibilities C-1 • New Employer Packets C-2 • SS-4 Instructions (Application for EIN) C-2 • PA-100 Instructions C-3 • State Unemployment Tax C-4 • PA UC Withholding Tax C-4 • Form W-5 - Earned Income Credit - • Advance Payment Certificate C-5 • New Hire Reporting Requirements C-5 • Multi-State Chart C-7 • Local Tax Enabling Act C-20 • Local Tax Rates C-21 • Local Services Tax C-26 • LST Chart C-27 • Designing the Payroll System C-28 • Maintaining Payroll Records C-29 • Pennsylvania Income Tax C-30 • General Information C-30 • Reciprocal Agreements C-31 • PA Employer Withholding C-32 • York Adams Earned Income Tax C-32 PART D - PAYROLL REPORTING > 941 D-1 > UC-2 D-5 • UC-2A D-6 • UC-2X D-7 . UC-2AX D-8 • PA-W3 D-9 > 319 D-10 > 944 D-11 > W-2 D-13 • W-2, Box 12, Codes D-14 • W-2, Box 13 - Checkboxes D-15 • W-3 D-16 • » 940 D-17 • REV 1667 D-20 « • 322 D-21 4 • 1099 MISC D-22 1 • 1096 D-23 < • I-9 D-24 1 • PA New Hire Reporting Form D-25 1 • Schedule H D-26 ( • 8109-B D-28 • Employer Deposit Statement of Withholding Tax D-29 • W-2c D-30 • W-3c D-31 • W-4 D-32 . W-4V D-33 • W-4S D-34 • W-5 D-35
  • 4. PART A Charts And Payroll Savings Tips
  • 5. PART A - CHARTS AND PAYROLL SAVINGS TIPS Page Charts: • Payroll and Other Tax Data - 2010 A -1 • Taxability of Compensation and Benefits A-2 • Withholding Requirements for Specific Payments A-3 • Household Employment Taxes A-5 • Agricultural and Household Employees A-5 • List of Helpful Government Publications A-6 • Payroll Web Sites A-8 • Essential phone numbers A-9 • Indexed Employee Benefit Limits A -11 Payroll Savings Tips: • Use Independent Contractors A-12 • What Factors Determine a Worker's Classification? A -12 • File Reports on Time A-15 • Direct Deposit of Payroll A-16 • Keep Up To Date A-16 • Planning Ahead - Retirement and Social Security A -16 • Watch Wage-Hour Exemptions A-18 • Handle Garnishment Problems Smoothly A -19 • Tax Credit for FICA Paid on Tip Income A-19 • Employ Children/Spouses/Parents A-20 • Reduce the Number of Payrolls A - 20 • Other Ways to Save A-20 - Work Opportunity Credit A-20 - PA Employment Incentive Credit A - 21 - PA Job Creation Tax Credit A-21 - Credit for Employer-Provided Child Care Facilities A - 22 - Small Business Credit for New Retirement Plan Expenses A - 22 - Saver's Credit A-22
  • 6. PAYROLL AND OTHER TAX DATA - 2010 SOCIAL SECURITY: Wage base $106,800 6.2% Employee Max. $6,621.60 MEDICARE: Wage base - NO LIMIT 1.45% Employee Max. Unlimited Example: 2010 WAGES TAX RATES $1 TO $106,800 7.65% OVER $106,800 1.45% SELF-EMPLOYMENT TAX: 2010 SELF-EMPLOYMENT INCOME TAX RATES $1 TO $106,800 15.3% OVER $106,800 2.9% PA WITHHOLDING: 3.07% LOCAL WITHHOLDING: 1.0% - 2.0%, depending on Locality STATE UNEMPLOYMENT: Wage base PA - $8,000 per employee Wage base MD - $8,500 per employee PA UC WITHHOLDING: 0.08% FEDERAL UNEMPLOYMENT: Wage base - $7,000 Rate - 0.8% SOCIAL SECURITY EARNINGS 62 - 65 - $14,160 $1 of benefits will be LIMITATIONS: withheld for every $2 in earnings over limit. Year of full retirement age - $37,680($3,140/month) Applies only Age 66 to earnings for months prior to attaining age 66. $1 of benefits will be withheld for every $3 in earnings over limit. Full retirement age and over - Eliminated STANDARD DEDUCTION: Single - $5,700 MFS - $5,700 Joint and Surviving Spouse - $11,400 HOH - $8,400 PERSONAL EXEMPTION: $3,650 MINIMUM WAGE: PA - $ 7.25 MD - $ 7.25 STANDARD MILEAGE RATE: _________ per mile A-1
  • 7. TAXABILITY OF COMPENSATION AND BENEFITS T - Taxable Federal & PA Local State E - Exempt MD In Social Income Income Unemploy come Tax Security Medicare Tax Tax FUTA ment Company Automobile: Business Use E E E E E E E Personal Use T T T E E T T Awards and Prizes: Employee Achievement T T T T T T T Safety/Service (Qualified Plan) E E E E E E E Business Expense Allowance: (1) Accountable Plan E E E E E E E Non-Accountable Plan T T T T T T T Cafeteria Plan: Pre-Tax Benefits E E E E(3) E(3) E T Group Term Life Insurance: Up to $50,000 E E E E E E E Excess of $50,000 T T T E E E E Retirement Plans: Elective Deferrals 401(k)-403(b) E T T T T T T Simplified Employee Plans (SEP) Employer Paid E E E E E E E Salary Reduction E T T T T T T 408(k)(6) Simple Plans: Employer 2% Match E E E E E E E Salary Reduction E T T T T T T "S" Corp Health Insurance Premium 2% > Shareholder T E E E E E E Sick Pay: Salary Continuation T T T T T T T Insured-Third Party T T(2) T(2) E E T(2) T Tips: More than $30.00 T T T T T T T Less than $30.00 E E E E E E E (1) See pages B-35 and B-38. (2) Taxable only during first six months following month employee last worked. (3) Except child care benefits. A-2
  • 8. WITHHOLDING REQUIREMENTS FOR SPECIFIC PAYMENTS Withholding Required Type of Income Fed IT F.I.C.A. F.U.T.A. Adoption Assistance - Up to $11,650 expense No Yes Yes Advances Yes Yes Yes Aircraft - Personal Use Yes Yes Yes Athletic Facilities (On Premises) No No No Awards and Prizes * Yes Yes Yes Back Pay Awards & Damages Yes Yes Yes Bonuses Yes Yes Yes Business Expense Reimbursements No No No Commissions Yes Yes Yes Company Car - Personal Use Optional Yes Yes Death Benefits No No No Deceased Employee Wages - Paid No No No after Calendar Year of Death Deceased Employee Wages - Paid in Same Calendar Year as Death No Yes Yes Dependent Care Assistance - Up to $5,000 No No No Directors Fees No No No Discounts No No No Dismissal or Severance Pay Yes Yes Yes Dividends No No No Eating Facilities No No No Educational Assistance - Up to $5,250 No No No Equipment and Tool Allowances No No No Golden Parachute Payments Yes Yes Yes Group Legal Services Yes Yes Yes Guaranteed Wage Payments Yes Yes Yes Subject to withholding except service and safety awards up to $400 per employee, per year under a non-qualified plan. $1600 per employee, per year, with a $400 average benefit award under a qualified plan. A-3
  • 9. WITHHOLDING REQUIREMENTS FOR SPECIFIC PAYMENTS continued Withholding Required Type of Income Fed IT. F.I.C.A. F.U.T.A. Holiday Gifts Yes Yes Yes Interest Free or Below Market Interest Rate Employer Loan more than $10,000 Yes Yes Yes Jury Duty Pay Yes Yes Yes Meals and Lodging for Employers Convenience No No No Meeting Payments Yes Yes Yes Military Pay (For Temporary Assignments) Yes Yes Yes Moving Expenses - Qualified (See B-39) No No No Moving Expenses - Non-qualified (See B-39) Yes Yes Yes Out-Placement Services No No No Parking Expense - Up to $220/month No No No Probationary Pay Yes Yes Yes Retiree Consulting Fees No No No Retroactive Wage Increases Yes Yes Yes Royalties No No No Scholarships No No No Standby/Idle Time Pay Yes Yes Yes Supper Money No No No Supplemental Unemployment Yes No No Uniform Allowances No No No Union Payments Yes Yes Yes Vacation Pay Yes Yes Yes Workers Compensation Benefits No No No See Circular E for more complete information. A-4
  • 10. HOUSEHOLD EMPLOYMENT TAXES ■ SCHEDULE "H" FORM FOR EMPLOYEES IN HOME Schedule H, Household Employment Taxes, is used to report cash wages paid to a person who worked in your home, and is submitted annually with Form 1040. The schedule is used to report and pay federal income taxes withheld and to calculate FICA, Medicare and federal unemployment taxes on wages paid to household employees. The wage threshold for domestic employees remains unchanged at $1,700 per year in 2010. Social security tax is not necessary for household workers underage 18. Household employers are required to include the social security and federal employment taxes in their estimated tax payments. Who is a household employee? An employer-employee relationship exists if you control what and how work is to be done, supply the employee with tools and a place to work and have the right to discharge the employee. Some household employees, such as gardeners, are likely to be considered independent contractors because they use their own tools and decide how the work is to be done. Examples of household employees include baby-sitters, butlers, cooks, caretakers, drivers, gardeners, housekeepers, and private-duty nurses. AGRICULTURAL EMPLOYMENT TAXES According to the IRS, any plot of ground or other area used primarily for the raising of an agricultural or horticultural commodity constitutes a farm for employment tax purposes. Only cash wages paid to employees are subject to FICA and federal income tax withholding. Noncash items such as lodging, food, clothing, and transportation are not subject to FICA and federal income tax withholding. FICA and federal income tax withholding apply to cash payments if either 1) the employee is paid $150 or more for the year, or 2) the employer's total payments to all employees for agricultural labor is $2,500 or more for the year. Agricultural wages are subject to FUTA and SUTA if: 1) agricultural wages of $20,000 or more are paid in any quarter in the current or preceding calendar year, or 2) 10 or more individuals are employed in agricultural labor for some portion of a day for 20 weeks in the current or preceding calendar year. Agricultural employers who pay wages for both agricultural and nonagricultural labor must keep the wages separate. Agricultural wages and taxes due are reported on form 943; other wages and taxes due are reported on form 941. A-5
  • 11. LIST OF HELPFUL GOVERNMENT PUBLICATIONS The following Publications are available from the Internal Revenue Service. You may order them by calling 1-800-TAX-FORM (1-800-829-3676). You may also download some of them from www.irs.gov: Publication Number Title Description 15 Circular E, Employer's All employers receive a copy of this publication Tax Guide automatically. This is an annual publication that includes the current year's tax tables, FICA rate, FUTA rate, and a general explanation of rules for depositing federal tax withheld. 15-A Employer's Supplemental Supplement to Circular E. Tax Guide 15-B Employer's Tax Guide Detailed information on proper way to handle to Fringe Benefits fringe benefits. 51 Circular A, Agricultural Same as Circular E, except this is specifically for Employer's Tax Guide agricultural employers. 393 Federal Employment Tax All employers receive a copy of this publication Forms which explains annual reporting and provides instruction for ordering forms. 505 Tax Withholding and Explanation of the rules for claiming personal Estimated Tax exemptions on the Form W-4. Excellent guide to assist employees in completing a new Form W-4. 970 Tax Benefits for Education Explains which educational expenses qualify for deduction for tax purposes. This booklet may assist the payroll practitioner in understanding the taxability of various types of educational expense reimbursements paid by the employer. 521 Moving Expenses Essential publication for explaining the reporting and taxation of reimbursed moving expenses, both for the employer and the employee. 525 Taxable and Nontaxable Essential guide to understanding the taxability of Income wages, salaries, fringe benefits, and other compensation received for services as an employee. A-6
  • 12. LIST OF HELPFUL GOVERNMENT PUBLICATIONS-continued Publication Number Title Description 531 Reporting Tip Income A guide to the reporting, withholding, record keeping. 596 Earned Income Credit A guide to who may be eligible for the credit and how they may apply for the credit. 919 How Do I Adjust My Tax Another guide to employees for completing Form Withholdings? W-4. 1494 Table for Figuring This is a table for figuring the amount from a Amount Exempt from levy on wages, salaries, and other compensation. Levy On Wages, Salary & Other Income 1542 Per Diem Rates A table of the federal per diem rates for lodging, meals and incidental expenses. 2009 Instructions Instructions to filers of Form 1099,1098,5498 and 1099-ALL W-2G. 926 Household Employer's A guide to who qualifies as a household Tax Guide employee and instructions on figuring the tax. Compliance assistance information is available from the U.S. Department of Labor in regards to the following: Americans with Disabilities Act of 1990 (ADA) The Davis-Bacon and Related Acts (DBRA) The Fair Labor Standards Act (FLSA) The Family and Medical Leave Act (FMLA) Federal Employee' Compensation Act (FECA) And many more You may order by calling 717-221-4539 or 570-826-6316 or print from website www.dol.gov/esa/regs/compliance. A-7
  • 13. ESSENTIAL PAYROLL WEB SITES Whether you're an expert on the Web or a novice, there are some sites that you should visit regularly to see what's new. Federal Sites EFTPS www.eftps.gov Internal Revenue Service (homepage): www.irs.gov Social Security Administration: www.ssa.gov U.S. Department of Labor employment law site: www.dol.gov New-hire reporting: www.acf.hhs.gov/programs/cse/ newhire/employer/private/newhire.htm State & Local Sites PA Department of Revenue: www.revenue.state.pa.us PA Department of Revenue Business Tax Registration: www.pa100.state.pa.us PA Department of Labor & Industry: www.dli.state.pa.us PA Department of Community and Economic Development www.newpa.com PA Etides: www.etides.state.pa.us Maryland Webpage www.state.md.us Comptroller of Maryland www.comp.state.md.us MD Dept. of Labor, Licensing & Regulation www.dllr.state.md.us York Adams Tax Bureau www.yatb.com Professional Organizations American Payroll Association (APA): www.americanpayroll.org A-8
  • 14. Essential Phone Numbers Name Phone Number Internal Revenue Service Business and Specialty Tax Line 800-829-4933 Electronic Federal Tax Payment System (EFTPS) Hotline 800-555-4477 Employee Plans Taxpayer Assistance Telephone Service 877-829-5500 (toll free) Employer identification Number (EIN) Request Number 800-829-4933 Form SS-4 may be faxed to: Holtsville, NY at 631-447-8960 Cincinnati, OH at 859-669-5760 or Philadelphia, PA at 215-516-1040 Form 941 and Form 940 Filing On-Line Filling New Toll Free Number fore-Help Program /Austin Submission Center 866-255-0654 Forms (IRS) Forms may be ordered at: 800-829-3676 General IRS Tax Law Questions and Account Information 800-829-1040 Information Reporting Program Customer Service Section 866-455-7438 (toll free) IRS Tax Fax 703-368-9694 (non-toll-free) This service offers faxed topical tax information. National Taxpayer Advocate's Help Line 877-777-4778 (toll free) Taxpayer Advocacy Panel 888-912-1227 (toll free) Telephone Device for the Deaf (TDD) 800-829-4059 Tele-Tax System 800-829-4477 Social Security Administration Copy A / Form W-2 Reporting SSA's Employer Reporting Service 800-772-6270 General SS benefit Questions 800-772-1213 A-9
  • 15. Essential Phone Numbers Name Phone Number PA Dept. of Revenue Fact and Information Line 888-PATAXES (728-2937) e-Business Tax Unit (e-Tides Technical Assistance 717-783-6277 Taxpayer Service and Information Center 717-787-1064 Special Hearing or Speaking Needs (TTonly) 800-447-3020 Taxpayers' Rights Advocate 717-772-9347 PA Unemployment Compensation UC Tax Information Line 866-403-6163 or 717-787-7679 UC Employer Tax Services York and Adams Counties 717-767-7620 Cumberland County 717-249-8211 or 717-697-1203 Lancaster County 717-299-7606 Dauphin and Perry Counties 717-787-1700 Franklin 717-264-7192 A-10
  • 16. INDEXED EMPLOYEE BENEFIT LIMITS Employee Benefit Limit 2010 2009 Section 416 Defined Benefit Dollar Limit IRC Sec. 416(i)(1 )(A)(i)—see Q-261 $160,000 $160,000 Section 415 Defined Contribution Dollar Limit IRC Sec. 415(c)(1)(A)-see Q-261 $ 49,000 $ 49,000 IRCSec.415(b)(1)(A) $195,000 $195,000 *Elective Deferral Limit for 401 (k), 403(b), & 457(e) Plans and SEPs $ 16,500 $ 16,500 IRC Sec. 402(g)(1)-see Qs-237, 276, 277 Beginning January 1, 2006, 401 (k) plans may begin allowing designated ROTH $ 16,500 $ 16,500 401 (k) employee contributions. Combined 401(k)/ROTH 401 (k) contribution limits Minimum Compensation Amount for SEPs IRC Sec. 408(k)(2)(C)-see Q-236 $ 550 $ 550 Maximum Compensation Limit for: IRC Sec. 505(b)(7) SEPs $245,000 $245,000 IRC Sec. 408(k)(3)(C) TSAs IRC Sec. 403(b)(12) Qualified Plans IRC Sees. 401 (a)(17), 404(1) Highly Compensated Employee Definitional Limits under 414(q)(1)(B) $110,000 $110,000 ESOP Payout Limits $195,000 $195,000 IRC Sec. 409(o)(1)(c)-see Q-280 $985,000 $985,000 'Simple Plans Code Sec. 408(p)(2)(E) $ 11,500 $ 11,500 *IRA Limit $ 5,000 $ 5,000 Individuals 50 years of age or over may make additional "catch up contributions" each year as follows: 2010 ROTH 401 (k) $ 5,500 401 (k), 403(b), 457, SEP-408(k) $ 5,500 SIMPLE-408 $ 2,500 IRA's $1,000 A-11
  • 17. USE INDEPENDENT CONTRACTORS One way to save on payroll taxes is by using independent contractors. Independent contractors are not employees and therefore are not covered by employment tax laws. Use independent contractors when specialized skills are needed or a project is of a limited duration. However, employers should use caution when classifying individuals as independent contractors rather than employees. Employers may be held liable for all the employment taxes (and be assessed a penalty of 100% of the unpaid taxes) if they classify employees as independent contractors and there is no reasonable basis for doing so. Consult the following checklists to insure that you have a reasonable basis for determining the independent contractor status. What Factors Determine A Worker's Classification? When determining the proper classification of a worker, the IRS first looks at whether a business has the right to direct or control the means and details of the individual's work. (This is known as the common-law test.) To determine the degree of control that an employer has, the Service uses a "20-factor" test, which has grown in recent years and now actually includes 24 factors. Note: The 24 factors are listed here in order of their importance, as ranked in the IRS's training manual for employment tax auditors. Extremely Important 1. Instructions. Employees must follow instructions as to when, where, and how work is done; independent contractors do not. 2. Training. Company-provided training implies that work must be done in a particular manner. Independent contractors are not given training. 3. Profit or loss. Independent contractors realize a profit or incur a loss from their work; employees do not. Very Important 4. Form W-2's. Filing a W-2 rather than a 1099 indicates that the business and the worker believe the worker is an employee. 5. Benefits. Traditionally, only workers with employee status receive company benefits. 6. Intent. A written agreement between a business and a worker describing the worker as an independent contractor can show that the classification was intended by both parties. 7. Incorporation. A worker who is incorporated is usually classified as an independent contractor. A-12
  • 18. What Factors Determine A Worker's Classification? - continued Very Important - continued 8. Integration. If a worker's services are integrated into a business' operations, they are usually considered important to the success of that business, and the IRS will assume the worker is an employee under the direction and control of the company. 9. Personally rendered services. If services are to be performed only by the worker, that indicates the worker is an employee under the direction and control of the business. Independent contractors can substitute another person's services without the approval or knowledge of the business. 10. Assistants. Independent contractors can hire, supervise, and pay their own assistants, and are responsible for the work results. Employers hire, supervise, and pay their employees' assistants. 11. Continuing relationship. Independent contractors work by the job; a continuing work relationship indicates that the worker is an employee. Note: A continuing relationship may exist even if the recurring work is performed at irregular intervals. 12. Work sequence. Independent contractors can set their own work schedules. Employees are required to perform work in a certain order or sequence. 13. Oral or written reports. A requirement that a worker give regular reports demonstrates an employer-employee relationship. Independent contractors usually only file a report at the end of the job. 14. Payment method. Payment by the hour, week, or month points to employee status. Independent contractors are paid upon completion of the job or are paid on a straight commission basis. 15. Tools and materials. Independent contractors supply their own tools and materials. Employees usually do not. 16. Investment. Employees tend not to make significant investments in the facility where they work. Independent contractors will rent, own, or have some other significant investment in the facility where they perform services for clients. Less Important 17. Working for more than one firm. Multiple jobs can indicate an independent contractor or an employee who is moonlighting. 18. Requirement to work set hours. A predetermined schedule, rather than a deadline, indicates an employer-employee relationship. A-13
  • 19. What Factors Determine A Worker's Classification? - continued Less important - continued 19. Requirement to work full-time. This limits a person's options to work for other companies and indicates an employer-employee relationship. 20. Right of employer to discharge. Generally independent contractors can't be fired unless they fail to meet contract requirements, so this right indicates an employer-employee relationship. 21. Services available to general public. Independent contractors advertise or make their services available to the public. 22. Working on business's premises. A requirement that work be performed on site indicates that a business has control over an employee especially if the work can be done elsewhere. 23. Business and/or travel expenses. Company reimbursements paid to a worker generally indicate an employer-employee relationship. 24. Right of worker to quit. Typically, employees do not incur any liability if they quit. But independent contractors may be held liable for breach of contract if they don't complete a job. A-14
  • 20. FILE REPORTS ON TIME - "AVOID PENALTIES" One type of payroll administration expense for which there is no excuse is that resulting from penalties and/or interest imposed because employment tax payments or returns - federal or state - were not made or filed in a timely manner. The penalties levied by the Internal Revenue Service can be a very significant payroll cost. Some of the commonly incurred penalties follow: Failure to file a return: 5% of the net amount of tax required to have been reported for each month or fraction of a month during which the failure continues, not to exceed 25% in the aggregate. Failure to pay tax: 0.5% on the amount due (1% in some cases) for each month during which the failure to pay continues, not to exceed 25% in the aggregate. Failure to deposit taxes: 2% of any underpayment if deposit is between 1 and 5 days late 5% of any underpayment if deposit is between 6 and 15 days late. 10% of any underpayment if deposit is more than 16 days late. 15% if the tax is not deposited by the earlier of 10 days after the date of the first delinquency notice or the day on which notice and demand for immediate payment is given. Failure to electronically deposit taxes: 10% failure to file electronically 2% late filing penalty Here's the list of the services whose time stamps qualify as a postmark for purposes of the "timely mailing and timely filing/paying" rule of IRC Sec. 7502: . Federal Express: FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx Intl Priority & FedEx Intl first . United Parcel Service: UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, and UPS 2nd Day Air A.M., UPS Woldwide Express Plus, & UPS Woldwide Express CAUTION: Remember, not all the services offered by the companies qualify under the IRS' list, just the services listed above. That means that a time stamp from another of the company's services will not suffice as proof of timely mailing. A-15
  • 21. DIRECT DEPOSIT OF PAYROLL Direct deposit of payroll can save time and money for the employer and employee. On the employer side, direct deposit means that each employee's paycheck is deposited right into the employee's personal account, eliminating costly steps in the payroll process, including the need to stop payment on and reissue lost or stolen checks. Direct deposit means fewer check processing charges and reconcilement maintenance fees from the employer's financial institution. On the employee side, there is no chance of lost or stolen checks, no two to four day waiting period for the paycheck to clear, and employees still receive a pay receipt detailing their gross and net pay and deductions made. KEEP UP-TO-DATE ON "TAXABLE WAGES" AND "EXEMPT EMPLOYEES" Two of the most important potential tax-savings areas of which a payroll manager must be aware involve payments that may not be subject to one or more of the federal or state employment taxes and employees who may not be subject to them. Keep in mind in this regard that direct tax savings will generally result only in relation to the "social security" type employment taxes-that is, the taxes imposed under the Federal Insurance Contributions Act (FICA), the Federal Unemployment Tax Act (FUTA), and the various state unemployment and disability insurance laws. This is because these are the laws that impose a tax directly on an employer, and actual tax dollars can be saved by knowing that a particular type of payment or employee is exempt from a particular tax. This is not to say that the subject of taxable wages and exempt employees is unimportant where federal and state income taxes are involved. Even though employers have no general out-of-pocket tax liability where such taxes are concerned, knowing what types of payments and employees are subject to withholding can save needless bookkeeping time and the expenses of correcting situations where tax is withheld when it should not have been, to say nothing of avoiding the penalties that may be imposed where an uninformed payroll manager fails to withhold from a payment or employee from whom tax should have been withheld. PLANNING AHEAD - RETIREMENT & SOCIAL SECURITY If you have employees who are planning to retire, now is a good time for them to contact the Social Security Administration to see which month is best for them to claim benefits. In some cases, the choice of retirement month could mean additional benefits for the employee and his or her family. Depending on the person's earnings, age, and benefit amount, it may be possible for him or her to start collecting benefits while continuing to work. If your employees want more information about social security, or want to arrange for an appointment to talk with a social security representative, the Social Security Administration advises that they should call 1-800-772-1213. The government has a web site located at "www.ssa.gov". A-16
  • 22. PLANNING AHEAD - RETIREMENT & SOCIAL SECURITY- continued Individuals may apply for social security benefits online by using the website www.ssa.gov/applytoretire/, or they may apply by telephone by calling 1-800-772-1213. The SSA website, contains a Retirement Benefits Planner. The Planner and online calculators give estimates for disability and survivors benefits as well as your retirement benefit estimate. An "Earnings Limit" Calculator" assists workers in computing the effect of earnings on their social security retirement benefits. Workers who have reached full retirement age (age 65 & 10 months in 2007, age 66 in 2008) may work without their benefits being reduced because of the amount of their annual earnings. Annual earnings affect the amount of Social Security benefits only until full retirement age. After that, you can receive full benefits no matter how much you earn. Full retirement age will gradually increase to age 67, as shown below. The Social Security Administration has developed a unique educational tool to help Americans understand their social security benefits so they can undertake adequate financial planning for their future. This SSA tool is a Social Security Statement that gives workers of all ages their own personal historical data and future benefit estimates. These Statements are mailed to workers age 25 and older. The 4-page Social Security Statement provides information for retirement, disability, and survivors benefits that they could be eligible for now and in the future. PAYROLL'S ROLE. The social security earnings record provided on the Social Security Statement is based on Form W-2 information supplied by an individual's employers. Discrepancies in wage record information - such as name/SSN mismatches - preclude wages being credited to an individual's account. Such earnings will be placed in a suspense file and will not appear on the Social Security Statement. Since uncredited earnings will affect an individual's future entitlement, employees who get a Social Security Statement with earnings totals lower than they expect are going to - and should - have questions. The most likely place for an employee to turn with a question is, of course, the payroll department, so practitioners need to be prepared. AGE TO RECEIVE FULL SOCIAL SECURITY BENEFITS Note: Persons born on January 1 of any year should refer to the previous year. Full Retirement Year of Birth Aae 1937 or earlier 65 1938 65 and 2 months 1939 65 and 4 months 1940 65 and 6 months 1941 65 and 8 months 1942 65 and 10 months 1943-1954 66 1955 66 and 2 months 1956 66 and 4 months 1957 66 and 6 months 1958 66 and 8 months 1959 66 and 10 months 1960 and later 67 The earliest a person can start receiving Social Security retirement benefits remains age 62. A-17
  • 23. CUT LABOR COSTS BY WATCHING WAGE-HOUR EXEMPTIONS For most employers the largest single statutory source of labor costs is the Fair Labor Standards Act with its minimum wage and overtime pay requirements. Effective August 23, 2004 the Department of Labor reformed 50-year old overtime regulations and introduced new overtime rules. In many cases, however, labor costs may be cut by knowing exactly what it is the Fair Labor Standards Act requires, and what it does not require. For example, there are any number of exemptions-total or partial-from the minimum wage requirements. The Department of Labor (www.dol.gov) website provides additional information. Of utmost significance to most employers is the complete minimum wage and overtime exemption extended to so-called white collar workers-administrative, executive and professional employees. Keep in mind that federal wage-hour rules are not the only ones with which you should be concerned. States also have legislated in this area, and although the state laws may cover employees who are not covered by the federal law, the states, too, provide exemptions with which employers must be familiar. Knowledge of these will prevent payment of overtime rates when straight-time pay will suffice under the law and from paying a straight-time wage rate that is higher than that required under the law. Under the Small Business Protection Act, the federal minimum wage is currently $7.25 as of July 24, 2009. If the state's minimum wage amount is higher, it will prevail over the less-beneficial federal minimum wage. Pennsylvania's minimum wage is $7.25 per hour. Maryland's minimum wage is $7.25 as of July 24, 2009. Delaware's minimum wage is $7.25 as of July 24, 2009. A-18
  • 24. HANDLE GARNISHMENT PROBLEMS SMOOTHLY A busy payroll manager has never been fond of garnishment proceedings. But with the job protection offered an employee-debtor under the Consumer Credit Protection Act, the payroll manager is going to have to live with the problem. Thus, the methods by which garnishments are handled must be made as simple, efficient and economical as possible. The U.S. Department of Labor website at www.dol.gov has very useful information on this topic. TAX CREDIT FOR FICA PAID ON TIP INCOME To ease the payroll-tax burden on restaurant employers and other food and beverage businesses where employees commonly receive tips for serving food and beverages to customers, the Revenue Reconciliation Act of 1993 expanded the general business credit to include an amount equal to an employer's FICA tax obligation (7.65%) on reported tips in excess of the amount of tips treated as wages for purposes of the Fair Labor Standards Act (FLSA). Effective January 1,1997, the tip credit was expanded to include service and delivery of food and beverages for off-premises consumption. Although the federal minimum wage has been increased, the Small Business and Work Opportunity Tax Act of 2007 allows food and beverage establishments to continue to compute the amount of the tip credit based on the federal minimum wage previously in effect on January 1, 2007 ($5.15 per hour). Also, the credit can now offset the alternative minimum tax. A-19
  • 25. EMPLOY CHILDREN/SPOUSES/PARENTS Taxability of Children/Spouses Wages for Sole Proprietorship Federal State Local Income Social Income Income State Tax Security Medicare Tax Tax FUTA Unemployment Spouse T T T T T E E Child under 18 T E E T T E E Child 18-20 T T T T T E T Child 21 and T T T T T T T Over Parents T T T T T E E SAVE BY REDUCING THE NUMBER OF PAYROLLS One often overlooked way to save payroll costs is to have fewer payrolls. Many employers pay their employees every week. By switching to bi-weekly payment these employers use half the amount of time spent computing and processing the payroll. Additional savings result from reducing the supplies required. OTHER WAYS TO SAVE • Check the computation of your unemployment compensation "experience rating." • Review and respond to any charges against your unemployment account. Charges are benefits paid to employees or former employees. • Maintain a stable employee group. • Use a "common paymaster" where employees are shared by two or more related companies. • Hire employees from a "Targeted" group. They may qualify the employer for certain credits. Under the federal Work Opportunity Tax Credit, which has been extended to cover employees from a targeted group who begin work before 9/1/2011, employers receive a federal tax credit for hiring from one of nine targeted groups. - 25% credit of 120 - 400 hours paid to the worker during the first year, and - 40% credit of first $10,000 paid to the worker during the first year, and - 50% credit of first $10,000 paid to the worker during the second year A-20
  • 26. OTHER WAYS TO SAVE - continued - Eligible wages include cash wages PLUS tax exempt amounts the employer pays for health insurance coverage, dependent care assistance, and tuition reimbursement paid under Sect. 127. Form 8850, Pre-Screening Notice and Certification Request for Work Opportunity Tax Credit, is used by employers to both pre-screen prospective employees and to request certification from the State's Employment Security Agency. This form is not filed with the IRS. Form 8850 is available by calling 1- 800-829-1040 or from www.irs.gov. Persons and corporations who employ Short-term welfare recipients or vocational rehabilitation customers may be eligible for a Pennsylvania "Employment Incentive Payments Credit." A completed PA Schedule W must be filed to claim this credit. July 1,1996, the Pennsylvania "Job Creation Tax Credit" became effective. Up to $1,000 is allowable for each new full-time job, paying at least one hundred fifty percent of the federal minimum wage, created within Pennsylvania by a company that agrees to: 1) create at least twenty-five new jobs in PA within a three-year period, or 2) increase the number of employees in PA by at least twenty percent within a three-year period, whichever is less. A new, start-up company will qualify provided they meet the other requirements. A business may apply the tax credit to 100% of the business' state corporate net income tax, capital stock and franchise tax or the capital stock and franchise tax of a shareholder of the business if the business is a Pennsylvania S corporation, gross premiums tax, gross receipts tax, bank and trust business shares tax, mutual thrift institution tax, title insurance business shares tax, personal income tax or the personal income tax of shareholders of a Pennsylvania S corporation, or any combination thereof. Cash refunds will not be issued for unused credits. For more details contact the Pennsylvania Department of Community and Economic Development at (717) 787-7120. Of the 22.5 million dollars approved per year, twenty-five percent is set aside for companies with less than one hundred employees (six new jobs), however, if that amount isn't used by April 30, then it becomes available to large companies. A-21
  • 27. OTHER WAYS TO SAVE - continued FEDERAL BUSINESS CREDITS • Credit For Employer-Provided Child Care Facilities - Employers can claim a tax credit for 25% of qualified expenses for employee child care. Qualified expenses include costs to acquire, construct, rehabilitate, or expand a facility for child care, operational costs for the facility, and amounts incurred under a contract with a child care facility to provide service to employees. A 10% credit can also be claimed for the costs incurred under a contract to provide child care resource and referral services to employees. The maximum credit in any year is $150,000. • Small Business Credit For New Retirement Plan Expenses - A nonrefundable credit is available for expenses associated with establishing a new qualified retirement plan. The credit is equal to 50% of the first $1,000 in administrative and retirement-education expenses for the plan for each of the first three years of the plan. A "small business" is defined as one with no more than 100 employees having compensation in excess of $5,000 in the preceding year, and with at least one non- highly compensated employee. • Saver's Credit - Each eligible individual may claim a nonrefundable credit for IRA contributions (traditional and Roth), for elective deferrals to a section 401 (k) plan, section 501(c)(18) plan, a governmental section 457 plan, SIMPLE plan, or SEP. Voluntary after-tax contributions to qualified employer plans also qualify. Eligible individuals must be 18 or older. Dependents and full-time students are not eligible for the credit. Up to $2,000 of annual contributions are eligible for the credit. The amount of the credit depends upon modified AGI and filing status as shown below. Adjusted gross income amounts are indexed for inflation as shown below: Modified Adjusted Gross Income for 2010 Head of All Other Credit Joint Household Statuses Rate 50% $0 - $33,500 $0-$25,125 $0-$16,750 20% $33,501 - $36,000 $25,126-$27,000 $16,751 -$18,000 10% $36,001 - $55,500 $27,001 -$41,625 $18,001 -$27,750 0% Over $55,500 Over $41,625 Over $27,750 The credit is in addition to any allowable deduction or exclusion from income. After-tax contributions used to claim the credit are treated as investment in the contract. A-22
  • 28. PARTB Processing And Reporting
  • 29. PART B - PROCESSING AND REPORTING Page Federal Tax Deposit Requirements B -1 Form 941 Deposit Rules B -1 Form 940 Deposit Rules B -3 Federal Tax Deposit Coupon B -4 Electronic Federal Tax Payment Systems (EFTPS) B -5 Sample EFTPS Enrollment Form 9779 B -7 Pennsylvania Withholding Filing Requirements B -9 PA Electronic Funds Transfer B -11 PA Authorization Agreement for Electronic Payments B -13 PAe-Tides B-15 PA Credit Card Payments B -16 Multi-State Reporting B-17 Bonuses/Supplemental Wages B-18 How and When to Use Cumulative Withholding B -19 Other Benefits Exempt From Taxes B - 20 Group Term Life Insurance B - 21 Cafeteria Plans B - 23 Personal Use of Company Provided Vehicle B - 25 Sick Pay (Disability Income) B - 31 Form 1099 - Miscellaneous Income B - 32 Business Expense Reimbursements B - 35 Moving Expense Reimbursements B - 39
  • 30. FEDERAL TAX DEPOSIT RULES FORM 941 FEDERAL TAX DEPOSITS Calculation of the Deposit 1. Social Security taxes withheld $ 868.00 2. Medicare taxes withheld 203.00 3. Total FICA taxes withheld (Line 1 + Line 2) 1 ,071.00 4. Multiply by 2 x 2 5. Total employer and employee FICA taxes 2 ,142.00 6. Add - federal income taxes withheld 532.25 7. Subtract - advance payments of the earned income credit 20.00 8. Required payroll tax deposit (Line 5 + Line 6 - Line 7) $2 .654.25 Deposit Rules (Due to change 6/1/2011) An employer is either a monthly depositor, a semi-weekly depositor, or an annual depositor. This determination is made based on the aggregate amount of employment taxes reported during a "look back" period. The regulations define a look back period as the twelve-month period ending on the preceding June 30th. The determination is made by the IRS prior to the beginning of each calendar year and employers are advised if there is a change in the deposit rules they must follow. Monthly deposit - An employer is a monthly depositor if the aggregate amount of employment taxes reported for the look back period is $50,000 or less. A monthly depositor must deposit employment taxes for payments made during a calendar month into a Federal Reserve Bank or authorized financial institution by the 15th day of the following month. If the 15th day of the following month is not a banking day, taxes will be treated as timely deposited on the next following banking day. Semi-weekly deposit - An employer is a semi-weekly depositor if the aggregate amount of employment taxes reported for the look back period is more than $50,000. Under the semi-weekly deposit rule, those paying wages on Wednesday, Thursday, and/or Friday must deposit employment taxes by the next Wednesday in a Federal Reserve Bank or an authorized financial institution, while those paying wages on Saturday, Sunday, Monday, and/or Tuesday are required to deposit employment taxes on the following Friday. B-1
  • 31. FEDERAL TAX RETURN DEPOSITS - continued Deposit Rules - continued If any of the three weekdays following the close of a semi-weekly period is a bank holiday, employers will be given an additional banking day to make the deposit. There is a special rule for a return period, either quarterly or annual, that ends during a semi-weekly period. When it happens, an employer must complete the Federal Tax Deposit Coupon so that it designates the return period for which the deposit is made. If the return ends during a semi-weekly period that has two or more payment dates, two deposit obligations may exist. For example: if one quarterly return period ends on Thursday and a new quarterly period begins on Friday, employment taxes from payments on Wednesday and Thursday are subject to one deposit obligation, and taxes from payments on Friday are subject to a separate obligation. Two separate Federal Tax Deposit Coupons are required in this case. One-day rule - The semi-weekly or monthly deposit rules will not apply if an employer has accumulated $100,000 or more of employment taxes. These taxes must be deposited in a Federal Reserve Bank or authorized financial institution by the close of the next banking day. To determine whether the $100,000 threshold is met, (1) a monthly depositor takes into account only those employment taxes accumulated in the calendar month in which the day occurs; and (2) a semi-weekly depositor takes into account only those employment taxes accumulated in the Wednesday - Friday or Saturday - Tuesday semi-weekly period in which the day occurs. Safe harbor and de minimis rules - The deposit obligation will be satisfied if the difference between the amount of tax that should have been deposited less the amount of tax actually deposited (shortfall) does not exceed the greater of $100 or two percent of the amount required to be deposited. However, the underdeposit has to be deposited by a specified "make-up" date. The make-up date for the monthly depositors is the due date for the quarterly return. The make-up date for the semi- weekly depositors and those required to make accelerated deposits is the first Wednesday or Friday (whichever is earlier), falling on or after the 15th day of the month in which the deposit was due. Small Employers If the total amount of accumulated employment taxes for the quarter is less than $2,500 for that quarter, or the previous quarter, and the amount is fully deposited or remitted with a timely filed return for the quarter, the amount deposited or remitted will be deemed to have been timely deposited. If the total amount of accumulated employment taxes is $1,000 or less over a period of four quarters, the employer may wait and pay their total employment taxes for the year when they file Form 944, Employer's Annual Federal Tax Return. The 944 Form (and tax payment) for each calendar year is due by January 31, of the following year. B-2
  • 32. FEDERAL TAX RETURN DEPOSITS - continued CREDIT CARD PAYMENT Employers filing Forms 940 and/or 941 with a balance due may pay the amount owed by credit card. Additionally, Form 941 filers can make credit card payments for up to 3 prior quarters. A convenience fee will be charged by the service provider. Payments are processed 24 hours a day, seven days a week, but are not effective until the date the charge is authorized. Please note: Federal Tax Deposits cannot be paid by credit card. FORM 940 DEPOSIT RULES If your FUTA tax liability for a quarter is $500 or less, you do not have to deposit the tax. Instead, you may carry it forward and add it to the liability figured in the next quarter to see if you must make a deposit. If your FUTA tax liability for any calendar quarter is over $500 (including any FUTA tax carried forward from an earlier quarter), you must deposit the tax by electronic funds transfer (EFTPS) or in an authorized financial institution using Form 8109, Federal Tax Deposit Coupon. When to deposit. Deposit the FUTA tax by the last day of the first month that follows the end of the quarter. B-3
  • 33. AMOUNT OF DEPOSIT (Do tJOT type, please print.) Darken only one nl Darken onlv one Id! TAX PERIOD EninuLLJ_l DOLLARS CENTS TYPE OF TAX MOMTH TAX YEAR ENDS 0. 941 <y«945 ■ C/< Quarter 0. 1120 0 ■* 1042 1 | (/< Quarter EMPLOYER IDENTIFICATION NUMBER BANK NAME/ DATE STAMP Name J 0* 0* 943 720 0* 990-T 0 ■* 990-PF 1 (/< Quarter H /~> 3rd I (/< Quarter ■ /O 4th IMS USE ONLY Address . 0 t«944 City_ State .ZIP. Telephone number IICR ENCODING Federal Tax Deposit Coupon Form 8109-B (Rev.12-2006) SEPARATE ALONG THIS LINE AND SUBMIT TO DEPOSITABY WITH PAYMENT OMB NO. 1545-0257 What's new. The oval for Form 990-C has been deleted. Form 990-C ^t using dollar signs, commas, a has been replaced by Form 1120-C, U.S. Income Tax Return for jjng zeros. If the deposit is for whole dollars only, Cooperative Associations. Filers of Form 1120-C must use the 1120 oval > boxes. For example, a deposit of $7,635.22 when completing Form 8109-B. lhis: '^ The type of tax ovals for the 1120, 1042, and 944 have been moved on the coupon. Read the type of tax to the right of the oval before you darken the oval. Note. Except for the name, address, and telephone number, entries must be made in pencil. Use soft lead (for example, a #2 pencil) so that the entries can be read more accurately by optical scanning equipment. The name, address, and telephone number may be completed other than by hand. You cannot use photocopies of the coupons to make your . Darken on ■ace for TYPE OF TAX and only one space deposits. Do not staple, tape, or fold the coupons. PERIOD gpace to the left of the applicable form and The IRS encourages you to make federal tax deposits using the period. Darkening the 1 space or multiple spaces may delay Electronic Federal Tax Payment System (EFTPS), For more infoi your account. See below for an explanation ofTypes on EFTPS, go to www.eftps.gov or call 1-800-555-4477. the Proper Tax Period. Purpose of form. Use Form 8109-B to make a tax deposit following two situations. it's QUARTERLY Federal Tax Return (includes 1. You have not yet received your resupply of preprinti coupons (Form 8109). S 941-M, 941-PR, and 941-SS) :r'5 Annual Tax Return for Agricultural Employees 2. You are a new entity and have already b< identification number (EIN), but you have not Employer's ANNUAL Federal Tax Return (includes Forms 944-PR, 944(SP), and 944-SS) of preprinted deposit coupons (Form 8109). lf| EIN, see Exceptions below. Annual Return of Withheld Federal Income Tax Note. If you do not receive your resupply of di Quarterly Federal Excise Tax Return deposit is due or you do not receive yoi Employer's Annual Railroad Retirement Tax Return of receipt of your EIN, call 1-800-829 Employer's Annual Federal Unemployment (FUTA) Tax How to complete the form. Enter, wn on your retu Return (includes Form 940-PR) or other IRS correspondence, addi the sp Form 1120 U.S. Corporation Income Tax Return (includes Form 1120 Do not make a name or address cl (se series of returns, such as new Form 1120-C and Change of Address). If you are reqi Form 2438) 990-PF (with net investment in< 990-^" Form 990-T Exempt Organization Business Income Tax Return which your tax year ends in ONTH TAX YEAR ENDS Form 990-PF Return of Private Foundation or Section 4947(a)(1) Nonexempt example, if your tax year ends ■, enter 01; if it ends in* Charitable Trust Treated as a Private Foundation December, enter 12. fylal for EIN and MONTH TAX R Form 1042 Annual Withholding Tax Return for U.S. Source Income of ENDS (if applicable) as mt of deposit below, Foreign Persons Exceptions. If^jpu h; for an EIN, have not received it, and a deposit mustjfl'made^ ie Form 8109-B. Instead, send your Marking the Proper Tax Period payment t ^ 'e you file your return. Make your check Payroll taxes and withholding. For Forms 941, 940, 943, 944, 945, or money to the United States Treasury and show on it CT-1, and 1042, if your liability was incurred during: your name ^n Form SS-4, Application for Employer • January 1 through March 31, darken the 1st quarter space; Identification NumSSHfcddress, kind of tax, period covered, and date • April 1 through June 30, darken the 2nd quarter space; you applied for an EINTDo not use Form 8109-B to deposit delinquent taxes assessed by the IRS. Pay those taxes directly to the IRS. See Pub. • July 1 through September 30, darken the 3rd quarter space; and 15 (Circular E), Employer's Tax Guide, for information. • October 1 through December 31, darken the 4th quarter space. Amount of deposit. Enter the amount of the deposit in the space Note. If the liability was incurred during one quarter and deposited in provided. Enter the amount legibly, forming the characters as shown another quarter, darken the space for the quarter in which the tax liability below: was incurred. For example, if the liability was incurred in March and deposited in April, darken the 1st quarter space. I2l3l4l5l6l7l8lqlol Excise taxes. For Form 720, follow the instructions above for Forms 941, 940, etc. For Form 990-PF, with net investment income, follow the instructions on page 2 for Form 1120, 990-T, and 2438. Department of the Treasury Form 8109-B (Rev. 12-2006) Internal Revenue Service Cat. No. 61042S B-4
  • 34. ELECTRONIC FEDERAL TAX PAYMENT SYSTEMS (EFTPS) The North American Free Trade Agreement includes a provision which requires many corporations to electronically deposit backup, wage, pension and nonresident alien withholding, along with various excise taxes and estimated income tax payments. - Businesses with first time aggregate federal deposits exceeding $200,000 in 2006 will be mandated to use EFTPS beginning January 1, 2008. Under these rules, a company is required to deposit electronically if its aggregate federal deposits for the second previous year exceed $200,000. Aggregate federal deposits include ALL federal business taxes (941,940, corporate estimates, & excise tax deposits). When the $200,000 threshold is met, ALL federal business taxes must be electronically deposited. If enrolled in EFTPS through a payroll service you must file a separate enrollment form to obtain a PIN number in order to electronically deposit "other" federal business taxes. Before making electronic payments, taxpayers enroll with the IRS by filing Form 9779, the EFTPS Business Enrollment Form. This enrollment process takes approximately four to six weeks. There are two payment options: 1) EFTPS - Direct (preferred method) - funds are debited from the taxpayer's bank account by the IRS. The taxpayer initiates payment by a telephone call (EFTPS- Phone), through a personal computer (EFTPS-PC Software), or by using the internet (EFTPS-OnLine), Free Windows ® - based software is available from the IRS. Payment must be initiated by 8:00 p.m. one business day prior to date due. The IRS provides a confirmation number. EFTPS allows taxpayers to "warehouse" their tax payment up to 120 days in advance of the tax due date. The payment is then automatically made on the due date. 2) EFTPS - Through Your Financial Institution - taxpayer initiates a credit transaction through their financial institution to the IRS one business day prior to date due. Cutoff time must be confirmed with the bank. Employer should check with their bank for availability, deadlines, and fees. No confirmation number is given. IRS Offers Express EFTPS Enrollment IRS offers EFTPS Express Enrollment for new businesses. Employers that receive a new EIN (Employer Identification Number) and have a federal tax obligation will automatically be pre-enrolled in the Electronic Federal Tax Payment System (EFTPS.) After receiving their EIN, employers will receive a separate mailing containing an EFTPS Personal Identification Number (PIN) with instructions for activating their enrollment. New employers can then activate their enrollment by calling a toll-free number, entering their banking information, and completing an authorization for EFTPS to transfer funds from their account to Treasury's account for tax payments per their instructions. B-5
  • 35. ELECTRONIC FEDERAL TAX PAYMENT SYSTEMS (EFTPS) - continued EFTPS - OnLine: Taxpayers Can Pay All Federal Taxes On The Web Taxpayers can enroll and pay all Federal taxes through a secure web site, http://www.eftps.gov. The Electronic Federal Tax Payment System, (EFTPS), has been a service that businesses and individuals can use to pay all their federal taxes electronically, 24 hours a day, 7 days a week, via the phone or personal computer (PC) software. EFTPS-OnLine is the same, easy to use system as the telephone and PC software versions of EFTPS, but it also includes new features. EFTPS - On-Line users will not only be able to pay their taxes when they want, but they can also review their tax payment history and print out payment confirmation. Payment history can be accessed for 16 months. By using any of the EFTPS methods to pay taxes, taxpayers benefit from increased accuracy, easier payment and less paperwork. With EFTPS-Direct, all three methods are interchangeable and can be used as a backup. For more information call: - EFTPS Customer Service at 1-800-555-4477 (business) or 1-800-316-6541 (individual) for information and enrollment. - Visit the IRS website at www.eftps.gov Penalties: Ten percent failure to file electronically. Two percent late filing penalty. Note: If you are already enrolled in EFTPS and want to sign up for the on-line system, you will need your original confirmation letter from the IRS. If you do not have this you can call 1-800-555-4477 to request a new letter. B-6
  • 36. Electronic Federal Tax Payment System Tax Form 9779 with Instructions Department of the Treasury BUSJnSSS EtirOllmSt EFTPS "~ This form contains instructions to complete the Electronic Federal Tax Payment System (EFTPS) Enrollment Form for Business Taxpayers. It is to be used either for initial enrollment in the system or to add financial institution information. If you wish to use multiple accounts in one financial institution, or accounts in multiple financial insLiiuLions, you will need to provide multiple copies of the enrollment form. For questions regarding EFTPS or this Enrollment Form please call: EFTPS Customer Service 1-800-555-4477 For TDD (hearing impaired) support 1-800-733-4829 Visit our web site at www.EFTPS.aov to enroll online. en espanol 1-800-244-4829 24 hours a day, 7 days a week When your form is completed, please mailo: EFTPS Enrollment Processing Center P.O. Box 173788 Denver, Colorado 80217-3788 You should receive void Confirmation/Update Foi m and iiistnictious on using EFTPS approximately two to fooi weeks, after we receive your Eniollmeiit Form MARKING EXAMPLE: INSTRUCTIONS Marking Instructions: • Use black or blue ink only. 1. Employer Identification Number • Please print legibly. Use one character per block. Use (EIN). Enter your nine-digit Employer only capital letters. Keep all printing within the boxes. Identification Number. Enter the EIN on the back it'tlu farm in the upper right ♦ Do not make any stray marks on this form. Stale Zip Code corner as well. Taxpayer Information Note to Sole Proprietors: if you are a 1. Employer Identification Number (EIN) - (Please enter EIN on reverse side also.) Sole Proprietor business, without employees, you need to enroll as an Individual (Tax Form 9783) and use your i | I :.. Social Security Number as your Taxpayer Identification Number. 2. Business Taxpayer Name: 2. Business Taxpayer Name. Print your business name exactly as it appears on the tax return. Sole Proprietors should use the individual owners name rather 3. Business Street Address: than the DBA name. The only valid characters are A-2,0-9. •, 8, and blank. 3. Business Address. This address City: State: ZIP Code: should be the address as it appears on the business tax return. ITTTT ji) IjofalllkiatfosshssfBeii International: Province, Country, and Postal Code: pre-prinled and .is incorrect, it| ia/i ill! 111 ii only be'■ changed by submitting an ! ! j t IRS Change of Address (Form 8822) i ; i■ 1f i ■; Ii 1 .! . j i i i i i [ ; to the Internal Revenue Sen/Ice. The address on yoiififftS enrollment will automatically be updated when Contact Information Form 8S22 is submitted. See the 4. Primary Contact Name: back of Form 882? lo determine [ mr j j i i i ! i j i 1 ; 1 1 1 i ! i i i ! 1 j j where ihelorm should be mailed. 5. Primary Contact Mailing Street Address (if different from #3 above): 1 ' i : 4. Primary Contact Name. Print the : i ! |s ! i j i ! i ! j i 1 i I ! ! i i name of a person, company, or third party who can be contacted in the event 1 L M ! ■ I I i = City: State: Zip Code questions arise regarding this enrollment Ll! ! 1 i 1 1 i ! H ; j 1 or tax payments. All EFTPS mailings will be sent to your primary contact. i I Li M U_ Internationa : Province, Country, and Postal Code: 1 : ' ' ' i i : ! 5-6. Primary Contact Mailing Address i ; ■ < ' ! ! • '; ! ! ! and Phone Number (if different from #3 I i , , '■ above). You need not complete the address area il your contact's address is 6. Primary Contact Phone Number: US Area Code International Country Code City Code the same as the business address. If an _L!/L: L H lL: j °11" address is provided here, it will be used to mail confirmation materials and _J_j L1...L.-L.J L. instruction booklets 7. Primary Contact E-mail Address (use as many spaces as needed up to 60): 7. Primary contact E-mail Address. (optional) (over) B-7
  • 37. For side 2 please fill in Employer Identification Number (EIN) (continued) BIN: Payment Information 8. Payment Method. Choose the 8. Payment Method payment mothodfs) by placing an "X" in Q EFTPS (by Internet and/or phone): check here if you will instruct EFTPS to transfer payment from your account. the box(es). The options available are: EFTPS using the Internet or phone and EFTPS through a Financial Q EFTPS (through a Financial Institution): check here if you will instruct your financial institution to forward the payment to EFTPS. Institution. Both EFTPS input methods You must check with your financial institution to determine if they are capable of providing this service. are interchangeable: Internet and phone. NOTE: If you will only be using EFTPS through your Financial Institution as a payment method, skip to item #23. iG) Alofe.-'Fo*: EFTPS (using the Internet orpmm), complete the additional Information required about your linancial institution. Enrollment will automatically enroll you tor EFrPSthrougti a Financial Institution as well as Same-Day Payment "'/ .;.• 7■■/;-;,-: .v''■.'■'■■:■'■■ ■■>''■.■' ■ fiw EFTPS (throiigh a Financial Institution), you initiate a tax payment through a linancial imtltutldn. You must contact your financial institution to insure the insliiutimis capable ot malting ah EFTPS payment through the Automated Charing House (ACH) or a Same-Day Payment method. It you enroll lor EFTPS through a financial Institution or Same-pay Payment,- you may also enroll tor EFTPS using the Internet or phone by providing the financial institution Inlormation requested on items 19,ifirougU 23. : v; - :-". ■ . : V ■ v,1 :: : ■ FOPm Payment AmOUnt UmitS (EFTPS using the Internet or phone only) 9-18. Optional Tax Form Payment Amount Limits (For EFTPS using the Internet or phone only) This section Is optional. You may set amount limits for each tax type to prevent an overpayment. The system will compare your payment amount against your stated limit and provide a warning if you exceed the limit. You may override the warning if you wish. (19 through 24 must be completed il EFTPS. using the Internet or phone will be used) Financial Institution Information (to be completed if EFTPS using the Internet or phone will be used) 19. RTN. This is the nine-digit number 19. RTN: 20. Account Number: 21. Type: associated with your financial institution. ! i I I : [ "| Checking | I ' i i ! 1 ! | i f • You may contact your financial institution I ; i i i j j | i | [H Savings to verify this number. 20. Account Number. Enter the number 22. State: ZIP Code: """p 111 m■n TD ot the account you will use to pay your taxes. 21. Type. Please mark one box to indicate I whether the account is a checking or savings account Authorization 22. Slate and ZIP Code. Use the two- 23. For both payment methods: Please read the following Authorization Agreement: cliaracter-letter abbreviation for the stale your linancial institution is located in and I (as defined as the taxpayer whose signature is below) hereby authorize the contact person (listed In item #4 of this form) and the financial institutions involved indicate ZIP Code. in the processing ot my Electronic Federal Tax Payment System (EFTPS) payments to receive confidential information necessary to effect enrollment in EFTPS, electronic payment of taxes, and answer inquiries and resolve issues related to enrollment and payments. This information includes, but is not limited to, passwords, 23. Authorization. This section authorizes payment instructions, taxpayer name and identifying number, and payment transaction details. If signed by a corporate officer, partner, or fiduciary on behalf of a Financial Agent ol the U.S. Treasury to the taxpayer, I certify that I have the authority to execute this authorization on behalf of the taxpayer. This authorization is to remain in full force and effect until initiate tax payments from the accounts) the designated Financial Agents of the U.S. Treasury have received notification from me of termination in such time and in such manner to afford a reasonable opportunity to act on it. you designate. 24. Taxpayer Signalure. The laxpayer Only EFTPS using the Internet or phone: Please read the following Authorization Agreement: must.sign this section to authorize participation in EFTPS. tf there is no By completing the information in boxes 19-22 and signing below, I hereby authorize designated Financial Agents of the U.S. Treasury to initiate EFTPS debit signature, a form will be returned. entries to the financial institution account indicated above, for payment of Federal taxes owed to the IRS upon request by taxpayer or his/her representative, using the Electronic Federal Tax Payment System (EFTPS). I further authorize the financial institution named above to debit such entries to the financial institution This section also provides authorization account indicated above. All debits initiated by the U.S. Treasury designated Financial Agents pursuant to this authorization shall be made under U.S. Treasury to share the information provided with regulations. This authorization is to remain In full force and effect until the designated Financial Agents of the U.S. Treasury have received written notification youj financial institution: required for the from me of termination in such time and in such manner as to afford a reasonable opportunity to act on it. processing of the Electronic Federal Tax Payment System. 24. Taxpayer Signature II signed by a corporate officer, partner, or fiduciary on behalf of the taxpayer, Date . the signer certifies that they have the Taxpayer Signature authority 1o execute this authorization on behalf of the taxpayer. Title. Print Name Remember to sign and mail your enrollment form to the address on Paperwork Reduction Act Notice: in accordance with Ihe Paperwork Reduction Act ot 1995. we ask to trie inlormation in the Electronic federal Tax Payment System (EFTPS) Enrollment 1:orni in order to tarry out the requirements of 26 United reverse side. States Code 6001.6011. and 6109. You m not required to provide information requested oil a form thai is subject to We Paperwork Jlouuciiofi Ad unless We lonn displays a valid OMB control number Soaks or records retaliriD to a form or its instructions must be retained as long as itieir contents may become material In the administration o! any internal Revenue law. Generally, lax returns and return Normal ion are ronlirtenttal. as required by Code section 6103. This Information is used by the Internal Revenue Service to assure that payments) are property credited to the appropriate account(s). Your response is mandatory N you are required by regulations to use Electronic Funds Transfer to make your frtderal Tax Deposits. Ttie lime needed (o provide this information will vary ifopumJinp, on individual circumstances. The osiimalBd average time is ten minutes. II you have comrntuils concerning trie accuracy ol this lime estimate or sugoesiions for reducing this burden, we would be happy lohBailrom you. You can write to the IPS Tax Products Coordinatino Committee, SE:W:CAfl:MP:TT:SP. 1111 ConstiliilionAve.NW. Washington. DC 20224. Please do not send the anrollmeni lotm to this address. The Privacy Act ol 1974 requires that when we ask individuals lor information about thnmselves, we slate our legal right to ask lor Ihe information, why we are askinp. lor the inlormation. and tow it win be used. We must also tell you what co»M happen il we do not rocerve all oi part ol it, and wlraflieryoui response is voluntaiy, required to obtain a benelfl. or mandatory. Our legal right to ask to information is S U.S.C. 301 and Internal Revenue Codo sections 6001.6011. 6012, and applicable regulations. The information will be used lo enroll you in the Becbwic Federal Tax Payment System {EFTPS). The information may not be disclosed except as provided by suction 6103 ol the Internal Revenue Code. We may give the information to the Department oi Justice and to other federal agencies, as provided by law. We may also give it to cities, stales, the District o! Columbia, and U.S. commonwealths or possessions to cany out their laws. We may oive it to foreign governments because of tax treaties they have with the United Slates. Your response is mandatory i[ you arc required by regulations to use elndronic funds transfer to make your deposits. If you arc not required by regulations lo use electronic funds transfer, your response is voluntary. II you do not provide all or pan of Ihe information, you may not be eligible to participate in Hie EFTPS. If you are required to use electronic lunds transfer by reputation, you msy be subject to penalties. If you are not required to use electronic funds Iransfer to pay taxes owed, you need to pay the taxes due by another method. iioveriitTteiH Priming Office: •ic: :>:S16U Form 9779 (2/07) B-8
  • 38. PENNSYLVANIA WITHHOLDING FILING REQUIREMENTS Starting in 2006, - Employers were required to "file" their returns electronically. The Dept. of Revenue is encouraging employers to remit PA Withholding electronically. Taxpayers have the option of mailing payments. The withholding tax must be remitted to the Department of Revenue quarterly, monthly or semi-monthly. The payment schedule is determined by the following: Filing Status Due Date Semimonthly Within three banking days of the 15th of the month and the last day of the month if amount withheld is $1,000 or more a quarter. Monthly By the 15th of the next month if amount withheld is $300 but less than $1,000 a quarter. Return for December is due January 31. Quarterly By January 31, April 30, July 31, and October 31 if amount withheld is less than $300 a quarter. Quarterly For semimonthly and monthly filers. Reconciliations By January 31, April 30, July 31 and October 31. Annual By January 31 with Forms W-2. Reconciliation Wage and Tax To employees by January 31 or Statement within 30 days of termination. Electronic funds transfer. Tax payments of $20,000 or more per payment are required to be deposited via electronic funds transfer. See page B-11 for more information. The amount of Pennsylvania withholding tax to be remitted is the higher of: - Gross Wages X 3.07% or current PA tax rate, or - Amount actually withheld. B-9
  • 39. PENNSYLVANIA WITHHOLDING FILING REQUIREMENTS - continued INTEREST If any amount of tax required to be withheld is not reported and paid in full on or before the due date, simple interest will be charged daily from the date the tax is due and payable to date of payment. The rate of interest will be announced annually by the PA Department of Revenue. This interest rate will continue for the calendar year regardless of subsequent change in the federal interest rate in such calendar year. Interest is computed by multiplying the late paid or unpaid tax X days delinquent X daily interest rate. The daily interest rate for 2009 was .000137. The 2010 interest rate is not yet available. PENALTIES Failure to file a quarterly return may result in the imposition of additional tax of five percent per month or fraction thereof of the amount shown on the return less any part of the tax paid prior to the due date of the return (minimum penalty five dollars, maximum penalty twenty-five percent). Failure to pay withheld tax to the PA Department of Revenue on or before the due date for filing the quarterly reconciliation return will result in an additional tax of five percent per month of the underpayment for each month or fraction thereof (maximum penalty of fifty percent). If any part of any underpayment of tax required to be shown on a return is due to fraud, an amount equal to fifty percent of the underpayment will be added to the tax. B-10
  • 40. PA ELECTRONIC FUNDS TRANSFER Overview The Pennsylvania Department of Revenue requires taxpayers remitting a payment of $20,000 or more for any of the following taxes to make payment by Electronic Funds Transfer (EFT): Sales and Use Public Utility Realty Employer Withholding Motor Carrier Corporate Net Income Fuel Use Capital Stock/Franchise Oil Company Franchise Mutual Thrift Institutions Liquid Fuels Bank Shares Malt Beverage Title Insurance and Trust Shares Unemployment Compensation Gross Receipts Cigarette Stamp Agents Insurance Premiums Marine Insurance Premiumstar Requirements for Enrollment in the EFT Program An EFT Authorization Agreement must be completed for each type of tax. The required forms should be received automatically from the Commonwealth. If you are required to use EFT and do not receive the required forms, go to the website at www.revenue.state.pa.us.. business taxpayers, electronic funds. If a payment of $20,000 or greater is not made by an approved EFT method, the account is subject to a three percent penalty up to $500. Payment Methods The EFT program offers three electronic payment methods: 1. Automated Clearing House Debit (ACH Debit) Transaction in which the Commonwealth, through its designated depository bank originates an ACH transaction debiting the taxpayer's bank account and crediting the Department's bank account for the amount of the payment due. Call the Department's Data Collection Center by 1:00 p.m. one business day before the payment due date. Provide the appropriate tax payment information. A 4-digit verification code will be issued. Retain this 4-digit code in the event there is a problem with the transfer. The next business day the amount you owe is debited from your bank account and transferred electronically to the Commonwealth's account. B -11
  • 41. PA ELECTRONIC FUNDS TRANSFER - continued Payment methods - continued A service known as warehousing is available to taxpayers using the ACH Debit payment method. Warehousing allows you to initiate your electronic tax payment up to 365 days in advance of the payment due date. Warehousing stores the transaction so that your bank account will not be debited until the specified payment due date. 2. Automated Clearing House Credit (ACH Credit) Before selecting this method verify that your financial institution can properly handle this type of transaction and the approximate costs. Transaction in which the taxpayer, through its own bank, originates an entry crediting the Commonwealth's bank account and debiting its own bank account for the amount of the payment due. You are required to perform a pre-notification test through your financial institution against the Commonwealth's bank account established for EFT payment deposits. The Department's bank account number and transit routing number, to perform this test, will be provided upon receipt of your EFT Authorization Agreement. Please keep in mind that for ACH debit and credit transfers, there is a 1-day lag between the date on which payment is authorized and the date on which the transfer is executed. So, all ACH transactions must be initiated at least one business day before the applicable due date. 3. Federal Reserve Wire Transfer (FedWire) FedWire payment is now only available in emergency situations with prior Department approval. (Limited to two per year) 4. Certified/Cashier's Check Payment Method A taxpayer may satisfy the obligation to remit a payment by EFT by hand delivering a certified or cashier's check, with the appropriate return or deposit statement, to the following address before 4:00 P.M. on or before the due date of the obligation. Payments will not be accepted at other Department locations. Department of Revenue Bureau of Business Trust Fund Taxes, EFT Unit (at Strawberry Square, 9th Floor) Fourth and Walnut Streets Harrisburg, PA 17128-0908 B-12
  • 42. REV-331A AS (5-08) COMPLETE AND RETURN WITHIN •n Pennsylvania AUTHORIZATION AGREEMENT 10 DAYS OF RECEIPT DEPARTMENT OF REVENUE . FOR BUREAU OF BUSINESS TRUST FUND TAXES Print in black ink or type PO BOX 280908 ELECTRONIC TAX PAYMENTS HARRISBURG, PA 17128-0908 Action requested: □ Establish EFT Change Contact Person Name, □ Change Payment Method □ Change Bank Information Business Name or Address Taxpayer Business Name: Federal EIN: Mailing Address for EFT purposes: C/O and Street address or PO Box City State ZIP Code Q Name and Telephone of Individual in your Organization that Revenue may contact regarding EFT: Last First M.I Area Code.Telephone Number and Extension ( ) ext. R~E-mail Address of Contact Person: Payment Method (check one): □ ACH DEBIT □ ACH CREDIT □ CERTIFIED/CASHIER'S CHECK If you selected the ACH Debit option, complete Sections 8, 9 and 10. If you selected the ACH Credit or Certified/Cashier's Check option, complete Sections 9 and 10. Bank Information: Enter the bank account information from which tax payments will be drawn using the ACH Debit method. If you use separate bank accounts to make different tax type payments, a separate Authorization Agreement must be completed for each account. Account Number: Bank Name Transit Routing (ABA) Number: City State ZIP Code Account Type: □ Checking Savings B-13
  • 43. Check the appropriate block(s) to indicate the tax(es) you will be paying by EFT. Enter the account number for each tax type. If you select the ACH Debit option, the tax typefc) checked should fall under the bank account listed in Section 8 from which the payments') will be drawn. 1 r~ Capital Stock/Franchise Tax File Box) Number Loans Tax (AH 3 taxes reported on RCT-101) Corporate Net Income Tax File Box) Number 2. □ Utilities Gross Receipts Tax — File Box) Number 3. Q Gross Receipts Telecommunication Taxes for Intra-State, Inter-State, Mobile — File (Box) Number 4. □ Public Utility Realty Tax File (Box) Number 5. □ Bank Shares Tax Title Insurance & Trust Company Shares Tax Bank Loans Tax hie Box) Number 6. □ Mutual Thrift Institutions Tax — File | Box) Number 7. Q Insurance Premiums Tax — File (Box) Number 8. [] Marine Insurance Premiums Tax EIN 9. n Liquid Fuels and Fuels Tax Account Number 10. □ Motor Carriers Road Tax Account Number 11. LJ IFTA - Motor Carriers Account Number 12. □ Malt Beverage Tax Account Number 13. C] Cigarette Stamp Agents Account Number 14. □ Pari-Mutuel Authorized Signature Information: I certify the information provided on this form is true and correct and hereby authorize the PA Department of Revenue to use the information herein in direct conjunction with the EFT program. Print Name : Last First M.I. Title Date Signature Telephone Mumber Make a copy of this completed Authorization Agreement for your records. You may fax your completed Authorization Agreement to (717) 787-0145, or mail it to the PA DEPARTMENT OF REVENUE, PO BOX 280908, HARRISBURG, PA 17128-0908. For additional information visit www.revenue.state.pa.us or call (717) 783-6277 (electronic filing calls only). Services for taxpayers with special hearing and/or speaking needs: 1-800-447-3020 (TT only). B-14
  • 44. PA e-TIDES e-TIDES is an Internet-based filing system available free of charge from the Department of Revenue at www.etides.state.pa.us. e-TIDES currently allows for the filing of returns and payments for Sales, Use, and Hotel Occupancy Tax, Employer Withholding Tax, and Unemployment Tax. The site and your data are secured. Register online to activate your e-TIDES account. Simultaneously file your return and payment. Pay electronically using either ACH Debit. ACH Credit, or by Credit Card. If you will be using e-TIDES to transmit your tax returns and payments together electronically, the system will create your payment for you. You can opt to have returns and payments filed separately. Allow multiple filers within your business or outside your business (i.e. accountant, etc.) to file returns and/or payments for your business. • The Multi-Import feature allows you to submit multiple returns or payments by uploading a single file. • You control the level of access of your filers. You can dictate if a filer can file a return, make payments, and/or view your Internet filing history. • View your Internet filing history online. The system will keep a record of your returns and any payments made electronically by ACH Debit. Your return and payment will be assigned an ID number for future reference. • Employers are now able to electronically file their required unemployment compensation quarterly reports (Form UC-2A) and pay their unemployment compensation contributions electronically, which will be mandatory by 2011. • Links to Labor & Industry, PA Open for Business, Revenue Homepage & Commonwealth Homepage. "Important Note to e-TIDES Users": PA Department of Revenue discontinued mailing sales and use tax coupon booklets. During 2006, the Department also discontinued Employer Withholding Coupon Booklets. Filing via e-Tides or Telefile is now required. Filer Registration Instructions In order to use e-TIDES, you must complete 2 types of registrations: Filer Registration and Enterprise Registration. NOTE: In order to use e-TIDES electronic filing options you must first be registered with the Department of Revenue to collect Sales, Use, Hotel Occupancy Tax, Employer Withholding Tax, and/or Unemployment Tax. If you are a new business and need to obtain a tax account number(s), use the PA100 Pennsylvania Enterprise Registration form or register using the Online PA100 at www.pa100.state.pa.us. B-15
  • 45. PA e-TIDES - continued Filer Registration Instructions - continued Log into www.etides.state.pa.us - To obtain a complete overview of the e-TIDES registration requirement, follow the Quick Step Setup. Step 1. Electronic Signature/Filer Registration Step 2. Enterprise Registration Options in e-TIDES - The PA Department of Revenue announced the following options: • W-2 Transmittal/W-2 Wage Statements/1099-R - The ability to file the W-2 Transmittal/1099-R/Rev.-1667. Click on W-2 Transmittal/W-2 Wage Statement/1099R for more information. • Amended Returns - You may file amended returns for Sales Tax and Employer Withholding Tax. You can access this in two ways. Click on Amended Return for more information. • Enterprise Maintenance - The ability to change/update Sales and Employer Withholding Taxes electronically. Click on Enterprise Maintenance for more information. Credit Card Payments PA Department of Revenue accepts American Express, Master Card, Visa, and Discover for sales tax and employer taxes. You can charge by phone or over the internet by using the credit card service provider listed here: Official Payments Corp. Phone: 1-800-2PAYTAX (1-800-272-9829) Internet: www.officialpavments.com Official Payments Corp. charges a 2.49% convenience fee ($1 minimum charge) for processing the credit card transaction. The convenience fee and tax payment will appear as two different charges on your credit card statement. B-16
  • 46. PA e-TIDES-continued Credit Card Payments - continued • Your payment will be effective on the date you charged it. When your payment is approved, you will be given a confirmation number. Retain this confirmation number as proof of payment. Authorized payments cannot be cancelled. • If you want to confirm your transaction, or if you have any questions, please call: Official Payments Corp. Customer Service: 1 -877-754-4413 Note: Payments made through Official Payments Corp.'s credit card service are not reflected in the e-TIDES View Internet Filing History. MULTI-STATE REPORTING Multi-State Income Tax Withholding Rule of Thumb-Withhold income tax for the state in which services are performed. This is the default rule for employees who live and work in the same state. When that's not the case, you must consider three other factors: residency, reciprocity, and resident/ nonresident taxation policies. Multi-State Unemployment Insurance Every state sets its own unemployment insurance (Ul) tax rate and taxable wage base. Fortunately, you only have to pay state unemployment taxes to one state for each employee, even if the employee works in more than one state. The trick is making sure that you pay the correct state. If you pay unemployment taxes to the wrong state, you're still liable for paying them to the correct state, and you may have trouble getting a refund from the incorrect state. What to do - Gather the facts on where the employee in question is based, performs work, and lives. 1) Localized: The employee works basically in one state with only temporary or transitory work in another state. Pay the state where the employee normally works. 2) Base of operations: The employee works in more than one state on more than a temporary or transitory basis, but receives instructions, maintains business records, picks up mail or supplies, or has an office in one of the states where he or she works. You pay that state. 3) Place of control: The employee's work is not localized and the base of operations can't be pin-pointed. You pay the state where the control over the employee is localized, if the employee works there some of the time. 4) Residence: When all else fails, pay the state where the employee lives, if he or she works there at least some of the time. B-17
  • 47. BONUSES/SUPPLEMENTAL WAGES Taxability and Withholding of Bonuses Bonuses paid to employees for the performance of services are taxable wages subject to federal income, FICA, state, local, FUTA and SUTA payroll taxes. This includes holiday bonuses, incentive bonuses, bonuses for production, severance pay, awards and prizes, and gift certificates. Bonuses are considered supplemental wages for federal income tax withholding purposes. You have three methods available to you for withholding on supplemental wages: 1. If you pay supplemental wages with regular wages but do not specify the amount of each, withhold income tax as if the total were a single payment for a regular payroll period. 2. If you pay supplemental wages separately (or combine them in a single payment and specify the amount of each), you can either: a. Withhold a flat 25% or b. Add the supplemental wages to regular wages for the most recent payroll period. Then compute the withholding tax as if the total were a single payment. Subtract the tax already withheld from the regular wages and withhold the remaining tax from the supplemental wages 3. If you do not withhold income tax from the employee's regular wages (i.e., when the value of your employee's withholding allowances claimed on Form W-4 is more than his/her wages), use the method described in method 2b above. Gross up the Bonus In cases where you want the employee to receive a specific amount without the taxes deducted, you may "gross up" the bonus. In order to do this, follow these steps: 1. Add the withholding tax rates: Federal withholding = 25.00% FICA, M/C = 7.65% PA state tax = 3.07% Local tax = 1.00% PA UC Tax = .06% 36.78% 2. Subtract the total of step 1 from 100%: 100.00% - 36.78% 63.22% B-18
  • 48. BONUSES/SUPPLEMENTAL WAGES - continued Gross up the Bonus - continued 3. Divide the net amount by the answer in step 2 to arrive at the gross amount of wages: $500/63.22% = $790.89 Gross amt. 4. Gross amount $ 790.89 (25.00%) Federal w/h (197.71) ( 7.65%) FICA/MC w/h (60.51) ( 3.07%) PA w/h (24.28) ( 1.00%) Local w/h (7.91) ( 0.06%) PA UC tax w/h (.48) $ 500.00 Net bonus How And When To Use Cumulative Withholding Situations can occur where the nature of the work or the duration of employment causes an employee's earnings to be distorted. For example, an employee earns a great deal in one part of the year, and relatively little in the rest. The employee will be over-withheld at his or her earnings peak, and for the entire year, unless you withhold on a cumulative basis. Sales Employees - Cumulative withholding can reduce the amount withheld when a seller's commissions or bonuses are at a seasonal low. The difference is made up when sales, and hence compensation, are higher. Cumulative withholding does not cost an employer anything, but it can be of great benefit to employees. How It Works - A seller's total earnings to date are divided by the payroll periods to date. This gives a salesperson's average pay per payroll period (per week, per month). You then calculate withholding on this average amount and multiply it by the number of payroll periods to date. If during the year this average amount, or more, has already been withheld, no income tax is withheld on the latest commission payment. If less has been withheld, the difference is withheld on the current payment. In any case, FICA tax is deducted as usual. The employee must make a written request for cumulative withholding. Summer Workers - Cumulative withholding can also reduce income tax withholding for so-called part-year workers. It's especially helpful for summer workers, like students, who may have no other earnings during the rest of the year. B-19
  • 49. Cumulative Withholding -continued What to Do Another option to prevent overwithholding is for employees to sign a request like the one below. Keep it with the W-4. "/ request that federal income tax be withheld from my earnings using the part-year employment method. I am a calendar-year taxpayer. I have not been employed previously during the current year. And I do not anticipate being employed more than 245 calendar days during the current year." The part-year withholding method works on the same principle of averaging earnings over earlier periods, as in the method described previously for sales employees. Since part-year employees have no earnings in these previous periods, withholding on the average earnings is cut drastically. OTHER BENEFITS EXEMPT FROM TAXES Listed below are a few suggestions of nontaxable benefits: 1. Free services; example - hotel chain can allow employees to stay free. 2. Employee discounts 0 up to 20% off the price of service offered to regular customers. 3. Parking - parking benefits up to $230 per month for parking spaces near the employers premises. 4. Transit pass up to $120 per month. 5. Meals & Lodging - an employer can provide free meals and living accommodations to its employees if it's in the best interest of the employer to do so. Example - hospitals can provide free meals on its premises to personnel so they are available for emergencies. An example of the lodging would be a caretaker's apartment on the premises. 6. Supper money for employees who occasionally work late. 7. Employer-sponsored cafeterias - a cafeteria must be open to the entire workforce and they must charge enough to cover their direct operating expenses. 8. Parties, picnics, and occasional tickets to entertainment events. 9. Professional dues - civic clubs, professional groups, trade associations, and chambers of commerce are tax free. Country club dues are taxable. 10. Gyms and athletic facilities - provided they are on the company's premises and are available to all employees. They cannot be available to the public. 11. Education - up to $5,250 per year provided it is for job-related education. B-20
  • 50. OTHER BENEFITS EXEMPT FROM TAXES - continued 12. Child care - if it is offered to all employees, the value of employer-provided child care is tax-free up to $5,000 per year. 13. Uniforms, company logo items. 14. Non-cash holiday gifts that are relatively inexpensive and distributed to all employees. 15. Recognition awards - Employer awards for retirement or exceptional performance are federal income tax-free if they have a low fair market value. Awards of tangible personal property are tax-free up to $400 per year or $1,600 if the award is for length of service or safety achievement and it is available to all employees. Remember cash and gift certificates are taxable, unless nominal in value. GROUP TERM LIFE INSURANCE Employer-provided group-term life insurance with a value of $50,000 or less is a tax- free benefit to the employee if it is non-discriminatory. The value in excess of $50,000, less any employee after-tax payroll deduction, is to be treated as taxable income, also subject to social security and Medicare taxes. The employer is not required to withhold federal income tax from the employee, but the value is subject to federal taxation and must be reported on the employee's Form W-2 as "other compensation." This amount is also included in box 12, using Code C. The value in excess of $50,000 is not taxable for FUTA, PA income tax, local wage tax or state unemployment purposes. If the employee pays for additional coverage with cafeteria plan salary-reduction dollars, the entire amount of salary reduction premium is excluded from the employee's taxable wages. Table I must be used to calculate the taxable coverage of life insurance over $50,000, and is taxed as other compensation as stated above. If an employer-provided GTL policy provides coverage in excess of $50,000, the value of the insurance benefit to be included in the employee's income is calculated by use of the IRS "Uniform Premium Table I." B-21
  • 51. GROUP TERM LIFE INSURANCE - continued UNIFORM PREMIUM TABLE I Cost per $1000 of protection for one month 5-vear age bracket Under 25 $0.05 25 to 29 0.06 30 to 34 0.08 35 to 39 0.09 40 to 44 0.10 45 to 49 0.15 50 to 54 0.23 55 to 59 0.43 60 to 64 0.66 65 to 69 1.27 70 and above 2.06 The employee's age on the last day of the calendar year needs to be determined before the following formula can be used to calculate the value of GTL in excess of $50,000: (GTL coverage - $50,000) x GTL cost factor x .001) - employee after-tax deduction for policy equals taxable GTL monthly premium value EXAMPLE: Employee's age at 12/31/09 59 Employee's GTL benefit: $100,000 Employee's GTL after tax payroll deduction per month: $10.50 Taxable wages on the value in excess of $50,000 2008 amount to be included in income (100,000 - 50,000) x .43 x .001 -10.50 = $11.00/month x 12 months: $132.00 The following are three exceptions where the excess GTL coverage would not be taxable to the employee: • The beneficiary of the policy is the company. • The beneficiary of the policy is a charitable organization. • The employee terminates during the year due to permanent disability. B-22
  • 52. CAFETERIA PLANS What is a cafeteria plan? Cafeteria plans or flexible-benefit plans are employee benefit plans, authorized by IRS Code Sec. 125, under which employees may choose from among two or more benefits consisting of cash and qualified benefits offered by an employer. The cafeteria plan must be in writing. All participants must be employees or full-time life insurance salespersons (to the extent that they are otherwise permitted to exclude the elected benefit from income). No special permission is required from the IRS to implement a cafeteria plan. Why offer cafeteria plans? Cafeteria plans give employees greater responsibility for planning their choice of benefits while saving benefit costs for the employer. There are also some immediate tax benefits. All of the before-tax deductions of the employees are exempt from federal income tax, social security, Medicare, and in some states, are exempt from state and local withholding. Most states exclude contributions to before-tax plans from income taxes. Before-tax plans provide many employees with their only opportunity to take a tax deduction for medical expenses, since few employees meet the percentage of income test required to deduct medical expenses on individual tax returns. Employers can save on social security, Medicare, and FUTA by instituting a cafeteria plan. Annual payroll tax savings may actually exceed the administration costs involved in implementing and maintaining a plan. What benefits may be offered in a cafeteria plan? Qualified benefits that can be offered include accident and health insurance, disability insurance, dependent care assistance, adoption assistance, group-term life insurance up to $50,000 coverage, and medical and dental expenses not reimbursed by insurance. With the release of IRS Revenue Ruling 2003-102 the Treasury Department and IRS announced that over-the-counter drugs can be paid for with pre-tax dollars through health care flexible spending accounts. This includes allergy medication, pain relievers, cough & cold medicines, but specifically disallows the cost of dietary supplements and vitamins. B-23
  • 53. CAFETERIA PLANS - continued What benefits cannot be included in a cafeteria plan? A cafeteria plan cannot offer employees an option to defer compensation, except through a qualified cash or deferred arrangement under a 401 (k) plan. Generally, a plan that permits employees to carry over unused benefits or contributions from one plan year to a subsequent plan year enables an employee to defer the receipt of compensation. Several other benefits cannot be included in a cafeteria plan because they are already tax-exempt under other parts of the Code. These benefits include: educational assistance plans, scholarships, fellowships, rides in commuter vans, de minimis fringe benefits, no-additional-cost services, employee discounts, and working condition fringe benefits. The plan cannot discriminate in favor of highly-compensated employees. FSA Grace Period Effective 2005, under IRS Notice 2005-42 employers had the option of amending their FSA (Flexible Spending Arrangement) to include a grace period. This would extend the time for reimbursement of health and dependent care benefits by 21/2 months after the plan year ends. Medical and/or dependent care expense incurred by March 15th would be allowed to be used against previous year excess contributions. This lessens the "use-it-or-lose-it" rules for FSA's. Pennsylvania State Law Elective contributions made by an employer and employee pursuant to a cafeteria plan (that qualifies under Federal Code Sec. 125) for a nondiscriminatory welfare benefit plan covering hospitalization, sickness, disability or death is NOT considered taxable compensation and therefore, is not subject to PA tax withholding. Unless allowable as a working condition, no-additional-cost, qualified transportation or de minimis fringe benefit, any of the following ARE TAXABLE as PA compensation and subject to PA withholding: - Amounts paid for dependent care - Amounts paid for non job-related legal, accounting or other professional services or educational assistance Pennsylvania Localities follow PA state compensation rules and exclude employee contributions to cafeteria plans. B-24
  • 54. PERSONAL USE OF COMPANY PROVIDED VEHICLE Although the business use of an employer-provided vehicle is non-taxable, the personal use is considered to be a taxable fringe benefit. Employers are required to ascertain the value of this personal use and to include it in the employee's wages reported on Form W-2. The personal use of a company-provided vehicle is not taxable for Pennsylvania tax purposes. The employee must submit to the employer an accounting for the business use of the car to alleviate the employer reporting the entire value of both business and personal use of the car on the employee's Form W-2. The Internal Revenue Service has provided several valuation methods for the employer to select from which to determine the amount of income that will be subject to reporting and taxing of the employee's wages. The employer may either use the "general valuation method" or select one of the following "safe harbor" valuation methods. • Commuting Valuation • Cents Per Mile Valuation • Annual Lease Value When the employer chooses one of the three "safe harbor" valuation methods they are required to notify their employees, in writing, by January 31 (or 30 days after the employer provides the vehicle to the employee), as to which method will be applied to their assigned vehicle. This written notice, which must be posted in a location where all affected employees are reasonably expected to see it, must state: • The special valuation rule that has been selected • The substantiation requirements under IRC Section 274(d) • The effect of failing to comply with the substantiation requirements • Date notice was posted • If the employer has elected NOT to withhold Federal income tax An employer must adopt a valuation rule by the first day on which the vehicle is made available to the employee. The employer must continue to use the same valuation method for an employee until the vehicle is no longer used by the employee unless the employee and employer can change to the commuting method. Substantiation of Business Use Employees and employers must maintain adequate records to calculate the business use of an employer-provided vehicle. The employee should log the business use of the vehicle including the date, purpose of the trip, and number of miles traveled. To eliminate the necessity of the substantiation requirements, an employer can issue a written policy that either prohibits workers from making personal use of company cars or restricts any personal use to commuting trips only. B-25
  • 55. PERSONAL USE OF COMPANY PROVIDED VEHICLE - continued General Valuation Method The worker's personal use of the employer-provided vehicle is determined by the fair market value of the automobile (the cost an individual would have to pay to lease the same or comparable vehicle on the same comparable terms in the same geographic area). Commuting Valuation Method The commuting use of an employer-provided car is valued at $1.50 per one-way commute ($3.00 per round trip) if the employee meets the following requirements: 1. The vehicle is owned or leased by the employer and is provided to one or more employees for use in connection with the employer's trade or business. 2. The employer, for bona fide noncompensatory business reasons, requires the employee to commute to or from work in the vehicle. 3. The employer has established a written policy under which the employee may not use the vehicle for personal purposes other than for commuting or de minimis personal use (such as, stop for a personal errand on the way between a business delivery or the employee's home). 4. The employee, except for de minimis personal use, does not use the vehicle for any personal purpose other than commuting. 5. The employee required to use the vehicle for commuting is not a control employee of the employer. Cents Per Mile Valuation Method The value is determined by multiplying the number of miles driven for personal use by the standard mileage rates established by the IRS (55# per mile for 2009, and for 2010). The standard rate includes maintenance, insurance, and fuel provided by the employer. If the employee provides fuel, the valuation is reduced by 5.5C. To use this valuation method the following conditions are necessary: • Employer expects the employee to use the vehicle while conducting the employer's business during the year • Vehicle will be driven more than 10,000 miles • Vehicle will be used primarily by employees • Fair market value of the vehicle cannot exceed $15,000 for a passenger automobile or $15,200 for a truck or van. B-26
  • 56. PERSONAL USE OF COMPANY PROVIDED VEHICLE continued Cents Per Mile Valuation Method - continued EXAMPLE: Vehicle Cents Per Mile John Smith was issued a vehicle on January 2, 2009 Fair market value of vehicle on January 2, 2009 was $12,500 John has driven 15,500 miles during 2009 (4,500 personal miles and 11,000 business miles) The vehicle cents per mile valuation method is used (4,500 x 55C) = $2,475.00) to be included in John's income (fuel provided) $2,475.00 minus $247.50 (5.5tf x 4,500) = $2,227.50 (fuel not provided) Fair Market Valuation Method (Annual Lease Value) An employer determines the fair market value of the employer-provided vehicle on the first day the vehicle was available to the employee and then consults the IRS's "Annual Lease Value Table." The fair market value of the vehicle is that amount which the employee would pay when acquiring the vehicle in an arms-length transaction, including sales tax, registration fees, and title fees. Once the fair market value is determined for the vehicle, that value is to be used for the first four (4) calendar years the employer makes the vehicle available to the employee. After four calendar years, the employer may determine a new fair market value. If a vehicle is transferred to another employee, the employer may redetermine its fair market value and calculate a new annual lease value, provided this is not done for the purpose of reducing an employee's income taxes. Example of Annual Lease Value John Smith was issued a vehicle on January 2, 2009 FMV of the vehicle on January 2, 2009 was $20,400 John has driven 15,500 miles during 2009; 4,500 personal miles and 11,000 business miles Calculation: Annual lease value $5,600.00 Personal use percentage (4,500/15,500) 29.03% Personal use value included in John's W-2 $1.625.68 If fuel is provided, the employer must include an additional 5.5C per mile for personal miles. In this example, John would have an additional $247.50 (4,500 X .055) in taxable wages. B-27
  • 57. PERSONAL USE OF COMPANY PROVIDED VEHICLE - continued Fair Market Valuation Method (Annual Lease Value) - Continued Automobile Annual Lease Value Fair Market Value (ALV) $ 0-999 $ 600 1,000 -1,999 850 2,000 - 2,999 1,100 3,000 - 3,999 1,350 4,000-4,999 1,600 5,000-5,999 1,850 6,000 - 6,999 2,100 7,000 - 7,999 2,350 8,000 - 8,999 2,600 9,000 - 9,999 2,850 10,000 - 10,999 3,100 11,000 - 11,999 3,350 12,000 -12,999 3,600 13,000 -13,999 3,850 14,000 - 14,999 4,100 15,000 -15,999 4,350 16,000 - 16,999 4,600 17,000 - 17,999 4,850 18,000 - 18,999 5,100 19,000 - 19,999 5,350 20,000 - 20,999 5,600 21,000 - 21,999 5,850 22,000 - 22,999 6,100 23,000 - 23,999 6,350 24,000 - 24,999 6,600 25,000 - 25,999 6,850 26,000 - 27,999 7,250 28,000 - 29,999 7,750 30,000 - 31,999 8,250 32,000 - 33,999 8,750 34,000 - 35,999 9,250 36,000 - 37,999 9,750 38,000 - 39,999 10,250 40,000-41,999 10,750 42,000-43,999 11,250 44,000-45,999 11,750 46,000-47,999 12,250 48,000-49,999 12,750 50,000 - 51,999 13,250 52,000 - 53,999 13,750 54,000 - 55,999 14,250 56,000 - 57,999 14,750 58,000 - 59,999 15,250 For vehicles having a fair market value in excess of $59,999, the ALV is equal to: (.25 x automobile fair market value) + $500. The ALV is decreased for any periods during which the car was unavailable and increased to cover other services provided for the car. The final amount is then multiplied by the percentage that represents personal use. B-28
  • 58. PERSONAL USE OF COMPANY PROVIDED VEHICLE - continued Company Fleets Company fleets comprised of twenty or more vehicles using the annual lease value method may choose a fleet average valuation. When the employer reasonably expects the vehicles to be used in the employer's trade or business and each unit of the fleet has a fair market value of $19,900 or less (adjusted periodically by the IRS), the average of the fair market value for all vehicles may be used. If the fleet falls below 20 vehicles for more than 50% of the days in the year, the employer will not be able to use the fleet valuation method in the next year. Employers may identify more than one fleet within the vehicles owned by the employer. If the fleet average method is used, the employer must recalculate the valuations every two years. When the fleet valuation method is used, and the employer continuously provides a unit from the fleet to the employee, the employer is not required to provide the same vehicle for the entire period. Employer-provided fuel for fleet automobiles can be valued by using an average fuel cost of the entire fleet, or 5.5C per mile. After you have determined the fair market value or fleet value, find this amount on the "annual lease value table" and multiply the amount from the table by the employee's personal use percentage for the vehicle (personal miles divided by total miles driven). The employer must add an additional 5.5C for each personal mile driven if the employer also provides fuel for the vehicle. Part Year Valuation The annual lease value was designed primarily for vehicles used the entire calendar year. However, special valuation rules exist for vehicles used for shorter periods of time. To determine the value for a period of continuous availability that lasts at least 30 days, but less than a full year, the employer must multiply the annual lease value by the number of days the car is available to the employee and divide that figure by 365. The days the car is unavailable to the employee for bona-fide business reasons may be excluded. The days that the car is available but not used by the employee (such as during vacation), may not be excluded. The employer may prorate the annual lease value even if the 30 continuous day period straddles two years. This method may not be used when the reduction of taxable income is the primary reason for the change. B-29
  • 59. PERSONAL USE OF COMPANY PROVIDED VEHICLE continued Fixed and Variable Rate Mileage Allowance (FAVR) In the past employers paid employees an automobile allowance which was taxable to the employee. Revenue Procedure 90-34 added a new methodology (FAVR) in which employers can reimburse employees using their personal car for company business and exclude the payments from income. A FAVR allowance is made up of two parts: 1. A flat rate payment to cover the employee's fixed costs for depreciation, insurance, registration license fees and personal property tax for the vehicle, and 2. A periodic cents-per-mile payment for the employee's operating costs for gas, oil, tires and routine maintenance and repairs. A FAVR can only be used when the employee meets the following requirements: •The employee owns the car •The employee substantiates 5,000 miles driven in the employer's business, or, if greater, 80% of the annual business mileage is using a FAVR allowance •At no time during the year may greater than 50% of the employees covered by the FAVR be management •At least 5 employees must be covered under the FAVR at all times during the calendar year • Employees covered by the FAVR for less than the full year may prorate the FAVR. When a FAVR is used, the employee's reimbursement must be paid no less frequently than once a quarter. The costs (standard automobile cost) used in determining the FAVR must be based on 95% of the sum of the dealer's invoice plus state and local sales taxes paid by consumers in the geographic area where the employee lives. The standard automobile cost may not exceed $27,200 for 2009 and the employer is permitted to have different FAVR rates for different employees based on different standard automobiles. B-30
  • 60. SICK PAY (DISABILITY INCOME) 1. Employer pays employee sick pay: •Treated as normal wages • Payments are subject to all withholding requirements 2. Agent pays employee: •Agent (third-party) is paid on a cost-plus-fee basis by the employer, therefore bears no insurance risk • Payments are subject to all withholding requirements •Agent is not treated as employer 3. Third-party pays employee: •Third-party is paid an insurance premium by employer, so therefore bears the insurance risk • Payments are subject to FICA/Medicare withholding requirements, but not income tax withholding •Third-party is treated as the employer • Can be responsible for "employer portion" of FICA/Medicare taxes, or transfer responsibility back to original employer a. Third-party retains responsibility for taxes: • Third-party: • Withholds FICA and Medicare from "employees" (income taxes if requested) • Deposits withheld and matching portion of FICA/Medicare according to deposit requirements • Files Form 941 and W-2s as any other employer • Original employer does not need to do anything b. Third-party transfers responsibility for taxes back to original employer: • In order for transfer to occur, third-party must: • Withhold employee's share of FICA/Medicare • Deposit such tax according to deposit requirements • Notify the employer of the amount of wages and withholdings within time required for employer's share of deposit to be deposited according to deposit requirements. • Employer pays employer's share of FICA & Medicare taxes only • Employer files 941 and W2's B-31
  • 61. FORM 1099 - MISCELLANEOUS INCOME Non-employee Compensation Fees, commissions, prizes and awards for services performed, or other forms of compensation paid to non-employees for services rendered, and expenses incurred for the use of an entertainment facility treated as compensation paid to a non- employee are reported on Form 1099-MISC in box 7. The exemption from reporting payments made to corporations no longer applies to payments made for legal services. Report any attorneys fees, including corporations that provide legal services, in box 7. If you make a payment to an attorney in connection with legal services but you cannot determine the portion that is the attorney's fee, then report the total amount paid to the attorney (gross proceeds) in box 14, using code "A". Include fees, commissions, prizes and awards for services performed, or other forms of compensation for services performed for your trade or business by an individual who is not your employee. Include oil and gas payments for a working interest, whether or not services are performed. Also include expenses incurred for the use of an entertainment facility that you treat as compensation to a non-employee. Do not report in box 7, nor elsewhere on Form 1099-MISC, PS 58 costs (reported on Form 1099-R); an employee's wages, travel or auto allowance, or bonuses (reported on Form W-2); or the cost of group-term life insurance paid on behalf of a former employee (reported on Form W-2). Generally, amounts reportable in box 7 are subject to self-employment tax. If payments are not subject to this tax and they are not reportable elsewhere on Form 1099-MISC, report the payments in box 3. If the following four conditions are met, a payment generally is reportable as non- employee compensation: 1) you made the payment to someone who is not your employee; 2) you made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations); 3) you made the payment to someone other than a corporation (with the exception of legal services), e.g., an individual or a partnership; and 4) you made payments to the payee of at least $600 during the year. Examples of payments to be reported in box 7 are: 1. Attorneys' fees for professional services, payments of $600 or more for legal services regardless of the company structure, e.g., a corporation, individual, or partnership. 2. Fees paid by one professional to another, such as fee-splitting or referral fees. B-32
  • 62. FORM 1099 - MISCELLANEOUS INCOME - continued Examples of payments to be reported in box 7 are: - continued 3. Payments by attorneys to witnesses or experts in legal adjudication. 4. Payment for services, including payment for parts or materials used to perform the services as long as supplying the parts or materials was incidental to providing the service. For example, report the total insurance company payments to an auto repair shop under a repair contract showing an amount for labor and another amount for parts, since furnishing parts was incidental to repairing the auto. 5. Commissions paid to nonemployee salespersons, subject to repayment but not repaid during the calendar year. 6. A fee paid to a nonemployee and travel reimbursement for which the nonemployee did not account to the payer if the fee and reimbursement total at least $600. 7. Payments to nonemployee entertainers for services. 8. Exchanges of services between individuals in the course of their trades or businesses. For example, an attorney represents a painter for nonpayment of business debts in exchange for the painting of the attorney's law offices. The amount reportable by each on Form 1099-MISC is the fair market value of his orherown services performed. However, if the attorney represents the painter in a divorce proceeding, the attorney must report on Form 1099-MISC the value of his or her services, but the painter need not report. The payment by the painter is not made in the course of the painter's trade or business, even though the painting services are of the type normally performed in the course of the painter's trade or business. 9. Taxable fringe benefits for non-employees. For information on valuation of fringe benefits, see Pub. 535, Business Expenses. 10. Gross oil and gas payments for a working interest. 11. Payments to current and former self-employed insurance salespersons and agents for (a) amounts paid after retirement, but calculated as a percentage of commissions received by the individual from the paying company before retirement; (b) renewal commissions; and (c) deferred commissions paid after retirement but for sales made before retirement. B-33
  • 63. FORM 1099-MISC CORRECTED (if checked) PAYER'S name, street address, city, state, ZIP code, and telephone no. 1 Rents | OMB No. 1545-0115 Miscellaneous 2 Royalties I(Q)09 Income Form 1099-MISC 3 Other income 4 Federal income lax withheld Copy B For Recipient $ £ PAYER'S federal identification RECIPIENT'S identification 5 Fishing boat proceeds 6 Medical and health care payments number number $ $ RECIPIENT'S name 7 Nonemployee compensation 8 Substitute payments in lieu of dividends or interest This is important tax information and is being furnished to the Internal Revenue $ $ Service. If you are Street address (including apt. no.) 9 Payer made direct sales of 10 Crop insurance proceeds required to file a $5,000 or more of consumer return, a negligence product to a biyer penalty or other (recip ent) for re ale ► [ ] $ sanction may be City, state, and ZIP code 11 imposed on you if this income is taxable and the IRS Account number (see instructions) 13 Exce golde i parachute 14 Gro proceeds paid to determines that it payments an attorney has not been reported. $ 15a Section 409A deferrals 15b Section 409A income 16 State tax withheld 17 State/Payer's state no. 18 State income $ $ Form 1099-MISC (keep for your records) Department of the Treasury - Internal Revenue Service Form 1099-MISC is due to the recipient on February 1 and to the IRS on March 1. When Forms 1099 are transmitted to the IRS, they must be summarized on Form 1096, Annual Summary and Transmittal of U. S. Information Returns. A separate Form 1096 should be used for each type of information return submitted to the IRS. Boxes are provided on the form to indicate the types of information return being submitted. B-34
  • 64. BUSINESS EXPENSE REIMBURSEMENTS The IRS has divided employee expense reimbursement plans into two categories: Accountable Plans, and Non-Accountable Plans. Accountable Plans Reimbursements or other expense allowances made under this type of plan are generally tax-free to the employee and do not require the reporting of income on the employee's Form W-2. An accountable plan must meet the following three requirements: 1. Business Connection: Expenses must be business related to the extent the employee could deduct them on his or her personal income tax return. 2. Substantiation: The employee must substantiate the expenses with a detailed record of the expense including the time, business purpose, place, and amount of the expense. 3. Return of Unsubstantiated Amounts: The employee must return, within a "reasonable time," any advances that exceed their substantiated expenses. If the employee does not return or substantiate the expenses, income and employment taxes must be withheld on the first pay period ending after the expiration of the "reasonable time." The IRS has provided two "safe-harbor" methods for meeting the "reasonable time" requirements: Fixed Date Method • Advance payments made no more than 30 days before an employee incurs business expenses • Expenses that are substantiated within 60 days after they are incurred or paid • Excess payments returned to employer within 120 days after being incurred/paid Periodic Statement Method • Employer issues periodic statements to employees, at least quarterly, identifying unsubstantiated expenses or unreturned excess payments • Employees substantiate the expenses and refund any excess within 120 days after receiving the statement Reimbursing an employee at the standard IRS mileage rate or less, will allow a mileage reimbursement plan to be classified as an accountable plan. The standard mileage rate is 550 per mile, increasing to £ per mile in 2010. B-35
  • 65. BUSINESS EXPENSE REIMBURSEMENTS-continued Per Diems and Mileage Allowances Meals and incidental expense per diems or mileage allowances paid to employees which are less than or equal to the applicable rates set for federal employees are "deemed satisfied" without the employee having to provide receipts. The employees need only account for time, place and business purpose of their expenses. The CONUS "Continental United States" Advantage The IRS allows private-sector employers to use these rates to provide employees with tax-free reimbursements for their business travel-related expenses. That's good news for employees and employers, since using the federally approved CONUS per diems can mean less paperwork. Under the accountable plan rules, an employee who is reimbursed for a business expense must substantiate the cost of the expense. Rather than deal with collecting, verifying, and totaling all those receipts, you can reimburse employees at the federally approved per diem amount for each day the employee travels on business. Then, all the employee has to do is substantiate the time, place, and business purpose. Note: You will not have to withhold or pay employment taxes on the amount reimbursed, or report it as wages on the employee's W-2. High - Low Method In lieu of using the maximum per diem rate from the CONUS table, the high-low method, which is a simplified method of determining a lodging plus M&IE per diem, can be used to compute per diem allowances for travel within the continental United States. This method divides all CONUS localities into two categories: low-cost or high-cost localities. Certain areas are treated as high-cost only during designated periods of the year (e.g., a peak tourist season) and low-cost during other periods of time. Thus, employers who use the high-low method must determine whether the employee traveled in a high-cost area and if the area was classified as high-cost during the actual period of travel. If the high-low method is used for an employee, then the payor may not use the actual federal maximum per diem rates for that employee during the calendar year for travel within the continental United States. B-36
  • 66. BUSINESS EXPENSE REIMBURSEMENTS-continued Rates Effective October 1, 2009 to September 30, 2010 Meals and Incidentals Lodqinq Total Standard "CONUS" Rate 46 70 116 Low-Cost Locality 52 111 163 High-Cost Locality 65 193 258 Transportation Industry (Trucking, Bus, Airline) 59 Based on overnight location A complete listing of localities eligible for the high-low substantiation can be found in the IRS publication 1542. This publication also lists the maximum federal per diem rates for many locations within the continental United States. The publication can be downloaded from www.irs.gov. Another helpful website for per diem charts is www.policvworks.gov and www.qsa.gov/perdiem. Use What Works for You You do not have to make an all-encompassing decision as to whether you will use the CONUS rates, high-low rates, or actual-expense reimbursement. You have some flexibility-and a few restrictions: • If you have been using the high-low rates so far this year, you cannot switch to the CONUS rates during the transition, and vice versa. • If you used the CONUS per diems the first time you reimbursed an employee's travel expenses in 2009, you must use CONUS rates for that employee's reimbursements for the remainder of the year. • You can, however, use the high-low rates for some employees and the CONUS rates for others if you feel the different rates are more accurate for the sites most visited by the employees. If employees submit receipts, you can reimburse them tax-free for actual expenses under an accountable plan, even if you reimbursed them for previous expenses using the high-low or CONUS rates. B-37
  • 67. BUSINESS EXPENSE REIMBURSEMENTS-continued Non-accountable Plan Any business expense reimbursement or advance which does not meet the three qualifications of an accountable plan is considered a non-accountable plan. These reimbursements are to be treated as taxable wages when paid, subject to federal income, social security, Medicare, and unemployment taxes. Payment is defined as when the employee fails to meet any of the three requirements required for an accountable plan. They must also be reported on the employee's Form W-2. Reimbursing an employee at a higher amount than the standard IRS mileage rate, would result in the amount of the excess being classified as a non- accountable plan. Business Meals and Entertainment The deduction for the cost of business meals and entertainment is 50%. (For Pennsylvania purposes, the deduction continues to be 100% of the cost of business meals and entertainment). Travel Expenses for Dependents Employers are not allowed a deduction for travel expenses with respect to a spouse, dependent, or other individual accompanying an employee on business trips unless: • The spouse, dependent, or other person is a bona fide employee of the person paying or reimbursing the expenses, • The travel of the spouse, dependent, or other person is for bona fide business purposes, and • The expenses of the spouse, dependent, or other person would otherwise be deductible. If all three criteria are not met, the travel expenses of the spouse, dependent, or other person can only be deducted to the extent they are treated as compensation to the employee. B-38
  • 68. BUSINESS EXPENSE REIMBURSEMENTS-continued MOVING EXPENSES Qualified moving expenses are limited to reimbursements for moving your household goods and traveling to a new residence, including lodging. They are non-taxable fringe benefits (provided the move qualifies as deductible, i.e. a 50 mile increase in distance from work, etc.). These excludable reimbursements should be shown in Box 12 of Form W-2, identified by using Code "P", and are not included in Box 1. Non-qualified moving expenses are meals, pre-move house hunting trips, temporary lodging and costs associated with selling the old residence and buying the new. These expenses are not deductible as moving expenses, and therefore, are taxable fringe benefits. Reimbursements for these expenses must be included in boxes 1,3, and 5 of Form W-2. B-39
  • 69. PARTC Payroll Start-Up Guide
  • 70. PART C - PAYROLL START UP GUIDE NEW EMPLOYERS - NEW EMPLOYEES Page Employer Responsibilities C -1 New Employer Packets C -2 • SS-4 Instructions (Application for EIN) C -2 • PA-100 Instructions C - 3 State Unemployment Tax C -4 PA UC Withholding Tax C -4 Form W-5 - Earned Income Credit - C -5 Advance Payment Certificate New Hire Reporting Requirements C -5 • Multi-State Chart C -7 Local Tax Enabling Act C - 20 • Local Tax Rates C - 21 Local Services Tax C - 26 • LST Chart C - 27 Designing the Payroll System C - 28 Maintaining Payroll Records C - 29 Pennsylvania Income Tax C - 30 • General Information C - 30 • Reciprocal Agreements C - 31 • PA Employer Withholding C - 32 York Adams Earned Income Tax C - 32
  • 71. EMPLOYER RESPONSIBILITIES Employer Responsibilities: The following list provides a brief summary of our basic responsibilities: New Employees: Quarterly (By April 30, July 31, October 31 and January 31): • Verify work eligibility - Form 1-9 • Calculate the amount of Federal • Record employees' names and SSNs unemployment (FUTA) tax for each from social security cards employee • Ask employees for Form W-4 • Deposit FUTA tax in an authorized • File New Hire Reporting Form financial institution if undeposited accumlated amount is over $500 Each Payday: • File Form 941 (pay tax with return if not required to deposit) • Withhold Federal income tax based on • File state and local withholding tax reconciliation forms each employee's Form W-4 • Withhold employee's share of social • File state unemployment form security and Medicare taxes • File Local Services Tax if required in your locality • Withhold state and local income taxes • Include advance earned income credit in paycheck if employee requested it on Annually: Form W-5 • Remind employees to submit a new • Deposit in an authorized financial Form W-4 if they need to change their Institution or by EFTPS: withholding • Withheld income tax, plus • Ask for a new Form W-4 from • Withheld and employer social employees claiming exemption from security taxes, plus income tax withholding • Withheld and employer Medicare • Reconcile Forms 941 with Forms W-2 taxes, less and W-3 • Any advance earned income credit • Furnish each employee a Form W-2 • File copy A of Forms W-2 and the NOTE: Due date of federal and state transmittal Form W-3 with the SSA deposits depend on your deposit schedule • File copy of Forms W-2 with the appropriate transmittal form to state and local • Furnish each recipient a Form 1099 (e.g., Forms 1099-R and 1099-MISC) • File Forms 1099 and the transmittal Form 1096 • File Form 940 or 940-EZ • File Form 945 for any nonpayroll income tax withholding • File Form 944 (Employer's Annual Federal Tax Return) only if yearly total employer liability is under $1,000 C-1
  • 72. NEW EMPLOYER PACKETS New Employer Packets are available in Stambaugh Ness, PC offices. These packets contain the following forms: • Form SS-4 - Application for (EIN) Employer's Federal Identification Number As a new employer, you are required to have an Employer Identification Number (EIN). Use Form SS-4 to apply for an EIN. You can apply for an EIN either by mail, fax, telephone, or on-line. To apply by mail: Complete Form SS-4 and mail to: Attn: EIN Operation Holtsville, NY 11742 To apply by fax: Complete Form SS-4 and fax to: 1-631-447-8960. To apply by telephone: Complete Form SS-4 and call the new business and specialty tax line, 800-829-4933. To apply on-line: Complete the new on-line EIN Internet application at http://www.irs.gov. The IRS will issue an EIN immediately. Third parties may request El N's via the internet on behalf of their clients. A copy of the SS-4 form, signed by the customer, must be maintained in the third party business files. • W-4 - Employee's Withholding Allowance Certificate • I-9 - Employment Eligibility Verification Requirement • PA New Hire Reporting Form • Employee's Earnings Record • Payroll Tax Deposit Worksheet • Payroll and Other Tax Data Rate Schedule • Form PA-100 - PA Combined Registration Form As a new employer in Pennsylvania, you are required to register an enterprise with the PA Department of Revenue. What is an Enterprise? An Enterprise is any individual or organization which is subject to the laws of the Commonwealth of Pennsylvania. An Enterprise may be a sole-proprietorship, or a partnership, a corporation, a government agency, a business trust, an association, etc. C-2
  • 73. NEW EMPLOYER PACKETS - continued How to Complete the Registration Form: • New registrants should complete every item in Sections 1 through 10. The preparer will be contacted to supply the information if required sections are not completed. • Complete any additional sections needed. Based on the business activity and form of organization, there will be additional sections required. Section 5 (Form of Organization) of the PA-100 has indicators to direct the registrant to the additional forms needed. • Type or print legibly. • Use black ink. • You may file by mail or complete and file on-line. How to Avoid Delays in Processing: • Review the registration form and any accompanying sections to be sure that every item is complete. • Enclose payment for any license or registration fees. • Submit a separate form to PA Unemployment Compensation Fund. • Sign the registration form. • Remove completed pages from the booklet, arrange in sequential order and mail to the address below: Commonwealth of PA Department of Revenue Bureau of Business Trust Fund Taxes Dept. 280901 Harrisburg, PA 17128-0901 For registration assistance contact: (717) 787-1064, Hearing Impaired 1-800-447-3020. PA-100 ON-LINE REGISTRATION: Businesses may register and open tax accounts over the Internet. The on-line registration system will allow business owners to apply for Sales & Use Tax Licenses, register to withhold employer taxes, and open Unemployment Compensation accounts administered by the PA Department of Labor & Industry. It can be accessed through the Department of Revenue's home page at: www.revenue.state.pa.us or directly at www.pa100.state.pa.us. The on-line system will reduce mistakes before the registration is sent, eliminating the need for follow-up inquiries. The Department estimates that on-line registration will cut the time needed to process an account by weeks. C-3
  • 74. NEW EMPLOYER PACKETS - continued PA-100 ON-LINE REGISTRATION - continued: Notify the Commonwealth in writing within 30 days of any change to the information provided on the registration form. STATE UNEMPLOYMENT TAX New employers start paying unemployment tax based on a "new employer's rate". The rate for new PA employers in 2010 is: Nonconstruction Employers 3.7030% New Construction Employers 10.2626% Based on various factors, an employer's "experience rating" may be increased or decreased each year. State unemployment tax is paid each quarter up to maximum amount of wages per year per employee. (PA maximum wages per employee is $8,000/Maryland is $8,500). PA UC WITHHOLDING TAX During 2003 Pennsylvania employers were required to begin withholding Pennsylvania Unemployment Tax from each employee's wages. PA UC Tax to be withheld has been reduced to .06% (.0006) on all wages earned during 2010. A surcharge on employer contributions has been factored into the employer's contribution rate. Due to higher unemployment, the surcharge and employee tax went into effect to protect the PA Unemployment Compensation Trust Fund balance. C-4
  • 75. FORM W-5 - EARNED INCOME CREDIT - ADVANCE PAYMENT CERTIFICATE The American Recovery and Reinvestment Act of 2009 increased the earned income credit for joint filers and for taxpayers with 3 or more qualifying children. This affects the 2009 Form W-5 and 2009 W-5 because it increases the amount of adjusted gross income you can have and still receive the advance earned income credit if you are married filing jointly. If your employees qualify for the earned income credit, you should provide them with Form W-5 - Earned Income Credit Advance Payment Certificate. This form will allow them to receive advance payments of the earned income credit in their regular paycheck during the year. Payments of the Advance Earned Income Credit are limited to 60% of the Employee's Earned Income Credit. Employees with a qualifying child who are eligible for the Earned Income Credit and expect to earn less than $35,463 ($40,463 if filing jointly) may choose to receive an advance payment. Your employees can get any additional credit due to them when they file their income tax returns. NEW HIRE REPORTING REQUIREMENTS The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 required employers to report certain information on their newly-hired employees to a designated State agency. States match new hire reports against their child support records to locate parents, as well as detect and prevent erroneous benefit payments from Employment Security and Workers' Compensation. The state will transmit the New Hire Reports to the National Directory of New Hires. This has increased national child support collections, reduced welfare payments, and saved $$ in Medicaid, food stamp and unemployment insurance fraud. New Hire reports are sent to the State Directory of New Hires in the state where the employee works. Each state should be sending employers instructions on where and how to send the new hire information. Federal law mandates that new hires be reported within 20 days of the date of hire. General information on new hire reporting is available by accessing www.acf.hhs.gov/proqrams/cse/newhire or by calling 1-202-401-9373. An Employee Is Considered A "New Hire" And Must Be Reported If: 1) Your company never employed this individual previously 2) The individual is a former employee who is: a) Rehired following termination. b) Rehired following separation. c) Returning to work following a layoff, or d) Returning to work following a requested leave of absence without pay greater than 30 days. C-5
  • 76. NEW HIRE REPORTING REQUIREMENTS - continued A summary of the requirements for Pennsylvania and Maryland employers is listed below: PENNSYLVANIA EMPLOYERS: - Phone: (888-724-4737) 888-PAHIRES - Fax: 717-657-HIRE(4473) E-mail: reporting@panewhires.com - Website: www.panewhires.com PA New-Hire Reporting may be reported electronically via FTP (File Transfer Protocol), e-mail, or the Internet. First time users must register by calling 1- 888-724-4737. MARYLAND EMPLOYERS: - Phone: 888-634-4737 - Fax: 888-657-3534 - E-mail: md-newhire@policy-studies.com - Website: www.mdnewhire.com IF A MULTI-STATE EMPLOYER: - May choose to report all new hires to only one state. - May choose to report new hires to each state involved. - If reporting all new hires to one state, employer MUST report either electronically or through magnetic media. - If reporting to each individual state, may report by paper, electronically or magnetic media. The following state-by-state new hire reporting chart provides the latest information from each state with regard to employer responsibilities for new-hire reporting. If your company will be reporting new hires on behalf of its subsidiaries that operate under different names and Federal EIN's, make sure you list the names, EIN's and state in which you have employees working. C-6
  • 77. Reporting Reporting of Contact Information Timeframe Data Elements Method of Transmission Independent (non-magnetic Contractors? media only) Alabama Within 7 days of W-4 elements: first day of mail, fax, internet upload, Yes hiring or re- work; new hire, recall or job website - go to New Hire link Phone: (334) 206-6021 employment. refusal (if employee received a (enter FEIN plus three zeros) Fax: (334) 242-8956 May be subject job offer) indicators; Wilma Fleming - general newhire contact to administrative Employer's FEIN, complete Email: newhire@dir.alabama.gov penalty up to $25 business name, mailing $ m Ramona Jordan - Internet upload Support for each address, phone number, fax Phone: (334) 206-6028 violation. number: Full contact name and z Website: www.dir.alabama.gov/nh/ job title m Alaska 20 days W-4 elements; mail, fax No Optional: date of birth, date of Phone: (907) 269-6089 hire, employer's State EIN Phone: (877) 269-6685 - Alaska only Fax:(907)787-3197, 3181 7) Fax: (907) 269-6077 m Website: www.childsupport.alaska.gov/employers/employerjnformation.asp 73 m Arizona 20 days W-4 elements phone, mail, fax, magnetic No tape, cartridge tape, diskette, ■o Phone: (888) 282-2064 - New Hire website, FTP, EFT O Phone: (602) 340-0555 - New Hire 7) Phone (602) 252-4045 - Child Support Fax: (888) 282-0502 Fax: (602) 340-0669 Email: az-newhire@policy-studies.oom Website: www az-newhire.com O FTP: ftp.az-newhire.com 7) EFT: (602) 340-0703 m Arkansas 20 days W-4 elements; mail, fax, magnetic tape, No 0 Optional: date of birth, date of cartridge tape, diskette, Phone: (800) 259-2095 hire, State of hire website Phone:(501)376-2125 73 Fax: (800) 259-3562 m Fax:(501)376-2682 Email: ar-newhire@policy-studies.com Website: www.ar-newhire.com m z CO Office of Child Support Enforcement Employer Services Team October 2009 Page 1 of 13
  • 78. Reporting Timeframe Reporting of Contact Information Data Elements Method of Transmission Independent (non-magnetic Contractors? media only) California 20 days W-4 elements, date of hire mail, fax, diskette, website, Yes, if paid $600 C/) internet, cartridges tape, CD- or more per year Phone: (916)651-7446 Rom Fax: (916)255-0951 Email: Jazette.Lewis@EDD.ca.gov Website: www.edd.ca.gov/payroll_taxes/new_hire_reporting.htm m Colorado 20 days W-4 elements mail, fax, magnetic tape, No z cartridge tape, diskette, m Phone:(800)696-1468 website Phone: (303) 297-2849 Fax: (303) 297-2595 Website: www.newhire.state.co.us Connecticut 20 days W-4 elements, date of hire; mail, fax, website, FTP AsofOcti, 7) Optional: CT unemployment 2003, report ICs Phone: (860) 263-6310 - New Hire m insurance number, contact if over Phone: (800)228-5437 - Child Support name, and phone $5000/year 73 Fax: (800)816-1108 payment is m Email: dol ctnewhires@po.state.ct.us anticipated TJ Website: www.ctnewhires.com Delaware 20 days W-4 elements mail, fax, email, cartridge tape, O No diskette 73 Phone: (302) 395-6632 o Fax: (302) 395-6729 oo Email: newhires@state.de.us Website: http://www.dhss.delaware.gov/dhss/dcse/index.html o District of Columbia 20 days W-4 elements, occupation, phone, fax, mail, diskette, CD, No 73 insurance availability; cartridge tape (will not be Phone: (877) 846-9523 m Optional: date of birth, date of returned to employer), secure Fax: (877) 892-6388 O hire, insurance eligibility date, file transfer from web, website Email: dc-newhire@policy-studies.com and salary. and FTP Website: www.dc-newhire.com 73 m m Office of Child Support Enforcement O Employer Services Team o October 2009 Page 2 of 13 5 CD Q.
  • 79. Reporting Reporting of Contact Information Timeframe Data Elements Method of Transmission Independent (non-magnetic Contractors? media only) Florida 20 days W-4 elements, date of hire, phone, mail, fax, magnetic No address for income withholding tape, cartridge tape, diskette, Phone: (888) 854-4791 - New Hire order; website, EFT, FTP, Internet 3 Phone: (850) 656-3343 - New Hire m Optional: date of birth, FL upload Phone: (888) 854-4791 - Customer Service unemployment compensation z Fax: (888) 854-4762 account number, medical m Fax: (850) 656-0528 insurance availability Email: fl-newhire@policy-studies.com Website: www.fl-newhire.com EFT: (850)656-2657 Georgia 10 days W-4 elements, date of birth, phone, mail, fax, magnetic No 73 date of hire, employer's phone tape, cartridge tape, diskette, m Phone: (888) 541-0469 number, State of hire; website, FTP Phone: (404) 525-2985 Optional: medical insurance 7) Fax:(888)541-0521 availability m Fax: (404) 525-2983 - Local Email: ga-newhire@policy-studies.com ■o Website: www.ga-newhire.com O BBS or FTP: (404) 523-5863 7} Guam 20 days W-4 elements, date of birth mail, fax Yes for Guam government Phone: (671)475-3360 contractees Fax:(671)477-6118 O Email: child.support@guamcse.net Website: www.guamcse.net 7) m Hawaii 20 days W-4 elements, date of hire fax, mail, magnetic tape, No cartridge tape, diskette 0 Phone: (808) 692-7029 Fax: (808) 692-7001 Website: www.state.hi.us/csea/newhire.html to m Idaho 20 days W-4 elements, date of hire, mail, fax, diskette, website, No employer's unemployment email Phone: (800) 627-3880 insurance account number m Phone: (208) 332-8941 z Fax: (208)332-7411 Email: newhire@labor.idaho.gov Website: https://labor. idaho.gov/applications/newhire/ C Office of Child Support Enforcement 3 Employer Services Team CD October 2009 Q. Page 3 of 13
  • 80. Reporting Reporting of Contact Information Timeframe Data Elements Method of Transmission Independent (non-magnetic Contractors? media only) Illinois 20 days W-4 elements; mail, fax, magnetic cartridge & No Optional: date of hire, address diskette, website and email Shedrick C. Woods, Manager for income withholding orders Phone: (800) 327-HIRE [4473] - Customer Service Phone: (312) 793-0322 - New Hire Phone: (312) 793-6298 - Magnetic Media Technical Support 3 m Fax: (217)557-1947 z Email: DES.NHire@illinois.gov Website: wwwides.state.il.us/employer/new-hire.asp m Indiana 20 days W-4 elements, date of hire; mail, fax, magnetic tape, No Optional: date of birth, State of cartridge tape, diskette, Phone:(866)879-0198 hire; medical insurance website, email, FTP, EFT Phone:(317)612-3028 Phone: (866) 879-0198, ext. 111 - Technical Support Fax:(800)408-1388 m Fax: (317)612-3036 Email: rredmond@policy-studies.com 7) Website: www.in.gov or www.in-newhire.com m "0 Iowa 15 days W-4 elements, date of birth, mail, fax, CD, diskette, Yes* date of hire, employer's phone, cartridge tape, website O Phone: (877) 274-2580 7) medical insurance availability, o Fax: (800) 759-5881 I date of med insurance Email: csrue@dhs.state.ia.us qualification, address z Website: www.iowachildsupport.gov for income withholding o Kansas 20 days W-4 Elements, Fax, mail, CD-Rom, diskette, No date of hire, FEIN and address website 7) Phone: (888) 219-7801 for withholding orders m Phone:(785)296-1716 Fax:(888)219-7798 0 Fax: (785)291-3423 c Email: newhires@dol.ks.gov Website, www.dol.ks.gov m Kentucky 20 days W-4 elements; Optional: date US mail, fax, magnetic tape, No of birth, State of hire, date of diskette, website, file upload Phone:(800)817-2262 m hire, KY employer ID number, via Internet Fax: (800)817-0099 z medical insurance availability, Email: ky-newhire@policy-studies.com contact phone Website: www.kynewhire.com c Office of Child Support Enforcement Employer Services Team October 2009 Page 4 of 13 CO Q.
  • 81. Reporting Reporting of Timeframe Contact Information Data Elements Method of Transmission Independent (non-magnetic Contractors? media only) C/) 20 days W-4 elements. Optional: birth phone, mail, fax, disks, secure No Louisiana date, hire date, insurance file transfer from website, and Phone: (888) 223-1461 availability, salary and web entry, (disk and CD's will i Fax:(888)223-1462 occupation, Marital Status and not be returned to the m Email: la-newhire@policy-studies.com Salary Frequency (hourly, employer) Website: www.la-newhire.com weekly, monthly etc m 7 days W-4 elements, date of birth, phone, mail, fax, magnetic Yes, for the State Maine date of hire/rehire, employer's tape, diskette, email, website when acting as a Phone: (800) 442-6003 - Child Support Maine Dept. of Labor number contracting Phone: (800) 845-5808 and phone number; agency and any Phone: (207) 624-7880 Optional: availability of contractor who 73 Fax: (800)437-9611 medical insurance coverage, contracts with the m Fax: (207) 287-6882 income, income frequency, State, or Email: maine.newhire@state.me.us occupation, employee's phone subcontractor 73 Website: www state.me.us/dhs/bfi/dser/new_hire.htm number thereof (per ME m LD 629). "0 20 days W-4 elements, date of hire, mail, fax, magnetic tape, No O Maryland MD unemployment account cartridge tape, diskette, 7) Phone: (410) 281-6000 - Customer Service number (SUIN); medical website, email o Fax: (888) 657-3534 insurance availability, starting Fax: (410)281-6004 wage/salary, pay frequency; Email: md-newhire@policy-studies.com Optional: date of birth, gender, Website: www.mdnewhire.com O employer contact, phone, and fax 73 14 days W-4 elements, date of hire or website, fax, mail Yes, if paid $600 m Massachusetts reinstatement or more/year 0 Phone: (617) 626-4154 - New Hire and Technical Support Mail to: DOR Fax:(617)376-3262 PO Box 55141 Email: pdustaff@dor.state.ma.us Boston, MA 02205-5141 55 m New Hire Information Website: hrtps://wfb.dor.statema.us/webfile/business/Public/Webforms/Login/L ogin.aspx m z O O Office of Child Support Enforcement 5 Employer Services Team c October 2009 CD Q. Page 5 of 13
  • 82. Reporting Reporting of Contact Information Timeframe Data Elements Method of Transmission Independent (non-magnetic media only) Contractors? Michigan 20 days W-4 elements; mail, fax, magnetic tape, No Optional: date of birth, date of cartridge tape, diskette, phone, Phone: (800) 524-9846 hire, driver's license number website, FTP Fax: (877) 318-1659 - 5 or fewer per week Email: mi-newhire@policy-studies.com Website: www.mi-newhire.com m Minnesota 20 days W-4 elements;Optional: date phone, mail, fax, magnetic The State and all z of birth, date of hire, State of tape, cartridge tape, diskette, political Phone: (800) 672-4473 m hire, employer contact and FTP, EFT, website subdivisions of Phone:(651)227-4661 phone number the State are Fax:(651)227-4991 required to report Fax: (800) 692^*473 ICs; Optional for Email: mn-newhire@policy-studies.com private Website: www.mn-newhire.com 73 employers FTP: ftp.mn-newhire.com m EFT: (651) 222^539 EFT: (888) 305-7101 m Mississippi 15 days W-4 elements, date of hire, mail, fax, magnetic tape, Yes. According ■o contact name, State EIN; cartridge tape, diskette, to Mississippi Phone: (800)241-1330 O Optional: date of birth, State of website, email, CD Fax: (800) 937-8668 State law 43- hire, gender 7) o Email: ms-newhire@policy-studies.com 19-46 and 93- Website: www.ms-newhire.com 11-101, all employers (or independent O contractors) are required to 7) report basic m information O about newly- hired personnel 55 within 15 days. m m z Office of Child Support Enforcement O Employer Services Team O October 2009 Page 6 of 13 CD Q.
  • 83. Reporting Reporting of Contact Information Timeframe Data Elements Method of Transmission Independent (non-magnetic Contractors? to media only) Missouri 20 days W-4 elements, date of hire (or mail, fax, magnetic tape, No date W-4 signed) cartridge tape Phone: (800) 585-9234 - Employer Hotline $ m Phone: (573) 526-8699 - Employer Hotline Phone: (800) 859-7999 - General Information z Fax: (573) 526-8079 m Email: askcse@mail.state.mo.us Email: askcse@mail.dss. state.mo. us Website: www.dss.state.mo.us/cse/newhire.htm Montana 20 days W-4 elements, date of hire, phone, mail, fax, diskette, No employer's phone, fax; email, Internet upload 7) Phone: (888) 866-0327 Optional: date of birth, State of m Phone: (406) 444-9290 hire, employee's home and Fax:(888)272-1990 73 work phones, medical Fax: (406) 444-0745 m insurance availability, date of Email: cdarrah@mt.gov qualification ■o Website: www.dphhs.mt.gov/csed/relatedtopics/employerinformation.shtml O 7) Internet Upload: Phone: (406) 444-6893 Email: jbailey@mt.gov Website: https://vhsp.dphhs.state.mt.us/nhrs/ O Nebraska 20 days W-4 elements, date of hire; mail, fax, magnetic tape, Yes, effective 73 Optional: State of hire, cartridge tape, diskette, 1/1/2010 m Phone: (888) 256-0293 - New Hire employer contact and phone website, FTP Phone: (877) 631-9973 - Child Support 0 number, date of birth, medical Fax: (866) 808-2007 c insurance availability Website: www.ne-newhire.com 7) Nevada 20 days W-4 elements; mail, fax, magnetic No m Optional: date of birth, date of tape, cartridge tape, Phone: (888) 639-7241 hire, State of hire, NV EIN diskette, CD Phone: (775) 684-6370 m Fax: (775) 684-6379 Email, cakoch@nvdetr.org Website. http://www.welfare.state.nv.us/child/newhires.htm#newhire to O o Office of Child Support Enforcement c Employer Services Team CD October 2009 Q. Page 7 of 13
  • 84. Reporting Timeframe Reporting of Contact Information Data Elements Method of Transmission Independent (non-magnetic media only) Contractors? New Hampshire 20 days W-4 elements; NHES mail, fax, magnetic tape, CD, Yes employer account number, diskette Phone: (800) 803-4485 - Employment Security Office employer's phone; Phone: (603) 229-4371 - Employment Security Office - New Hire Optional: date of hire, contact, Fax: (888) 783-3598 work State, type of hire Fax: (603) 229-4324 (employee or contractor) m Email: sbird@nhes.nh.gov Website: www.nhes.state.nh.us z New Jersey 20 days W-4 elements; phone, mail, fax, magnetic m Yes Optional: date of birth, date of tape, cartridge tape, diskette, Phone: (888) 624-6339 hire, gender website, email Phone: (877) NJ HIRES (654-4737) Fax: (800) 304-4901 Email: nj-newhire@policy-studies.com 73 Website: www.nj-newhire.com m New Mexico 20 days W-4 elements; phone, mail, fax, magnetic No 71 Optional: date of birth, date of tape, cartridge tape, diskette, Phone: (800) 288-7207 in NM - Child Support m hire, State of hire, employer's website, FTP Phone: (800) 585-7631 outside NM - Child Support ■o payroll address, contact, Phone: (888) 878-1607 phone, medical insurance O Fax: (888)878-1614 availability 73 o Email: nm-newhire@policy-studies.com (Not for New Hire reporting) I Website: www.nm-newhire.com New York 20 days W-4 elements; mail, fax, magnetic tape, No Optional: date of hire cartridge tape, diskette CD Phone: (800)972-1233 Phone: (518) 452-9814, ext. 3143 - including multistate & magnetic 71 information m Fax:(518)869-3318 Email: childsupport.fc-ny@acs-inc.com O Website: www.nynewhire.com c North Carolina 20 days W-4 elements, State EIN; mail, fax, magnetic tape, No 71 Optional: date of birth, date cartridge tape, diskette, m Phone: (888) 514-4568 - New Hire of hire, employer contact, website Fax: (866) 257-7005 phone Email: nc-newhire@policy-studies.com m Website: www.ncnewhires.com z C Office of Child Support Enforcement Employer Services Team 8 October 2009 4 Page 8 of 13 c (0 Q.
  • 85. Reporting Timeframe Reporting of Contact Information Data Elements Method of Transmission Independent (non-magnetic media only) Contractors? North Dakota 20 days W-4 elements; Optional: website, web file transfer, mail, No date of birth, date of hire, fax, diskette Phone: (800) 755-8530 Phone: (701) 328-3582 m TTY Service: (800) 366-6889 Fax:(701)328-5497 z Email: sohire@nd.gov m Website: www.childsupportnd.com Ohio 20 days W-4 elements, date of birth, mail, fax, magnetic tape, Yes, if paid over Phone: (888) 872-1490 date of hire, State of hire; cartridge tape, diskette, $2,500 or more Phone: (614)221-5330 Optional: gender, Earned website, ftp, internet secure file per year. Please 73 Fax: (888)872-1611 Income Tax Credit claim, date transfer Include dates m of termination payment will Fax: (614)221-7088 Email: oh-newhire@policy-studies.com begin and length 73 Website: www.oh-newhire.com of contract m service. ■o O Oklahoma 20 days W-4 elements, State of hire, mail, fax, magnetic tape, No 73 o Phone: (800)317-3785 date of hire (first day of work); cartridge tape, diskette, I Optional, occupation, salary, Phone: (405)557-7133 website date of birth, OK employer Phone: (405) 557-7297 - Technical Information O1 account # (assigned by Fax:(800)317-3786 o Fax: (405) 557-5350 OESC), availability of health insurance for dependents, 73 Email: newhire@oesc.state.ok.us recall (rehire) date m Website: https://www.ok.gov/oesc/index.php?c=8&sc=2 Oregon 20 days 0 W-4 elements; mail, fax, cartridge tape, No Phone: (503) 378-2868 Optional: employer contact diskette, CD and FTP name, number and address for Phone. (866) 907-2857 withholding orders, employer Fax:(877)877-7415 m Fax: (503) 378-2863, 2864 State Employer Identification Number, Email: employer.reports@doj.state.or.us Optional: date of birth, date of m Website: www.dcs.state.or.us/employers.htm hire. z O o Office of Child Support Enforcement Employer Services Team c October 2009 Q. Page 9 of 13
  • 86. Reporting Reporting of Contact Information Timeframe Data Elements Method of Transmission Independent (non-magnetic Contractors? media only) Pennsylvania 20 business days W-4 elements, date of hire, mail, fax, magnetic tape, No CO employer contact name and diskette, website, email, FTP Phone: (888) PAHIRES [724-4737] phone, Fax: (717) 657-HIRE (4473) Optional: date of birth Email: reporting@panewhires.com 3 Website: www.panewhires.com m ftp:24.104.35.55 z Puerto Rico 20 days W-4 elements, employer's mail, fax No m State ID number, date of birth, Administration for Child Support Enforcement date of hire, State of hire, State New Hire Registry salary P.O. Box 70376 San Juan, PR 009368376 Phone: (787)767-1500 7) Fax: (787) 767-3882; 765-1313 m Rhode Island 14 days W-4 elements, medical phone, mail, fax, magnetic No insurance availability, date of tape, cartridge tape, diskette, m Phone: (888) 870-6461 - New Hire availability; website, Internet upload, FTP Phone: (401) 222-2847 - Child Support Optional: date of birth, date of Phone: (888) 870-6461 - Reporting O hire, State of hire, payroll Fax: (888) 430-6907 address Email: contact@rinewhire.com (info only) Website: www.Rinewhire.com FTP: FTP.Rlnewhire.com South Carolina 20 days W-4 elements; o mail, fax, internet upload, No Optional: date of birth, date of website, FTP 7) Phone: (888) 454-5294 - New Hire hire, employer's phone number m Phone: (803) 898-9235 - New Hire Phone: (800) 768-5858 - Child Support 0 Fax: (803)898-9100 Website: www.scnewhire.com 73 South Dakota 20 days W-4 elements; phone, mail, fax, cartridge No m Optional: date of birth, date of tape, diskette, website Phone: (888) 827-6078 hire, State of hire Phone: (605) 626-2942 m Fax: (888) 835-8659 Fax: (605) 626-2842 z Website: www.sdjobs.org CO Office of Child Support Enforcement Employer Services Team § October 2009 Page 10 of 13 C CD Q.
  • 87. Reporting Reporting of Contact Information Timeframe Data Elements Method of Transmission Independent (non-magnetic Contractors? media only) Tennessee 20 days W-4 elements, date of hire; phone (up to 2), mail, fax, No Optional: 5 days Optional: date of birth, State of magnetic tape, cartridge tape, Phone:(888)715-2280 (recommended hire, gender, medical diskette, website, internet 3 Fax: (877) 505-4761 m to) help detect insurance availability, Earned upload, FTP Email: support@tnnewhire.com fraud in Ul and Income Tax Credit availability, Website: www.tnnewhire.com WC programs) payroll address, whether FTP: maxpost.maximus.com employee has been terminated; store or location I number, if available Texas 20 days W-4 elements; phone, mail, fax, website, FTP, No Optional: date of birth, date of DTS Phone: (800) 850-6442 - Employer Line hire, State of hire, TX EIN, m Phone: (800) 252-8014 - Child Support salary, salary frequency, Fax: (800)732-5015 contact name, payroll address 73 Email: employer newhire@cs.oag.state.tx.us m Website: www.employer.oag.state.tx.us ■o Utah 20 days W-4 elements; phone (up to 3), mail, fax, No O Optional: date of birth, date of magnetic tape, cartridge tape, Phone: (800) 222-2857 73 hire diskette, website Phone:(801)526-9235 Fax:(801)526-4391 Email yhuynh@utah.gov Website: http://jobs.utah.gov/newhire Q Vermont 20 days W-4 elements, date of hire mail, fax, magnetic tape, No 73 cartridge tape, diskette, m Phone: (800) 786-3214 - Child Support website, EFT Phone:(802)241-2915 0 Fax: (802) 828^286 c Email: empl@ocs.state.vt.us 73 Website: www.labor.vermont.gov m Virgin Islands 20 days W-4 elements, date of birth, mail, fax, email, diskette No date of hire, State of hire; Phone: (340) 776-3700, ext. 2038 Optional: employer's m Fax: (340) 774-5908 unemployment insurance ID Email: newhire@usvi.org number O) § Office of Child Support Enforcement Employer Services Team c CD October 2009 Q. Page 11 of 13
  • 88. Reporting Reporting of Contact Information Timeframe Data Elements Method of Transmission Independent (non-magnetic Contractors? media only) Virginia 20 days W-4 elements; mail, fax, cartridge, CDs (will No c/> Optional: date of birth, date of not be returned to employer), Phone:(800)979-9014 hire, insurance availability. diskette, website, secure file Phone: (804) 771-9733 transfer from web, modem Fax: (800) 688-2680 Fax: (804)771-9709 (ProComm/EFT) z m Email: va-newhire@policy-studies.com Website: www.va-newhire.com FTP: www.va-newhire com m Modem: (804)771-9768 Washington 20 days W-4 elements, date of birth phone, mail, fax, website, No Internet upload Phone: (800) 562-0479 - New Hire Phone: (800)591-2760 - Employer Ombudsman 73 Fax: (800) 782-0624 m Website: www.childsupportonline.wa.gov 73 West Virginia 14 days W-4 elements; phone, mail, fax, diskette, No m Optional: date of birth, date of website "D Phone: (877) 625-4669 - New Hire hire o Phone: (304)346-9513 Fax: (877) 625-4675 73 o Fax: (304)346-9518 I Website: www.wv-newhire.com oo Wisconsin 20 days W-4 elements, date of hire; phone, mail, fax, magnetic No Phone: (888) 300-4473 Q Optional, date of birth tape, cartridge tape, diskette, Fax: (800) 277-8075 CD, FTP, website 73 Email: wi-newhire@policy-studies.com m Website: http://dwd.wisconsin.gov/uinh/ Website: www.wi-newhire.com O Wyoming 20 days W-4 elements; mail, fax, magnetic tape, No Phone: (800) 970-9258 Optional: date of birth, date of cartridge tape, diskette (pre- Fax:(800)921-9651 hire, employer contact and formatted upon request), m Website: www.wy-newhire.com phone number, medical health website, FTP insurance m Office of Child Support Enforcement O O Employer Services Team October 2009 5' Page 12 of 13 c CD Q.
  • 89. Reporting Reporting of Contact Information Timeframe Data Elements Method of Transmission Independent (non-magnetic Contractors? (A media only) ' Definition of a "contractor" in Iowa: Who is 18 years of age or older, Who performs in IA and to whom a payor of income makes payments which are not subject to income withholding for child support; m For whom the payor of income is required by the IRS to file a 1099 MISC form; and Who is a natural, individual person, NOT a corporation, government, business trust, estate, partnership, or other legal entity, however organized. m 73 m 73 m ■o O 73 O i CD G) 7) m 0 73 m m z I § Office of Child Support Enforcement 5' Employer Services Team a> October 2009 a. Page 13 of 13
  • 90. LOCAL TAX ENABLING ACT You are required to register with your local taxing bureau. To apply in the York Adams Area, complete the York Area Earned Income Tax Employer Questionnaire and mail to: York Office York Adams Tax Bureau 1405 N. Duke Street P. O. Box 15627 York, PA 17405-0156 Phone:717-845-1584 Fax:717-854-6376 www.vatb.com or Gettysburg Office York Adams Tax Bureau 900 Biglerville Road P. O. Box 4374 Gettysburg, PA 17325 Phone:717-334-4000 Fax:717-337-2565 www.yatb.com To apply in the Hanover Area, contact: Hanover Area Earned Income Tax Bureau 11 Baltimore Street, Lower Level Hanover, PA 17331 Phone:717-632-8288 Fax:717-632-0208 www.haeitb.com To apply to the Lancaster Area, contact: Lancaster County Tax Collection Bureau 1845 William Penn Way Lancaster, PA 17601-6713 Phone:717-569-4521 Fax:717-569-1623 www.lctcb.org To apply to the West Shore Area, contact: West Shore Tax Bureau 3607 Rosemont Ave., P.O. Box 656 Camp Hill, PA 17001 Phone:717-761-4900 Fax:717-975-8955 www.westab.org C-20
  • 91. CHANGES IN SOME LOCAL TAX RATES Some localities saw changes in the local withholding tax rate. Local withholding is 1 % unless listed below on pages C -15 through C -18. ACT 24 TAX RATES YORK ADAMS TAX BUREAU ADAMS COUNTY Bermudian Springs School District 1.7% Reading Township Adams County (New rate effective 7/1/09) Huntington Township Adams County York Springs Borough Adams County Latimore Township Adams County East Berlin Borough Adams County Hamilton Township Adams County Gettysburg Area School District 1.7% Cumberland Township Adams County Fairfield Township Adams County Franklin Township Adams County Freedom Township Adams County Gettysburg Borough Adams County Highland Township Adams County Mt. Joy Township Adams County Straban Township Adams County Fairfield Area School District 1.5% Carroll Valley Borough Adams County Fairfield Borough Adams County Hamiltonban Township Adams County Liberty Township Adams County Upper Adams School District 1.6% Arendtsville Borough Adams County Bendersville Borough Adams County Biglerville Borough Adams County Butler Township Adams County Menallen Township Adams County Tyrone Township Adams County Conewago Valley School District 1.5% Abbottstown Borough Adams County Berwick Township Adams County Bonneauville Borough Adams County Conewago Township Adams County Hamilton Township Adams County McSherrystown Borough Adams County Mt. Pleasant Township Adams County New Oxford Borough Adams County Oxford Township Adams County Straban Township Adams County Tyrone Township Adams County C-21
  • 92. CHANGES IN SOME LOCAL TAX RATES ACT 24 TAX RATES - continued YORK ADAMS TAX BUREAU - continued YORK COUNTY Dover Area School Dist. 1.4% Dover Borough York County Dover Township York County Washington Township York County Southern York County S.D. 1.3% Codorus Township York County Glen Rock Borough York County New Freedom Borough York County Railroad Borough York County Shrewsbury Borough York County Shrewsbury Township York County West Shore S.D. 1.45% Lewisberry Borough York County WEST SHORE TAX BUREAU Camp Hill S.D. 2.0% Camp Hill Borough Cumberland County Cumberland Valley 1.6% Hampden Township Cumberland County Middlesex Township Cumberland County Monroe Township Cumberland County Silver Spring Township Cumberland County East Pennsboro S.D. 1.6% East Pennsboro Township Cumberland County Mechanicsburg Area S.D. 1.7% Mechanicsburg Borough Cumberland County Shiremanstown Borough Cumberland County Upper Allen Township Cumberland County Northern York Co. S.D. 1.25% Carroll Township York County Dillsburg Borough York County Franklin Township York County Franklintown Borough York County Monaghan Township York County Warrington Township York County Wellsville Borough York County West Shore School District 1.45% Fairview Township York County Goldsboro Borough York County Lemoyne Borough Cumberland County Lewisberry Borough York County Lower Allen Township Cumberland County Newberry Township York County New Cumberland Borough Cumberland County Wormleysburg Borough Cumberland County C - 22
  • 93. CHANGES IN SOME LOCAL TAX RATES ACT 24 TAX RATES - continued LANCASTER TAX BUREAU Lancaster School District 1.10% Lancaster City Lancaster County Solanco School District 1.65% Bart Township Lancaster County Colerain Township Lancaster County Drumore Township Lancaster County East Drumore Township Lancaster County Eden Township Lancaster County Fulton Township Lancaster County Little Britain Township Lancaster County Providence Township Lancaster County Quarryville Borough Lancaster County Warwick School District 1.15% Elizabeth Township Lancaster County Lititz Borough Lancaster County Warwick Township Lancaster County Middletown Area 1.75% Lower Swatara Township Lancaster County Middletown Boro Lancaster County Royalton Boro Lancaster County 1IPPAI j CAPITAL TAX COLLECTION BUREAU ■ UKCAI Big Spring School District 1.65% Cooke Township Cumberland County Lower Frankford Township Cumberland County Lower Mifflin Township Cumberland County Newville Borough Cumberland County North Newton Township Cumberland County Penn Township Cumberland County South Newton Township Cumberland County Upper Frankford Township Cumberland County Upper Mifflin Township Cumberland County West Pennsboro Township Cumberland County C-23
  • 94. CHANGES IN SOME LOCAL TAX RATES ACT 24 TAX RATES - continued CAPITAL TAX COLLECTION BUREAU - continued Carlisle Area School District 1.6% Carlisle Borough Cumberland County Dickinson Township Cumberland County Mt. Holly Springs Borough Cumberland County North Middleton Township Cumberland County Central Dauphin S.D. 2.0% Dauphin Borough Dauphin County Lower Paxton Township Dauphin County Middle Paxton Township Dauphin County Paxtang Borough Dauphin County Penbrook Borough Dauphin County Swatara Township Dauphin County West Hanover Township Dauphin County Greenwood S.D. 1.75% Greenwood Township Perry County Liverpool Borough Perry County Liverpool Township Perry County Millerstown Borough Perry County Tuscarora Township Perry County Newport S.D. 1.60% Buffalo Township Perry County Howe Township Perry County Juniata Township Perry County Miller Township Perry County Newport Borough Perry County Oliver Township Perry County Shippensburg Area S.D. 1.40% Hopewell Township Cumberland County Newburg Borough Cumberland County Shippensburg Borough Cumberland County & Franklin County Shippensburg Township Cumberland County Southampton Township Cumberland County & Franklin County Orrstown Borough Franklin County Southampton Township Franklin County Susquenita School District 1.80% Reed Township Dauphin County Duncannon Borough Perry County Marysville Borough Perry County New Buffalo Borough Perry County Penn Township Perry County Rye Township Perry County Watts Township Perry County Wheatfield Township Perry County C-24
  • 95. CHANGES IN SOME LOCAL TAX RATES ACT 24 TAX RATES - continued CAPITAL TAX COLLECTION BUREAU - continued West Perry School District 1.70% Blain Borough Perry County Bloomfield Borough Perry County Carroll Township Perry County Centre Township Perry County Jackson Township Perry County Landisburg Borough Perry County Northeast Madison Twp. Perry County Saville Township Perry County Southwest Madison Twp. Perry County Spring Township Perry County Toboyne Township Perry County Tyrone Township Perry County CENTRAL TAX BUREAU South Middleton School District 1.60% South Middleton Township Cumberland County MIDDLETOWN AREA TAX BUREAU Middletown Area S.D. 1.75% Lower Swatara Township Dauphin County Royalton Borough Dauphin County Middletown Borough Dauphin County CHAMBERSBURG AREA WAGE TAX OFFICE Chambersburg School District 1.70% Chambersburg Borough Franklin County Greene Township Franklin County Guilford Township Franklin County Hamilton Township Franklin County LetterKenny Township Franklin County Lurgan Township Franklin County The Pennsylvania Department of Community and Economic Development posts both the local earned income tax and local services tax rates on their website http://www.newpa.com. C-25
  • 96. Pennsylvania's Local Earned Income Tax Law saw reform and change when Act 166 was created December 9, 2002. This act amended the Local Tax Enabling Act by changing the definitions of "Earned Income" and "Net Profits". Under Act 166, these two items are redefined and follow the same definitions as those for Pennsylvania's Personal Income Tax. All local Pennsylvania taxing agencies (except Philadelphia) now follow the same rules for what they do and do not tax as earned income and net profits. This should resolve much of the dispute between various local taxing agencies. LOCAL MERGER Effective January 1, 2006, Adams County Earned Income Tax Collection Agency merged with the York Area Tax Bureau, naming the bureau: YORK ADAMS TAX BUREAU. LOCAL SERVICES TAX Senate Bill 218 signed into law on June 21,2007, amends the Local Tax Enabling Act to make changes to the Emergency and Municipal Service Tax (EMST) effective January 1, 2008. The name of the tax will change to the LOCAL SERVICES TAX. The rate, determined by the Pennsylvania municipality, ranges from $10 -$52. If the Local Services Tax is over $10, there is an "Income Exemption" for employees earning a total of less than $12,000 during the calendar year. Employers must make upfront exemption forms readily available to employees at all times and provide new employees with the forms at the time they are hired. A "Military Exemption" is also available for disabled veterans and members of the Armed Forces Reserves on active duty during the tax year. If the tax rate is over $10, employers will be required to withhold pro-rated over the number of pay periods. Refer to the chart on the following page for rates in excess of $10. C-26
  • 97. LIST OF AREA MUNICIPALITIES COLLECTING A LOCAL SERVICES TAX OVER $10 TOTAL LOCAL COUNTY NAME MUNICIPALITY NAME SCHOOL DISTRICT NAME SERVICE TAX ADAMS ABBOTTSTOWN BORO CONEWAGO VALLEY S D 52 EAST BERLIN BORO BERMUDIAN SPRINGS S D 52 CONEWAGO TWP CONEWAGO VALLEY S D 52 CUMBERLAND TWP GETTYSBURG AREA S D 52 GETTYSBURG BORO GETTYSBURG AREA S D 52 LITTLESTOWN BORO LITTLESTOWN AREA S D 52 MCSHERRYSTOWN BORO CONEWAGO VALLEY S D 52 NEW OXFORD BORO CONEWAGO VALLEY S D 52 OXFORD TWP CONEWAGO VALLEY S D 52 LANCASTER COLUMBIA BORO COLUMBIA BORO SD 52 DENVER BORO COCALICO S D 52 EARL TWP EASTERN LANCASTER S D 52 EAST DONEGAL TWP DONEGAL S D 52 EAST HEMPFIELD EASTERN LANCASTER S D 52 EAST LAMPETER TWP CONESTOGA VALLEY S D 52 ELIZABETHTOWN BORO ELIZABETHTOWN AREA S D 52 EPHRATA BORO EPHRATA AREA S D 52 LANCASTER CITY LANCASTER S D 52 MANHEIM BORO MANHEIM CENTRAL S D 52 MANHEIM TWP MANHEIM TWP S D 52 MILLERSVILLE BORO PENN MANOR S D 52 MOUNT JOY BORO DONEGAL S D 52 MOUNTVILLE BORO HEMPFIELD S D 20 NEW HOLLAND BORO EASTERN LANCASTER S D 52 RAPHO TWP MANHEIM CENTRAL S D 52 UPPER LEACOCK TWP CONESTOGA VALLEY S D 40 WARWICK TOWNSHIP WARWICK S D 52 WEST DONEGAL TWP ELIZABETHTOWN AREA S D 52 WEST EARL TWP CONESTOGA VALLEY S D 52 WEST HEMPFIELD TWP HEMPFIELD SD 52 WEST LAMPETER TWP LAMPETER-STRASBURG S D 52 YORK CARROLL TWP NOTHERN YORK CO S D 52 CONEWAGO TWP NORTHEASTERN YORK CO S D 35 DILLSBURG BORO NORTHERN YORK S D 52 DOVER BORO DOVER S D 15 EAST MANCHESTER TWP NORTHEASTERN YORK CO S D 52 FAIRVIEW TWP WEST SHORE S D 52 HANOVER BORO HANOVER SD 26 H EL LAM TWP EASTERN YORK S D 52 HOPEWELL TWP SOUTHEASTERN S D 52 JACKSON TWP SPRING GROVE AREA S D 52 MANCHESTER BORO NORTHEASTERN YORK CO S D 52 MANCHESTER TWP CENTRAL YORK S D 52 MT WOLF BORO NORTHEASTERN YORK CO S D 52 NEWBERRY TWP NORTHEASTERN YORK CO S D 52 NORTH YORK BORO CENTRAL YORK S D 52 PEACH BOTTOM TWP SOUTHEASTERN S D 52 PENN TWP SOUTH WESTERN S D 52 RED LION BORO RED LION AREA S D 52 SHREWSBURY TWP SOUTHERN YORK S D 52 SPRING GARDEN TWP YORK SUBURBAN S D 52 SPRING GROVE BORO SPRING GROVE AREA S D 52 WELLSVILLE BORO NORTHERN S D 25 WEST MANCHESTER TWP WEST YORK AREA S D 52 WEST YORK BORO WEST YORK AREA S D 52 WINDSOR TWP RED LION AREA S D 52 WRIGHTSVILLE BORO EASTERN YORK S D 52 YORK CITY YORK CITY S D 52 YORK TWP DALLASTOWN AREA S D 52 C-27
  • 98. DESIGNING THE PAYROLL SYSTEM What Information Should the System Provide? One of the most important elements of a well-designed payroll system is that it provides the information the employer needs. For many companies, the payroll system does not have to be elaborate. It can be designed to provide only the basic information necessary to: • Calculate payrolls, including gross pay and withholdings for federal, state, and local income taxes, Social Security and Medicare taxes, and other payroll deductions. • Compute and make timely payroll tax deposits. • Record payroll liabilities and expenses on the general ledger. • Prepare monthly and/or quarterly and annual payroll tax returns. What Information Should Be Provided? To accurately calculate payrolls, the following information, at a minimum, is needed about each employee: a. Name, address and Social Security number. b. Salary or hourly rate. c. Pay frequency (for example, weekly, biweekly, semi-monthly, or monthly). d. Amount of federal income tax that should be withheld from each payroll check (that is, the number of withholding allowances claimed on IRS Form W-4 plus any additional withholding requested by the employee). e. Amount of other payroll tax deductions (for example, for retirement plans, savings plans, or insurance) and whether those deductions should be made before or after federal income taxes. f. Amount of advance payments of the earned income credit if the employee has filed Form W-5 to receive such payments. g. Number of normal and overtime hours worked (if paid on an hourly basis). The information in a. through f., above, need only be provided once - before the initial payroll is processed. Thereafter, the information should be provided only as employees are added or as changes in the information about existing employees occur. Generally, the information in a. through f. can be obtained by reviewing employee files containing employment contracts or letters, completed Form W-4's and W-5's, benefit enrollment forms, etc. To facilitate payroll processing, however, the information should be summarized in one place. C-28
  • 99. MAINTAINING PAYROLL RECORDS The Internal Revenue Service requires employers to maintain the following payroll records for at least four years after the later of (1) the due date of the related payroll tax returns or (2) the date the payroll taxes were paid: 1. Employer identification number 2. Copies of payroll tax returns that have been filed 3. Dates and amounts of payroll tax deposits made and verification numbers for electronic deposits 4. Each employee's name, address, and Social Security number 5. The total amount and date of each wage payment and the period of time the payment covers 6. For each wage payment, the amount subject to income tax, Social Security tax, and Medicare tax withhold ings 7. The amounts of withholding taxes collected on each payment and the date it was collected 8. The reasons for any differences between the taxable amounts and the total wage payment 9. The total amount paid to employees during the calendar year 10. The amount of compensation subject to federal unemployment tax 11. The amount paid into state unemployment funds 12. Any other information required to be shown on Form 940 (or Form 940-EZ) 13. The fair market value and date of each payment of noncash compensation made to a retail commission salesperson, if no income tax was withheld 14. For accident or health plans, information about the amount of each payment 15. The dates in each calendar quarter on which any employee worked for the employer, but not in the course of the employer's trade or business, and the amount paid for that work 16. Copies of any statements furnished by employees relating to nonresident alien status, residence in Puerto Rico or the Virgin Islands, or residence or physical presence in a foreign country 17. Form W-4, Employee's Withholding Allowance Certificate, for each employee C-29
  • 100. MAINTAINING PAYROLL RECORDS - Continued 18. Form I-9, Employment Eligibility Requirements, for each employee 19. Any agreement between the employer and employee for the voluntary withholding of additional amounts of tax 20. Copies of statements given to the employer by employees reporting tips received in their work 21. Requests by employees to have their withheld tax figured on the basis of their individual cumulative wages 22. Form W-5, Earned Income Credit Advance Payment Certificate, of employees who are eligible for the earned income credit and wish to receive their payment in advance, rather than when they file their income tax returns PENNSYLVANIA INCOME TAX GENERAL INFORMATION: Introduction: Pennsylvania law requires the withholding of Pennsylvania Personal Income Tax from compensation of resident employees for services performed either within or outside Pennsylvania and from wages of nonresident employees for services performed within Pennsylvania. Every employer paying compensation subject to withholding must withhold Pennsylvania Personal Income Tax from each payment of taxable compensation to his employees. Questions may be directed to the PA Department of Revenue, Bureau of Business Trust Fund Taxes, telephone (717) 783-1488, TDD# (717) 772-2252 (Hearing Impaired Only) or to any of the PA Department of Revenue District Offices. Statutory Requirement: The requirement of withholding Personal Income Tax is imposed on every employer maintaining an office or transacting business within this Commonwealth and making payment of compensation to a resident individual or to a nonresident individual performing services on behalf of the employer within this Commonwealth. C-30
  • 101. PENNSYLVANIA INCOME TAX - continued Reciprocity: Pennsylvania has reciprocal agreements with Indiana, Maryland, New Jersey, Ohio, Virginia and West Virginia. These agreements provide that: 1. Employers in these states may withhold Pennsylvania income tax from their employees who are Pennsylvania residents. 2. Pennsylvania employers are not required to withhold Pennsylvania income tax from certain employees who are residents of these states; instead, these employers withhold the appropriate tax of the employee's resident state. To qualify for exemption from Pennsylvania income tax withholding, an employee who is a resident of one of the states with which Pennsylvania has a reciprocal agreement must file Form REV-420 (Employee's Statement of Nonresidence in Pennsylvania) with his or her employer. If a Form REV-420 is not filed, the employer should withhold Pennsylvania income tax as for a resident. Definition of Employer: An "employer" is any individual, partnership, association, corporation, government body or other entity that employs one or more persons for compensation. Any person required under the Internal Revenue Code to withhold Federal Tax from compensation paid to an employee will be considered an employer. Employer Identification: An employer should use his Pennsylvania Account Number to report all Pennsylvania withholding. An Employer is also required to provide its Federal Employer Identification number (EIN). If an employer has multiple divisions using the same EIN but remitting and reconciling withholding tax separately, the employer should request a separate Pennsylvania (PM) identification number for each division. Direct questions relating to identification numbers to the PA Department of Revenue, Bureau of Business Trust Fund Taxes, telephone (717) 787-3653, TDD# (717) 772-2252. C-31
  • 102. PENNSYLVANIA INCOME TAX - continued Pa Employer Withholding: The PA Department of Revenue eliminated the coupon system for filing Employer Withholding Tax returns in 2006. Employers must file and pay Employer Withholding Taxes by using the Internet based e-TIDES system at www.etides.state.pa.us, or by calling the Department's Business Tax TeleFile system at 1-800-748-8299. YORK ADAMS EARNED INCOME TAX Employers Required to Withhold: A. Every employer having an office, factory, workshop, branch, warehouse or other place of business located within the Taxing District, and who employs one or more persons (other than domestic servants in a private home) for a salary, wage, commission, or other compensation, shall deduct the tax from residents of that district and nonresident employee's wages at the time of payment thereof. B. Fiduciary Status - Employers who withhold earned income tax from employees, and the person responsible for the transmission of earned income tax withheld by a corporate employer, shall be a fiduciary charged with all the responsibilities of a fiduciary with respect to taxes withheld, and shall be subject to all duties imposed by law on fiduciaries, including criminal penalties for breach of duties. Registration of Employers: A. Each employer withholding or required to withhold tax shall register with the York Adams Tax Bureau within fifteen (15) days after becoming a withholding employer. B. All employers who have a place of business located within the Taxing Districts shall maintain complete records of all employees for a period of six (6) years in such form as to enable the Bureau to determine the employers' liability to withhold for each employee, the amount of taxable income for each employee, the actual amount withheld, the actual amount transmitted to the Bureau and such other information available to such employers as will enable the administrator to carry out his or her responsibilities. C-32
  • 103. YORK ADAMS EARNED INCOME TAX - continued Returns of Employers and Payment of Withheld Tax: A. Every employer required to withhold the tax shall file a quarterly return on the proper form setting forth the gross earnings and amount of tax withheld for each employee, and shall remit the total sum thereof to the York Adams Tax Bureau. B. Employers may utilize computer printouts or similar listings to transmit quarterly and/or annual employee withholding data provided the required information is furnished in a manner acceptable to the Administrator. By prior arrangement with the Administrator employers with less than 250 employees may furnish quarterly and/or annual employee withholding data Form W-2 via magnetic media. In such cases, an Employer's Quarterly Return shall be completed and attached as a cover sheet to transmit the data and withheld tax to the York Adams Earned Income Tax Bureau quarterly. The annual employee withholding Form W-2 data shall be reported to the Bureau during February of the ensuing calendar year and shall by accompanied by the annual reconciliation Form 322. C. Every employer who discontinues business prior to the completion of the tax year, shall, within thirty (30) days after discontinuance of business, file and furnish the returns required by this section covering periods between the last such returns and date of discontinuing business and transmit to the Officer all tax remaining due. Should you require assistance or have questions regarding this information contact the office at 1415 N. Duke St., York, PA 17405 or call 717-845-1584. ACH credit method for tax remittance to York Adams Earned Income Tax Bureau is available. Employers can now register to file York Adams Tax Returns online by filling out the York Adams Tax Bureau Employer Online Filing Questionnaire. C-33
  • 104. York Adams Tax Bureau Employer Online Filing Questionnaire In order to have the ability to file your EIT (earned income tax) W-2 and/or LST (local services tax) detail online, please complete the form below and email it to onlineaccounts@,vatb.com. or fax it to Doug at (717) 854-6376. He will register your account and issue a temporary password. Employers who process their own payroll, fill out Section 1. Payroll processing services, please fill out Section 2. Please type or write legibly. SECTION 1 (Individual Employers): 1. Business Name: 2. York Adams Tax Bureau Account Number: 3. Federal EIN: - 4. Amount of Last Quarterly EIT Payment (for verification purposes): $_ 5. Contact Person: 6. Contact Person's Email address: 7. Contact Person's Direct Phone Number: SECTION 2 (Payroll Processors): 1. Payroll Processor Name: 2. Payroll Processor EIN: -- 3. Contact Person: 4. Contact Person's Email address: 5. Contact Person's Direct Phone Number: In addition to the above information, Payroll Processors must e-mail an Excel spreadsheet containing the following details: • Identify the attachment as W-2 data or LST Accounts • YATB account number for each employer • Federal EIN for each employer • Name of each employer C-34
  • 105. PARTD Payroll Reporting Forms
  • 106. PART D - PAYROLL REPORTING QUARTERLY REPORTS Form# Page Federal Income Tax Withholding and FICA 941 D-1 PA Unemployment Compensation UC-2 D-5 UC-2A D-6 PA Unemployment Correction Reports UC-2X D-7 UC-2AX D-8 PA Personal Income Tax E-Tides D-9 Local Earned Income Tax 319 D-10 ANNUAL REPORTS Employer's Annual Federal Tax Return 944 D-11 Wage and Tax Statement W-2 D-13 Reference Guide for Box 12, Codes D-14 W-2, Box 13 - Checkboxes D-15 Transmittal of Wage and Tax Statements W-3 D-16 Federal Unemployment Tax Return (FUTA) 940 D-17 PA W-2 Transmittal REV 1667 D-20 Local Annual Reconciliation 322 D-21 Miscellaneous Income 1099 MISC D-22 Annual Summary and Transmittal of U.S. Information Returns 1096 D-23 OTHER Employment Eligibility Verification I-9 D-24 PA New Hire Reporting Form New Hire Reporting Form D-25 Household Employment Taxes Schedule H D-26 Federal Tax Deposits 8109-B D-28 Employer Deposit Statement of E-Tides Withholding Tax D-29 Statement of Corrected Income and Tax Amounts W-2c D-30 Transmittal of Corrected Income and Tax Statements W-3c D-31 Employee Withholding Allowance Certificate W-4 D-32 Voluntary Withholding Request W-4V D-33 Request for Federal Income Tax Withholding from Sick Pay W-4S D-34 Earned Income Credit Advance Payment Certificate W-5 D-35
  • 107. Form 941 for 2009: Employer's QUARTERLY Federal Tax Return (Rev. April 2009) Department of the Treasury — Internal Revenue Service OMB No. 1545-0029 (EIN) 3 - 1 Employer identification number Report for this Quarter of 2009 XYZ COMPANY INC Name (not your trade name) I I 1: January, February, March Trade name (if any) I I 2: April, May, June Address 124 W FINE STREET I I 3: July, August, September Suilo or room number ixJ 4: October, November, December ANYTOWN PA 11234-5663 City State Read the separate instructions before you complete Form 941. Type or print within the boxes. Part 1: Answer these questions for this quarter. 1 Number of employees who received wages, tips, or other compensation for the pay period including: Mar. 12 (Quarter 1), June 12 (Quarter 2), Sept, 12 (Quarter 3), Dec. 12 (Quarter 4) 1 2 Wages, tips, and other compensation 2 63793 . 41 3 Income tax withheld from wages, tips, and other compensation 3 6886 . 78 4 If no wages, tips, and other compensation are subject to social security or Medicare tax I I Check and go to line 6. 5 Taxable social security and Medicare wages and tips: Column 1 Column 2 5a Taxable social security wages 61093 . 41 X .124 = 7575. 58 5b Taxable social security tips X .124 = ■ 5c Taxable Medicare wages & tips 63793 . 41 X .029 = 1850. 01 5d Total social security and Medicare taxes (Column 2, lines 5a + 5b + 5c = line 5d) . . 5d 9425 . 59 6 Total taxes before adjustments (lines 3 + 5d = line 6) 6 16312 . 37 7 CURRENT QUARTER'S ADJUSTMENTS, for example, a fractions of cents adjustment. See the instructions. 7a Current quarter's fractions of cents 7b Current quarter's sick pay -13 . 38 7c Current quarter's adjustments for tips and group-term life insurance 7d TOTAL ADJUSTMENTS. Combine all amounts on lines 7a through 7c 7d -13 . 38 8 Total taxes after adjustments. Combine lines 6 and 7d 8 16298 . 99 9 Advance earned income credit (EIC) payments made to employees 9 ■ 10 Total taxes after adjustment for advance EIC (line 8 - line 9 = line 10) 10 16298 . 99 11 Total deposits for this quarter, including overpayment applied from a prior quarter and overpayment applied from Form 941-X or Form 944-X 16285 . 46 12a COBRA premium assistance payments (see instructions) . 390 . 00 12b Number of individuals provided COBRA premium assistance reported on line 12a 13 Add lines 11 and 12a 13 16675 . 46 14 Balance due. If line 10 is more than line 13, write the difference here 14 For information on how to pay, see the instructions. I I Apply to next return. 376 . 47 15 Overpayment. If line 13 is more than line 10, write the difference here Check onelj/j Send a refund. ^- You MUST complete both pages of Form 941 and SIGN it. For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment Voucher. Cat. No. 170012 Form 941 (Rev. 4-2009) D-1
  • 108. Name (not your trade name) Employer identification number (EIN) XYZ COMPANY INC 23-1234567 Part 2: Tell us about your deposit schedule and tax liability for this quarter. If you are unsure about whether you are a monthly schedule depositor or a semiweekly schedule depositor, see Pub. 15 (Circular E), section 11. Write the state abbreviation for the state where you made your deposits OR write "MU" if you made your p A 16 deposits in multiple states. 17 Check one: d Line 10 is less than $2,500. Go to Part 3. CD You were a monthly schedule depositor for the entire quarter. Enter your tax liability for each month. Then go to Part 3. Tax liability: Month 1 Month 2 Month 3 Total liability for quarter Total must equal line 10. You were a semiweekly schedule depositor for any part of this quarter. Complete Schedule B (Form 941): Report of Tax Liability for Semiweekly Schedule Depositors, and attach it to Form 941. Part 3: Tell us about your business. If a question does NOT apply to your business, leave it blank. 18 If your business has closed or you stopped paying wages I I Check here, and enter the final date you paid wages 19 If you are a seasonal employer and you do not have to file a return for every quarter of the year . . I I Check here. Part 4: May we speak with your third-party designee? Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS? See the instructions for details. Yes. Designee's name and phone number STAMBAUGH NESS ( 717 ) 757 - 6999 Select a 5-digit Personal Identification Number (PIN) to use when talking to the IRS. No. Part 5: Sign here. You MUST complete both pages of Form 941 and SIGN it. Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Print your name here Sign your name here Print your title here Date Best daytime phone Paid preparer's use only Check if you are self-employed .... | | Preparer's Preparer's name JOHNNY PAYROLL P00123456 SSN/PTIN Preparer's signature Date 01 / 10 / 10 Firm's name (or yours EIN if self-employed) STAMBAUGH NESS 23-7654621 Address 2600 EASTERN BLVD Phone ( 717 ) 757 - 6999 City State ZIP code 17402 YORK PA Page 2 Form 941 (Rev. 4-2009) D-2
  • 109. Schedule B (Form 941): Report of Tax Liability for Semiweekly Schedule Depositors (Rev. February 2009) Department of the Treasury — Internal Revenue Service OMB No. 1545-0029 (EIN) Report for this Quarter 2 3 Employer identification number (Check one.) XYZ COMPANY INC Name {not your trade name) I I 1: January, February, March 2 0 0 9 I I 2: April, May, June Calendar year (Also check quarter) I I 3: July, August, September I'' I 4: October, November, December Use this schedule to show your TAX LIABILITY for the quarter; DO NOT use it to show your deposits. When you file this form with Form 941 (or Form 941-SS), DO NOT change your tax liability by adjustments reported on any Forms 941-X. You must fill out this form and attach it to Form 941 (or Form 941-SS) if you are a semiweekly schedule depositor or became one because your accumulated tax liability on any day was $100,000 or more. Write your daily tax liability on the numbered space that corresponds to the date wages were paid. See Section 11 in Pub. 15 (Circular E), Employer's Tax Guide, for details. Month 1 Tax liability for Month 1 ■ ■ 1 9 17 a 2S a ■ 2 10 1fl a 26 a 4090. 84 ■ 1017. 33 3 11 19 a 27 ■ ■ 1011. 92 B A 12 ?n 28 1037. 40 5 13 21 a 29 B 1024. 19 a a a 6 14 22 30 B a a a 7 1ft 2.3 31 a 8 B 24 a Month 2 Tax liability for Month 2 ■ 966. 52 1 9 17 ■ » ■ 1045. 29 S 2 m 18 ■ ■ 26 4726. 43 B 3 11 19 ■ 27 ■ ■ B ■ 4 12 ?n 2fl B a ■ ■ 5 13 ?1 29 B B 867. 85 6 14 2? ■ 30 B . 845. 63 B 7 1S 23 31 B 1001 . 14 8 16 24 a Month 3 Tax liability for Month 3 B a 1 17 „ B ■ 25 2 ■ m a 18 a 26 ■ 7481 . 72 B B 4388. 45 3 n 19 B 27 B a 978. 12 a 4 12 20 ?8 B 1092. 40 5 13 21 B 29 ■ 1022. 75 6 14 B 22 B 30 a B a 7 15 23 B 31 ■ B a 16 24 a Total liability for the quarter Fill in your total liability tor the quarter (Month 1 + Month 2 + Month 3) = Total tax liability for the quarter ► Total must equal line 10 on Form 941 (or line 8 on Form 941-SS). 16298. 99 For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11967Q Schedule B (Form 941) Rev 2-2009 D-3
  • 110. Form 941-V, Payment Voucher Purpose of Form Caution. Use Form 941-V when making any payment with Form 941. However, if you pay an amount with Complete Form 941-V, Payment Voucher, if you are Form 941 that should have been deposited, you may making a payment with Form 941, Employer's be subject to a penalty. See Deposit Penalties in QUARTERLY Federal Tax Return. We will use the section 11 of Pub. 15 (Circular E). completed voucher to credit your payment more promptly and accurately, and to improve our service to Specific Instructions you. Box 1—Employer identification number (EIN). If you If you have your return prepared by a third party and do not have an EIN, apply for one on Form SS-4, make a payment with that return, please provide this Application for Employer Identification Number, and payment voucher to the return preparer. write "Applied For" and the date you applied in this entry space. Making Payments With Form 941 Box 2—Amount paid. Enter the amount paid with To avoid a penalty, make your payment with Form 941 Form 941. only if: Box 3—Tax period. Darken the capsule identifying the • Your net taxes for the quarter (line 10 on Form 941) quarter for which the payment is made. Darken only are less than $2,500 and you are paying in full with a one capsule. timely filed return or Box 4—Name and address. Enter your name and • You are a monthly schedule depositor making a address as shown on Form 941. payment in accordance with the Accuracy of Deposits Rule. See section 11 of Pub. 15 (Circular E), • Enclose your check or money order made payable to Employer's Tax Guide, for details. In this case, the the "United States Treasury." Be sure to enter your amount of your payment may be $2,500 or more. EIN, "Form 941," and the tax period on your check or money order. Do not send cash. Do not staple Form Otherwise, you must deposit your payment at an 941 -V or your payment to Form 941 (or to each other). authorized financial institution or by using the Electronic Federal Tax Payment System (EFTPS). See • Detach Form 941-V and send it with your payment section 11 of Pub. 15 (Circular E) for deposit and Form 941 to the address in the Instructions for instructions. Do not use Form 941-V to make federal Form 941. tax deposits. Note. You must also complete the entity information above Part 1 on Form 941. Detach Here and Mail With Your Payment and Form 941. 1941-V Payment Voucher OMB No. 1545-0029 Department of the Treasury nternal Revenue Service Do not staple this voucher or your payment to Form 941. 9 1 Enter your employer identification 2 Dollars Cents number (EIN). Enter the amount of your payment. ► 3 Tax period 4 Enter your business name (individual name if sole proprietor). >O 1st 3rd (S Quarter o Quarter Enter your address. /-, 2nd 4th Enter your city, state, and ZIP code. <S Quarter o Quarter D-4
  • 111. Pennsylvania Unemployment Compensation (PA UC) Quarterly Tax Forms • Form UC-2, Employer's Report for Unemployment Compensation (below) • Form UC-2A, Employer's Quarterly Report of Wages Paid to Each Employee • Form UC-2B, Employer's Report of Employment and Business Changes INSTRUCTIONS: (reverse side) This is an Adobe Acrobat fill-in form To use this form you must have Adobe Acrobat Reader 6.0. To download Acrobat Reader 6.0, go to www.adobe com. Start by keying in the your Employer's Contribution Rate (the first red box at the far left of this form) Tab through the form to go to the next required field. The round yellow question mark symbols are help instructions. To view these instructions, hold the mouse over the question mark symbol. For more detailed information, refer to the UC-2 INS (UC-2/2A/2B Instructions). For assistance, contact the nearest PRINTING INSTRUCTIONS: When the Print dialog box appears, set Field Accounting Service (FAS) office. Page Scaling as NONE, uncheck AUTO-ROTATE AND CENTER and Allentown 610-821-6559 Mercer 724-662-4007 Altoona 814-946-6991 Wilkes-Barre 570-301-1527 uncheck CHOOSE PAPER SOURCE BY PDF PAGE SIZE. Bristol 215-781-3217 Norristown 610-270-1316 OR 3450 Carlisle 717-249-8211 Philadelphia 215-560-1828 OR 3136 Sign and date your report and mail it with payment to: OR 717-697-1203 Pittsburgh 412-565-2400 Chambersburg 717-264-7192 Reading 610-378-4395 OR 4511 Office of Unemployment Compensation Tax Services Chester 610-447-3290 Scranton 570-963^686 Labor & Industry Building Clearfield 814-765-0572 Shamokin 570-644-3415 P.O. Box 68568 Erie 814-871-4381 Tannersville 570-620-2870 Greensburg 724-858-3944 Uniontown 724-439-7230 HarrisburgPA 17106-8568 Harrisburg 717-214-2991 Washington 724-223-4530 Johnstown 814-533-2371 Williamsport 570-327-3525 Lancaster 717-299-7606 York 717-767-7620 Malvern 610-647-3799 All Out of State Employers Call 866-403-6163 PA Form UC-2. Employer's Report for Unemployment Compensation. This form is machine-readable. Information MUST be typewritten or printed in BLACK ink. Do not use dashes or slashes in place of zeros or blanks. If typed, disregard the vertical bars in the shaded areas, type a consecutive 12345678.90 string of characters, left justified, with decimal only. Do not use commas (,) or dollar signs ($). Font size MUST be a minimum of 10 pt. If hand printed, print legible numbers within the data entry boxes provided. DO I fl3i( 5"fe7 S ^ 0 NOT close the 4 or cross the 0 and 7. DO NOT fill in commas or decimal points. b *u Do not staple anything to this form. Photocopy this report for your records. Do not photocopy this form for use. Detach beiow and return with your payment. To report any changes to your account, complete the reverse side. QJR./YEAR PA Form UC-2 REV 3-06, Employer's Report for Unemployment Compensation M /EDOI Read Instructions -Answer Each Item DUE DATE 1ST MONTH 3RD MONTH > O w EXAMINED BY: 1 .TOTAL COVERFO EMPLOYES IN PAY PERIOD INCl. 12TH Ol: s X I MONTH Signature certifies that the information contained FOR DEPT. USE herein is true and correct to the best of the signer's 2.GROSS WAGES knowledge. 31.El 3.FMPLOYFE CONTRI- BUDONS 10. SIGN HERE-DO NOT PRINT .0006 (0.06%) TITLE DATE PHONE # ^.TAXABLE WAGES FOR EMPLOYER CONTRIBUTIONS 171EE.5D 11. FILED D PAPER UC-2A □ INTERNET UC-2A JP_MAGNETIC_ MEDIA UC-2A S.EMPLOYER CONTRI 12. FEDERAL IDENTIFICATION NUMBER. EMPLOYER'S CONTRIBUTION RATE EMPLOYER'S ACCT. NO. BUTIONS DUE (RATE X ITEM 4) fc.T5.T3 EMPLOYER'S f .03663 -5 6.TOTAL CONTRI CONTRIBUTION RATE I BUTIONS DUE (ITF-MS 3 + 5) 735-EE XYZ COMPANY INC 124 W FINE STREET H ANYTOWN PA 11234 a.TOTAL !: U to a, REMITTANCE (ITEMS 6 i 7 + 8) $ 735.ES MAKE CHECKS PAYABLE TO: PA UC FUND b7 0 000u00D50T4D00fc> SUBJECTIVITY DATE REPORT DELINQUENT DATE D-5
  • 112. PA Form UC-2A, Employer's Quarterly Report of Wages Paid to Each Employee See instructions on separate sheet. Information MUST be typewritten or printed in BLACK ink. Do NOT use commas ( ,) or dollar signs ( $ ). If typed, disregard vertical bars and type a consecutive siring of characters If hand printed, print in CAPS and within the boxes as below: TsyAp?dLE SAMPLE Filled-in: Employer name Employer Check Quarter and year Quarter ending date (make corrections on Form UC-2B) PA UC account no. d'9it 9LLD'Y MM / D D / Y Y Y Y XYZ COMPANY INC I 67 — 00000 HE™ 4/2009 12/31/2009 1. Name and telephone number pf prepgrer 2. Total number of 3. Total number of employees listed 4. Plant number STAMBAUGH NESS PC pages in this report in item 8 on all pages of Form UC-2A (if approved) 717-757-6999 5. Gross wages, MUST agree with item 2 on UC-2 6. Fill in this circle if you would like the and the sum of item 11 on all pages of Form UC-2A Department to preprint your employee's names & SSNs on Form UC-2A next 65,473.96 quarter 7. Employee's 8 Employee's name 9 Gross wages paid this qtr 10. Credit Social Security Number Fl Ml LAST Example: 123456.00 Weeks SOLO 35000.00 13 CALRISSIAN 30473.96 13 ■ ■■ ■ ■ «CLI ~"~'—— ■ ■ ' M — List any additional employees on continuation sheets in the required format (see instructions). 11. Total gross wages for this page: 65473.96 A 12. Totai number of employees for this page UC-2A REV 9-05 13. Page of D-6
  • 113. TRANSMITTAL # Of PENNSYLVANIA UNEMPLOYMENT COMPENSATION CORRECTION REPORT (To Amend Quarterly UC-2/2ATax Reports) (A separate form must be submitted for each quarter) 1. EMPLOYER ACCOUNT NUMBER 3. QUARTER/YEAR R or M CHECK DIGIT 1, 2, 3 or 4 4. Reason For Adjustment (Check all that apply): 2. Employer Name and Address: Q Incorrect Gross Wages. 'Please explain. Q Exempt Wages Reported in Error.* Please explain: I I Incorrect Employee Withholding Rate Used LJ Calculation Error. Please explain: List Rate Used I I Incorrect Taxable Wages. Please explain: I I Other Error, Please i □ Incorrect Employer Contribution Rate Used *PR0VIDE 'DIVIDUAL EMPLOYEE CORRECTION FORM (UC-2AX), IF NECESSARY. List Rate Used d Wages Reported to Wrong State • □ PLEASE CHECK IF EMPLOYEE WAGE DETAIL WAS CORRECTED ON ELECTRONIC MEDIA. 5. Was the employee withholding correctly withheld? Q Yes Q No [J Not applicable (Please see instructions on reverse side.) AMOUNT PREVIOUSLY TAX RATE :.'.'■■■:-:' -Vv ■■- ' .-. ^■-":':-, REPORTED CORRECT AMOUNT DIFFERENCE (OVER) UNDER GROSS WAGES 7. EMPLOYEE WITHHOLDING B w * '■-■'■--■ ' ■■■■.■•:"■ ;-■■.■■: ■•■ . ■; -..;■. ■■-- ' . ■. ,■ ■{ TAXABLE WAGES 9. EMPLOYER CONTRIBUTION 10.TOTAL (REFUND/CREDIT) OR TAX DUE (ADD LINES 7 AND 9) IN THE DIFFERENCE COLUMN refunos/credits should BE IN PARENTHESES 1 ) 11. Please check one: £~J Refund [~] Credit Q] Not Applicable (Please see instructions on reverse side.) 12. Employer Certification: I certify that the information on this form is true and correct to the best of my knowledge and belief. No part of the amount of employer contributions reported on taxable wages was deducted or is to be deducted from the employees' wages. SIGNATURE OF OWNER, OFFICER, PARTNER, RESPONSIBLE OFFICER OR AUTHORIZED AGENT PHONE NUMBER department use only (do not write below this line) —■ correction report □ journal voucher SY MO YR QTR YR BASIC CONTRIBUTION INTEREST PENALTY A (X) WAGES RATE DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT 4 _J J u u u Totals COMMENTS TOTAL REMITTANCE Rate Verification Certification: Date Contribution Received Date Report Received B.I. Audit Needed □ Yes □ No □ N/A Benefit Charges □ Yes □ No □ N/A FSD CERTIFICATION/DATE TAX TECHNICIAN DATE OTHER REQUIRED SIGNATURE Vear I ] No Change Rate Revised From Year Q No Change Rate Revised From UC-2X REV 4-06 (Page 1) COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF LABOR & INDUSTRY OFFICE OF UC TAX SERVICES D-7
  • 114. of CORRECTED PENNSYLVANIA GROSS WAGES PAID TO EMPLOYEES 3. QUARTER/YEAR (A separate form must be submitted for each quarter) 1. EMPLOYER ACCOUNT NUMBER R or M CHECK DIGIT 1. 2, 3 or 4 2. Employer Business Name and Address: 4. Reason For Correction (Check all that apply): Q Incorrect Employee Social Security Number_ Correct Employee Social Security Number Employee Name Incorrect Employee Name Correct Employee Name Employee Social Security Number I I Exempt Wages. Reason: Employee Wage Adjustment (attach UC-2X, if necessary) Reason: Q Incorrect Credit. Weeks | I Other (Please explain): 5. I certify that the information on this form is true and correct to the best of my knowledge and belief. No part of the amount of employer contributions reported on taxable wages was deducted or is to be deducted from the employees' wages. SIGNATURE OF OWNER, OFFICER, PARTNER, RESPONSIBLE OFFICER OR AUTHORIZED AGENT PHONE NUMBER PLANT NUMBER NAME OF EMPLOYEE GROSS WAGES CREDIT 6' EMPLOYEE'S SOCIAL SECURITY NO. FIRST NAME INITIAL LAST NAME DOLLARS CENTS WEEKS UC-2AX REV 4-06 IPage 1) commonwealth OF Pennsylvania DEPARTMENT OF" LABOR & INDUSTRY OFFICE OF UNEMPLOYMENT COMPENSATION TAX SERVICES D-8
  • 115. Return Successfully Submitted Employer Withholding Tax Business Name Entity ID# (EIN) XYZ COMPANY INC Account Number 23-1234567 1234 5678 Period Start Date Period End Date Due Date 7/1/2009 9/30/2009 11/2/2009 Transaction Effective Time Filed Tax Period Date 10/29/2009 10:35:41 Third Quarter 2009: 10/29/2009 AM W-3 Record of PA withholding tax by Employer quarterly return of withholding period tax Period Ending Withholding tax l Total Compensation Subject to PA Tax 32,643.00 7/31/2009 469.97 2 Total PA Withholding Tax 1,234.32 18/31/2009 384.86 3 Total Deposits for Quarter (Including verified overpayments.) 1,234.32 9/30/2009 379.49 Overpayment Total Amount 4 0.00 1,234.32 (If line 3 is greater than line 2) Withheld for Quarter 5 Payment 0.00 Payment Method Return Only (without payment) Transaction ID Status Filed By Not Assigned Complete COMPANY CONTACT D-9
  • 116. MPLOYER NAME AND ADDRESS 0000012345 4 2009 <YZ COMPANY INC BUREAU ACCOUNT NO. 124 W FINE STREET 23-1234567 QTR TAXYEAR XNYTOWN PA 11234 FEDERAL EIN FORM 319 YORK ADAMS TAX BUREAU EMPLOYER'S QUARTERLY P.O. BOX 15627. YORK. PA. 17405 COMPENSATION TAX RETURN (717) 812-0759 D i 657.44 OR 657.44 TOTAL TAX PRIOR PERIOD ADJUSTMENT IF THIS TAX IS BEING WITHHELD DURING THIS QUARTER REMITTED BY THE ACH 3ENALTY - .005 X LINE 1 FOR EACH MONTH TAX IS PAST DUE. 2. CREDIT METHOD. CHECK THIS BOX. DATE.0F ACH NTEREST - .000164 X LINE 1 FOR EACH DAY TAX IS PAST DUE. 3. TOTAL REMITTANCE. LINE 1 + LINE 2 + LINE 3 4- 657.44 PHONE NO.. (717)567-1234 CONTACT PERSON'S NAME (PRINT) JAINA SOLO (717)123-4566 FAX NO.. AUTHORIZED OFFICER'S NAME (PRINT), . email isolo@xvz.com AUTHORIZED SIGNATURE REQUIRED
  • 117. 944 for 2009: Employer's ANNUAL Federal Tax Return Department of the Treasury — Internal Revenue Service (77) OMB No. 1545-2007 r Who Must File Form 944 You must file annual Form 944 instead of filing quarterly Forms 941 only if the IRS notified you in writing. J Read the separate instructions before you complete Form 944. Type or print within the boxes. Part 1: Answer these questions for 2009. 1 Wages, tips, and other compensation 1 2 Income tax withheld from wages, tips, and other compensation 2 3 If no wages, tips, and other compensation are subject to social security or Medicare tax 3 I I Check and go to line 5. 4 Taxable social security and Medicare wages and tips: Column 1 Column 2 4a Taxable social security wages X .124 = ■ 4b Taxable social security tips x .124 = ■ 4c Taxable Medicare wages & tips X .029 - 4d Total social security and Medicare taxes (Column 2, lines 4a + 4b + 4c = line 4d) . . 4d 5 Total taxes before adjustments (lines 2 + 4d = line 5) 5 6 Current year's adjustments (see instructions) 6 7 Total taxes after adjustments. Combine lines 5 and 6 7 8 Advance earned income credit (EIC) payments made to employees 8 9 Total taxes after adjustment for advance EIC (line 7 - line 8 = line 9) 9 10 Total deposits for this year, including overpayment applied from a prior year and overpayment applied from Form 944-X or Form 941-X 10 11a COBRA premium assistance payments (see instructions) 11a 11b Number of individuals provided COBRA premium assistance reported on line 11a 11b 12 Add lines 10 and 11a 12 13 Balance due. If line 9 is more than line 12, write the difference here. For information on how to pay, see the instructions 13 Check one I I Apply to next return. 14 Overpayment. If line 12 is more than line 9, write the difference here. . 14 I I Send a refund. ► You MUST complete both pages of Form 944 and SIGN it. For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment Voucher. Cat. No. 39316N Form 944 (2009) D- 11
  • 118. Name (not your trade name) Employer identification number (EIN) Part 2: Tell us about your tax liability for 2009. 15 Check one: EH Line 9 is less than $2,500. Go to Part 3. r~j Line 9 is $2,500 or more. Enter your tax liability for each month. If you are a semiweekly depositor or you accumulate $100,000 or more of liability on any day during a deposit period, you must complete Form 945-A instead of the boxes below. Jan. Apr. JuL Oct. 15a 15d 15g ■ ■ Feb. Mav Auq. Nov. 15b 15e ■ 15h ■ 15k ■ Mar. Jun. Sep. Dec. 15c ■ 15f ■ 15i ■ 151 Total liability for year. Add lines 15a through 151. Total must equal line 9. 15m If you made deposits of taxes reported on this form* write the state abbreviation for the state where you 16 made your deposits OR write MU if you made your deposits in multiple states. Part 3: Tell us about your business. If question 17 does NOT apply to your business, leave it blank. 17 If your business has closed or you stopped paying wages... I I Check here and enter the final date you paid wages. Part 4: May we speak with your third-party designee? Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS? See the instructions for details. I i Yes. Designee's name and phone number Select a 5-digit Personal Identification Number (PIN) to use when talking to IRS. □ No. Part 5: Sign here. You MUST complete both pages of Form 944 and SIGN it. Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Print your X name here Sign your name here Print your title here Date Best daytime phone Paid preparer's use only Check if you are self-employed . . Preparer's Preparer's name SSN/PTIN Preparer's signature Date Firm's name (or yours EIN if self-employed) Address Phone City State ZIP code Page 2 Form 944 (2009) D-12
  • 119. a Employee's social security number For Official Use Only n- i void □ 222-33-4444 OMB No. 1545-0008 b Employer identification number (EIN) 1 Wapess. tips, other compensation 2 Federal income tax withheld 23-1234567 8 316 0.00 12574.00 c Employer's name, address, and ZIF code 3 Social security wages 4 Social security lax withheld XYZ COMPANY INC 92400.00 5728 .'80 5 Medicare wages find tips 6 Medicare tax withheld 124 W FINE STREET 92400.00 1339.80 ANYTOWN PA 112 34 7 Social security tips 8 Allocated tips d Control number 9 Advance E1C payment 10 Dependent care benefits e Employee's first name and initial i Last name Sulf. 11 Nonqualified plans 12a See Instructions for box 12 JACEN C I SOLO C I 1350.00 13 SUTotory RstiferiGn! ThlrJ-pai'l employes, plan Sid: pay 12b 111 ALDER STREET y D 9240.00 ANYTOWN PA 112 3 4 D_ 14 Other 12c 12d f Employee's address and ZIP code L 15 'MM Employer's state ID number 16 State wages, tips. etc. I 17 State income tax | 18 Local wages, tips. etc. 19 Local income tax 20 Locality name PA i 1234 5678 83850.00 2574.20 83850.00 838.50 ANYTOWK Wage and Tax Department of the Treasury—Internal Revenue Service Form ii~& Statement For Privacy Act and Paperwork Reduction Act Notice, see back of Copy D. Copy A For Social Security Administration — Send this entire page with Form W-3 to the Social Security Administration; photocopies are not acceptable. Cat. No. 10134D Do Not Cut, Fold, or Stapie Forms on This Page — Do Not Cut, Foid, or Staple Forms on This Page W-2 FEDERAL FICA MEDICARE STATE LOCAL WAGES WAGES WAGES WAGES WAGES GROSS WAGES $86,250.00 CAF PLAN 2,400.00 401 (K) 9,240.00 GR. TERM LIFE 1,350.00 AUTO 1,200.00 SICK PAY 6,000.00 D-13
  • 120. REFERENCE GUIDE FOR BOX 12 CODES A) Uncollected social security or RRTA tax on tips B) Uncollected Medicare tax on tips C) Cost of group-term life insurance over $50,000 D) Elective deferrals to a section 401 (k) cash or deferred arrangement (including a SIMPLE 401 (k) arrangement) E) Elective deferrals under a section 403(b) salary reduction agreement F) Elective deferrals under a section 408(k)(6) salary reduction SEP G) Elective deferrals and employer contributions (including nonelective deferrals) to a section 457(b) deferred compensation plan (state and local government and tax- exempt employers) H) Elective deferrals to a section 501 (c)(18)(D) tax-exempt organization plan J) Nontaxable sick pay K) 20% excise tax on excess golden parachute payments L) Substantiated employee business expense reimbursements (Federal rate) M) Uncollected social security or RRTA tax on taxable cost of group-term life insurance (for former employees) N) Uncollected Medicare tax on cost of group-term life insurance over $50,000 (for former employees) P) Excludable moving expense reimbursements paid directly to employee Q) Nontaxable combat pay R) Employer contributions to an archer MSA S) Employee salary reduction contributions under a section 408(p) SIMPLE T) Adoption benefits V) Income from the exercise of nonstatutory stock option(s) W) Employer contributions to an employee's Health Savings Account (HSA) Y) Deferrals under a section 409A nonqualified deferred compensation plan Z) Income under section 409A on a nonqualified deferred compensation plan AA) Designated Roth contributions to a section 401 (k) plan BB) Designated Roth contributions under a section 403(b) salary reduction agreement D-14
  • 121. W-2, Box 13 - Checkboxes Statutory employee. Check this box for statutory employees whose earnings are subject to social security and Medicare taxes but not subject to Federal income tax withholding. Do not check this box for common-law employees. There are workers who are independent contactors under the common-law rules but are treated by statute as employees. They are called statutory employees. 1. A driver who distributes beverages (other than milk), or meat, vegetable, fruit, or bakery products; or who picks up and delivers laundry or dry cleaning if the driver is your agent or is paid on commission. 2. A full-time life insurance sales agent whose principal business activity is selling life insurance or annuity contracts, or both, primarily for one life insurance company. 3. An individual who works at home on materials or goods that you supply and that must be returned to you or to a person you name if you also furnish specifications for the work to be done. 4. A full-time traveling or city salesperson who works on your behalf and turns in orders to you from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similar establishments. The goods sold must be merchandise for resale or supplies for use in the buyer's business operation. The work performed for you must be the salesperson's principal business activity. Retirement plan. Check this box if the employee was an active participant (for any part of the year) in any of the following: 1. A qualified pension, profit-sharing, or stock-bonus plan described in section 401 (a) (including a 401 (k) plan). 2. An annuity plan described in section 403(a). 3. An annuity contract or custodial account described in section 403(b). 4. A simplified employee pension (SEP) plan described in section 408(k). 5. A SIMPLE retirement account described in section 408(p). 6. A trust described in section 501 (c)(18). 7. A plan for Federal, state, or local government employees or by an agency or instrumentality thereof (other than a section 457 plan). Generally, an employee is an active participant if covered by (a) a defined benefit plan for any tax year that he or she is eligible to participate or (b) a defined contribution plan (for example, a section 401 (k) plan) for any tax year that employer or employee contributions (or forfeitures) are added to his or her account. For additional information on employees who are eligible to participate in a plan, contact your plan administrator. Do not check this box for contributions made to a nonqualified or section 457(b) plan. Third-party sick pay. Check this box only if you are a third-party sick pay payer filing a Form W-2 for an insured's employee or are an employer reporting sick pay payments made by a third party. D-15
  • 122. DO MOT STAPLE Control number For Official Use Only 33333 OMB Mo. 1545-0808 941 Militarv 943 94 «l i 1 Wages, tips, oilier compensation I 2 Federal income tax withheld Kind I 220845.10 I 25435.20 of Hshld. Medicare Third-party I ; f CT-1 emp. emp. oovt. emp. flow. emp. sick pay i c' toCia' security wages 4 Social security lax withheld Payer _D __ 212 5 3 5.10 ' 13177.18 I c Total m r 01 Form;; Yi/-',> i P ii/n-'dicftrf: -v.=ioei;~ and tr dicare ta» withheld 43 I 230085.10' 3 3 3 6.23 t Employer identification number ;EINj t 7 Social rheumy Tips AllocaisrJ tips 23-1234567 f brnplover'a name 9 Advance EIC pavments 10 Dependent care benefits XYY COMPANY INC i 11 Nonqualifies plans 12 Deferred compensation 124 W FINE STREET - ANYTOWN PA 112 34 ! 13 For third-party &ick pay use only 14 Income tax withheld by payer of third-party sick pay g Employer's address and ZIP code h Otlw EiN used tni& year 15 Stave Employer's state ID number ! 16 State wages. Tips, etc. State income tax PA | 1234 5678 I 234980.27 7213 .89 i i8 Local vvagfcs. tips, etc. 13 Local income- tax 234980.27 2349.80 _ < ! _ Contact person. j Telephone number For Official Use Only j ( ) ■ Email address fci>: number I ( Under penalties of perjury7, i declare that I havo examined this rettirn and -accompanying documents. and: to the best of my knowlec'c/e and belief, they are true, conect, and complete. Title Date *■ Form W-3 Transmittai of Wage and Tax Statements EDDT Department of the Treasury Internal RtWtMiut' Sftn.'k;*? Send this entire page with the entire Copy A page of Form(s) W-2 to the Social Security Administration. Do not send any payment (cash, checks, money orders, etc.) with Forms W-2 and W-3. Reminder • Upload a file for employers who use payroll/tax software to print Form(s) W-2, if the vendor software creates a file that can be Separate instructions. See the 2009 Instructions for Forms W-2 uploaded to SSA. and W-3 for information on completing this form. For more information, go to www.socialsecurity.gov/employer and select "First Time Filers" or "Returning Filers" under "BEFORE YOU Purpose of Form FILE." A Form W-3 Transmittai is completed only when paper Copy A of Form(s) W-2, Wage and Tax Statement, are being filed. Do not file When To File Form W-3 alone. Do not file Form W-3 for Form(s) W-2 that were Mail any paper Forms W-2 under cover of this Form W-3 submitted electronically to the Social Security Administration (see Transmittai by March 1, 2010. Electronic fill-in forms or uploads are below). All paper forms must comply with IRS standards and be filed through SSA's Business Services Online (BSO) Internet site machine readable. Photocopies and hand-printed forms are not and will be on time if submitted by March 31, 2010. acceptable. Use a Form W-3 even if only one paper Form W-2 is being filed. Make sure both the Form W-3 and Form(s) W-2 show Where To File Paper Forms the correct tax year and Employer Identification Number (EIN). Make Send this entire page with the entire Copy A page of Form(s) W-2 a copy of this form and keep it with Copy D (For Employer) of to: Form(s) W-2 for your records. Social Security Administration Electronic Filing Data Operations Center Wilkes-Barre, PA 18769-0001 The Social Security Administration strongly suggests employers report Form W-3 and W-2 Copy A electronically instead of on Note. If you use "Certified Mail" to file, change the ZIP code to paper. SSA provides two e-file options: "18769-0002." If you use an IRS-approved private delivery service, add "ATTN: W-2 Process, 1150 E. Mountain Dr." to the address and change • Free online, fill-in Forms W-2 for employers who file 20 or fewer the ZIP code to "18702-7997." See Publication 15 (Circular E), Form(s) W-2. Employer's Tax Guide, for a list of IRS-approved private delivery services. For Privacy Act and Paperwork Reduction Act Notice, see the back of Copy D of Form W-2. Cat. No. 10159Y D-16
  • 123. Form 940 for 2009: Employer's Annual Federal Unemployment (FUTA) Tax Return Department of the Treasury — Internal Revenue Service OMB No. 1545-0028 (EIN) f Return Employer identification number '" that apply.) ^ame (not your trade name) _ "I 4 a. Amended Trarte namp (ii any) I I b. SuccessOrtemployer . ■ ■..r;' ,■:; ■■ -T-. I I • ;c. Np.payments to employees Address Number Street ... Suite or room number v^.:;- y:-..'i -.V,~ , d;.;EinaJ|:Business closed or vfc ped paying wages City .•■■•State ZIP code Read the separate instructions before youifjiKout this form. Please type or priqtjwittiiri tfie boMsyii'* 1 If you were required to pay your state unpfrtployrnent tax iti ..-."> .'•^ *"h v 1a One state only, write the state abbreviation . "■?."". 4. 1a1 - OR - ;C: %v %. 1 b More than one state (You are a multi-statejsempjbyer)>l.-ti 1b CD Check here. Fill out Schedule A. 2 If you paid wages in a state that is subject to CREDIT REDUCTION 2 I I Check here. Fill out Schedule A (Form 940), Part 2. Part 2: Determine your FUTA tax before adjustments for 2009. If any line does NOT apply, leave it blank. 3 Total payments to all employees 4 Payments exempt from FUTA tax 4 Check all that apply: 4a LJ Fringe benefits 4c I I Retirement/Pension 4e I I Other 4b I ] Group-term life insurance 4d I I Dependent care 5 Total of payments made to each employee in excess of $7,000 5 6 Subtotal (line 4 + line 5 = line 6) 6 7 Total taxable FUTA wages (line 3 - line 6 = line 7) 7 8 FUTA tax before adjustments (line 7 x .008 = line 8) 8 Part 3: Determine your adjustments. If any line does NOT apply, leave it blank. 9 If ALL of the taxable FUTA wages you paid were excluded from state unemployment tax, multiply line 7 by .054 (line 7 X .054 = line 9). Then go to line 12 9 10 If SOME of the taxable FUTA wages you paid were excluded from state unemployment tax, OR you paid ANY state unemployment tax late (after the due date for filing Form 940), fill out the worksheet in the instructions. Enter the amount from line 7 of the worksheet 10 11 If credit reduction applies, enter the amount from line 3 of Schedule A (Form 940) . . 11 Part 4: Determine your FUTA tax and balance due or overpayment for 2009. If any line does NOT apply, leave it blank. 12 Total FUTA tax after adjustments (lines 8 + 9 + 10 + 11 = line 12) . . 12 13 FUTA tax deposited for the year, including any overpayment applied from a prior year . .13 14 Balance due (If line 12 is more than line 13, enter the difference on line 14.) • If line 14 is more than $500, you must deposit your tax. • If line 14 is $500 or less, you may pay with this return. For more information on how to pay, see the separate instructions 14 15 Overpayment (If line 13 is more than line 12, enter the difference on line 15 and check a box below.) . 15 Check one: Lj Apply to next return. ► You MUST fill out both pages of this form and SIGN it. I I Send a refund. For Privacy Act and Paperwork Reduction Act Notice, see the back of Form 940-V, Payment Voucher. Cat. No. 11234O Form 940 (2009) D-17
  • 124. Name (not your trade name) Employer identification number (EIN) Part 5: Report your FUTA tax liability by quarter only if line 12 is more than $500. If not 16 Report the amount of your FUTA tax liability for each quarter; do NOT enter the amount you deposited. If you had no liability for a quarter, leave the line blank. 16a 1st quarter (January 1 - March 31) . . 16a; 16b 2nd quarter (April 1 - June 30) . 16b 16c 3rd quarter (July 1 - September 30) 16c 16d 4th quarter (October 1 - December 31) 16d 17 Total tax liability for the year (lines 16a +-16b + 16c + 16d = line 17),.17 Part 6: May we speak with your third-party desig Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS? See the instructions for details. I—I Yes. Designee's name and phone number Select a 5-digit Personal Identification Number (PIN) to use when talking to IRS D No. Part 7: Sign here. You MUST fill out both pages of this form and SIGN it. Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete, and that no part of any payment made to a state unemployment fund claimed as a credit was, or is to be, deducted from the payments made to employees. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. KSign your Print your name here name here Print your title here Date Best daytime phone Paid preparer's use only Check if you are self-employed I I Preparer's Preparer's name SSN/PTIN Preparer's signature Date Firm's name (or yours if self-employed) EIN Address Phone ( ) City State ZIP code Page 2 Form 940 (2009) D-18
  • 125. Form 940-V, Payment Voucher What Is Form 940-V? How Should You Prepare Your Payment? Form 940-V is a transmittal form for your check or • Make your chepk or money order payable to the money order. Using Form 940-V allows us to process United §taies* treasury. Do not sencj>'eash. your payment more accurately and efficiently. If you ■■*. On the memo line of yourdkeck'orirnQney order, have any balance due of $500 or less on your 2009 % write:*'■?■"' s:':s. %.i -■■., '■■■^ Form 940, fill out Form 940-V and send it with your check or money order. jH ->—your EIN, ^^. % %%,Jt Note. If your balance is more than $500,, jsee Wfien ;{■ — Form Must You Deposit Your FUTA Tax? iff:ffei^ — 2;pi% % ,|^.-v'"" for Form 940. ":■ Carefully detacrf'Form 940-V along the dotted line. How Do You Fill Out Form 940-V? Qo not?staple your payment to the voucher. Type or print clearly. .tyialf-'your 2009 Form 940, your payment, and Form 940-V in the envelope that came with your 2009 Box 1. Enter your employer identification Form 940 instruction booklet. If you do not have Do not enter your social security number (SS|SI|f that envelope, use the table in the Instructions for Box 2. Enter the amount of your payment. Be sfte'to Form 940 to find the mailing address. put dollars and cents in the appropriate spaces. Box 3. Enter your business name and complete address exactly as they appear on your Form 940. Detach Here and Mail With Your Payment and Form 940. 940-V Payment Voucher OMB No. 1545-0028 Department of the Treasury Internal Revenue Service ► Do not staple or attach this voucher to your payment. 1 Enter your employer identification number Dollars Cents (EIN). Enter the amount of your payment. ► 3 Enter your business name (individual name if sole proprietor). Enter your address. Enter your city, state, and ZIP code. D-19
  • 126. Pennsylvania DEPARTMENT OF REVENUE REV-1667 R AS (11-08) 2009 12345 678 2312 34567 —| Part I W-2 RECONCILIATION DUE DATE 1a Number of W-2 forms attached 43; W-2 TRANSMITTAL JANUARY 31 1b Number of 1099 forms with PA withholding tax Part III FOR MEDIA REPORTING 1c Number of W-2s reported on magnetic tape(s) 1d Number of W-2s reported on compact discs or 3.5" floppy discs 43; NUMBER OF TAPES NUMBER OF CD's NUMBER OF 3.5" FLOPPY DISCS 2 Total compensation subject ^ to PA withholding tax * 2 3 4 9 8 0. 2 7 BUSINESS NAME AND ADDRESS 3 PA INCOME TAX WITHHELD $ 6 5 7 9. 4 8 XYZ COMPANY INC LEGAL NAME Part II ANNUAL RECONCILIATION Wages paid subject to PA withholding tax PA tax withheld TRADE NAME D 1st Quarter 61646: 46 17261 10 124 W FINE STREET 2nd Quarter 64326^ 19 1801i 13 ADDRESS O 3rd Quarter 43533 66 191 $ 91 ANYTOWNPA11234 4th Quarter CITY, STATE. ZIP 65473 96 1833! 34 TOTAL 234980 27 6579148 DO NOT SEND PAYMENT WITH THIS FORM. Attach adding machine tape(s) or some acceptable listing of tax withheld as reported on accompanying W-2 form(s) to substantiate reported PA withholding tax.This tape or listing applies only to paper W-2s, not media L reporting. DATE DAYTIME TELEPHONE # EXT. TITLE SIGNATURE
  • 127. FORM 322 ANNUAL RECONCILIATION OF COMPENSATION TAX WITHHELD FROM WAGES FOR 2009 EMPLOYER NAME AND ADDRESS QUARTERLY PAYMENTS BREAKDOWN TOTAL COMPENSATION TAX REMITTED - JAN 1- 98761522 DEC. 31 AS REPORTED ON LINE 1, OF FORM FORM 319 ACCOUNT NO. XYZ COMPANY INC 1. QTR. ENDED 3/31 3. QTR. ENDED 9/30 124 W FINE STREET « 616.46 $ 47T?fi FEDERAL E.I.N. 2. QTR. ENDED 6/30 4. QTR. ENDED 12/31 ANYTOWN PA 11234 s 643.26 s 616,82 TOTAL TAX REMITTED A. THE NUMBER OF W-2. RECORDS REPOR"1""^ LOCAL SHOULD = ENTRY ON LINE 6. 2349.80 COMPENSATION TAX WITHHELD IS , 43 TOTAL TAX WITHHELD AS REPORTED ON FORMS W-2. 2349.80 B. ENCLOSE VERIFICATION OF THE TOTAL COMPENSATION TAX YORK ADAMS TAX BUREAU WITHHELD AS REPORTED ON THE W-2 RECORDS SUBMITTED TO 1405 N. DUKE STREET, P.O. BOX 15627 THIS BUREAU CALCULATOR TAPE OR COMPUTER REPORT. YORK, PA 17405-0156 . PHONE (717) 812-0759 IF OVERPAID CHECK ONE DREFUND. QAPPLY TO 2010. C. CONTACT PERSON'S NAME (PRINT) PHONE NO. FAX NO. D. ENCLOSE THE FORMS W-2 INFORMATION WITH THIS FORM 322. EMAIL I DECLARE UNDER PENALTIES PROVIDED BV LAW THAT THIS RETURN HAS BEEN EXAMINED BY ME AND TO THE BEST OF MY KNOWLEDGE IS A TRUE, CORRECT AUTH0AI2E0 SIGNATURE REQUIRED AND COMPLETE RETURN. FORM 322 ANNUAL RECONCILIATION OF COMPENSATION TAX WITHHELD FROM WAGES FOR 2009 EMPLOYER NAME AND ADDRESS NUMBER PACKAGES QUARTERLY PAYMENTS BREAKDOWN TOTAL COMPENSATION TAX REMITTED JAN 1- DEC. 31 AS REPORTED ON LINE 1, OF FORM FORM 319 ACCOUNT NO. 1. QTR. ENDED 3/31 3. QTR. ENDED 9/30 $ $ FEDERAL E.I.N. 2. QTR. ENDED 6/30 A. QTR. ENDED 12/31 $ $ 5TOTAL TAX REMITTED s SHOULD = ENTRY ON LINE 6. A. THE NUMBER OF W-2 RECORDS REPORTING LOCAL COMPENSATION TAX WITHHELD IS 'total tax withheld as s REPORTED ON FORMS W-2. * B. ENCLOSE VERIFICATION OF THE TOTAL COMPENSATION TAX YORK ADAMS TAX BUREAU WITHHELD AS REPORTED ON THE W-2 RECORDS SUBMITTED TO 1405 N. DUKE STREET, P.O. BOX 15627 THIS BUREAU. EXAMPLE: CALCULATOR TAPE OR COMPUTER REPORT. >A 17405-0156 . PHONE (717) 812-0759 IF OVERPAID CHECK ONE nREFUND . DAPPLY TO 2010 C. CONTACT PERSON'S NAME (PRINT) PHONE NO. FAX NO. D. ENCLOSE THE FORMS W-2 INFORMATION WITH THIS FORM 322. EMAIL I DECLARE UNDER PENALTIES PROVIDED BY LAW THAT THIS RETURN HAS BEEN EXAMINED BY ME AND TO THE BEST OF MY KNOWLEDGE IS A TRUE, CORRECT AUTHORIZED SIGNATURE REQUIRED AND COMPLETE RETURN. FORM 322 ANNUAL RECONCILIATION OF COMPENSATION TAX WITHHELD FROM WAGES FOR 2009 NUMBER EMPLOYER NAME AND ADDRESS PACKAGES QUARTERLY PAYMENTS BREAKDOWN TOTAL COMPENSATION TAX REMITTED JAN 1- DEC. 31 AS REPORTED ON LINE 1, OF FORM FORM 319 ACCOUNT NO. 1. QTR. ENDED 3/31 3. QTR. ENDED 9/30 $ $ FEDERAL E.I.N. 2. QTR. ENDED 6/30 4. QTR. ENDED 12/31 5 $ 5TOTAL TAX REMITTED s SHOULD = ENTRY ON LINE 6. A. THE NUMBER OF W-2 RECORDS REPORTING LOCAL COMPENSATION TAX WITHHELD IS 6TOTAL TAX WITHHELD AS s REPORTED ON FORMS W-2. * B. ENCLOSE VERIFICATION OF THE TOTAL COMPENSATION TAX york adams tax bureau WITHHELD AS REPORTED ON THE W-2 RECORDS SUBMITTED TO 1405 n. duke street, p.o. box 15627 THIS BUREAU. EXAMPLE: CALCULATOR TAPE OR COMPUTER REPORT. york, pa 17405-0156 . phone (717) 812-0759 IF OVERPAID CHECK ONE DREFUND Dapply to 2010 C. CONTACT PERSON'S NAME (PRINT) PHONE NO. FAX NO._ D. ENCLOSE THE FORMS W-2 INFORMATION WITH THIS FORM 322. EMAIL I DECLARE UNDER PENALTIES PROVIDED 8Y LAW THAT THIS RETURN HAS BEEN EXAMINED BY ME ANO TO THE BEST OF MY KNOWLEDGE IS A TRUE. CORRECT AUTH0RI2E0 SICNATURE i AND COMPLETE RETURN. D-21
  • 128. □ VOID CORRECTED PAYER'S name, street address, city, state, ZIP code, and telephone no. 1 Rents OMB No. 1545-0115 XYZ COMPANY INC $ Miscellaneous 124 W FINE STREET 2 Royalties 09 Income ANYTOWN PA 11234 Form 1099-MISC $ 3 Other income 4 Federal income iax withheld Copy A J_ $ For PAYER'S federal identification RECIPIENT'S identification 5 Fishing boat proceeds 6 Medical and heaHh care payments Internal Revenue number number Service Center 23-1234567 111-22-3333 File with Form 1096. RECIPIENT'S name 7 Nonemployee compensation 8 Substitute payments in lieu ol dividends or interest For Privacy Act JACEN C SOLO and Paperwork $ 4500.00 $ Reduction Act Street address (including apt. no.) 9 Payer made direct sales of 10 Crop insurance proceeds Notice, see the $5,000 or more of consumer 2009 General 111 ALDER STREET products to a buyer (recipient) for resale ► [_J Instructions for City, state, and ZIP code 11 Forms 1099, ANYTOWN PA 11234 I* . ■* ■ 1098, 3921, Account number (see instructions) 2nd TIN not. 13 Excess golden parachute 14 Gross proceeds paid to 3922, 5498, and payment; an attorney W-2G. □ $ $ 15a Section 409A deferrals 15b Section 409A income 16 State tax withheld 17 State/Payer's state no. 18 State income .$. .$. i_ $ $ Form 1099-MISC Cat. No. 14425J Department of the Treasury - Internal Revenue Service Do Not Cut or Separate Forms on This Page — Do Not Cut or Separate Forms on This Page D-22
  • 129. Do Not Staple OMB No. 154S-0108 1096 Annual Summary and Transmittal of Department of the Treasury (literrial Revenue Service U.S. Information Returns »©09 ["FILER'S name XYZ COMPANY INC Street address (including room or suite number) 124 W FINE STREET Cily, state, and ZIP code ANYTOWN PA 11234 Name of person to contact Telephone number For Official Use Only JAINA SOLO (717)123-4567 Email address Fax number niiiiiiim 1 Employer identification number 2 Social security number 3 Total number of 4 Federal income tax withheld 5 Total amount reported with this Form 1096 23-1234567 forms I $4500.00 6 Enter an "X" in only one box below to indicate the type of form being filed. 7 If this is your final return, enter an "X" here . ► □ W-2G 1098-C 1098-E 10B8-T 1099-A 1099-B 10SS-C 1099-CAP 1099-G 1099-INT 1099-LTC 32 78 84 03 SO 79 73 86 92 93 □ □ □ □ □ □ □ □ □ □ □ 1099-MISC 1099-PATR 1098-Q 1099-S 1099-SA ■5498 5498-ESA 5498-SA 85 97 28 72 27 □ □ □ □ □ □ □ D Return this entire page to the Internal Revenue Service. Photocopies are not acceptable. Under penalties of perjury, I declare that I have examined this return and accompanying documents, and, to the best of my knowledge and belief, they are true, correct, and complete. Signature ► Title ► Date ► If you are not using a preaddressed form, enter the filer's name, Instructions address (including room, suite, or other unit number), and TIN in the Reminder. The only acceptable method of filing information returns spaces provided on the form. with Enterprise Computing Center—Martinsburg (ECC—MTB) is When to file. File Form 1096 as follows. electronically through the FIRE system. See Pub. 1220, Specifications for Filing Forms 1098, 1099, 3921, 3922, 5498, and • With Forms 1099, 1098, 3921, 3922, or W-2G, file by W-2G Electronically. March 1, 2010. Purpose of form. Use this form to transmit paper Forms 1099, • With Forms 5498, 5498-ESA, or 5498-SA, file by June 1, 2010. 1098, 3921, 3922, 5498, and W-2G to the Internal Revenue Service. Do not use Form 1096 to transmit electronically. For electronic Where To File submissions, see Pub. 1220, Specifications for Filing Forms 1098, 1099, 3921, 3922, 5498, and W-2G Electronically. Send all information returns filed on paper with Form 1096 to the following: Caution: If you are required to file 250 or more information returns of any one type, you must file electronically. If you are required to file If your principal business, Use the following electronically but fail to do so, and you do not have an approved office or agency, or legal three-line address waiver, you may be subject to a penalty. For more information, see residence in the case of an part F in the 2009 General Instructions for Forms 1099, 1098, 3921, individual, is located in 3922, 5498, and W-2G. Who must file. The name, address, and TIN of the filer on this form Alabama, Arizona, Arkansas, Connecticut, Delaware, must be the same as those you enter in the upper left area of Forms Florida, Georgia, Kentucky, Louisiana, Maine, 1099, 1098, 3921, 3922, 5498, or W-2G. A filer is any person or Department of the Treasury Massachusetts, Mississippi, New Hampshire, entity who files any of the forms shown in line 6 above. Internal Revenue Service Center New Jersey, New Mexico, New York, North Carolina, Austin, TX 73301 Preaddressed Form 1096. If you received a preaddressed Form Ohio, Pennsylvania, Rhode Island, Texas, Vermont, 1096 from the IRS with Package 1096, use it to transmit paper Virginia, West Virginia Forms 1099, 1098, 3921, 3922, 5498, and W-2G to the Internal Revenue Service. If any of the preprinted information is incorrect, make corrections on the form. For more information and the Privacy Act and Paperwork Reduction Act Notice, Cat. No. 144000 Form 1096 (2009) see the 2009 General Instructions for Forms 1099, 1098, 3921, 3922, 5498, and W-2G. D-23
  • 130. OMB No. 1615-0047; Expires 08/31/12 Department of Homeland Security Form 1-9, Employment U.S. Citizenship and Immigration Services Eligibility Verification Read instructions carefully before completing this form. The instructions must be available during completion of this form. ANTI-DISCRIMINATION NOTICE: It is illegal to discriminate against work-authorized individuals. Employers CANNOT specify which document(s) they will accept from an employee. The refusal to hire an individual because the documents have a luture expiration date may also constitute illegal discrimination. Section 1. Employee Information and Verification (To be completed and signed by employee at the time employment begins.) Print Name: Last _ First Middle Initial I Maiden Name Address (Street Name and Number) Apt. # Date of Birth (month/day/year) City State Zip Code Social Security # 1 attest, under penalty of perjury, that I am (check one of the following): I am aware that federal law provides for imprisonment and/or fines for false statements or I A citizen of the United States use of false documents in connection with the I I A noncitizen national of the United States (see instructions) completion of this form. I | A lawful permanent resident (Alien #) An alien authorized to work (Alien # or Admission #) until (expiration date, if applicable - monlh/day/year) Employee's Signature Date (month/day/year) Preparer and/or Translator Certification (To be completed and signed ifSection 1 is prepared by a person other than the employee ) J attest under Pewlty ofperjury, that I have assisted in the completion ofthisform and that to the best ofmy knowledge the information is true and correct. Preparer's/Translator's Signature ~~~~ | Print Name Address (Street Name and Number, City, State, Zip Code) Date (month/day/year) Section 2. Employer Review and Verification (To be completed and signed by employer. Examine one documentfrom List A OR examine one documentfrom List B and one from List C, as listed on the reverse ofthis form, and record the title number and expiration date, if any, of the documents).) List A OR ListB AND ListC Document title: Issuing authority: Document #: Expiration Date (ifany): Document #: Expiration Date (ifany): CERTIFICATION: I attest, under penalty of perjury, that I have examined the document(s) presented by the above-named employee, that the above-listed document(s) appear to be genuine and to relate to the employee named, that the employee began employment on (month/day/year) and that to the best of my knowledge the employee is authorized to work in the United States. (State employment agencies may omit the date the employee began employment.) Signature of Employer or Authorized Representative Print Name Title Business or Organization Name and Address (Street Name and Number, City, Stale, Zip Code) Date (month/day/year) ection 3. Updating and Reverification (To be completed and signed by employer. . New Name (ifapplicable) B. Date of Rehire (month/day/year) (ifapplicable) C. If employee's previous grant of work authorization has expired, provide the information below for the document that establishes current employment authorization. Document Title: Document #: Expiration Date (ifany): I attest, under penalty of perjury, that to the best of my knowledge, this employee is authorized to work in the United States, and if the employee presented documents), the documents) I have examined appear to be genuine and to relate to the individual. Signature of Employer or Authorized Representative Date (month/day/year) Form 1-9 (Rev. 08/07/09) Y Page 4 D-24
  • 131. 217 COMMONWEALTH OF PENNSYLVANIA New Hire Reporting Form Required Employer Information FEIN: Please mail or fax to: Employer Name: Commonwealth of Pennsylvania New Hire Reporting Program Address: P. O. Box 69400 Harrisburg, PA 17106-9400 Fax: 717-657-HIRE (717-657-4473) Contact Name: Phone: 1-888-PAHIRES (1-888-724-4737) Contact Phone #: (for questions only) This form can be duplicated Required Employee Information (Please type or print legibly in black or blue ink.) Employee Social Security # Date of Birth (mm/dd/yyyy) optional Date of Hire (mm/dd/yyyy) Name (first) (middle) (last) Address City State Zip Employee Social Security # Date of Birth (mm/dd/yyyy) optional Date of Hire (mm/dd/yyyy) Name (first) (middle) (last) Address City State Zip Employee Social Security # Date of Birth (mm/dd/yyyy) optional Date of Hire (mm/dd/yyyy) Name (first) (middle) (last) City State Zip New Lending a Hand Hire to Pennsylvania's Reporting Children Commonwealth of Pennsylvania Department of Labor and Industry Center for Workforce Information and Analysis Pennsylvania New Hire Reporting Program - 5 D-25
  • 132. SCHEDULE H Household Employment Taxes OMB No. 1545-1971 (Form 1040) (For Social Security, Medicare, Withheld Income, and Federal Unemployment (FUTA) Taxes) ► Attach to Form 1040,1040NR, 1040-SS, or 1041. Department of the Treasury Attachment Internal Revenue Service (99) ► See separate instructions. Sequence No. 44 Name of employer Social security number Employer identification number A Did you pay any one household employee cash wages of ^ in 20099 (If an« usehold employee was your spouse, your child under age 21, your parent, or anyone undfir the line A instrf fflg on page H-4 before you answer this question.) V t D Yes. Skip lines B and C and go to line 1 □ No. GC.NneB. , * -— If <j B Did you withhold federal income ta*Sdu);#ig 2009 for any household □ Yes. Skip line C and go to|jne1 I hi t" ss t-. □ No. Go to line C. -»„ 4 . t* v'i *■ „ C Did you pay total cash wages of $fi OOm^r mdje in any calendar quarter of 2008 or 2009 to all household employees? (Do not count cash wages paid in 2Qbj8 o'B'OOSHo your spouse, your child under age 21, or your parent.) □ No. Stop. Do not file this schedule D Yes. Skip lines 1-9 and go to line 10 on the back. (Calendar year taxpayers having no household employees in 2009 do not have to complete this form for 2009.) |^SU Social Security, Medicare, and Federal Income Taxes 1 Total cash wages subject to social security taxes (see page H-4) . . 2 Social security taxes. Multiply line 1 by 12.4% (.124) 3 Total cash wages subject to Medicare taxes (see page H-4) .... 4 Medicare taxes. Multiply line 3 by 2.9% (.029) 5 Federal income tax withheld, if any 6 Total social security, Medicare, and federal income taxes. Add lines 2, 4, and 5 7 Advance earned income credit (EIC) payments, if any 8 Net taxes (subtract line 7 from line 6) 8 9 Did you pay total cash wages of $1,000 or more in any calendar quarter of 2008 or 2009 to all household employees? (Do not count cash wages paid in 2008 or 2009 to your spouse, your child under age 21, or your parent.) CD No. Stop. Include the amount from line 8 above on Form 1040, line 59, and check box b on that line. If you are not required to file Form 1040, see the line 9 instructions on page H-4. □ Yes. Goto line 10 on the back. For Privacy Act and Paperwork Reduction Act Notice, see page H-7 of the instructions. Cat. No. 12187K Schedule H (Form 1040) 2009 D-26
  • 133. Schedule H (Form 1040) 2009 Page 2 Federal Unemployment (FUTA) Tax Yes No 10 Did you pay unemployment contributions to only one state? (If you paid contributions to XXXXX, check "No.") 10 11 Did you pay all state unemployment contributions for 2009 by April 15, 2010? Fiscal yeaffilers, see page H-4 11 12 Were all wages that are taxable for FUTA tax also taxable for your state's unemploymentt&x9 . 12 ' 4 Next: If you checked the "Yes" box on all the lines above, complete Section A %~ *. f If you checked the "No" box on any of the lines above, skip Section A and compfate Section B. Section A 13 Name of the state where you paid unemployment contributions^*-^.. ** 14 State reporting number as shown on state unempjoyment tax retu 15 Contributions paid to your state unemploymervMtmi (see page H-5) 16 Total cash wages subject to FUTA tax (s,.eefpagi|jH-5)^ " 17 FUTA tax. Multiply line 16-^'odi^nfflthe rel'ult here ski 18 Complete all columns below t State reporting number (c) (0 (g) Subtract col. (g) Contributions as shown on state Taxable wages ( Multiply col. (c) Multiply col. (c) from col. (f). If paid to state unemployment tax defined in state by .054 by col. (e) zero or less, unemployment return enter-0-. fund 19 Totals 20 Add columns (h) and (i) of line 19 21 Total cash wages subject to FUTA tax (see the line 16 instructions on page H-5) 22 Multiply line 21 by 6.2% (.062) 23 Multiply line 21 by 5.4% (.054) I 23 24 Enter the smaller of line 20 or line 23 (XXXX employers must use the worksheet in the separate instructions and check here) . 25 FUTA tax. Subtract line 24 from line 22. Enter the result here and go to line 26 Total Household Employment Taxes 26 Enter the amount from line 8. If you checked the "Yes" box on line C of page 1, enter -0- 26 27 Add line 17 (or line 25) and line 26 (see page H-5) 27 28 Are you required to file Form 1040? D Yes. Stop. Include the amount from line 27 above on Form 1040, line 59, and check box b on that line. Do not complete Part IV below. D No. You may have to complete Part IV. See page H-5 for details- Address and Signature— Complete this part only if required. See the line 28 instructions on page H-5. Address (number and street) or P.O. box if mail is not delivered to street address Apt., room, or suite no City, town or post office, state, and ZIP code Under penalties of perjury, I declare that I have examined this schedule, including accompanying statements, and to the best of my knowledge and belief, it is true, correct, and complete. No part of any payment made to a state unemployment fund claimed as a credit was, or is to be, deducted from the payments to employees' Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. ► Employer's signature Date Date Preparer's SSN or PTIN Paid Preparer's signature Check if __ self-employed I I Preparer's Firm's name (or EIN Use Only yours if self-employed), address, and Zip code Phone no. Schedule H (Form 1040) 2009 D-27
  • 134. AMOUNT OF DEPOSIT (Do NOT type, please print.) MONTH TAX YEAR ENDS EMPLOYER IDENTIFICATION NUMBER BANK NAME/ DATE STAMP Federal Tax Deposit Coupon Form 8109-B p*,. 12-2006) SEPARATE ALONG THIS LINE AND SUBMIT TO DEPOSIT OMB NO. 1545-0257 What's new. The oval for Form 990-C has been deleted. Form 990-C ►without using dollar signs, commas, a has been replaced by Form 1120-C, U.S. Income Tax Return for jjng zeros. If the deposit is for whole dollars only, Cooperative Associations. Filers of Form 1120-C must use the 1120 oval ' oxes. For example, a deposit of $7,635.22 when completing Form 8109-B. The type of tax ovals for the 1120, 1042, and 944 have been moved on the coupon. Read the type of tax to the right of the oval before you darken the oval. Note. Except for the name, address, and telephone number, entries must be made in pencil. Use soft lead (for example, a #2 pencil) so that the entries can be read more accurately by optical scanning equipment. The name, address, and telephone number may be completed other than by hand. You cannot use photocopies of the coupons to make your _ n. Darken onT^bgpace for TYPE OF TAX and only one space deposits. Do not staple, tape, or fold the coupons. WAX PERIOD. Darken^space to the left of the applicable form and The IRS encourages you to make federal tax deposits using the wperiod. Darkening the mQg space or multiple spaces may delay Electronic Federal Tax Payment System (EFTPS). For more infoi proper creditm^b your account. See below for an explanation of Types on EFTPS, go to www.eftps.gov or call 1 -800-555-4477. of Tax and MXkthe Proper Tax Period. Purpose of form. Use Form 8109-B to make a tax deposit following two situations. Types °ijK^^^& Form 94flf EmMiyer's QUARTERLY Federal Tax Return (includes 1. You have not yet received your resupply of preprinteeH^ftaosit coupons (Form 8109). ■ 941-M, 941-PR, and 941-SS) 2. You are a new entity and have already been a: Boyer's Annual Tax Return for Agricultural Employees identification number (EIN), but you have not Employer's ANNUAL Federal Tax Return (includes Forms of preprinted deposit coupons (Form 8109). lf| *"44-PR, 944(SP), and 944-SS) EIN, see Exceptions below. 1.945 Annual Return of Withheld Federal Income Tax Note. If you do not receive your resupply of d' Quarterly Federal Excise Tax Return deposit is due or you do not receive your ii Employer's Annual Railroad Retirement Tax Return of receipt of your EIN, call 1 -800-829-49; Employer's Annual Federal Unemployment (FUTA) Tax How to complete the form. Enter, rn on your retu Return (includes Form 940-PR) or other IRS correspondence, adi the spaces^ Form 1120 U.S. Corporation Income Tax Return (includes Form 1120 Do not make a name or address chanj_ form (see I series of returns, such as new Form 1120-C, and Change of Address). If you are required •a Form 1iafcli20-C' Form 2438) 990-PF (with net investment in 2438, ( Form 990-T Exempt Organization Business Income Tax Return which your tax year ends in tt lONTH TAX YEAR ENDS t Form 990-PF Return of Private Foundation or Section 4947(a)(1) Nonexempt example, if your tax year ends luary, enter 01; if it ends in* Charitable Trust Treated as a Private Foundation December, enter 12. Mak for EIN and MONTH TAX YEAR Form 1042 Annual Withholding Tax Return for U.S. Source Income of ENDS (if applicable) as iunt of deposit below, Foreign Persons Exceptions. Ifflpu hlfc appl for an EIN, have not received it, and a deposit mu Form 8109-B. Instead, send your Marking the Proper Tax Period payment to t iere you file your return. Make your check Payroll taxes and withholding. For Forms 941, 940, 943, 944, 945, or money o to the United States Treasury and show on it CT-1, and 1042, if your liability was incurred during: your name (as ~orm SS-4, Application for Employer • January 1 through March 31, darken the 1st quarter space; Identif cation Nu Iress, kind of tax, period covered, and date • April 1 through June 30, darken the 2nd quarter space; you applied for an El not use Form 8109-B to deposit delinquent • July 1 through September 30, darken the 3rd quarter space; and taxes assessed by the IRS. Pay those taxes directly to the IRS. See Pub. 15 (Circular E), Employer's Tax Guide, for information. • October 1 through December 31, darken the 4th quarter space. Amount of deposit. Enter the amount of the deposit in the space Note. If the liability was incurred during one quarter and deposited in provided. Enter the amount legibly, forming the characters as shown another quarter, darken the space for the quarter in which the tax liability below: was incurred. For example, if the liability was incurred in March and deposited in April, darken the 1st quarter space. III2I3I4I5[6I7I8HIOI Excise taxes. For Form 720, follow the instructions above for Forms 941, 940, etc. For Form 990-PF, with net investment Income, follow the instructions on page 2 for Form 1120, 990-T, and 2438. Department of the Treasury Form 8109-B (Rev. 12-2006) Internal Revenue Service Cat. No. 61042S D-28
  • 135. E-Tides Pennsylvania Business Tax System Page 1 of 1 Payment Successfully Submitted Employer Deposit Statement Of Withholding Tax Employer Withholding Business Name Tax Entity ID# (EIN) XYZ COMPANYINC Account Number 23-1234567 1234 5678 Period Start Date Period End Date Due Date 9/1/2009 9/30/2009 10/15/2009 Transaction Effective Time Filed Tax Period Date 10/7/2009 10:52:04 September 2009: PA- 10/7/2009 AM 501 Tax Rate: 3.07000% 1 Total Compensation Subject to PA Tax: [10,066.25 2 PA Withholding Tax: 309.04 3 Less Credits: 0.00 Payment: $ 309.04 Payment Method ACH Debit (EFT) Payment Through E-Tides Filed By Transaction ID Status CO CONTACT Not Assigned Complete https://www. eti des. state .pa.us/Default. aspx 10/7/2009 D-29
  • 136. DO NOT CUT, FOLD, OR STAPLE THIS FORM For Official Use Only ► M "4 4 M M OMB No, 1545-0008 a Employer's ne me. address, and ZIP code c Tax year/r-orm corrected d Employees correct SSN XYZ COMPANY INC 222-33-7777 2 0 0 9 / W-2 124 W FINE STREET e Corrected SSN and/oi name (Check this box and complete boxes f and/or ANYT OWN PA 112 34 g if incorrect on form previously filed.) r~i Complete boxes f and/or g only it incorrect on form previously filed ► f Employee's previously reported SSN b Employer's Federal EIN g Employee's previously reported name 23-1234567 h Emplo yee's first name and initial Last name Sufi JA]:na SOLO 777 SKY LANE Note: Only complete money fields that are being corrected (exception: for corrections involving MQGE, see the Instructions ANY TOWN PA 11234 for Forms W-2c and W-3c, boxes 5 and 6). i Emplo yee's address and ZIP code Previously reported Correct information Previously reported Correct information 1 Wages, tips, other compensation 1 Wages, tips, other compensation 2 Federal income tax withheld 2 Federal income tax withheld 92400.00 95000.00 12574 .00 23750.00 . 3 Social security wages 3 Social security wages 4 Social security tax withheld 4 Social security tax withheld 92400.00 95000.00 5728.80 5890.00 5 Medicare wages and tips 5 Medicare wages and tips 6 Medicare tax withheld 6 Medicare tax withheld 92400. 00 95000.00 _j 1339.80 1377.50 7 Social security tips 7 Social security tips 8 Allocated tips 8 Allocated tips 9 Advance EIC payment 9 Advance EIC payment 10 Dependent care benefits 10 Dependent care benefits 11 Nonqualified plans 11 Nonqualified plans 12a See I istructions for box 12 12a See instructions for box 12 o d 13 Statutory Kellrpineiu Tlrint-partv 13 Statutory Retirement 1 hint-party prnploveii plan sitt. nav ampUiyee plan skk nay 12b 12b c □ □ n □ n it 3 14 Other (see inst ructions) 14 Other (sse instructions) 12c 12c t: ? ,., . 12d 12d Stale Correction Information Previously reported Correct information . Previously reported Correct information 15 State 15 State 15 State 15 State PA PA Employer s state ID number Employer's state ID number Employer's state ID number Employer's state ID number 1234 5678 1234 5678 16 State wages, tips, etc. 16 State wages, tips. etc. 16 State wages, tips, etc. 16 State wages, tips. etc. 92400.00 95000.00 17 State income tax 17 State income tax 17 State income lax 17 State income lax 2574.20 2916.50 Locality Correction information Previously reported Correct information Previously reported Correct information 18 Local wages, tips, etc. 18 Local wages, tips, etc. ^ - Vaf* to6aVwages, tips, etc. 18 Local wages, tips, etc. 92400.00 95000.00 19 Local income tax 19 Local income tax 19 Local income tax 19 Local income tax 838.50 950.00 20 Locality name 20 Locality name 20 Locality name 20 Locality name ANYTOWN ANYTOWN For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Copy A—For Social Security Administration Form W-2C (Rev. 2-2009) Corrected Wage and Tax Statement Department of the Treasury Cat. No. 61437D Internal Revenue Service D-30
  • 137. DO NOT CUT, FOLD, OR STAPLE Tax year/Form corrected For Official Use Only SSSS5 ...20.09./W-.3... OMB No. 1545-0008 b Employer's name, address, and ZIP code 941/941 -S3 Military 943 944/944-SS XYZ COMPANY INC □ □ □ 124 W FINE STREET Kind Hshld. Medicare Third-party of CT-1 emp. qovt. emp. sick pay ANYTOWN PA 11234 Payer □ □ D D d Number of Forms W-2c e Employer's Federal EIN f Establishment number g Employer's state ID number 1 23-1234567 Complete boxes h. i. or j only il h Employer's incorrect Federal EIN i Incorrect: establishment number j Employers incorrect stats ID number incorrect on last form filed. Total of amounts previously reported Total of corrected amounts as Total of amounts previously reported Total of corrected amounts as as shown on enclosed Forms W-2c. shown on enclosed Forms W-2c. as shown on enclosed Forms W-2c. shown on enclosed Forms W-2c, 1 Wages, tips, other compensation 1 Wages, tips, other compensation 2 Federal income tax withheld 2 Federal income tax withheld 92400.00 95000.00 12574 .00 23750.00 3 Social security wages 3 Social security wages 4 Social security tax withheld 4 Social security tax withheld 92400.00 95000.00 5728 .80 5890.00 5 Medicare wages and lips 5 Medicare wages and tips 6 Medicare tax withheld 6 Medicare tax withheld 92400'. 00 95000.00 1339.80 1377.50 7 Social security tips 7 Social security tips 8 Allocated tips 8 Allocated tips 9 Advance EIC payments 9 Advance EIC payments 10 Dependent care benefits 10 Dependent care benefits 11 Nonqualified plans 11 Nonqualified plans 12a-d {Coded items) 12a-d (Coded items) 14 inc. iax vV/H by 3rd party siuk pay payer 14 Inc. tax VV/H by 3rd party sick pay payer ■A^s<:-:"^v:**c^-**r'::,-c "-■y^-; 16 Stale wages, tips. etc. 16 State wages, tips, etc. 17 State income tax 17 State income tax 92400.00 95000.00 2574 .20 2574.20 18 Local wages, tips. etc. 18 Local wages, tips, etc. 19 Local income tax 19 Local income tax 92400.00 95000.00 838.50 950.00 Explain decreases here: Has an adjustment been made on an employment tax return filed with the Internal Revenue Service? D Yes D No If "Yes," give date the return was filed Under penalties of perjury, I declare that I have examined this return, including accompanying documents, and. to the best of my knowledge and belief, it is true correct, and complete. Signature t* Title Date Contact person Telephone number For Official Use Only Email address Fax number Form W-3c (Rev. 2-2009) Transmittal of Corrected Wage and Tax Statements Department of the Treasury Internal Revenue Service Purpose of Form Where To File Use this form to transmit Copy A of Form(s) W-2c, Corrected Wage If you use the U.S. Postal Service, send Forms W-2c and W-3c to the and Tax Statement (Rev. 2-2009). Make a copy of Form W-3c and following address: keep it with Copy D (For Employer) of Forms W-2c for your records. Social Security Administration File Form W-3c even if only one Form W-2c is being filed or if those Data Operations Center Forms W-2c are being filed only to correct an employee's name and P.O. Box 3333 social security number (SSN), or the employer identification number Wilkes-Barre, PA 18767-3333 (EIN). See the separate Instructions for Forms W-2c and W-3c for information on completing this form. If you use a carrier other than the U.S. Postal Service, send Forms W-2c and W-3c to the following address: When To File Social Security Administration File this form and Copy A of Form(s) W-2c with the Social Security Data Operations Center Administration as soon as possible after you discover an error on Attn: W-2c Process Forms W-2, W-2AS, W-2GU, W-2CM, W-2VI, or W-2c. Provide Copies 1150 E. Mountain Drive B, C, and 2 of Form W-2c to your employees as soon as possible. Wilkes-Barre, PA 18702-7997 For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 10164R D-31
  • 138. Form W-4 (2009) Complete all worksheets that apply. However, you dividends, consider making estimated tax may claim fewer (or zero) allowances. For regular payments using Form 1040-ES, Estimated Tax wages, withholding must be based on allowances for Individuals. Otherwise, you may owe Purpose. Complete Form W-4 so that your you claimed and may not be a flat amount or additional tax. If you have pension or annuity employer can withhold the correct federal income percentage of wages. income, see Pub. 919 to find out if you should tax from your pay. Consider completing a new adjust your withholding on Form W-4 or W-4P. Head of household. Generally, you may claim Form W-4 each year and when your personal or head of household filing status on your tax Two earners or multiple jobs. If you have a financial situation changes. return only if you are unmarried and pay more working spouse or more than one job, figure Exemption from withholding. If you are than 50% of the costs of keeping up a home the total number of allowances you are entitled exempt, complete only lines 1,2,3, 4, and 7 for yourself and your dependent(s) or other to claim on all jobs using worksheets from only and sign the form to validate it. Your exemption qualifying individuals. See Pub. 501, one Form W-4. Your withholding usually will for 2009 expires February 16, 2010. See Exemptions, Standard Deduction, and Filing be most accurate when all allowances are Pub. 505, Tax Withholding and Estimated Tax. Information, for information. claimed on the Form W-4 for the highest Note. You cannot claim exemption from paying job and zero allowances are claimed on Tax credits. You can take projected tax withholding if (a) your income exceeds $950 credits into account in figuring your allowable the others. See Pub. 919 for details. and includes more than $300 of unearned number of withholding allowances. Credits for Nonresident alien. If you are a nonresident income (for example, interest and dividends) child or dependent care expenses and the alien, see the Instructions for Form 8233 and (b) another person can claim you as a child tax credit may be claimed using the before completing this Form W-4. dependent on their tax return. Personal Allowances Worksheet below. See Check your withholding. After your Form W-4 Basic instructions. If you are not exempt, Pub. 919, How Do I Adjust My Tax takes effect, use Pub. 919 to see how the complete the Personal Allowances Worksheet Withholding, for information on converting amount you are having withheld compares to below. The worksheets on page 2 further adjust your other credits into withholding allowances. your projected total tax for 2009. See Pub. your withholding allowances based on itemized Nonwage income. If you have a large amount 919, especially if your earnings exceed deductions, certain credits, adjustments to of nonwage income, such as interest or $130,000 (Single) or $180,000 (Married). income, or two-earner/multiple job situations. Personal Allowances Worksheet (Keep for your records.) A Enter "1" for yourself if no one else can claim you as a dependent A _ f • You are single and have only one job; or "I B Enter "1" if: < • You are married, have only one job, and your spouse does not work; or I ■ ■ ^ — [ • Your wages from a second job or your spouse's wages (or the total of both) are $1,500 or less, j C Enter "1" for your spouse. But, you may choose to enter "-0-" if you are married and have either a working spouse or more than one job. (Entering "-0-" may help you avoid having too little tax withheld.) ■ . C _ D Enter number of dependents (other than your spouse or yourself) you will claim on your tax return D _ E Enter "1" if you will file as head of household on your tax return (see conditions under Head of household above) . E _ F Enter "1" if you have at least $1,800 of child or dependent care expenses for which you plan to claim a credit . . F _ (Note. Do not include child support payments. See Pub. 503, Child and Dependent Care Expenses, for details.) G Child Tax Credit (including additional child tax credit). See Pub. 972, Child Tax Credit, for more information. • If your total income will be less than $61,000 ($90,000 if married), enter "2" for each eligible child; then less "1" if you have three or more eligible children. • If your total income will be between $61,000 and $84,000 ($90,000 and $119,000 if married), enter "1" for each eligible child plus "1" additional if you have six or more eligible children. G _ H Add lines A through G and enter total here. (Note. This may be different from the number of exemptions you claim on your tax return.) ► H — For accuracy, • If you plan to itemize or claim adjustments to income and want to reduce your withholding, see the Deductions complete all and Adjustments Worksheet on page 2. worksheets • If you have more than one job or are married and you and your spouse both work and the combined earnings from all jobs exceed that apply. $40,000 ($25,000 if married), see the Two-Earners/Multiple Jobs Worksheet on page 2 to avoid having too little tax withheld. > If neither of the above situations applies, stop here and enter the number from line H on line 5 of Form W-4 below. Cut here and give Form W-4 to your employer. Keep the top part for your records. W-4 Employee's Withholding Allowance Certificate OMB No. 1545-0074 Form Department of the Treasury ► Whether you are entitled to claim a certain number of allowances or exemption from withholding is Internal Revenue Service subject to review by the IRS. Your employer may be required to send a copy of this form to the IRS. 1 Type or print your first name and middle initial. Last name 2 Your social security number Home address (number and street or rural route) Cl Single CD Married CD Married, but withhold at higher Single rate. Note. If married, bul legally separated, or spouse is a nonresident alien, check the "Single" box. City or town, state, and ZIP code 4 If your last name differs from that shown on your social security card, check here. You must call 1-800-772-1213 for a replacement card. ► □ 5 Total number of allowances you are claiming (from line H above or from the applicable worksheet on page 2) 6 Additional amount, if any, you want withheld from each paycheck 7 I claim exemption from withholding for 2009, and I certify that I meet both of the following conditions for exemption. • Last year I had a right to a refund of all federal income tax withheld because I had no tax liability and • This year I expect a refund of all federal income tax withheld because I expect to have no tax liability. If you meet both conditions, write "Exempt" here ► |~ Under penalties of perjury. I declare that I have examined this certificate and to the best of my knowledge and belief, it is true, correct, and complete. Employee's signature (Form is not valid unless you sign it.) ►• Date ► 8 Employer's name and address (Employer: Complete lines 8 and 10 only if sending to the IRS.) 9 Office code (optional) 10 Employer identification number (EIN) For Privacy Act and Paperwork Reduction Act Notice, see page 2. Cat. No. 10220Q Form W-4 (2009) D-32
  • 139. 11/10/2008 11:33:23 AM Form W-4V Voluntary Withholding Request (Rev. August 2006) Department of the Treasury (For unemployment compensation and certain federal government payments.) Internal Revenue Service Instructions What Do I Need To Do? Purpose of Form Complete lines 1—4; check one box on line 5, 6, or 7; sign Form W-4V; and give it to the payer, not to the IRS. If you receive any government payment shown below, you may use Form W-4V to ask the payer to withhold federal Note. For withholding on social security benefits, give or income tax. send the completed Form W-4V to your local Social Security office. • Unemployment compensation (including Railroad Unemployment Insurance Act (RUIA) payments), Line 3. If your address is outside the United States or the U.S. possessions, enter on line 3 the city, province or state, • Social security benefits, and name of the country. Follow the country's practice for • Social security equivalent Tier 1 railroad retirement entering the postal code. Do not abbreviate the country benefits, name. • Commodity Credit Corporation loans, or Line 5. If you want federal income tax withheld from your • Certain crop disaster payments under the Agricultural Act unemployment compensation, check the box on line 5. The of 1949 or under Title II of the Disaster Assistance Act payer will withhold 10% from each payment. of 1988. Line 6. If you receive any of the payments listed on line 6, You are not required to have federal income tax withheld check the box to indicate the percentage (7%, 10%, 15%, or from these payments. Your request is voluntary. 25%) you want withheld from each payment. Note. Payers may develop their own form for you to request Line 7. See How Do I Stop Withholding? below. federal income tax withholding. If a payer gives you its own Sign this form. Form W-4V is not considered valid unless form instead of Form W-4V, use that form. you sign it. Why Should I Request Withholding? When Will My Withholding Start? You may find that having federal income tax withheld from Ask your payer exactly when income tax withholding will the listed payments is more convenient than making quarterly begin. The federal income tax withholding you choose on this estimated tax payments. However, if you have other income form will remain in effect until you change it, stop it, or the that is not subject to withholding, consider making estimated payments stop. tax payments. For more details, see Form 1040-ES, How Do I Change Withholding? Estimated Tax for Individuals. If you are getting a payment other than unemployment How Much Can I Have Withheld? compensation and want to change your withholding rate, complete a new Form W-4V. Give the new form to the payer. For unemployment compensation, the payer is permitted to withhold 10% from each payment. No other percentage or How Do I Stop Withholding? amount is allowed. If you want to stop withholding, complete a new Form W-4V. After completing lines 1-4, check the box on line 7, and sign For any other government payment listed above, you may choose to have the payer withhold federal income tax of 7%, and date the form; then give the new form to the payer. 10%, 15%, or 25% from each payment, but no other percentage or amount. Detach here Form W-4V Voluntary Withholding Request (Rev. August 2006) (For unemployment compensation and certain federal government payments.) OMB No. 1545-0074 Department of the Treasury Internal Revenue Service ► Give this form to your payer. Do not send it to the IRS. 1 Type or print your first name and middle initial. Last name 2 Your social security number 3 Home address (number and street or rural route) City or town State ZIP code 4 Claim or identification number (if any) you use with your payer (for social security benefits, enter nine-digit number followed by the letter) 5 Q I want federal income tax withheld from my unemployment compensation at a rate of 10% of each payment. 6 I want federal income tax withheld from my (a) social security benefits, (b) social security equivalent Tier 1 railroad retirement benefits, (c) Commodity Credit Corporation loans, or (d) certain crop disaster payments under the Agricultural Act of 1949 or under Title II of the Disaster Assistance Act of 1988, at the rate of (check one): 7%Q 10% □ 15% □ 25% □ 7 LJ I want you to stop withholding federal income tax from my payment(s). Your signature ► Date ► BKA For Privacy Act and Paperwork Reduction Act Notice, see page 2. Form W-4V (Rev. 8-2006) WK4 P FDN1A4 -001 29 D-33
  • 140. Form W-4S Request for Federal Income Tax OMB No. 1545-0074 Withholding From Sick Pay Department of the Treasury Internal Revenue Service ►• Give this form to the third-party payer of your sick pay. Type or print your first name and middle initial. Last name Your social security number Home address (number and street or rural route) City or town, state, and ZIP code Claim or identification number (if any) I request federal income tax withholding from my sick pay payments. I want the following amount to be withheld from each payment. (See Worksheet below.) Employee's signature ► Date ► Cut here and give the top part of this form to the payer. Keep the lower part for your records. - Worksheet (Keep for your records. Do not send to the Internal Revenue Service.) 1 Enter amount of adjusted gross income that you expect in 2009 2 If you plan to itemize deductions on Schedule A (Form 1040), enter the estimated total of your deductions. For 2009, you may have to reduce your itemized deductions if your income is over $166,800 ($83,400 if married filing separately). See Pub. 919, How Do I Adjust My Tax Withholding, for details. Call 1-800-829-3676 or visit the IRS website at www.irs.gov to order forms and publications. If you do not plan to itemize deductions, enter the standard deduction, including additional amounts for age and blindness, and any additional standard deduction for real estate taxes or a disaster loss 3 Subtract line 2 from line 1 4 Exemptions. Multiply $3,650 by the number of personal exemptions. For 2009, your personal exemption(s) amount is reduced if your income is over $166,800 if single, $250,200 if married filing jointly or qualifying widow(er), $125,100 if married filing separately, or $208,500 if head of household. See Pub. 919 for details 5 Subtract line 4 from line 3 6 Tax. Figure your tax on line 5 by using the 2009 Tax Rate Schedule X, Y, or Z on page 2. Do not use the Tax Table or Tax Rate Schedule X, Y, or Z in the 2008 Form 1040, 1040A, or 1040EZ instructions 7 Credits (child tax and higher education credits, credit for child and dependent care expenses, etc.) . 8 Subtract line 7 from line 6 9 Estimated federal income tax withheld and to be withheld from other sources (including amounts withheld due to a prior Form W-4S) during 2009 or paid with Form 1040-ES 10 Subtract line 9 from line 8 10 11 Enter the number of sick pay payments you expect to receive this year to which this Form W-4S will apply. 11 12 Divide line 10 by line 11. Round to the nearest dollar. This is the amount that should be withheld from each sick pay payment. Be sure it meets the requirements for the amount that should be withheld, as explained under Amount to be withheld below. If it does, enter this amount on Form W-4S above General Instructions • Must be in whole dollars (for example, $35, not $34.50). Purpose of form. Give this form to the third-party payer of your sick • Must be at least $4 per day, $20 per week, or $88 per month pay, such as an insurance company, if you want federal Income tax based on your payroll period. withheld from the payments. You are not required to have federal • Must not reduce the net amount of each sick pay payment that income tax withheld from sick pay paid by a third party. However, if you receive to less than $10. you choose to request such withholding, Internal Revenue Code For payments larger or smaller than a regular full payment of sick sections 3402(o) and 6109 and their regulations require you to pay, the amount withheld will be in the same proportion as your provide the information requested on this form. Do not use this form regular withholding from sick pay. For example, if your regular full if your employer (or its agent) makes the payments because payment of $100 a week normally has $25 (25%) withheld, then $20 employers are already required to withhold federal income tax from (25%) will be withheld from a partial payment of $80. sick pay. Caution. You may be subject to a penalty if your tax payments Note. If you receive sick pay under a collective bargaining during the year are not at least 90% of the tax shown on your tax agreement, see your union representative or employer. return. For exceptions and details, see Pub. 505, Tax Withholding Definition. Sick pay is a payment that you receive: and Estimated Tax. You may pay tax during the year through • Under a plan to which your employer is a party and withholding or estimated tax payments or both. To avoid a penalty, make sure that you have enough tax withheld or make estimated tax • In place of wages for any period when you are temporarily payments using Form 1040-ES, Estimated Tax for Individuals. You absent from work because of your sickness or injury. may estimate your federal income tax liability by using the worksheet Amount to be withheld. Enter on this form the amount that you above. want withheld from each payment. The amount that you enter: (continued on back) For Paperwork Reduction Act Notice, see page 2. Cat. No. 10226E Form W-4S (2009) D-34
  • 141. ©09 Form W-5 Department of the Treasury Internal Revenue Service (Rev. January 2009) 1. You (and your spouse, if filing a joint return) have a valid Instructions social security number (SSN) issued by the Social Security Administration. For more information on valid SSNs, see Pub. What's New 596, Earned Income Credit (EIC). Definition of qualifying child revised 2. You expect to have at least one qualifying child and to be The following changes have been made to the definition of a able to claim the credit using that child. If you do not expect to qualifying child. have a qualifying child, you may still be eligible for the EIC, but you cannot receive advance EIC payments. See Who Is a • Your qualifying child must be younger than you. Qualifying Child? on page 3. • A child cannot be your qualifying child if he or she files a joint 3. You expect that your 2009 earned income and adjusted return, unless the return was filed only as a claim for refund. gross income (AGI) will each be less than $35,463 ($38,583 if you • If the parents of a child can claim the child as a qualifying child expect to file a joint return for 2009). Include your spouse's but no parent so claims the child, no one else can claim the child income if you plan to file a joint return. As used on this form, as a qualifying child unless that person's AGI is higher than the earned income does not include amounts inmates in penal highest AGI of any parent of the child. institutions are paid for their work, amounts received as a pension or annuity from a nonqualified deferred compensation plan or a Purpose of Form nongovernmental section 457 plan, or nontaxable earned income. Use Form W-5 if you are eligible to get part of the earned income 4. You expect to be able to claim the EIC for 2009. To find out if credit (EIC) in advance with your pay and choose to do so. See you may be able to claim the EIC, answer the questions on page Who Is Eligible To Get Advance EIC Payments? below. The 2. amount you can get in advance generally depends on your wages. If you are married, the amount of your advance EIC How To Get Advance EIC Payments payments also depends on whether your spouse has filed a Form W-5 with his or her employer. However, your employer cannot If you are eligible to get advance EIC payments, fill in the 2009 give you more than $1,826 throughout 2009 with your pay. You Form W-5 at the bottom of this page. Then, detach it and give it will get the rest of any EIC you are entitled to when you file your to your employer. If you get advance payments, you must file a tax return and claim the EIC. 2009 Form 1040 or 1040A income tax return. If you do not choose to get advance payments, you can still You may have only one Form W-5 in effect at one time. If you claim the EIC on your 2009 tax return. and your spouse are both employed, you should file separate Forms W-5. What Is the EIC? This Form W-5 expires on December 31, 2009. If you are The EIC is a credit for certain workers. It reduces the tax you eligible to get advance EIC payments for 2010, you must file a owe. It may give you a refund even if you do not owe any tax. new Form W-5 next year. f^l You may be able to get a larger credit when you file Who Is Eligible To Get Advance EIC k_J your 2009 return. For details, see Additional Credit on Payments? page 3. You are eligible to get advance EIC payments if all four of the following apply. (continued on page 3) Give the bottom part to your employer; keep the top part for your records. Detach here OMB No. 1545-0074 Form W-5 Earned Income Credit Advance Payment Certificate ► Use the current year's certificate only. (Rev. January 2009) Department of the Treasury ► Give this certificate to your employer. Internal Revenue Service ► This certificate expires on December 31, 2009. Print or type your full name Your social security number Note. If you get advance payments of the earned income credit for 2009, you must file a 2009 federal income tax return. To get advance payments, you must have a qualifying child and your filing status must be any status except married filing a separate return. 1 I expect to have a qualifying child and be able to claim the earned income credit for 2009 using that child. I do not have another Form W-5 in effect with any other current employer, and I choose to get advance EIC payments .... D Yes D No 2 Check the box that shows your expected filing status for 2009: D Single, head of household, or qualifying widow(er) D Married filing jointly 3 If you are married, does your spouse have a Form W-5 in effect for 2009 with any employer? D Yes □ No Under penalties of perjury, I declare that the information I have furnished above is, to the best of my knowledge, true, correct, and complete. Signature ► Date ► Cat. No. 10227P D-35