TPC will be hosting our 2nd annual Year End Seminar on Thursday, December 6, 2007. This FREE seminar will take place from 9:30-11:15 at Blackhawk Country Club.
If your company has a disability insurance plan you may be responsible for reporting 3rd Party Sick Pay payments to SSA and IRS. If you had employees on disability leave in 2007 your insurance carrier will provide you with a detailed schedule of payments to affected employees. In many instances this information needs to be reported to IRS and SSA by the employer. Simply forward any 3rd Party Sick Pay documentation you receive from your carrier to our office and we will take care of the rest. If you incur a tax liability as a result of the 3rd Party Sick Pay payments, this amount must be deposited no later than 1/7/2008. Therefore, it is imperative that we receive this information no later than 1/2/2008. I you think you will be receiving a transaction report from your carrier subsequent to 1/2/2008, please let us know right away! We have a solution for you so that you don't incur late payment penalties. As always, please contact us with any questions.
Guardian Issue Two
Year End Fringe Benefit Reporting
Please visit www.payrollcompany.biz/fringe for fringe benefit calculation tools and links to IRS publications. You can also use the Year End Survey.xls document to report fringe benefit income inclusion amounts to TPC. Please remember, income taxes will be applied to the fringe benefit items unless you instruct us in writing to ignore income tax withholding. FICA and medicare taxes will always be withheld where applicable. Salaried employees may notice a significant decrease in their expected payroll amount if these additional taxes are withheld, so you may want to warn affected employees in advance.
Holiday Table - Upcoming dates to remember
Friday, Dec 21, 2007
Deadline for submitting fringe benefits reports to our office.
Monday and Tuesday, Dec 24-25, 2007
The Payroll Company office is closed.
Monday and Tuesday, Dec 31, 2007 - January 1, 2008
The Payroll Company office is closed.
Friday, Jan 4, 2008
Final day for semi-weekly depositors to initiate 2007 tax deposits via EFTPS. Since the IRS may impose penalties and interest on any tax deposits submitted after the posted deadline, be sure all 2007 processes and bonus runs are completed early.
2008 Rate Tables
1. FICA wage base limit is $102,000 for the 2008 tax year. This equates to $6324 in tax for employees (matched equally by their employers) who reach the earnings ceiling.
2. Mileage rates
Beginning Jan. 1, 2008, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be $0.505 per mile (50.5 cents)
3. 401k / 403b / 457 Retirement plan limits & Catch-up contribution limits
a. Retirement plan limits for a traditional or safe harbor 401(k) plan:
- The limit is unchanged and remains $15,500 for 2008.
b. Retirement plan limits for a SIMPLE 401(k) plan are different from those in a traditional or safe harbor 401(k):
- The limit is unchanged and remains $10,500 for 2008.
c. Your plan may allow catch up contributions for participants who are age 50 or over at the end of the calendar year to make additional elective deferral contributions. If you participate in a 401(k) plan and you are age 50 or older, and your plan has adopted the "catch-up" provisions:
- The elective deferral limit remains $5,000 for 2008.
d. If you participate in a SIMPLE 401(k) plan and you are age 50 or older:
- The elective deferral limit remains $2,500 for 2008.
4. SIMPLE-IRA Retirement Plan Limits and Catch-Up Limits
The limit remains unchanged at $10,500 for 2008.
- The catch-up limit is $2,500.00 for 2008
5. Miscellaneous Thresholds and Limits
IRA Contributions: $5000.00
IRA Catch Up Contributions: $1000.00
Coverdell ESA Contributions: $2000.00
401k Limits:
Annual Compensation Limit: $230,000.00
Top-Heavy Key EE Limit: $150,000.00
Guardian Issue One
2008 Unemployment Rate Notices
Please be sure to forward all notices of 2008 State unemployment tax rates to The Payroll Company. Most State agencies have already sent these notices out. Many States offer the option of making a voluntary contribution which may lower the 2008 rate. However, there is a short deadline for the voluntary contribution.
W-2 Verification
It is very important to double-check that your employee information is updated and accurate for year end processing. The W-2 Verification Report can be accessed under Web Reports (located in the vertical navigation bar on the left of our online payroll site). Please be sure to view this report and update any missing or incorrect information online. To access terminated employees online, click on Switch My View from the left menu. Choose a view that contains all employees. If, for whatever reason, you don't know an employee's social security number, please be sure to enter 000-00-0000.
If you would like TPC to generate a copy of the W-2 Verification Report, please contact us.
W-2 Delivery
W-2's will be delivered using the same method used to deliver your payroll. If mail doesn't make sense given the number of W-2's, your W-2's will be delivered via UPS. Please remember, as an added way to ensure confidentiality, we are happy to mail your W2 forms directly to your employees from our office. In addition to postage, we simply add a $0.12 handling fee. If you would prefer this method, please e-mail support@payrollcompany.biz.
Referral Incentives
Don't forget about our year-end referral program! If you are happy with our services please tell a friend! If they mention your name when signing up you will receive a $100 gift certificate (good as cash) as well as a $100 credit towards your payroll processing fees.
