It’s hard to believe another year will be coming to an end. We are beginning to prepare for W-2 processing and the start of 2021. We recognize that not only do things get busier for us, but they also do for you. With that in mind, we wanted to communicate important announcements and deadlines:
Year-End Wages/Adjustments/Special Payrolls
Just when you thought payroll was done for the year you find out about fringe benefits that you should have included on your W-2’s such as group term life insurance, personal use of company car, S-Corp Shareholder Health Insurance, or third-party sick pay. Gift cards of any value are taxable and should be processed through payroll.
Confirm that any manual checks you have written during the year, as well as voided or reversed checks, have been accounted for in the payroll system. Please keep in mind we cannot back date any pay dates. This information must be updated prior to your last payroll of 2020.
Bonus Payroll Runs:
If you are planning to run an extra bonus payroll, we must be advised as soon as possible to include it in our scheduling. At this time, we only need the date you are planning to run this payroll to update your 2020 Payroll calendar; you do not need to give us the bonus amounts now. Contact your Client Success Specialist to complete a request for a supplemental check date as soon as possible.
As a reminder, larger bonus payments may need to be funded by a wire. If either of the following two conditions apply, a wire may be required. We will send you wire instructions if necessary.
- Payroll Exceeds $500,000
- A Payroll includes an individual receiving a net payment of $100,000 or more via direct
Thursday, December 24th, 2020 Paytime will close at 1:00
Friday, December 25th, 2020 Paytime will be closed
New Year’s Eve
Thursday, December 31st, 2020 Paytime will close at 3:00
New Year’s Day
Friday, January 1st, 2021 Paytime will be closed
** Please note if your check date changes this will impact funding dates
Payroll Submission Deadline:
To guarantee next day delivery, we will continue to enforce our payroll submission deadline of 2:00 P.M. two business days prior to check date. If you submit your payroll after 2:00 P.M., it may not be processed until the following business day. For holiday dates listed above when Paytime closes early, our payroll submission deadlines are as follows:
Christmas Eve: Payroll submission deadline is 11:00 a.m.
New Year’s Eve: Payroll submission deadline is 1:00 p.m.
Please reach out to us with any company changes that impact your payroll at least one day prior to your payroll submission. (ex. new earning codes, new deductions, new business location) If you submit changes on your submission day, an expedited processing fee of $50.00 will apply.
Benefits Open Enrollment Changes
Please contact your TeamSuiteHR Client Success Specialist with any benefit plan additions or changes, including premium rate changes, as soon as possible, but no later than 30 days prior to the effective date of change. If you submit changes within 30
days of the effective date of change, there will be a fee of $75.00 per hour to update the benefit plans.
3rd Party Sick Pay on W-2’s:
To better assist with the reconciliation of 3rd Party wages, please be aware that Paytime, Inc. will not prepare your year-end reports or W2s until we receive a Year to Date (January 1, 2020 thru December 31, 2020) 3rd Party Sick Pay Report from your 3rd Party Provider. We suggest you contact your vendor in early December to inquire
when you will receive your reports. Please keep in mind due to timing of adjustments, any adjustments processed after January 1st 2021 which increase earnings will result in taxes being deposited after the due date and you may incur interest and penalties.
These would be your responsibility.
Health Cost on W-2’s:
In accordance with the Affordable Care Act, if you issued more than 250 W-2’s in 2019, you are required to report the aggregate health cost for the Employee in Box 12DD on Form W-2. This information must be processed prior to your last payroll of 2020.
1095 C Processing (Applicable Large Employers Only):
The deadline for providing Form 1095-C to your employees is March 2nd, 2021 however we encourage you to provide the form to employees by January 31st 2021. All ACA data in the system must be current by 12/31/2020 so that we can meet this deadline.
The IRS requires that all W-2 Forms have a valid Social Security Number. Please review all employee addresses and Social Security Numbers and please notify us of any changes. Please keep in mind there is a processing fee of $25 per W-2C that needs to be filed.
Please forward all 2021 account tax changes, including rate & frequency changes to us as soon as they are received. In addition, please forward any other correspondence received from tax authorities. Please keep in mind that it is your responsibility to communicate any rate or frequency changes to us.
Posted November 2020 – Copyright 2020
This information is offered with the understanding that Paytime, Inc. is not engaged in rendering legal, accounting, or other professional services. This information is meant to provide general and summary information only. The subject matter is not specific to any company, individual or industry and none should be implied. No attorney-client relationship or consultant-client relationship has been created and no legal or other professional advice is implied nor inferred. If legal, accounting, consulting or other professional advice is needed, those services should be acquired from a licensed professional. In no event will Paytime, its agents or employees be liable to you for anyone else for any decision made or action taken in reliance on this information.