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Important Year End Payroll Items

As business gear up for Year End, there are some important items that you can do now to help make your Year End less stressful!

Reminders for Fringe Benefits:

Group Life Insurance Coverage – exempt up to the cost of $50,000 of coverage. The premium cost for coverage in excess of $50,000 is taxable as imputed income

Third Party Sick Pay – subject to employer & employee taxes unless attributable to employee after-tax contributions

Business use of Vehicle – if vehicle is provided by employer and is used for both personal and business, the personal portion of use is taxable

Accident and Health Insurance provided for an S Corp to its 2% shareholder employees must have the cost of the premiums reported as income

 Have employees review Tax Withholding Status for 2014

  • Employees should review their current federal and state withholding status.  A change in status may be appropriate due to marriage, divorce, birth or adoption of a child or a change in the dependent status of a child.  They should consult a tax professional for assistance in determining their correct federal and state withholding status.
  • Employees who claim exempt status are required to submit a new W-4 by February 18, 2014.  If they do not submit a new W-4 their withholdings will be automatically adjusted to Single Zero until they submit a form for the 2014 tax year. (http://www.irs.gov/Forms-&-Pubs)

 Verify addresses for W-2 Mailing

Please remind employees to review their active mailing address now and update as necessary.  This will avoid W-2’s going out to incorrect addresses.

Distribution of W-2’s

W-2’s need to be distributed to employees by January 31, 2014.

Please contact SERPEO at 248-643-8900 with any questions or concerns.

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