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Payroll Software- Payroll Reminders for 2009


1. February:






  • Furnish 1099-MISC Forms to independent contractors and W-2 forms to employees who worked for you during 2008.



  • Deposit FUTA (Social Security and Medicare) tax owed through Dec 2008 if $500 or less.



  • File 2008 Form 940 (Employer’s Annual Federal Unemployment (FUTA) Tax Return). Use Form 940 to report your annual Federal Unemployment Tax Act (FUTA) tax. Together with state unemployment tax systems, the FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs. Most employers pay both a federal and a state unemployment tax. Only employers pay FUTA tax. Do not collect or deduct FUTA tax from your employees’ wages. The FUTA tax applies to the first $7,000 you pay to each employee during a calendar year after subtracting any payments exempt from FUTA tax.



  • Deposit Payroll tax for January if the monthly deposit rule applies.





2. March:






  • File Form W-3 (Transmittal of Wage and Tax Statements) with Copy A of all Forms W-2 you issued in 2008.A Form W-3 Transmittal is completed only when paper Copy A of Form(s) W-2, Wage and Tax Statement, are being filed. Do not file Form W-3 alone. Do not file Form W-3 for Form(s) W-2 that were submitted electronically to the Social Security Administration. All paper forms must comply with IRS standards and be machine readable.



  • Deposit Payroll tax for February if the monthly deposit rule applies.





3. April:






  • File Form 941 for the 1st quarter of 2009. You can use a payroll software to generate this form for you. Form 941 is used to report the following amounts.
    * Wages you have paid.
    * Tips your employees have received.
    * Federal income tax you withheld.
    * Both the employer’s and the employee’s share of social security and Medicare taxes.
    * Current quarter’s adjustments to social security and Medicare taxes for fractions of cents, sick pay, tips, and group-term life insurance.
    * Prior quarters’ adjustments to payroll taxes.
    * Advance earned income tax credit (EIC) payments.



  • Deposit FUTA tax owed through March if more than $500.



  • Deposit Payroll tax for March if the monthly deposit rule applies.





4. May, June:






  • Deposit Payroll tax for the month before if the monthly deposit rule applies.





5. July:






  • Deposit Payroll tax for June if the monthly deposit rule applies.



  • Deposit FUTA owed through June if more than $500.



  • File Form 941 for the 2nd quarter of 2009.





6. August, September:






  • Deposit Payroll tax for the month before if the monthly deposit rule applies.





7. October:






  • Deposit Payroll tax for September if the monthly deposit rule applies.



  • File Form 941 for the 3rd quarter of 2009.



  • Deposit FUTA owed through September if more than $500.





8. November:






  • Ask employees whose withholding allowances will be different in 2009 to fill out a new Form W-4.



  • Ask employees who want to receive advanced earned income credit payments during 2009 to complete Form W-5. The EIC is a credit for certain workers. It reduces the tax an employee owes. It may give the employee a refund even if s/he doesn't owe any tax.



  • Deposit Payroll tax for October if the monthly deposit rule applies.





9. December:






  • Deposit Payroll tax for November if the monthly deposit rule applies.



  • Verify the names and Social Security Numbers of your employees by using the Social Security Number Verification Service (SSNVS).The Social Security Number Verification Service (SSNVS) allows employers to match their record of employee names and Social Security numbers (SSNs) with Social Security records before preparing and submitting Forms W-2. Making sure names and SSNs on the W-2 match our records is important because unmatched records can result in additional processing costs for you and un-credited earnings for your employees. Un-credited earnings can affect future eligibility to (and amounts paid under) Social Security's retirement, disability and survivors program.



  • Place your order for W-2 forms for employees and 1099 forms for independent contractors. To order official IRS forms, call 1-800-TAX-FORM (1-800-829-3676) or Order Information Returns and Employer Returns Online, and the IRS will mail you the scannable forms and other products. You can also use W2 1099 Software to generate these forms.



  • Remind your employees to update their W-4 forms. The W-4 Form is completed by an employee so the employer can withhold the correct amount of federal income tax from his or her pay.





For more useful information about Payroll Terms, Payroll Software and payroll taxes, please follow the the link below: http://www.realtaxtools.com

About the Author:

Lisa Heather, small business owner, provides insightful tips into payroll software. You may also visit
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