As a small business owner, one of the most frustrating things in back office administration is without a doubt payroll processing. Regulations. Deadlines. Due dates. Payroll compliance. Penalties. These are all part of the picture as a payroll administrator. How do you stay on top of it all? What happens if you don’t?
According to a recent blog posted by the APA (American Payroll Association) these are key factors to avoid out of compliance issues in your payroll processing. These are but a few of the important factors we keep track of – but definitely ones you will want to take note of!
“Before being nominated by President Obama as Ambassador to China, Committee Chairperson Senator Max Baucus (D Mont.) released a discussion draft outlining his tax reform proposals for 2014, which does include some payroll implications.”
- Correcting information returns – currently there is a proposal to be aware of that allows for a $25 safe harbor when correcting information returns. The proposal states that if an employer submits a form with an error of $25 or less on a 1099-MISC or a W-2, they would not have to correct that information on the return.
- Simple e-file systems for Forms 1099 – Over the next 3 years there is a proposal to phase in a process that allows employers to file small batches of W-2 Forms versus uploading a formatted file. Some are comparing it to the Social Security Administrations W-2 Online system.
Filing deadline change – The proposal will recommend a change in the filing date deadline for returns from February 28 (March 31 for electronic filed forms) to February 21. The date to get information statements to employees will not be recommended to change in the proposal.
LUXA offers payroll solutions and outsourcing support for small business owners in the immediate Tulsa and surrounding business community.