Here’s a few items that you should consider as the year wraps up and the new year begins:
- Health Insurance – Report any Health Insurance Premiums paid for 2% or more Shareholder-employees for “S” Corporation Shareholders on Form W-2. These benefits are not subject to Social Security or Medicare or Unemployment taxes. (Call these amounts into your payroll service before 12/31 to ensure the payroll service has the information before processing your W-2’s). http://www.irs.gov/Businesses/Small-Businesses-%26-Self-Employed/S-Corporation-Compensation-and-Medical-Insurance-Issues
- Bonuses to Employees – All year-end bonus or holiday bonuses are considered compensation and should be included on the employee’s W-2.
- Make sure you have updated Form W-9 for vendors and subcontractors. This information is needed to prepare Form 1099’s in January.
- Retirement Plans – Make sure you have all your employee census information, including dates of birth, dates of hire, dates of termination etc. ready for the actuarially computation.
- Health Insurance – Employers with 250 employees are required to report the cost of coverage under an employer-sponsored group health plan. http://www.irs.gov/Affordable-Care-Act/Form-W-2-Reporting-of-Employer-Sponsored-Health-Coverage
- NY Wage Theft Reporting – remember to update your NY Wage Theft Reporting forms for any increases or changes in employees’ wages. http://www.labor.ny.gov/workerprotection/laborstandards/employer/wage-theft-prevention-act.shtm
- Minimum Wage Increase – NY Minimum Wage increases to $8.75 on 12/31/14
- For the Hospitality Industry Wage Rates: http://www.labor.ny.gov/formsdocs/wp/CR146.pdf
- NYS Unemployment Insurance Maximum 2015 Taxable earnings is $10,500, an increase of $200 from 2014.http://labor.ny.gov/ui/employer.shtm
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