Vision Payroll

Today at 2 pm, EDT, the Internal Revenue Service (IRS) will present a webinar titled, Reporting of Employer Healthcare Coverage on Form W-2

Several Topics to Be Covered in Form W-2 Webinar

The Reporting of Employer-Sponsored Health Plan Coverage on Form W-2 (Affordable Care Act Provision 9002) webinar will explain what employers and employees need to know about the provision including:

• What changes employees will see in their Form W-2
• When employers must begin reporting the benefits on the Form W-2
• Transition relief for certain employers, plans, and situations
• Which employers need to include the benefits on the Form W-2
• How employers report the benefits on the Form W-2
• What valuation methods employers can use to determine the amounts to report on the Form W-2

Systems Must Meet Certain Minimum Requirements

The IRS has certain minimum requirements for operating system, screen resolution, browser, Flash, Windows Media Player, connection, and audio. The IRS is recommending that interested parties browse to http://www.visualwebcaster.com/event.asp?id=82090 from their computer ahead of time to be sure it meets minimum system requirements.

Webinar Archive Is Available on the IRS Video Portal

Interested viewers may view an archive of the webinar by clicking here.

The Internal Revenue Service (IRS) has released the 2011 Form 944, Employer’s ANNUAL Federal Tax Return, and related instructions. Form 944 is designed so the smallest employers (those whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less) will only file once a year instead of every quarter.

Several Changes Have Been Made To the 2011 Form 944

The 2011 Form 944 has several new items. The new items include the following:

Employee Tax for Social Security Cut To 4.2%

The employee tax rate for social security has been cut to 4.2%, although the employer rate remains at 6.2%. The Medicare tax rate remains at 1.45% for both employees and employers.

COBRA Premium Assistance Credit Continues

The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008, and May 31, 2010, and to premiums paid for up to 15 months. The credit is claimed on line 9a.

Social Security Wage Base for 2011

Do not withhold or pay social security tax after an employee reaches $106,800 in social security wages for the year. There is no limit on the amount of wages subject to Medicare tax.

Advance Payment of Earned Income Credit (EIC)

The option of receiving advance payroll payments of EIC expired on December 31, 2010. Individuals eligible for EIC in 2011 can still claim the credit when they file their federal income tax return.

Electronic Deposit Requirement

Beginning January 1, 2011, you must deposit all depository taxes (such as employment tax, excise tax, and corporate income tax) electronically using the Electronic Federal Tax Payment System (EFTPS). Forms 8109 and 8109-B, Federal Tax Deposit Coupon, cannot be used after December 31, 2010.

Vision Payroll Will File Form 944 for Eligible Taxpayers

Contact Vision Payroll if you have further questions on Form 944.

In IR-2011-104 and Revenue Procedure 2011-52, the Internal Revenue Service (IRS) announced that the monthly limit on the value of qualified transportation benefits exclusion for qualified parking provided by an employer to its employees for 2012 rises to $240, up $10 from the limit in 2011.

Other Exclusions Revert to Previous Levels

The IRS also announced that the temporary increase in the monthly limit on the value of the qualified transportation benefits exclusion for transportation in a commuter highway vehicle and transit pass provided by an employer to its employees expires and reverts to $125 for 2012. As previously reported, the American Recovery and Reinvestment Act of 2009, also known as ARRA, increased the monthly exclusion for transit passes and commuter highway vehicles under §132 of the Internal Revenue Code of 1986 (IRC) for part of 2009 and all of 2010 and 2011. Since this provision of ARRA expires December 31, 2011, the exclsuion reverts to the previous limit of $120, adjusted for inflation to $125 for 2012.

Contact Vision Payroll Today

Contac Vision Payroll today if you have further questions on the qualified transportation benefits exclusion.

This week’s question comes from Maria, an HR director.

Maria asks:

I keep hearing from our employees that we have to report the cost of health insurance on the Forms W-2 this year and that the employees will be taxed on it. Do we have to report health insurance on our W-2s?

Answer: As announced by the Internal Revenue Service in Notice 2010-69 and Notice 2011-28, reporting of the cost of health insurance has been postponed to at least 2012 for some employers and beyond that for the rest.

Notice 2010-69 Postponed Effective Date for All Employers

As previously reported, in Notice 2010-69 the Internal Revenue Service (IRS) postponed the requirement that health insurance be reported on Forms W-2. Originally, under the Patient Protection and Affordable Care Act of 2010, reporting was to begin on the 2011 Forms W-2, which are distributed to employees in January 2012. In order “to provide employers with additional time to make any necessary changes to their payroll systems or procedures in preparation for compliance with the reporting requirement,” the IRS postponed the reporting requirement until the 2012 Forms W-2, which are distributed to employees in January 2013.

Notice 2011-28 Further Postponed Deadline for Many Employers

In Notice 2011-28, the IRS further postponed the deadline for employers who are required to file less than 250 Forms W-2. Employers who are required to file fewer than 250 Forms W-2 for calendar year 2011 will not be required to report health insurance on Form W-2 in 2012. Furthermore, until further guidance is issued by the IRS, any employer required to file fewer than 250 Forms W-2 in a calendar year will not be required to report the health insurance on Form W-2 for the following year.

Notice 2011-28 Does not Cause Excludable Employer-Provided Health Care Coverage to Become Taxable

According to Notice 2011-28, nothing in §6051(a)(14), Notice 2011-28, or the additional guidance that is contemplated under §6051(a)(14), causes or will cause otherwise excludable employer-provided health care coverage to become taxable.

Contact Vision Payroll Today

Contact Vision Payroll today if you have further questions on 2011 Form W-2 reporting for health coverage.

According to the US Department of Labor, in the week ending October 22, the advance figure for seasonally adjusted initial claims was 402,000, a decrease of 2,000 from the previous week’s revised figure of 404,000. The 4-week moving average was 405,500, an increase of 1,750 from the previous week’s revised average of 403,750.

Advance Seasonally Adjusted Insured Unemployment Rate Decreases

The advance seasonally adjusted insured unemployment rate was 2.9% for the week ending October 15, a decrease of 0.1 percentage point from the prior week’s revised rate of 3.0%.

Advance Seasonally Adjusted Insured Unemployment Decreases

The advance number for seasonally adjusted insured unemployment during the week ending October 15 was 3,645,000, a decrease of 96,000 from the preceding week’s revised level of 3,741,000. The 4-week moving average was 3,701,000, a decrease of 26,750 from the preceding week’s revised average of 3,727,750.

Depending on where your business operates, you may be faced with familiar seasonal weather dangers or be challenged on the spot with an unexpected force, or forces, of nature.

Every Management Team Should Answer These Questions About Workplace Disaster Emergencies

• Do we need to implement an Injury and Illness Prevention Program (IIPP)?
• What will be the impact of the Occupational Safety and Health Administration (OSHA) Heat Safety Tool app?
• What information do we need to collect in order to develop an effective workplace disaster emergency plan?
• Which health and safety developments will unfold over the next few months?

Learn How to Prepare Effectively for Workplace Disaster Emergencies

To learn the answers to these questions and much more, be sure to listen to Preparing for Workplace Disaster Emergencies in this month’s HRCast, a recording provided by our team of HR Pros and available exclusively on MyHRSupportCenter.

MyHRSupportCenter Provides Alerts, Best Practices, and HR Tools Every Day

Visit MyHRSupportCenter regularly, not only for our HRCasts, but also to get late-breaking compliance alerts, best practices to implement, and HR tools to use every day. If you haven’t yet signed up and would like a free trial of MyHRSupportCenter, contact Vision Payroll today.

According to statistics released by the US Bureau of Labor Statistics (BLS), in September 2011, the percentage of people with disabilities in the labor force was 21.1, up from 21.0 in August. By comparison, the percentage of persons with no disability in the labor force was 69.7, down from 69.9 in August.

Unemployment Rate at 16.1%

The unemployment rate for those with disabilities was 16.1%, compared with 8.5% for persons with no disability, not seasonally adjusted. The unemployment rate for those with disabilities was unchanged from August. The rate for persons with no disability was down from the August rate of 8.8%.

Table A-6 Provides Further Details on Employment Levels by Disability Status

Table A-6 shows further details on the employment status of the civilian population by sex, age, and disability status, not seasonally adjusted.

Definition of a Person with a Disability

In compiling the data, the BLS defines a person with a disability as a person having at least one of the following conditions: is deaf or has serious difficulty hearing; is blind or has serious difficulty seeing even when wearing glasses; has serious difficulty concentrating, remembering, or making decisions because of a physical, mental, or emotional condition; has serious difficulty walking or climbing stairs; has difficulty dressing or bathing; or has difficulty doing errands alone such as visiting a doctor’s office or shopping because of a physical, mental, or emotional condition.

Visit VisionPayroll.com Monthly for Updated Disability Employment Statistics

Each month, Vision Payroll will provide updated disability employment statistics as they become available.

Friday, November 11, 2011 will be Veterans Day, a federal holiday. Although the offices of Vision Payroll will be open and payrolls will be processed, most banks will be closed in observance of the holiday.

Date Paid	Process Deadline
11/11/2011	11/8/2011
11/14/2011	11/9/2011
11/15/2011	11/10/2011

Payroll Dates May Be Affected by Veterans Day

Payrolls dated November 11 will be paid November 10 unless a previous change in schedule has been submitted. Payrolls submitted after these processing deadlines will be pushed back until the next available processing day. No changes are required for payrolls dated November 16.

Thanksgiving Day Is Next Federal Holiday

The next federal holiday will be Thursday, November 24, 2011, Thanksgiving Day. Contact Vision Payroll as soon as possible to make changes to or for questions on your processing schedule.

In IR-2011-103, the Internal Revenue Service (IRS) announced cost-of-living adjustments to the limits on SIMPLE plan contributions for 2012. The limitation for SIMPLE plans is codified in §408(p)(2)(E) of the Internal Revenue Code of 1986 (IRC). This section also requires annual adjustments as necessary to keep pace with inflation in a manner similar to that required by IRC §415 for retirement plans.

2012 Contribution Limits Remains Unchanged

For 2012, the SIMPLE plan regular limitation remains at $11,500. The age 50 and over catch-up contribution remains at $2,500 for individuals who plan to reach age 50 before the end of 2012.

Contact Vision Payroll for More Information on 2012 SIMPLE Plan Changes

Contact Vision Payroll if you have questions on the SIMPLE plan contribution limits or get further information at Important Facts and Figures.

In IR-2011-103, the Internal Revenue Service (IRS) announced that for 2012 the compensation limitation will increase from $245,000 to $250,000 under §401(a)(17), §404(l), §408(k)(3)(C), and §408(k)(6)(D)(ii) of the Internal Revenue Code of 1986 (IRC).

2012 Contribution Limit Also Increases

The contribution limit under IRC §415(c)(1)(A) for defined contribution plans will increase from $49,000 to $50,000. This limit does not include the age 50 and over catch-up contribution of $5,500 when applicable; therefore the total limitation for eligible taxpayers age 50 or over in qualifying plans will be $55,500.

Contact Vision Payroll for More Information on 2012 Retirement Plan Changes

Contact Vision Payroll if you have questions on changes to the 2012 Retirement Plan Contribution and Compensation Limitations or get further information at Important Facts and Figures.