Vision Payroll

Further Action Notice Must Be Completed If Employee Receives Tentative Nonconfirmation

If an employer receives a Department of Homeland Security Tentative Nonconfirmation (DHS TNC) from the US Department of Homeland Security (DHS), the affected employee must complete, sign and return the Further Action Notice. Although the Further Action Notice is available in eighteen languages, the completed and signed version must be the English language version.

Steps for the Employer When a DHS TNC Is Received

If an employer receives a DHS TNC, the employer should take the following steps:

1. Review this Further Action Notice in private with the employee.
2. Check that all of the information at the top of this Further Action Notice is correct.
3. Ask the employee to indicate whether he or she will contest the DHS TNC.
4. Give the employee a copy of the signed Further Action Notice in English and attach the original to the employee’s Form I-9.
5. Log in to E-Verify and search for this case using the information above. Follow the instructions in E-Verify to refer the case to DHS if the employee contests the DHS TNC, or close the case if the employee does not contest the DHS TNC.

Photo Mismatches Require Separate Action

For a DHS TNC received for a photo mismatch only, the Further Action Notice should be sent to DHS with a copy of the employee’s photo document. This can be done either through a digital submission to DHS or delivery by express shipping. Copies are not to be sent using regular United States Postal Service mail.

Know Employee Rights and Employer Responsibilities

Vision Payroll recommends visiting the US Citizenship and Immigration Services (USCIS) website to become familiar with all employee rights and employer responsibilities when working to resolve a DHS TNC.

IRS Releases Revised Form 941-X

The Internal Revenue Service (IRS) recently released a revised version of Form 941-X, Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund.

COBRA Premium Assistance Credit May Only Be Claimed on Form 941-X

For tax periods beginning after 2013, the COBRA premium assistance credit may only be claimed on Form 941-X. Employers are longer able to claim the credit on either Form 941 or Form 941-SS. Employers are instructed to first file the Form 941 or Form 941-SS and then file the Form 941-X. Employers should not file the Form 941-X in advance of their regular filing.

Social Security Tax Rates May Differ

Depending on the period being amended, different social security tax rates may be in effect. For years other than 2011 and 2012, the employee and employer social security tax rates are 6.2% each or a total of 12.4%. For 2011 and 2012, the employee tax rate is 4.2% and the employer tax rate is 6.2% for a total of 10.4%. The correct rate should be used for the period being amended.

Contact Vision Payroll for Questions on Form 941-X

Contact Vision Payroll if you have further questions on Form 941-X.

How Can I Answer My Employees’ Questions About the I-9?

This week’s question comes from Kate, an office manager.

Kate asks:

When we ask new hires to complete the I-9, they often have questions about the form. How can I answer my employees’ questions about the I-9?

Answer: Form I-9, Employment Eligibility Verification, now has a new companion form. The Form I-9, Employment Eligibility Verification Employee Information Sheet is now available from the US Citizenship and Immigration Services (USCIS).

Answers To Common Questions Provided

Many common questions are answered in the information sheet. Among the questions answered are the following:

• What is the purpose of the Form I-9?
• Is Form I-9 available in other languages?
• Which documents do I need to show my employer?

Information Sheet Is Available in Seventeen Other Languages

In addition to English, the information sheet is also available in the following languages:

1. Arabic
2. Carolinian
3. Chamorro
4. Chinese
5. French
6. German
7. Haitian-Creole
8. Italian
9. Japanese
10. Korean
11. Marshallese
12. Palauan
13. Portuguese
14. Russian
15. Spanish
16. Tagalog
17. Vietnamese

Visit the USCIS Foreign Language Resources page for more information.

Provide the Form I-9, Employment Eligibility Verification Employee Information Sheet To New Hires

Vision Payroll recommends providing the Form I-9, Employment Eligibility Verification Employee Information Sheet to new hires coincident with the completion of Form I-9 to assist employees in proper completion of the Form I-9.

Secretary of Labor Thomas E. Perez

According to the US Department of Labor, in the week ending April 19, the advance figure for seasonally adjusted initial claims was 329,000, an increase of 24,000 from the previous week’s revised level. The previous week’s level was revised up by 1,000 from 304,000 to 305,000. The 4-week moving average was 316,750, an increase of 4,750 from the previous week’s unrevised average of 312,000.

Special Factors Impacting This Week’s Initial Claims

There were no special factors impacting this week’s initial claims.

Advance Seasonally Adjusted Insured Unemployment Decreases

The advance seasonally adjusted insured unemployment rate was 2.0 percent for the week ending April 12, a decrease of 0.1 percent from the previous week’s unrevised rate of 2.1 percent. The advance number for seasonally adjusted insured unemployment during the week ending April 12 was 2,680,000, a decrease of 61,000 from the previous week’s revised level. This is the lowest level for insured unemployment since December 8, 2007 when it was 2,672,000. The previous week’s level was revised up 2,000 from 2,739,000 to 2,741,000. The 4-week moving average was 2,752,250, a decrease of 33,500 from the previous week’s revised average. This is the lowest level for this average sinceDecember 29, 2007 when it was 2,730,250. The previous week’s average was revised up by 500 from 2,785,250 to 2,785,750.

IRS Releases 2015 Inflation Adjustments for Health Savings Accounts

The Internal Revenue Service recently released Rev. Proc. 2014-30 which contained the 2015 inflation adjusted amounts for Health Savings Accounts or HSAs.

Deductions Limitation Set to Increase

The annual limitation on deductions will increase from $3,300 in 2014 to $3,350 in 2015 for those with self-only coverage. Those with family coverage will have the deduction limitation increase from $6,550 to $6,650.

High-Deductible Health Plan Minimum Deductibles to Increase

The minimum deductibles of a high deductible health plan will increase from a minimum deductible of $1,250 in 2014 to $1,300 in 2015 for self-only coverage, and from $2,500 in 2014 to $2,600 in 2015 for family coverage.

Annual Out-of-Pocket Limitation to Increase

The annual out-of-pocket limitation for 2015 will also increase from $6,350 in 2014 to $6,450 for those with self-only coverage; the out-of-pocket limitation for family coverage will increase from $12,700 in 2014 to $12,900 in 2015.

Contact Vision Payroll Today

Contact Vision Payroll if you have any questions on the updated 2015 inflation adjusted amounts for HSAs in Rev. Proc. 2014-30 or visit our Important Facts and Figures page for further information.

Release of Massachusetts Unemployment Rates Is Delayed

Due to late action by the Massachusetts legislature and the governor, unemployment rates will NOT be available by the legally mandated deadline of April 20, 2014.

At Vision Payroll, we will be submitting wage information by the filing deadline of April 30, 2014. Employer rates will not be available until May 19, 2014. Unemployment contributions must be paid by May 30, 2014.

Although the rate schedule used to determine the rates remains unchanged from 2013, most employers will have a different rate for 2014. That is because in addition to the rate tables, employer rates are determined by wages paid, unemployment benefits charged directly to your account, and the solvency assessment that the state charges employers to pay for benefits paid to the employees of other employers.

If your rate increases from 2013 to 2014, we will need to withdraw additional money beginning May 19, 2014 to pay the additional tax by the deadline. We will contact all employers with the additional amount due. Additionally, we will begin to collect with the new rate (higher or lower) with each payroll as soon as possible after rates are released. Further, with the last payroll of the second quarter, we will make the final adjustment for second quarter taxes.

Since we cannot finalize your first quarter quarterlies until the new unemployment rates are released, we are not going to post online or mail out quarterly packages for affected employers. If you need certain forms, e.g., for a workers comp audit, please contact our offices and we can make them available. Otherwise, we will be sending first quarter packages to affected employers in late May and early June.

Please contact Vision Payroll if you have any questions.

IRS Recommends Monitoring Your Tax Payments

In a letter dated February 20, 2014, the Internal Revenue Service (IRS) sent EFTPS Inquiry PINs to taxpayers whose tax professional enrolled them in the Electronic Federal Tax Payment System (EFTPS). EFTPS is the system through which federal tax payments are made for employment taxes and many other tax types. The letter does not mean that your tax professional has not made payments; it communicates that taxpayers should review their account regularly to ensure payments are being made.

Form 8655 Authorizes Reporting Agents to Make Deposits and Payments on Behalf of Taxpayers

Taxpayers can authorize reporting agents to perform certain functions on behalf of the taxpayers. Form 8655 can be used to authorize a reporting agent to do the following:

• Sign and file certain returns.
• Make deposits and payments for certain returns.
• Receive duplicate copies of tax information, notices, and other written and/or electronic communication regarding any authority granted.
• Provide IRS with information to aid in penalty relief determinations related to the authority granted on Form 8655.

The IRS, as stated in the letter, “recommends you monitor your EFTPS account to ensure your tax professional is making timely tax payments for you.” The PIN provided by EFTPS in the letter is called an “EFTPS Inquiry PIN” and will allow you to make inquiries on EFTPS to see if your tax professional is making the payments on your behalf as they reported to you. It does not allow you to make payments, only inquiries.

Employers Remain Responsible to Ensure Tax Payments Are Made and Returns Are Filed

Even if an employer authorizes a tax professional to make payments and file returns on its behalf, the employer remains responsible for the timely filing of employment tax returns and the timely payment of employment taxes.

Vision Payroll Recommends Monitoring Your Account Regularly

Vision Payroll recommends that taxpayers regularly review payments made through the EFTPS system using their EFTPS Inquiry PIN. By checking the payments no less frequently than monthly, and more often if needed, taxpayers can ensure that their tax payments are being made by their tax professional.

Contact Vision Payroll today.

Contact Vision Payroll if you have further questions on IRS Letter 5144, the provision of an EFTPS Inquiry PIN, a copy of which is provided below.

Text of IRS Letter 5144

Dear Taxpayer:

Your tax professional enrolled you in the Electronic Federal Tax Payment System (EFTPS) to make tax deposits or payments on your behalf. EFTPS is a free service of the U.S. Department of the Treasury.

The IRS recommends you monitor your EFTPS account to ensure your tax professional is making timely tax payments for you. To view your payment history at EFTPS.gov, you will need to create a password using the following inquiry PIN and enrollment number. At EFTPS.gov, click on “My Profile” then “Need a Password,” and enter the following information.

Your EFTPS Inquiry PIN is:

####

Your Enrollment Number is:

##################

NOTE: You cannot make a payment using this PIN.

If you already have an active inquiry PIN and password, you may continue to use those to view your payment history and not activate this new enrollment.

You’re responsible for the timely filing of employment tax returns and the timely payment of employment taxes for your employees, even if you’ve authorized a third party to do these for you. If the third party fails to make the federal tax payments, the IRS may assess penalties and interest on your account. You are liable for all taxes, penalties and interest due. The IRS can also hold you personally liable for certain unpaid federal taxes.

Please use your Inquiry PIN regularly to monitor your payment history, if the Inquiry PIN is inactive for a period of 12 consecutive months, it will be terminated. Use your TIN, PIN and Enrollment Number if you have questions about your EFTPS enrollment.

If you need assistance, call customer service 24 hours a day, 7 days a week at 1.800.991.2245. If you are calling from outside the U.S., call1.303.967.5916.

Protect your identity. Never give out your PIN or password.

Secretary of Labor Thomas E. Perez

According to the US Department of Labor, in the week ending November 30, the advance figure for seasonally adjusted initial claims was 298,000, a decrease of 23,000 from the previous week’s revised figure of 321,000. The 4-week moving average was 322,250, a decrease of 10,750 from the previous week’s revised average of 333,000.

Advance Seasonally Adjusted Insured Unemployment Remains Unchanged

The advance seasonally adjusted insured unemployment rate was 2.1% for the week ending November 23, unchanged from the prior week’s unrevised rate.

Advance Seasonally Adjusted Insured Unemployment Decreases

The advance number for seasonally adjusted insured unemployment during the week ending November 23 was 2,744,000, a decrease of 21,000 from the preceding week’s revised level of 2,765,000. The 4-week moving average was 2,796,500, a decrease of 32,500 from the preceding week’s revised average of 2,829,000.

Secretary of Labor Thomas E. Perez

According to the US Department of Labor, in the week ending November 23, the advance figure for seasonally adjusted initial claims was 316,000, a decrease of 10,000 from the previous week’s revised figure of 326,000. The 4-week moving average was 331,750, a decrease of 7,500 from the previous week’s revised average of 339,250.

Advance Seasonally Adjusted Insured Unemployment Decreases

The advance seasonally adjusted insured unemployment rate was 2.1% for the week ending November 16, a decrease of 0.1 percentage points from the prior week’s unrevised rate.

Advance Seasonally Adjusted Insured Unemployment Decreases

The advance number for seasonally adjusted insured unemployment during the week ending November 16 was 2,776,000, a decrease of 91,000 from the preceding week’s revised level of 2,867,000. The 4-week moving average was 2,831,750, a decrease of 22,750 from the preceding week’s revised average of 2,854,500.

Schedule Additional 2013 Bonus Payrolls Now

Are you planning an end-of-year bonus payroll for employees? With only five weeks left in 2013, now is the time to schedule any additional payrolls you need.

Schedule Separate Pay Runs for Bonuses

Many employers like to distribute bonus checks at a firm party or get-together. If the bonus checks are included with a regular pay run, the year-to-date amounts on the employees’ stubs will reflect the bonus. To keep the bonus amounts off the pay stubs from the regularly scheduled payroll, schedule an additional payroll dated after your last regular payroll, but before the party or other event where you plan to distribute the bonuses. Remember to allow at least two days after the day you plan to transmit bonus amounts for the payroll to be processed and shipped.

Stop Direct Deposit to Create Live Bonus Checks

If processing your payroll online, check the Stop Direct Deposit box on the Payroll, Dates screen to stop direct deposit for all employees. To stop direct deposit for selected employees, check the Stop Direct Deposit box on the Pay Detail screen. Otherwise, indicate which direct deposits you would want stopped when you submit your payroll. Stopping direct deposits in this manner would apply only to that payroll and direct deposit would be reestablished for the next payroll.

Schedule Bonus Payroll Early

By scheduling bonuses early, Vision Payroll can work with you to help ensure that your bonus checks arrive on time.