Vision Payroll

This week’s question comes from Perry, an office manager. I’ve registered my business with the Massachusetts Division of Unemployment Assistance (DUA). How do I register Vision Payroll as my TPA in QUEST? Answer: Once you have completed activating your QUEST account on-line and established your permanent password and PIN at www.mass.gov/uima, log in to your account, select and execute the following:

From the Employer Home page:

Select the Account Maintenance page

Select the Third Party Administrator (TPA) Authorization link

Click the ‘NEW’ button

Enter Vision Payroll’s ID Number 100028 and click ‘NEXT’

Vision Payroll’s name will appear.

Select the current day’s date (mm/dd/yyyy) when asked when services are commencing

Leave the service end date field blank

Assign the following roles to Vision Payroll by clicking on the appropriate boxes displayed:

• Account Maintenance Update and Submit
• Payments Update and Submit
• Employment and Wage Detail Update and Submit

Click the ‘Save’ button

Return to the home page and log off the web site

Vision Payroll will then have authorization to provide the same filing services through QUEST as have been performed in the past. Contact Vision Payroll if you have any questions on QUEST.

This week’s question comes from Sherri, a payroll director. We have many employees with levies on their paychecks, I know we need to change the calculation if an employee provides a change in exemptions. Where can I find the levy exemption amounts for 2010? Answer: the Internal Revenue Service has released an updated version of Publication 1494, Tables for Figuring Amount Exempt from Levy on Wages, Salary, and Other Income (Forms 668-W(C), 668-W(c)(DO) and 668-W(ICS)). The table is used to calculate the amount of wages and other income exempt from levies for delinquent taxes. In addition to levies issued in 2010, employers use the revised amounts to calculate the exempt amount if the employee should provide a revised statement showing a change in filing status or exemptions. Contact Vision Payroll for assistance in automating the calculation of the exemption and levy amounts on employees’ paychecks.

This week’s question comes from Janine, an office manager. We are a Massachusetts employer with some employees who have chosen not to participate in the company health insurance plan. What are the penalties for not having health insurance in 2010? Answer: The Massachusetts Department of Revenue (the Department)  has released a working draft Technical Information Release 09-XX, Individual Mandate Penalties for Tax Year 2010. In this working draft, the proposed penalties are as follows:

• Individuals with incomes up to 150% of the Federal Poverty Level are not subject to any penalty for non-compliance, as those at this income level are not required to pay an enrollee premium for Commonwealth Care health insurance.
• Penalties for individuals with incomes from 150% to 300% of the Federal Poverty Level will be half of the lowest priced Commonwealth Care enrollee premium that could be charged to an individual at the corresponding income level, based on the Connector’s Commonwealth Care enrollee premiums as of January 1, 2010.
• Penalties for individuals with incomes greater than 300% of the Federal Poverty Level will be:

Ages 18-26: half of the lowest priced Commonwealth Choice Young Adult Plan premium; and

Ages 27 and above: half of the lowest priced Commonwealth Choice Bronze premium, based on the Connector’s prices for these plans as of January 1, 2010.

• The Department anticipates issuing an updated penalty schedule for tax year 2011.
• Penalties for married couples who do not comply with the individual mandate rules (with or without children) will equal the sum of individual penalties for each spouse.

Contact Vision Payroll if you have any questions on the working draft of Information Release 09-XX, Individual Mandate Penalties for Tax Year 2010.

This week’s question comes from Scott, a small-business owner. I own a business in Michigan. I’ve heard that for 2009, Michigan is a credit reduction state. What is a credit reduction state? Answer: For 2009, Michigan is the only “credit reduction state”. This means that employers in Michigan are not allowed the full credit against the federal unemployment tax act (FUTA) tax. Wages paid that are subject to the unemployment compensation laws of the state of Michigan do not receive the full credit of 5.4%; a credit reduction of 0.3% applies so that such wages receive a credit of 5.1% for 2009. Employers that have wages that are subject to the unemployment compensation laws of the state of Michigan must use Schedule A of Form 940 to calculate the FUTA due. Contact Vision Payroll if you have any further questions on credit reduction states.

This week’s question comes from Shawn, an HR director. We have several employees claiming exemption from federal withholding. Do employees claiming exemption from withholding need to file a new Form W-4 for 2010? Answer: Employees who have provided a Form W-4, Employee’s Withholding Allowance Certificate claiming exemption from federal income tax withholding must file a new 2010 Form W-4 by February 16, 2010 in order to continue their exemption from federal income tax withholding. Employers must start withholding on February 16, 2010 if employees have not provided a 2010 Form W-4 claiming exemption. Even employees who are no longer claiming exemption should file a 2010 Form W-4 so that employers may calculate the proper amount of withholding. If an employee has not provided a 2010 Form W-4 by February 16, 2010, the employer should withhold based on a previously filed Form W-4 not claiming exemption, if available or using single, zero allowances, if not. Spanish-speaking employees may complete Formulario W-4(SP), Certificado de Exención de la Retención del Empleado. Upon request, Vision Payroll can provide employers with pre-printed 2010 Forms W-4 for all active employees. Vision Payroll will not automatically change any employee’s claimed withholding allowances. Employers should update the allowances claimed by logging in to their company file or providing Vision Payroll with the updated information.

This week’s question comes from Abby, a company vice-president. We’re planning to give out bonuses to our employees. How much time do we need to process a bonus payroll? Answer: Vision Payroll recommends that you schedule bonus payrolls as soon as possible. You’ll need at least two business days after the day you plan to transmit the bonus amounts in order to process and ship the payroll. If you schedule the bonuses early, Vision Payroll can work with you to help ensure that you receive your bonus checks when you need them.

This week’s question is from Mariana, an HR Manager. We are reviewing our payroll processing schedule for 2010. What is the holiday schedule for 2010? Answer: There are two types of holidays: those on which payrolls are processed and those on which payrolls are not processed. In addition, companies should also consider that there is no mail pickup or delivery on federal holidays. UPS may pickup and deliver on certain holidays, but may not pickup or deliver on other days that are not holidays. Consult the UPS website for further information. The schedule for 2010 holidays is as follows:

This week’s question comes from Eugenia, a small business owner. One of our employees just moved. How do I change an employee’s address? Answer: According to the Internal Revenue Service (IRS), employers should report the address where the employee receives mail. If an employee changes that address, employers may change it online by logging in, click Employees, then click Demographics, and enter the employee’s new address. Employers who are not yet online should report the change of address the next time they submit payroll hours. Contact Vision Payroll if you have any questions on changing an employee’s address.

This week’s question comes from Suzanne, a payroll administrator. We reviewed the calendar for 2010 and realized we need to make some changes to our payroll schedule. How do we change our payroll schedule for 2010? Answer: You should have received or will shortly be receiving your Payroll Processing Schedule for 2010. This schedule will already reflect changes for holidays in 2010. Employers should review the schedule not only for changes that weren’t made, but to ensure that the holiday week changes built into the schedule have been implemented correctly. If any further changes are needed, send an annotated copy of your 2010 schedule to Vision Payroll as soon as possible so that we may update your schedule for the changes.

This week’s question comes from Rick, a restaurant owner. I started my business in June of this year. Since I didn’t have a big payroll in June, the Internal Revenue Service (IRS) recently informed me that I should file Form 944. Since my payroll will be much higher in 2010, I should file Form 941. How do I opt out of filing Form 944? Answer: In Rev. Proc. 2009-51, the IRS explained the procedure to opt out of filing Form 944. Employers who have previously filed Form 941 or Form 944 should call or write the IRS stating that they want to opt out of filing Form 944 before April 2, 2010. New businesses should call or write the IRS before the second day “of the month that the first required Form 941 for the current tax year is due.” In 2010, those days are April 2, 2010, July 2, 2010, October 2, 2010, and January 4, 2011 (due to automatic extensions for holiday and weekend days). Telephone numbers and mailing addresses are provided in Rev. Proc. 2009-51. Contact Vision Payroll if you have any questions on opting out of Form 944.