2014 Year End Planning Guide
Thank you for choosing Propay for your payroll and payroll tax needs. This guide has
important information you will need for year end. Your timely attention to these matters
is required to ensure a smooth close out of 2014. If you have any questions on this
material or any other payroll matter, please call or email payroll@propaytexas.com
ProPay 2014 Year End Planning
YEAR END HOLD
To help keep you reminded of:




ProPay year end holidays
Important year end deadlines
Delivery holiday schedules
Exception holiday processing dates
December 24, 2014
Propay will close at 12:00pm
Please have all payroll submitted by 9:00am
December 25, 2014
CLOSED
December 26, 2014
Skeleton crew: Please have all payroll
Dated for 12-26 or 12-29 in by 9:00am
December 24th
December 31, 2014
ProPay will close at 3:00pm
Please have all payroll submitted by
12:00pm
January 1, 2015
CLOSED
Payroll Adjustments
All adjustments for 2014 should
be called in on or before your last
payroll for the year.
Adjustments may include:
1. Manual / Void Checks
2. Group Term Life
3. Third Party Sick Pay
4. Allocated Tips
5. S-Corp Health Ins Premiums
6. Auto Allowances / Personal
use of Company Car
Be advised that 2014 adjustments submitted after December
30, 2014 could:

Increase / decrease earnings

Increase / decrease payroll tax liabilities
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Result in late deposits
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Result in penalties and interest
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If you know that you will need us to delay the printing of 4 th
quarter please let us know by December 15, 2014.
Any penalties and interest assessed by taxing authorities will
be your company’s responsibility.
2014 Rate and Filing Frequency Changes
Most states review and update employers’ unemployment
insurance (SUI) rates effective January 1 for the New Year.
You should receive a new rate notice in late 2014 or early 2015
from each state in which you are registered.
You will also receive notification of revised state and local filing
frequencies, via agency letter or coupon book for your 2014 tax
payments.
Please forward copies of rate notices, agency letters, or
coupon books to us. ProPay does not receive this information
from state and local agencies.
Each fall, the Internal Revenue Service (IRS) mails Tax
Deposit Frequency letters to all employers, notifying them of
their deposit frequency for the next year. Your tax deposit
frequency will either be semi-weekly or monthly, based on your
company’s total federal tax liability for the look-back period of
July 1, 2013 to June 30, 2014.
This notice contains important information for PROPAY to
correctly calculate due dates for your federal tax liability.
Please forward a copy of the notification letter to us as soon as
you receive it.
Please note: If you are a monthly depositor and your tax
liability exceeds $100,000 within one deposit period, the
associated deposit is required the next business day and your
filing frequency changes to semi-weekly for the remainder of
the calendar year.
Forms W-2 and 1099
All W-2s and 1099s will be sent out of our office no later than
January 23, 2015 contingent of ProPay having complete
information from you.
For planning purposes, be aware that the billing for your W-2s
will appear on your January invoice. To expedite receipt of
your W-2s, please ensure all invoices are paid within our
payment terms.
W-2s
ProPay will provide one printed copy of each employee W-2.
Lost W-2s will be reprinted for $10.00 each.
Accurate names and SSNs are important to you and your
employees for several reasons.
The Social Security
Administration (SSA) uses the name and SSN to maintain a
record of personal earnings for each of your employees. It is
most important that these records are correct since the SSA
will later use them to decide if an individual can receive Social
Security benefit payments and the amount of any payments
due. You the employer, are required to retain copies of
employees’ W-2s for four years.
Under the IRS Code, the IRS may charge you a $50 penalty
for each time you do not furnish an employee’s correct SS# on
a wage report. They may also charge the employee a $50
penalty for each time the employee does not furnish his or her
correct SS# to his or her employer.
Reporting of Employer-Sponsored
Health Coverage
on 2014 Form W-2
The ACA requires employers to report the cost
of coverage under an employer-sponsored
group health plan. Reporting the cost on the
Form W-2 does not mean that the coverage is
taxable. This reporting is for informational
purposes only.
Employers who filed fewer than 250 Form W2’s for the preceding year are not required to
report this information on their 2014 W-2’s
Under the Affordable Care Act (also known
as ObamaCare), employers with 50 or more
full-time employees and equivalents are
considered Applicable Large Employers
(ALEs). ALEs are required to comply with
two mandates:
1.
2.
Offer insurance to qualifying full-time
employees and their dependents (this
is known as the Employer Shared
Responsibility Payment Mandate), and
Report to the IRS on the insurance
coverage offered (or not offered) to
those qualifying full-time employees
(this is known as the Employer
Information Reporting Mandate)
TIPS TO ENSURE ACCURACY
We encourage you to use SSA’s Employee Verification Service
(EVS) prior to ProPay sending your W-2 forms to SSA for
processing. EVS is a free, convenient and secure method for
employers to verify that employee’s names and SS#s match
the
SSA’s
records.
Visit
their
website
at
www.ssa.gov/employer and select SS# verification or call toll
free 1-800-772-6270 for further details. Ask your employees to
check their latest check stub against their Social Security Card
and inform you of any name or SS# differences. Remind your
employees near the end of each year to report all name
changes due to marriage, divorce or other reasons.
CAUTION
ProPay will only file W-2 information
magnetically for the payroll information we
have on file. You are responsible for the filing
of any payroll information not reported to
ProPay
If rejected you will be responsible for the filing
of information.
No employer with fewer than 50 full-time
employees and equivalents is subject to
these mandates.
These mandates go into effect January 1, 2015.
However, the IRS postponed the Employer
Shared Responsibility Mandate
for certain ALEs, extending the effective date to
January 1, 2016 for ALEs with 50-99 full-time
employees and equivalents. The Employer
Information Reporting Mandate however, has
not been delayed, therefore all ALEs are
required to comply. Initial reports (Form 1094-C
and Form 1095-C) are due to employees by
January 31, 2016, and to the IRS by February
29, 2016.
Read more on Employer Mandates:
IRS ACA Questions
Mileage Rate Updates for 2015
IRS announced the optional mileage
allowance for owned or leased autos for
business miles driven is 57.5 cents for 2015
LIKE US ON FACEBOOK!!
Social Security Updates
for 2015
Propay Professional Payroll Systems, Ltd.
_______ ___________________________
Social Security
Wage Base
2014
$117,000
2015
$118,500
2015 Retirement Plan Limits
2015 Holiday Schedule
Banks Closed
January 1
New Years Day
January 19
Martin Luther King
February 16 Presidents Day
May 25
Memorial Day
July 3
Independence Day
September 7 Labor Day
October 12
Columbus Day
November 11 Veterans Day
November 26 Thanksgiving
November 27 Extended
Thanksgiving (Banks Open-ProPay
closed
December 25 Christmas Day
Please keep the above dates in mind
when scheduling your payroll
ProPay
PO Box 51450
Amarillo, TX 79159
806-356-9997
806-356-9393 FAX
payroll@propaytexas.com
Item
2014 Limit
2015 Limit
Defined Contribution
$ 52,000
$ 53,000
Maximum Compensation
$260,000
$265,000
401(k)/SEP/403(b)/457 Deferrals
$ 17,500
$ 18,000
Qualified Plan/403(b)/457 Catch-up
Contributions
$ 5,500
$
Highly Compensated Employee
Compensation Threshold
$115,000
$120,000
Key Employee Officer
Compensation
$170,000
$170,000
Defined Benefit
$210,000
$210,000
SIMPLE Employee Deferrals
$ 12,000
$ 12,500
SIMPLE Catch-up Contributions
$
$
2,500
6,000
3,000
Affordable Care Act Limits Differ
Starting in 2015 out-of-pocket limits for HDHPs under the Affordable Care Act (ACA) will be
slightly higher than the IRS’s limits on HSA-qualified HDHPs. But the IRS limits are what
determine if an HDHP is HSA compliant.
Contribution and Out-of-Pocket Limits for Health Savings
Accounts and for High-Deductible Health Plans
For 2015
For 2014
HSA
contribution
limit
(employer +
employee)
Individual:
$3,350
Individual:
$3,300
Individual:
+$50
Family:
$6,650
Family:
$6,550
Family:
+100
HSA catchup
contributions
(age 55 or
older)*
$1,000
$1,000
No change
**
HDHP
minimum
deductibles
Individual:
$1,300
Individual:
$1,250
Individual:
+50
Family:
$2,600
Family:
$2,500
Family:
+100
Individual:
$6,450
Individual:
$6,350
Individual:
+$100
Family:
$12,900
Family:
$12,700
Family:
+$200
HDHP
maximum
out-ofpocket
amounts
(deductibles,
copayments
and other
amounts,
but not
premiums)
* Catch-up contributions can be made any time during the year in
which the HSA participant turns 55. **HSA catch-up is not
indexed; any increase would require statutory change.
ACA out-of-pocket limits for
HDHPs
2015
2014
Individual: $6,600
Individual: $6,350
Family: $13,200
Family: $12,700