EXECUPAY PAYROLL
INSIDE THIS ISSUE:
HOLIDAY SCHEDULE / IMPORTANT YEAR
END DATES
1
FEDERAL YEAR
END TAX FORM
INFORMATION
1
SSA’S BUSINESS
SERVICES
ONLINE (BSO)
2
IRS’S 1099MISC FIRE SERVICES
2
2013 TAX
CHANGES
3
2013 AUTOMOBILE BENEFIT
INFORMATION
3
W2 REPORTING
OF HEALTH COVERAGE
3
FUTA/FUI CREDIT REDUCTION
4
YEAR END TIPS
& HOT TOPICS
5
VOLUME 11, ISSUE 1
2 01 2 L I C E N S E E Y E A R
E N D P R E PAR ATI O N
NOVEMBER 2012
HOLIDAY SCHEDULE & IMPORTANT YEAR END DATES
Holiday Schedule:
Be sure to schedule all those important holidays &
year-end dates
coming up!
Please make note on your calendars, our support schedule for this
upcoming holiday season:
Thanksgiving
November 22
November 23
Christmas
December 24
December 25
New Year’s
December 31
January 1
Important Year End Dates:
Closed
Open till 1
Open till 1
Closed
Open till 1
Closed
Support hours are: Monday thru
Friday
Phone Support :
8—6 CST
Email Support :
8—6 CST
Direct Support Line:
October 2012: Start to prepare to
create your 2012 Client Year-End
Newsletters as applicable
October 2012: Begin preparations
to order Year-End Forms and Client
Calendars
October 2012: New Users, begin
preparations for Registering with
SSA for W2-W3 Submissions /
Existing users, remember to change
your password
December 10 2012: Business
Services Online (BSO) will begin
accepting Tax Year 2012 W2-W3
submissions
January 31, 2013: Employers must
distribute employee W2’s/1099’s
by this date
January 31, 2013: Form 940 &
944 & 943 due by this date
February 28, 2013: Employers
must submit to SSA/IRS, W3-W21099 by this date if submitting by
paper.
April 1, 2013: Employers must
submit to SSA/IRS, W3-W2-1099 by
this date if submitting electronically.
(210) 366-0001
FEDERAL YEAR-END TAX FORM INFORMATION
sal Pressure seal paper /
requires pressure seal machine—80650)
Greatland is the exclusive forms
provider for Execupay.
Greatland Order Form:
http://download.execupay.com/
downloads/
yearend/2012GreatlandOrderForm.pdf
Employee W2 Options:
Execupay offers 4 options for Employee W2 styles.



Original 4-UP (Letter sized /
requires special paper with
preprinted instructions —
4UPPERFI05)
or Pressure Seal 4-UP (Legal
sized / requires pressure seal
paper with preprinted instructions/ requires pressure seal
machine — 80640)
or Universal Pressure Seal W2
(Legal sized / requires Univer-

or Universal Non-Pressure Seal
W2 (Letter sized— B4PERF05)
Federal Forms: 940, W3 & Employer
W2 copies should be printed on 20lb
plain good quality non-holed white
paper.
1096 / 1099-MISC Copy A will still
be pre-printed on top of red forms
(BMISFED05 / B109605)
Employer 1099-MISC Copy C/D/1

Original Copy C / D / 1 will be on
perforated blank paper (2-UP—
80014)
Employee 1099-MISC Options:

80014)

Original Copy B / 2 will be on
perforated blank paper (2-UP—
or Copy B / 2 on Universal Pressure Seal Paper (same paper as
used for Universal Pressure
Seal W2s—80650)
SSA/IRS W3-W2-1099MISC Submission Options:

Paper

W3/W2 electronic file for SSA
EFW2 BSO System (Required for
250 or more W2s)

1096/1099MISC electronic file
for IRS FIRE System (Required
for 250 or more 1099s)
Please note: Year-End Reporting is
processed for all clients on an Active
or Inactive-Hold for Year-End Status.
Before running your Year-End Forms
Count Report, verify / update company statuses (Active vs. Inactive).
The Company List Report (found in
the Company Reports Section of
the Report Browser) can aid you in
this.
When all statuses are valid, run the
Year End Forms Count Report
(found in the Reporting Panel /
End of Period Panel / Process EOP).
This will give you approximate
counts of 940’s, W3’s, W2’s and so
forth.
We recommend ordering 115% —
125% of your estimated forms.
2012 LICENSEE YEAR END PREPARATION
Page 2
SSA’S BUSINESS SERVICES ONLINE (BSO)
With Execupay, the employer
portion of the W2’s & W3’s are
filed electronically with the SSA.
Filing electronically offers the
advantages of immediate confirmation of receipt, reduced handling costs and an extended
filing deadline.
Key Websites:
The BSO Welcome Page is the
single point of entry for all BSO
users.
This web page provides a brief
description of BSO, a registration
link for new BSO users, and a
login link for registered users.
Bookmark the following links:
BSO Welcome Page:
http://www.socialsecurity.gov/
bso/bsowelcome.htm
BSO Handbook: (read this thoroughly each year for detailed tips /
reminders and in depth instructions
on the entire process)
http://www.socialsecurity.gov/
employer/bsohbnew.htm
BSO Tutorial:
http://www.socialsecurity.gov/
employer/bsotut.htm
Accuwage Software 2012
http://www.socialsecurity.gov/
employer/software.htm
Take advantage of the SSA’s
Accuwage software to verify the
layout of the W2 files prior to
uploading them. By using this
software, you may prevent errors
that could cause your submissions to be returned.
AccuWage 2012 is only available
in the Java version. We encourage you to send feedback to the
AccuWage mailbox at: accuwage.help@ssa.gov.
Reminder: Don’t forget, new users need to
register early / current users need to change
passwords / all need to review the current
BSO Handbook.
BasicExecupayW2MagInstructions.pdf
Execupay Processing Steps:
Please review the following document for instructions / tips on
the Execupay side of W2 File
Creation:
http://download.execupay.com/
downloads/yearend/
SSA’S BUSINESS SERVICES ONLINE (BSO) CONTINUED
Need to Register?: To file electronically, you must register with
the SSA to obtain a USER ID and
password. Third party preparers
need only register once in their
firm’s name. A USER ID will be
issued immediately.
Important: Once you receive
your USER ID, please be sure in
Execupay to go to the Global
Panel / Bureau Panel / Bureau
Setup / Services Tab / W2 BSO
Reporting Service and enter your
USER ID into the system.
Currently Registered?: User
Identification Number (User ID),
(formerly Personal Identification
Number (PIN)) will no longer be
deactivated after 365 days of
non-use. Passwords will expire
after 90 days; you will be prompted to change your password
when you login after it has expired in order to access BSO
services
BSO News:
Important: Your password is for
your use only and may not be
disclosed to anyone else, including
other employees. Exercise caution with
disclosing your USER ID. Your USER ID
is the equivalent of your electronic
signature and is assigned to you personally - not generically to your company. You are responsible for all actions
taken while using your USER ID
BSO and Registration Questions:
Call 1-800-772-6270 Monday through
Friday, 7:00 a.m. to 7:00 p.m. EST to
speak with Employer Customer Service
personnel.
BSO Tutorial:
http://
www.socialsecuri
ty.gov/employer/
bsotut.htm
IRS’S FIRE SERVICES (FILING 1099-MISC RETURNS ELECTRONCIALLY)
With Execupay, the employer
portion of the 1096/1099MISC
can be filed electronically with
the IRS.
Filing electronically offers the
advantages of immediate confirmation of receipt, reduced handling costs and an extended
filing deadline.
Key Websites:
The FIRE Welcome Page is the
single point of entry for all FIRE
users.
28FIRE%29
This web page provides a brief
description of FIRE, a registration
link for new FIRE users, and a
login link for registered users.
oughly each year for detailed tips /
reminders and in depth instructions
on the entire process) http://
www.irs.gov/pub/irs-pdf/p1220.pdf
Bookmark the following links:
FIRE Welcome Page:
http://www.irs.gov/Tax-Professionals/
e-File-Providers-&-Partners/FilingInformation-Returns-Electronically-%
FIRE Handbook: (read this thor-
First Time Filers?: To file electronically, you must submit Form
4419 to the IRS no later than 30
days before the due date of the
return to obtain a Transmitter
Control Code (TCC) ID as well as
create a IRS FIRE Account (https://
fire.irs.gov/firev1r/)
Important: Once you receive your TCC
ID, please be sure in Execupay to go to
Global Panel / Bureau Panel / Custom
Settings, select the 1099TCC entry and
fill in your TCC ID into the system. This
ID is required within the electronic
1099 File.
For Assistance:
Call 1-866-455-7438 Monday through
Friday 8:30 am to 4:30 pm EST
Page 3
VOLUME 11, ISSUE 1
2013 FEDERAL & STATE TAX CHANGES
Key Changes:

Social Security
Wage Base Increases

EE Social Security Rate Reverts back

EE Medicare Becomes
Tiered

AEIC Still Repealed

Retirement Contribution
Limits Increase

SUI/DI Wage Base Changes

Federal & State & Local WH
Table Changes

State Min Wage Increases
(* = proposed)
State Minimum Wages State Arizona 2013 2012 7.80 7.65 7.78* 7.64 Florida 7.79 7.67 Montana 7.80 7.65 Ohio 7.85 7.70 Colorado Oregon 8.95 8.80 Rhode Island 7.75 7.40 Vermont 8.60 8.46 Washington 9.19 9.04 State WH Table Updates
Please refer to the following link
for the latest figures:
The following list of states have
released new withholding tax
tables for 2013. (Please note
this is not an inclusive list.
Some states still may release
new tables):
http://download.execupay.com/
downloads/
yearend/2013Taxfacts.pdf
FUI Credit Reduction States: 18
States Become Credit Reduction

When states fail to repay federal
UI loans by the deadline, federal
law automatically recoups the
debt by raising the net FUTA rate
for their employers. The additional tax due is payable with the
fourth quarter FUTA filing (IRS
Form 940).
California / Kansas / Kentucky / Maryland / Maine
Stay tuned for updates (noted in
release notes) with the tax table
changes and year end forms etc.
Look for more tax news on the
Support Website Discussion
Forums under Tax News!
2013 AUTOMOBILE BENEFIT INFORMATION
To assist you in calculating taxable fringe benefits attributed to
an employee’s use of a car, provided below is the latest IRS
Rates and Tables:
Automobile Rates (Cents Per
Mile)
Type of Use
2013 Amt
Standard
$.xx
Relocation
$.xx
Charitable
$.14
Medical
$.xx
Luxury Car Value: $xx,xxx (for
cars) / $xx,xxx (for trucks)
Type of Use
2012 Amt
Standard
$.555/.51
Relocation
$.235/.19
Charitable
$.14
Medical
$.235/.19
Annual Lease Value Table:
Important
http://download.execupay.com/
downloads/yearend/
AnnualLeaseValueTable.pdf
Websites &
http://
Federal Per Diem Rates (effective 10-12012)
download.execu
Luxury Car Value: $15,900 (for
cars) / $16,700 (for trucks)
Lodging Rate (high)
$177
pay.com/
Lodging Rate (low)
$111
downloads/
If a car has a FMV greater than or
equal to the Luxury Car Value
amount, the Cents the Mile method should not be used.
Meal & Incidental (high)
$65
Meal & Incidental (low)
$52
Combined (high)
$242
Websites&Num
Combined (low)
$163
bers.pdf
PPACA EMPLOYER-SPONSORED HEALTH COVERAGE COST
REPORTING (W-2 BOX 12 CODE DD)
Starting in tax year 2011, the
Affordable Care Act requires
employers to report the cost of
coverage under an employersponsored group health plan.
To give employers more time to
update their payroll systems,
Notice 2010-69, issued last fall,
made this requirement optional
for all employers in 2011.
IRS Notice 2011-28 provided
further relief for smaller employers filing fewer than 250 W-2
forms by making the reporting
requirement optional for them at
Phone #s:
least for 2012 and continuing
this optional treatment for smaller employers until further guidance is issued.
Notice 2011-28 also includes
information on how to report,
what coverage to include and
how to determine the cost of the
coverage.
This reporting is for informational
purposes only, to show employees the value of their health care
benefits so they can be more
informed consumers. The
amount reported does not affect
tax liability.
For more information, see frequently asked questions and the
IRS’s multimedia products —an
IRS YouTube video and a webinar, Reporting of Employer
Healthcare Coverage on Form W2.
In Execupay, we released a category in TY2010 called “EmployerSponsored Health Coverage
Costs” which is marked for Box
12 Code DD and is only available
for company/employee memo
usage.
yearend/
It will be totally up to the each employer how often to report the figures
to you;
As it is only for W-2 purposes, they
could, if they so desired, report it
once a year or more often as warranted.
Make use of the various features in
Execupay such as groups, calculations, & memos for setup as well as
the various payroll import options we
have such as PowerGrid & PowerGrid Templates.
Page 4
VOLUME 11, ISSUE 1
FUTA/FUI CREDIT REDUCTION
Under the joint
federal/state
unemployment
insurance system, states with a
high rate of unemployment and difficulty meeting their benefit obligations can
borrow money from the FUTA
Account to pay benefits. If loans
taken out during one year are not
repaid by the end of the following
calendar year, the FUTA credits
for employers in those states are
reduced, with the extra FUTA
taxes paid being applied against
each state’s outstanding loan
balance.
A state with an outstanding loan can avoid a
credit reduction for its employers by repaying
the loan by Nov. 10th of the year the credit
reduction is scheduled to take effect. If the
loan is not repaid by that date, a credit reduction of 0.3% goes into effect. Each year the
loan remains unpaid, the credit reduction
increases by 0.3%.
FUI Credit Reductions
State
Arizona
2012 2011 2010 2009 2005
0.30%
Arkansas
0.60% 0.30%
California
Connecticut
0.30%
0.60% 0.30%
Delaware
Even if a state has outstanding loans on Nov.
10th, it can avoid a credit reduction by meeting certain criteria.
Florida
0.60% 0.30%
Georgia
0.60% 0.30%
The final list of credit-reduction states is
generally released sometimes after Nov.
10th by the Labor Department (DOL) & IRS
and will be reflected on the final version of
the TYXXXX Form 940 after it is released. The
FUTA credit-reduction tax liability is due Jan.
Indiana
FUTA/FUI CREDIT REDUCTION (CONTINUED)
0.30%
Illinois
0.60% 0.30%
Kentucky
0.60% 0.30%
Michigan
0.90% 0.60% 0.30%
Minnesota
0.30%
Missouri
0.30%
Nevada
0.60% 0.30%
New Jersey
0.60% 0.30%
0.30%
New York
31, XXXX, which is the filing date
for Form 940.
For 2012, there are xx credit
reduction states. (See chart to
the right)
Example:

If you paid any wages that
are subject to the unemployment compensation
laws of the state of Indiana,
you are not allowed .006 of
the regular .054 credit;

are subject to the unemployment compensation laws of the state of Michigan,
you are not allowed .009 of the regular
.054 credit;

and if you paid any wages that are to
the unemployment compensation laws
of the rest of the states listed, you are
not allowed .003 of the regular .054
credit.
Use Schedule A (Form 940), Part 2, to figure
the tax. For information, see the Specific
Instructions on page 2 of Schedule A (Form
940) or visit IRS.gov.
If you paid any wages that
FUTA/FUI CREDIT REDUCTION (CONTINUED)
For Execupay:
You MUST run the 4th Quarter
940 Adjustment Calc Utility (as
mentioned in the KB below) on
ALL clients right before creating/printing any QEND/YEND
Returns or making 4th QTR FUI
Payments;
This utility is found in Reporting
Panel / End of Period Panel /
Process EOP / Manual Print Tab
/ General Reports
Also, consider how making changes/corrections to a client for any quarter in
the applicable tax year might cause your Q4
FUI payment to change as well as the 940
Return from your initial filings.
Please review the following support website
KB Article for more details:
KB: Knowledge Base Execupay, Inc. > KB
Items > Quarter & Year End >
Prior to processing Q4 QEND/YEND, are
there any additional steps to be done?)
North Carolina
0.60% 0.30%
Ohio
0.60% 0.30%
Pennsylvania
Rhode Island
0.30%
0.60% 0.30%
South Carolina
0.60%
0.30%
Vermont
0.30%
Virginia
Wisconsin
0.60% 0.30%
Note: QEND (4th Quarter) / YEND
4th Quarter QEND: 4th Quarter 940 Year End Adjustment
Calc Utility
This utility, adds an adjustment amount to the 4th quarter payment for FUI if applicable and should be run prior
to any QEND printing
Case 1: Penny adjustments due to YTD liability
vs per quarter payments (Rounding)
Case 2: States with Credit Reduction Penalty In
Place (for 2004 that’s New York)
Case 3: Other situations where a client might
not be allowed to take the full 5.4% credit (sui
exempt ee but fui taxable)
a) If the adjustment amount is negative and there is
no q4 payment -- the refund will be on the form -otherwise it will shorten the q4 payment
b) If the client has no Q4 payrolls to add the adjustment to, the utility will let you know and you will need
to create a blank no charge no delivery payroll (new
payroll and finish it). There will be no need to print it -just move it from Finished Checks to Done. Then go
back and re-run this utility (single mode) on that client
c) After this utility has been run: The adjustment
amount, if any, will be listed on the Federal How to
File Letter for QEND. The payment amount will include this adjustment -- but it will list separately the
Year End Adjustment Amount.
1.
Check out our website for the latest news and info.
Website: http://support.execupay.com
EXECUPAY PAYROLL
510 Portland Road
2.
San Antonio, TX 78216
Phone: (210) 366-0001 (Support Direct)
Phone: (210) 366-9511 (Payroll Direct)
Fax: (210) 366-0496
Email: support@execupay.com
T H E
W A Y
T O
YEAR-END TIPS & HOT
TOPICS
Support Website: http://
support.execupay.com

Training Videos

News Articles

Helpful Links & Resources

User Guides

Community Newsgroup

Much Much More

Start Year
End / Quarter End
Balancing early as to
have plenty of time
to clear up any possible problems; You
should even do this
weekly!
American Payroll Association:
http://www.americanpayroll.org

CPP / FPC Certifications

Payroll Educational Classes / Seminars

Payroll Source Book

State Agency Weblinks
(http://
www.americanpayroll.org
/weblink/statelocal)
P A Y
3.
Resources to Benefit Your Company
Please visit our Links Area on the
support website for various informative resources.
Some of the most valuable websites you should visit often and
have bookmarked are:
Payroll Research Software: It is
important to have some sort of
research tool available so that you
can provide those quick answers to
your clients.

BNA

CCH

RIA
Knowledge is Power!

Clear up any missing federal /
state identification numbers.
Electronic submissions require
EINs

Watch those years on check
dates especially in January. If you
have entered all checks and
change the year of the payroll, all
checks must be recalculated due
to different tax tables and limits

Do not void checks that cross
quarters that would result in
negative wages in the current
quarter.

You’ve heard the saying, “Don’t
mess with Texas”, well our payroll
saying is “Don’t mess with FICA”

Highly recommend annually attending the APA’s, Preparing for
Year-End and 2013 seminar,
which is also offered in webinar
formats as well.

Other recommended APA courses
are: Payroll Issues for Multi-State
Employers, Local Income Tax
Compliance, & Garnishment
Forum. These are offered each
year.
WARM WISHES TO FRIENDS NEW & OLD THIS HOLIDAY SEASON

We wanted to extend our well wishes to
all of our wonderful licensees this holiday
season.
We added quite a few new faces this year.
Please welcome the following new friends
to our family:

Long Chilton LLP

The Payroll Factory

Aspire Financial LLC

Meridian Payroll Group Inc.

Pay/Tech Solutions

Payrite

Payroll Systems, LLC
InsideOutsource Payroll Services
LLC
Visit the support website (http://
support.execupay.com) and join the
licensee newsgroup. Sign up today and
get in on the conversations with other
service bureaus! It’s a valuable networking opportunity you shouldn’t pass up!
PAYROLL POEM
Last night as I lay sleeping
I died or so it seemed,
Then I went to heaven
But only in my dream
Up there St Peter met me
Standing at the pearly gates,
He said "I must check your record
Please stand here and wait."
He turned and said "Your record
Is covered with terrible flaws,
On earth I see you rallied
For every losing cause."
I see that you drank alcohol
And smoked and used drugs too,
Fact is, you've done everything
A good person should never do.
We can't have people like you up here
Your life was full of sin,
Then he read the last of my record
Took my hand and said "Come in."
He lead me up to the big boss and said
"Take her in and treat her well",
She used to work in Payroll
She's done her time in hell".