2012 Year-End Letter
It’s hard to believe year-end is upon us once again! As your trusted payroll
provider, it is our goal to report complete and accurate information on behalf of
your company. Please read this newsletter carefully and inform us of any
adjustments at your earliest opportunity.
Year-end Reporting Deadline
The year-end cutoff date for reporting changes is December 31, 2012 at 3:00 p.m., or the day
a payroll with a January 2013 check date is processed, whichever is earlier. This deadline is
in place to help mitigate any potential penalties or fees associated with late tax payments. We
recommend that you run any adjustments with a payroll to ensure that the taxes are withheld
correctly. Please remind your accountant to report payroll adjustments no later than your cut-off
date. If payroll adjustments are necessary after the year-end cutoff date, we can rerun your tax
returns. However, there will be an additional charge and a year-end processing delay.
Missing/Invalid Social Security Numbers Report
Attached you will find a copy of any missing or invalid social security numbers. Please provide us
with accurate information no later than December 14th, 2012. Please be aware the IRS may assess a
fee of up to $50 for each missing or invalid SSN reported on Forms W-2. If you would like a
complete employee social security number and address listing, please provide us with a valid e-mail
address to enable us to send the report via secure e-mail.
IRS Federal Tax Deposit Frequency/State Withholding Deposit Frequency
In November and December the IRS and some states will be mailing deposit frequency/change
notices to all employers who have a change in their deposit frequency for 2013. If you receive one
of these notices, please send us a copy as soon as possible. We do not automatically receive this
correspondence from the IRS and state agencies directly.
Bonuses for Employees and Corporate Officers
Bonus checks can be processed with your regular payroll. However, bonus checks must be
processed separately if you want separate reports, or if you want the bonus checks to be issued for
a date other than your normal payroll date. Please specify how the bonus checks are to be taxed and
what other adjustments need to be withheld. If you have any questions about how your bonus
checks should be taxed, please contact your accountant prior to reporting the checks to us.
Reporting Third Party Sick Pay (Disability Payments)
By law, insurance companies have until January 15th to notify you of any disability insurance
benefits paid to your employees during 2012. Should you receive notification of such payment after
reporting your last payroll for the year, please contact us immediately. If you have not done so,
please contact your insurance company and tell them that we will include third party sick pay on
the W-2 forms that we prepare for you.
Fringe Benefits
Taxable cash or non-cash benefits must be included on Forms W-2. Please report these benefits
before your last payroll of the year. Reporting taxable benefits with cash wages allows the
appropriate withholding taxes to be deducted from the employee’s check. If these amounts are
processed without wages, you may be required to pay the employee’s portion of Social Security and
Medicare taxes. Year-end fringe benefits may include; Personal use of a Company Car, Group-Term
Life Insurance in excess of $50,000, Insurance Premiums paid by an S corporation on behalf of a 2%
shareholder and Dependent Care Assistance in excess of the $5,000 exclusion.
W2 Billing
You will see an increase in billing on the first payroll of January. This is due to W-2 processing and
other year-end associated billing. Please see your Invoice for the breakdown and contact your
payroll specialist with questions.
Holiday Hours
Our office will be closed the following dates:
Tuesday, December 25th in observance of Christmas
Tuesday, January 1st in observance of New Year’s Day
If you have any questions, please do not hesitate to contact your payroll specialist.
Thank you for your continued partnership with MassPay. We appreciate your business and wish
you a safe and happy holiday season and look forward to working with you in 2013.
Sincerely,
Your Friends at MassPay
978-998-6896 (phone)
978-998-6897 (fax)
operations@masspay.net (Operations team e-mail)