Year-End
Preparation
Packet
2012
As 2012 comes to a close, we want to thank you for choosing
Performance Payroll for your payroll, tax and time and
attendance needs. This guide has important information for
planning the close of 2012 and the beginning of 2013. We
appreciate your timely attention to these matters. Your advance
planning ensures an excellent finish and successful beginning of
the new year.
NEW
An important
change for employers who filed 250 or
more W-2’s in 2011 is that they are required to report the
aggregate cost of applicable employer-sponsored health
coverage in 2012 on the W-2, Box 12. Also, employers who
have had a plan change in 2012 are required to report the
employer-sponsored health coverage.
Everyone at Performance Payroll sincerely thanks you for the
opportunity to work with your business throughout the year. We
wish you and your family a happy holiday season. As always,
we look forward to serving your payroll needs during 2013.
Year End Preparation Packet 2012
In an effort to help your 2012 year-end process run smoothly, we have prepared this
packet full of important notices and reminders. The information on the following pages
includes a helpful checklist, guidelines for fringe benefits, key holiday and payroll dates
and a year-end hold request.
Year-End Checklist
Late Submission of Changes
2012 will close with your last scheduled check
date of the year. Please communicate and
submit the following items by your last
scheduled payroll:
Performance Payroll will be closing out
your payroll for 2012 following your last
processing date in December.
 Verify all Federal and State
identification numbers
 Forward any Federal or State filing
deposit frequency notices to
Performance Payroll
 Forward all State Unemployment
rate change notices to Performance
Payroll
 Verify employee demographic
information is correct, i.e. social
security numbers, correct name
spelling and address
 Verify all manual and voided checks
have been entered into the payroll
system
 Review and submit any applicable
fringe benefits (i.e. housing, auto,
group term life insurance, owners
insurance, and CPA provided payroll)
 Audit Third Party Sick Payments
made to your employees during the
2012 year
 Run Bonus payrolls as early as
possible so it can be added to your
payroll schedule
Circumstances may require that some
employee and payroll information be
adjusted after December 31, 2012. If
you know you will be submitting
information and/or processing any
payrolls that will affect the W-2’s past
your last payroll run in December, please
mark the appropriate box on the enclosed
HOLD REQUEST FORM and submit
it back to us by Thursday, December 13,
2012.
If Performance Payroll is not properly
informed of any expected last minute
submissions, you may be charged a fee
to report the year as well as reprocessing
your employees W-2’s.
Please Remember, if Performance
Payroll receives additional
information in January, 2013 the
following may result:
-2’s and 1099’s
1. Late Tax Deposits
2. Penalties and Interest
3. A Delayed Receipt of Your
W-2’s and 1099s
124 Verdae Blvd. Ste. 200 * Greenville, South Carolina 29607
Main: 864-351-2030 * Fax 864-351-2035
www.performancepayroll.com
Year End Preparation Packet 2012
Additional Year-End Information
Third Party Sick Pay
Fringe Benefits
Additional W-2 Info
Federal law requires the
reporting of sick pay
payments made to
employees from a third
party, as well as any taxes
withheld on those
payments. These
payments must be
included on the
employee’s W-2 Form.
Please verify with your
carrier if they are
furnishing the W-2 or
must the amounts be
entered on the W-2’s
Performance Payroll is
processing.
The Tax Reform Act
of 1984 mandated
that the value of
certain non-cash
fringe benefits be
reported on the 941
and the employee’s
W-2. Taxable Fringe
Benefits are included
as wages, making
them subject to
Federal Income Tax,
FICA, FUTA and
possibly some State
Income and
Unemployment Tax.
Employer Sponsored
NEW
Health Coverage:
An employer who filed 250 or more
W-2’s in 2011 is required to report the
aggregate cost of applicable employersponsored health coverage on the W2, Box 12 with a code of DD.
Employers who have had a plan
change in 2012 are also required to
report the employer-sponsored health
coverage in 2012.
IMPORTANT: Be sure
to obtain this information
from the appropriate third
party provider as soon as
possible. These entries
must be processed on or
before your last 2012
payroll to ensure that your
forms 941 and W-2 will
be accurate. Additional
charges will be applied if
this information is
received after your last
payroll.
Also, if you cannot supply
your information to
Performance Payroll
before your last payroll of
2012, be sure to contact
your Customer Service
Representative to let them
know.
Examples of two
common Fringe
Benefits include
Personal Use of
Auto and Group
Term Life
Insurance Reporting.
The Internal Revenue
Service has issued
regulations defining
what is considered a
Taxable Fringe
Benefit and how to
arrive at its value. If
you require advise on
this, please contact
your CPA, as
Performance Payroll
cannot legally advise
you on this matter.
Pensions: The Retirement Plan box
will be automatically checked if you
have any plan funded via payroll
deduction, such as a 401K, 403b,
Simple IRA, SEP, etc.).
Allocated Tips: After completing
your 8027, if you determine sufficient
tips were not reported, contact your
Customer Service Representative to
report an adjustment and add allocated
tips for the affected employees.
Box 12W: Contains H.S.A.
contributions from the employer as
well as Pre-tax contributions made by
the employee.
Box 13: Includes statutory employee,
retirement plan and third-part sick
pay.
Box 14: Is not mandatory and may be
used for other information.
124 Verdae Blvd. Ste. 200 * Greenville, South Carolina 29607
Main: 864-351-2030 * Fax 864-351-2035
www.performancepayroll.com
Year End Preparation Packet 2012
Key 2012 Holiday and Payroll Dates
Bank Holidays
Please remember the following Bank / Federal Holidays:
 Thursday, November 22 – Thanksgiving Day
 Tuesday, December 25 – Christmas Day
 Tuesday, January 1 – New Year’s Day
*For holidays falling on Sunday, Federal Reserve Banks and branch offices will be
closed the following Monday.
Remember, if your payroll normally falls on a bank holiday/federal holiday, your check
date will usually be moved back 1 day in observance of the holiday.
Performance Payroll Holiday Schedule
Please remember that Performance Payroll is closed on these days:
 Thursday, November 22 – Thanksgiving Day
 Friday, November 23 – Day After Thanksgiving
 Tuesday, December 25 – Christmas Day Observance
 Tuesday, January 1 – New Year’s Day
Important Direct Deposit Information
Key dates follow:
If you payroll date falls on Monday, November 26, we need your payroll information
by 1:00 PM on Wednesday, November 21. (check date will be Friday, November 23)
If you payroll date falls on Wednesday, December 26, we need your payroll
information by 1:00 PM on Thursday, December 20. (check date will be Monday,
December 24)
If you payroll date falls on Wednesday, January 2, 2013 we need your payroll
information by 1:00 PM on Thursday December 27. (NOTE: You must notify
Performance Payroll of your option to include these earnings in 2012 tax year with
a check date of 12/31/2012 or 2013 tax year with a check date of 1/1/2013)
Preparing for 2013
REPORT CHANGES between now and the end of January for notices such as:
 Deposit Frequency- as company numbers grow, tax frequency can change
 Rate Changes – typically employers receive notice of new unemployment tax rates
 Additional States or Localities – provide us the new ID numbers
Please submit tax agency correspondence as soon as you receive these notifications
124 Verdae Blvd. Ste. 200 * Greenville, South Carolina 29607
Main: 864-351-2030 * Fax 864-351-2035
www.performancepayroll.com
Year End Preparation Packet 2012
YEAR-END HOLD REQUEST
THIS FORM MUST BE RETURNED TO PERFORMANCE
PAYROLL BY DECEMBER 13, 2012.
Company Name: ______________________
Due to the reason indicated below, please hold the processing of
our year-end tax returns and W-2’s until we submit the
following adjustment(s):
o
o
o
o
o
o
o
o
o
o
Bonus Payroll
Third Party Sick Pay
Taxable Fringe Benefits
1099 Employees
Other
Group Term Life (GTL)
Incorrect Prior Balances
Qualified Pension
Shareholder Health Premiums (S Corporations only)
CPA Annual Corrections
Short Description of Adjustment:
_
Absolution Agreement: Acknowledgement of Responsibility for Penalty and
Interest:
Do to the timing of my adjustments, I understand that after Friday, December 21, 2012, any
adjustments which increase earnings and result in taxes being deposited after the due date, may
incur penalties and interest. These penalties and interest, if any, are the responsibility of my
company. Additionally, I understand that we may be charged a fee as a result of delaying the
processing of our year-end returns and W-2’s.
Signature:
Internal Use Only
Date Received
Name:
_______________
Title:
Date:
124 Verdae Blvd. Ste. 200 * Greenville, South Carolina 29607
Main: 864-351-2030 * Fax 864-351-2035
www.performancepayroll.com