2014 YEAR-END CHECKLIST and PACKET
NOTE – This packet contains important year-end information and deadlines. We strongly encourage you to read
this and respond with questions and/or concerns by December 19, 2014.
We are approaching the end of the year and it is time to begin preparing for the processing of your W-2s, federal
tax returns, and state and local returns (where applicable). We are requesting your assistance to ensure we have
all necessary information to complete your annual returns, including:



Changes or corrections to Company/Employee data
o Missing W-2 Information – Social Security Numbers, addresses
o Verification of Federal, State, and Local tax identification numbers
Changes or additions to your current payroll schedule
o Bonus Payrolls
o Processing Adjustments based on Holiday Schedule
o Voids - On Demand Checks
Additional information not yet reported to Netchex
o Third Party Sick Pay
o Fringe Benefits – Group Term Life – Personal Use of Auto
o Cost of Employer Sponsored Health Coverage
o Dependent Care Benefits
o Employer Contributions to Health Savings Accounts (HSA)
o Moving Expenses
o Stock Options
o Tip Allocation
Please review the information on the following pages and take action where necessary to help us ensure a
successful year-end process.
We also want to make certain you are aware of our policy regarding year-end adjustments made after your last
payroll of 2014. Any requested changes made after December 30, 2014 may require us to re-process your year-end
returns and W-2 information. This may incur additional year end fees and may also result in delivery of your W-2s
later than expected. Any changes made after January 09, 2015 (year-end forms have been filed) may require
amended forms. These amendments will not be completed until after the month of February and will incur
additional year end fees. IMPORTANT - tax penalties and interest could result from tax payments made late due to
the timing of these adjustments.
IT IS CRITICAL THAT YOU NOTIFY YOUR CLIENT SERVICE REPRESENTATIVE OF ALL ADJUSTMENTS FOR 2014
BEFORE YOU PROCESS YOUR LAST PAYROLL OF THE YEAR.
Thank you in advance for your assistance and please let us know if you have any questions or concerns.
1100 N Causeway Blvd Suite 1, Mandeville, LA 70471
PH: 985.220.1410
FX: 985.220.1415
www.netchexonline.com
YEAR-END CHECKLIST
 Verify Employee demographic information is correct (i.e. addresses, Social Security
numbers, correct name spelling, etc.)
 Verify Netchex has all tax identification numbers and that they are accurate (review
your latest Quarterly Package under REPORTS > COMPANY > INBOX). Notify Netchex of
any changes or tax accounts that need to be closed.
 Verify all On Demand and Voided checks have been entered into payroll history.
 Process any payroll adjustments with Netchex before December 30, 2014 to avoid
additional fees.
 Notify Netchex of any additions or changes to your payroll processing schedule.
 Review the Holiday schedule to avoid late direct deposits or delivery.
 Audit Third Party Sick Payments made to your employees in 2014.
 Review and submit any applicable fringe benefits (i.e. Employer HSA, GTL, Personal Auto
Use, Moving Expenses, etc.)
 Confirm informational W-2 reporting of employer sponsored health coverage under
MAINTENANCE > PAYROLL > Form W-2 Health Coverage Reporting. This is required for
most large employers.
 Forward any Federal or State filing frequency notices to Netchex.
 Forward any State Unemployment Rate Change Notices to Netchex.
If you have any questions regarding these or any other year-end issues, please refer to this
Year-End Packet or contact your Client Service Representative at (985) 220-1410.
2014 YEAR-END PACKET
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YEAR-END REVIEW WEBINARS
We will be hosting 2 webinars to review the information in this letter and to discuss any questions or concerns
participants may have. The webinars are scheduled as follows with the links to register:
Friday, December 05, 2014 at 10:30 A.M. CST https://cc.readytalk.com/r/oxagwxpjnic3&eom
Friday, December 12, 2014 at 10:30 A.M. CST https://cc.readytalk.com/r/ijzzgjvqghm&eom
Also, please view the information contained in this letter and more at our Year-End Central page:
http://netchexonline.com/2014-year-end-central.
MASTERFILE REVIEW
We ask that you thoroughly review all employee data to ensure accuracy of the employee W-2 forms including
employee name, address, and Social Security number. This information can be reviewed in multiple places in
Netchex, including:



Employee Demographics page (PEOPLE > EMPLOYEE LIST > PAYROLL > DEMOGRAPHICS)
Employee Profile Report (REPORTS > PAYROLL > Employee Profile Report)
Publisher generated report (REPORTS > PUBLISHER)
Please note the IRS may assess penalties on employers reporting wages under inaccurate and/or invalid social
security numbers. For assistance in validation of Social Security numbers, you may access the Social Security
Administration website at http://www.socialsecurity.gov/employer/ssnv.htm.
ADDITIONAL EMPLOYER INFORMATION
QUESTION – Why didn’t this employee receive a W-2?
ANSWER – Follow these steps to determine why employee did not receive a W-2
1.
2.
3.
Look at Payment History (EMPLOYEE LIST > PAYROLL > PAYMENT HISTORY)
a. Did the employee have pay checks in 2014?
i. YES – make sure there are amounts in the taxes section for Federal Withholding.
There must be Federal Taxable Wages for 2014 for there to be a W-2.
Look at the employee’s Wage and Tax screen (EMPLOYEE LIST > PAYROLL > WAGE AND TAX)
a. Is the Employee Classification “W-2” or “W-2 Tipped”?
Look in the employer W-2 copies (REPORTS > PAYROLL > YEAR END REPORTS > PRINT FORMS W-2)
a. Is the employee included?
If all three of the above questions could be answered as “yes” then an employee copy should have been
included with the others. For a reprint please contact your Client Service Representative.
If the answer was “no” to any of the first 3 questions above and adjustments are needed, please contact
your Client Service Representative.
2014 YEAR-END PACKET
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NETCHEX W-2 PREVIEW
Netchex W-2 Preview is a collection of year end reports that can be found under REPORTS > PAYROLL > YEAR END
PAYROLL REPORTS. Please take some time and review the reports listed below to confirm the accuracy of your
company and employee data in the Netchex system. Note: we are reserving the first five days of January for you
to review your final year-end data before we begin printing your W-2 forms.
FUTA Credit Reduction Report
Employers in seven states and the Virgin Islands will pay increased Federal Unemployment Tax (FUTA) taxes in
January 2015 for wages paid in 2014 in order to repay state unemployment insurance loans. The following
states are impacted for 2014: CA, CT, IN, KY, NY, NC, and OH. This report will allow you to review the current
YTD amount of your liability if you pay employees in any of these states. Netchex will notify you of the total
liability due in January and will collect the amount due on a January invoice. The liability is due 01/31/2015. If
you have additional questions about the FUTA Credit Reduction please contact your Client Service
Representative.
Employee Tax Profile Report
This report lists all employees with wages in the selected year(s) and their tax setup, which includes W-2
classification and any blocked taxes specific to that employee.
W-2 Verification Report
This report lists all earnings and deduction codes used in the selected year(s) and their mapping on the W-2
form. It also includes your company legal name/address for you to review and the address to which your W-2s
will be delivered. Please communicate any changes to your delivery address with your Client Service
Representative as soon as possible. You can also update your information online under MAINTENANCE >
HUMAN RESOURCES > CONTACTS.
Year End Exception Report
This report will notify you of potential issues with individual W-2s. These issues include demographic
information, such as invalid Social Security numbers, and wage comparisons that could indicate a problem
with the W-2.
Print Forms W-2 (Reissue)
This report will allow you to view your employer copy of an employee’s W-2. It can also be used to reissue a
lost W-2 to your employee. Please note: there will be a watermark on the W-2 indicating this report is for
reference only until your company’s wages have been verified by our tax department. This watermark will be
removed once your W-2s are ready for printing.
Print 1099-MISC Forms (Reissue)
This report will allow you to view your employer copy of an employee’s 1099-MISC. It can also be used to
reissue a lost 1099-MISC to your employee. Please note: there will be a watermark on the 1099-MISC
indicating this report is for reference only until your company’s wages have been verified by our tax
department. This watermark will be removed once your 1099-MISC forms are ready for printing.
2014 YEAR-END PACKET
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HOLIDAY SCHEDULE
Due to heavy payroll processing volume during December, we ask that you notify your Client Service
Representative of any bonus or unscheduled payroll runs you may be planning. We also ask that you review the
Holiday schedule below and adjust your processing schedule accordingly to avoid late direct deposit or package
deliveries. Our goal is to ensure that you continue to receive the care and diligence you have come to expect from
Netchex.
BANK HOLIDAYS
 THURSDAY, NOVEMBER, 27, 2014 (Thanksgiving)
 THURSDAY, DECEMBER 25, 2014 (Christmas Day)
 THURSDAY, JANUARY 1, 2015 (New Year’s Day)
NETCHEX PAYROLL HOLIDAY SCHEDULE
 THURSDAY, NOVEMBER 27, 2014 – NETCHEX CLOSED ALL DAY
 FRIDAY, NOVEMBER 28,2014 – NETCHEX CLOSED ALL DAY


WEDNESDAY, DECEMBER 24, 2014 – NETCHEX CLOSING EARLY – 3:00 P.M. CST
THURSDAY, DECEMBER 25, 2014 – NETCHEX CLOSED ALL DAY

THURSDAY, JANUARY 1, 2015 – NETCHEX CLOSED ALL DAY
RECOMMENDED HOLIDAY PROCESSING SCHEDULE
If your check date is: Submit payroll by:
Your account will be
debited on:
Employees get paid on
(Direct Deposit only):
Thursday, 11/27
3:30 P.M. CST on Monday, 11/24
Tuesday, 11/25
Wednesday, 11/26
Friday, 11/28
3:30 P.M. CST on Monday, 11/24
Tuesday, 11/25
Friday, 11/28
Thursday, 12/25
3:30 P.M. CST on Monday, 12/22
Tuesday, 12/23
Wednesday, 12/24
Friday, 12/26
3:30 P.M. CST on Tuesday, 12/23
Wednesday, 12/24
Friday, 12/26
Monday, 12/29
3:00 P.M. CST on Wednesday, 12/24
Friday, 12/26
Monday, 12/29
Thursday, 1/1/15
3:30 P.M. CST on Monday, 12/29
Tuesday, 12/30
Wednesday, 12/31
Friday, 1/2/15
3:30 P.M. CST on Tuesday, 12/30
Wednesday, 12/31
Friday, 1/2/15
Monday, 1/5/15
3:30 P.M. CST on Wednesday, 12/31
Friday, 01/02
Monday, 1/5/15
IMPORTANT - you CANNOT submit payroll on Thursday, 11/27 if your check date is Friday, 11/28 or Monday,
12/01.
IMPORTANT - you CANNOT submit payroll on Friday, 11/28 if your check date is Monday, 12/01.
IMPORTANT - you CANNOT submit payroll on Thursday, 12/25 if your check date is Friday, 12/26.
IMPORTANT - you CANNOT submit payroll on Thursday, 1/1/15 if your check date is Friday, 1/2/15.
IMPORTANT – if your Direct Deposit Liability will be greater than $250,000.00 you will need to submit one
business day earlier than the date listed above OR you will need to WIRE payroll funds to Netchex prior to your
check date. Please contact your Client Service Representative with questions or concerns.
2014 YEAR-END PACKET
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ADDITIONAL W-2 INFORMATION
Third Party Sick Pay
Federal legislation 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 W-2 form OR on a
separate form provided by the third party. It is IMPORTANT to obtain this information from the appropriate third
party provider as soon as possible. These entries must be processed on or before your last 2014 payroll to ensure
that your 941 and W-2 forms will be accurate. Additional charges will be applied if this information is received after
your last payroll.
If you cannot get your information to Netchex before your last payroll of 2014, be sure to inform your Client
Service Representative. Otherwise, additional charges may be applied for tax returns that need to be rerun. NOTE If your third party is paying your taxes and preparing the W-2s on your behalf, DO NOT provide Netchex with the
payment information.
Fringe Benefit/Personal Use of Auto/Group Term Life Insurance Reporting
Federal Legislation requires that, under certain circumstances, the value of some non-cash fringe benefits be
reported on the 941 and the employees’ 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. The Internal Revenue
Service has issued regulations defining what is considered a Taxable Fringe Benefit and how to arrive at its value.
The taxing on these benefits varies by each company’s interpretation of the law. If you require advice on this,
please contact your CPA, as Netchex cannot legally advise you on this matter.
When reporting these benefits, you must insure that your employees have adequate pay from which to withhold
the taxes, thus relieving you of the potential liability of paying the employee taxes. Fringe Benefits need to be
submitted by the time your last payroll for 2014 is processed. Additional charges will apply for any reporting of
these benefits after that time.
Cost of Employer Sponsored Health Coverage
The Affordable Care Act requires many employers to report the cost of coverage under an employer-sponsored
group health plan. The amount reported should include both the portion paid by the employer and the portion
paid by the employee. The value of the health care coverage will be reported in Box 12 of the W-2, with Code DD
to identify the amount.
Note - reporting the cost of health care coverage on the Form W-2 does not mean that the coverage is taxable. The
value of the employer’s excludable contribution to health coverage continues to be excludable from an employee's
income, and it is not taxable. This reporting is for informational purposes only and will provide employees useful
and comparable consumer information on the cost of their health care coverage. For additional guidance you can
review the following link - http://www.irs.gov/uac/Form-W-2-Reporting-of-Employer-Sponsored-Health-Coverage.
Netchex allows you to manage this reporting using year-end tools located under MAINTENANCE > PAYROLL > Form
W-2 Health Care Coverage Reporting. Please visit this page to review your company’s setup and contact your Client
Service Representative should you have any questions.
2014 YEAR-END PACKET
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Other W-2 Information
Box 12 Code W will contain HSA contributions from the employer as well as pre-tax contributions made by the
employee. Please make sure all employer contributions are in the employees’ pay history.
Box 13 on the W-2 includes these categories:
 Statutory Employee
 Retirement Plan
 Third Party Sick Pay
The Retirement Plan box will be automatically checked if you have any plan funded via payroll deduction (401(k),
403(b), SIMPLE, etc.). Similarly, the Third Party Sick Pay box will be checked if your employee is paid through a
mapped earnings code. If any of these categories need to be checked for other reasons you can do so manually on
the employee’s Wage and Tax page or notify your Client Service Representative for assistance.
You can verify your company’s earnings and deduction mapping to the W-2 using the W-2 Verification Report
mentioned above (REPORTS > PAYROLL > YEAR END PAYROLL REPORTS > W-2 Verification Report).
Box 14 is used by Netchex to report the total amount of pre-tax deductions an employee has. This amount is
labeled PRE-TAX and is used for informational purposes only. Reporting in this box is not required by the IRS.
Allocated Tips – if you have completed your Form 8027 and determine that you will need to report allocated tips,
contact your Client Service Representative for assistance in setting up the appropriate earnings code and its
mapping to the W-2.
2014 YEAR-END PACKET
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YEAR-END TAX RETURNS AND W-2s
All clients will be rolled over to the 2015 tax year immediately following their last payroll processing in December.
We will start working on your quarter-end and annual returns on January 2. We will begin printing W-2s on January
5 and expect to have all packages completed and shipped by January 24. Please note, you will be able to monitor
your company’s status in this process via the Netchex Home Page > Netchex Info.
It is important to reiterate any requested changes made after December 30, 2014 may require us to re-process
your year-end returns and W-2 information. This may incur additional year end fees and may also result in delivery
of your W-2s later than expected. Any changes made after January 09, 2015 (year-end forms have been filed) may
require amended forms. These amendments will not be completed until after the month of February and will incur
additional year end fees. IMPORTANT - tax penalties and interest could result from tax payments made late due
to the timing of these adjustments.
W-2 Processing Fees for 2014
Charges for 2014 W-2 processing are:
 $50.00 base fee – this includes transmittal of your company’s W-2 information to the Social Security
Administration and an electronic copy of your W-2s and W-3.
 $3.95 per employee W-2 form
These fees will be debited from your registered Operating Account on Friday, January 23, 2015. An invoice
detailing the debit will be included with your W-2 shipment. The following table details fees based on when your
final data is sent to Netchex for year-end processing:
All Year-End Data
Submitted to Netchex by:
W-2 Forms
Company Forms
Additional Payroll Fees
December 30, 2014
$50.00 Base
$3.95 per W-2 Form
Delivery (see options below)
$50.00 Base
$3.95 per W-2 Form
Delivery (see options below)
$50.00 Base
$3.95 per W-2 Form
Delivery (see options below)
$15.00 per Amended Form
Included
Normal Payroll Fees apply
Included
$5.00 per check
($50.00 minimum per
adjustment payroll)
$5.00 per check
($50.00 minimum per
adjustment payroll)
January 09, 2015
After January 09, 2015
(original returns already filed)
$200.00 Base
$100.00 per Amended Form
New this year we have 3 options for distributing W-2s to your employees:

Option 1 – Traditional Method. All W-2s will be printed, sealed, and shipped to you in a single package
ready for mailing or distribution to your employees. Additional packaging/shipping charges apply - $15.00
for first 50 employees then $5.00 for each additional block of 50 employees.

Option 2 – Electronic Delivery. For clients using our Employee Self-Service module, employees will be
notified via email when their W-2 is available. They can then login to Netchex, consent to receiving their
W-2 electronically, and retrieve their W-2 as a PDF document. For those employees that do not consent or
retrieve their W-2 timely, Netchex will print and mail them a paper copy directly to their home address.
Please visit this link to elect electronic W2’s: http://netchexonline.com/w2s/.

This mailing will take place the week of January 26. Additional packaging/shipping charges apply - $1.10
per employee needing paper copy.

Option 3 – Direct Mail. All W-2s will be printed, sealed, and mailed directly to the employees’ home
address. This mailing will take place the week of January 26. Additional packaging/shipping charges apply $25.00 base charge per company plus $1.10 per employee needing paper copy.
2014 YEAR-END PACKET
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NOTE - You will automatically be setup for Option 1. If W-2s should be shipped to an address different than that
which we regularly deliver payroll you can update your information online in Netchex under MAINTENANCE >
HUMAN RESOURCES > CONTACTS > W-2-Contact. If you need assistance changing addresses or would like to
choose a different Delivery Method please contact your Client Service Representative prior to December 30,
2014.
1099-MISC Processing Fees for 2014
We will begin printing 1099s on January 19 and expect to have all packages completed and shipped by January 23.
You can configure your company for 1099 printing under MAINTENANCE > PAYROLL > 1099-MISC PROCESSING.
Here you can choose whether you want Netchex to print only or to print and file your 1099s. If print only, you can
choose specific 1099s you wish to print out of those available.
Charges for 2014 1099-MISC processing are:
 $50.00 base fee – this includes optional transmittal of your company’s 1099-MISC information to the
Internal Revenue Service and an electronic copy of your 1099-MISC and 1096.
 $3.95 per employee 1099-MISC form
These fees will be debited from your registered Operating Account on Friday, January 30, 2014. An invoice
detailing the debit will be included with your 1099-MISC shipment. All 1099s will be printed, sealed, and shipped to
you in a single package ready for mailing or distribution to your employees. Additional packaging/shipping charges
apply - $15.00 for first 50 employees then $5.00 for each additional block of 50 employees.
2014 YEAR-END PACKET
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PREPARING FOR 2015
Please send Netchex all of the following information:

Any filing frequency notices you may receive from the IRS and states that you have employees working in.
Be aware that these agencies do not inform Netchex of frequency changes and we will not be
responsible for any penalties or interest that may be charged if you do not inform us of the change. If
you have had a substantial increase in the wages paid in any state, you should contact a tax
representative with that state’s agency to ensure that your withholding frequency has not changed. We
ask that you fax these notices to our Tax Department at (866) 724-0805 upon receipt.

Any state unemployment rate notices for 2014. Most states send out notices of your unemployment rate
towards the end of the year. Be aware that the states do not inform Netchex of these rates and we will
not be responsible for any penalties or interest that may be charged if your rate is incorrect. We ask
that you fax the rate notification to our Tax Department at (866) 724-0805 upon receipt.

Notify Netchex Tax Department of any state withholding and unemployment ID numbers that you are no
longer using and plan to close.

Please be sure to contact our Customer Service Team if you need to change the maximum
employer contribution (match) on your qualified retirement plan. This maximum will be defined in
your plan documentation and may change year to year.
2015 Holidays Observed by the Federal Reserve
2014 YEAR-END PACKET
New Year’s Day
January 1
Birthday of Martin Luther King, Jr
January 19
Washington’s Birthday
February 16
Memorial Day
May 25
Independence Day
July 4
Labor Day
September 7
Columbus Day
October 12
Veterans Day
November 11
Thanksgiving Day
November 26
Christmas Day
December 25
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Employee FAQ – How do I read my W-2?
1.
What do I do if my name or SSN is wrong?
a. Speak to your company’s payroll department; a W-2C should be filed in replacement of the
incorrect W-2.
2.
What do I do if my address is wrong?
a. It is OK if your address on your W-2 is not accurate. You just need to use your correct address on
your tax returns and it is OK if it is different from your W-2.
3.
Why doesn’t the YTD on my last pay check of the year match my W-2 amounts?
a. Box 1 of your W-2 is for Federal taxable wages. To determine the amount of Box 1, your total
compensation is reduced by any pre-tax deductions or deferred earnings throughout the year.
4.
Why are Boxes 3 and 5 different than box 1?
a. Box 3 and 5 are for Social Security and Medicare taxable wages. Some earnings and/or
deductions such as 401(k) are Social Security taxable but NOT taxable for Federal Income Tax
(Box 1). If Boxes 3 and 5 don’t match each other, you probably reached the Social Security wage
cap. Social Security is only taxed on the first $117,000 wages (2014) but Medicare does not have
a cap.
5.
How can I prevent owing taxes when I file my annual return?
a. Verify that your employer has an accurate W-4 Form on file listing the proper number of
withholding allowances for your current situation. For guidance on choosing your proper
withholding allowance visit www.irs.gov and access their “IRS Withholding Calculator” tool http://www.irs.gov/Individuals/IRS-Withholding-Calculator.
6.
Where are my pre-tax deductions shown on the W-2?
a. For informational purposes, pre-tax deductions have been totaled and are listed under Box 14
with the label of PRE-TAX. There are also a few specific pre-tax deductions that are required to
be listed in other areas of the W-2 – refer to the Form W-2 instructions for their location.
7.
Why is the amount I had deducted for my HSA different than the amount in Box 12 Code W?
a. The IRS requires the combined employee and employer HSA amounts to be included in box 12
code W. Your last pay check of the year can be used to determine the employee contribution
amount and the employer contribution amount.
8.
What is the amount in Box 12 Code DD?
a. Many employers are now required to report the costs of coverage to each employee under an
employer sponsored group health plan. This is for informational purposes only and is not taxable.
The purpose of this reporting is to provide employees with useful and comparable consumer
information on the cost of their health care coverage. Note – not all employers are required to
report this in 2014.
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