Small Business Payroll Software

Posts Tagged ‘2009’

Ultimate Software www.ultimatesoftware.com is a leading provider of unified human capital management SaaS solutions for global businesses, offering award-winning UltiPro® as SaaS to manage a worldwide workforce. UltiPro provides a comprehensive approach to manage the employee life cycle, from recruitment to retirement, and includes feature sets for talent acquisition and hiring; onboarding; payroll; HR compliance; online benefits enrollment and management; performance management and reviews; learning management; business intelligence; real-time reporting; time and attendance; plus a self-service Web portal for executives, managers, administrators, and employees. Founded in 1990 and based in Weston, FL, Ultimate employs approximately 1000 professionals who are focused on developing the highest quality products and services. In 2009, Ultimate was awarded first place in the People’s Choice Stevie® competition for Favorite New SaaS Product and was ranked the #1 best medium-sized company to work for in America by the Great Place to Work® Institute for the second consecutive year. In 2008, Ultimate was the first HR SaaS provider to be audited and awarded the ISO/IEC 27001:2005 Certification for security management and was recognized for having the #1 “Best Product Development Team” in the US by the American Business Awards. Ultimate has more than 1900 customers representing diverse industries, including organizations such as Adobe Systems Incorporated, The Container Store …

Cascade’s 2009 User group at Aspire 23 Sept 2009 at which V4 release of the Cascae Human Resources & Payroll software is released. Customer feedback on the day.

As in past years the IRS issued a 2009 tax guide for employers. Below is a summary of the new changes for the new year.

1.  Social security and Medicare taxes (rate and cutoff)

Employers must stop withholding social security tax after an employee reaches $106,800 in social security wages in 2009. The maximum social security withholding amount in 2008 was $102,000. This change will require employers to update their accounting or payroll software, either by downloading a new version from the software vendor or by updating the tax tables in their existing payroll system. There is no limit on the amount of wages subject to Medicare tax. Medicare taxes also apply to the wages of household workers an employer pays $1,700 or more in cash. Social security and Medicare taxes apply to election workers who are paid $1,500 or more. The change in the social security withholding cutoff mainly affects employers who have high income employees, making more than 106,800 dollars each year.

 2.  New employment tax adjustment and claim for refund process

The IRS is introducing two new forms for the 2009 tax year: Form 941-X, Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund, and Form 944-X, Adjusted Employer’s ANNUAL Federal Tax Return or Claim for Refund.

To correct employment tax errors discovered on or after January 1st 2009, employers should use the new corresponding “X” forms to correct employment tax errors as soon as they are discovered. For example, employers should use the new Form 941-X, Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund, to correct errors on a previously filed Form 941.

For overpayments: Employers can choose to make an adjustment or claim a refund on the corresponding “X” form.

For underpayments: Employers correcting an underpayment must use the corresponding “X” form. Amounts owed must be paid by the receipt of the return. Payments can be made using EFTPS, by sending a check, or by credit card.

3.  Credit card payments

Employers can pay the balance due on Form 943 (Employer’s Annual Federal Tax Return for Agricultural Employees) and Form 945 (Annual Return of Withheld Federal Income Tax) by credit card. Employers can’t use a credit card to make federal tax deposits.

4.  Social Security Administration and magnetic media

Employers requesting verification of names and social security numbers between 51 and 250,000 employees can no longer use magnetic media to submit their requests to the Social Security Administration. Employers can upload a file through the Social Security Number Verification System (SSNVS). The Social Security will review usage of SSNVS to ensure that employers are using it for the proper purposes. It is not proper to use SSNVS for non-wage reporting purposes, such as identity, credit checks, mortgage applications, etc. The employer can verify up to 250,000 names/SSNs with a correctly formatted SSNVS file. Social Security will not be able to process a file that is not in the correct format. To create the file you will need one column that is at least 130 characters long. This column will hold all data for each record. To get specifications for the record layout, select “Submission File Format” from the SSNVS Handbook from the Social Security website.

5.  Paid preparers must sign Form 941 and Form 944

The paid preparer’s section is no longer optional and is included in Part 5 of Form 941(Employer’s QUARTERLY Federal Tax Return) and Form 944 (Employer’s QUARTERLY Federal Tax Return).

Employers using an up to date 2009 Payroll Software to do payroll and calculate withholding, shouldn’t have a problem dealing with any of these changes for tax year 2009.

1.   February:

Furnish 1099-MISC Forms to independent contractors and W-2 forms to employees who worked for you during 2008.

Deposit FUTA (Social Security and Medicare) tax owed through Dec 2008 if $500 or less.

File 2008 Form 940 (Employer’s Annual Federal Unemployment (FUTA) Tax Return). Use Form 940 to report your annual Federal Unemployment Tax Act (FUTA) tax. Together with state unemployment tax systems, the FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs. Most employers pay both a federal and a state unemployment tax. Only employers pay FUTA tax. Do not collect or deduct FUTA tax from your employees’ wages. The FUTA tax applies to the first $7,000 you pay to each employee during a calendar year after subtracting any payments exempt from FUTA tax.

Deposit Payroll tax for January if the monthly deposit rule applies.

2.   March:

File Form W-3 (Transmittal of Wage and Tax Statements) with Copy A of all Forms W-2 you issued in 2008.A Form W-3 Transmittal is completed only when paper Copy A of Form(s) W-2, Wage and Tax Statement, are being filed. Do not file Form W-3 alone. Do not file Form W-3 for Form(s) W-2 that were submitted electronically to the Social Security Administration. All paper forms must comply with IRS standards and be machine readable.

Deposit Payroll tax for February if the monthly deposit rule applies.

3.   April:

 File Form 941 for the 1st quarter of 2009. You can use a payroll software to generate this form for you. Form 941 is used to report the following amounts.
      *   Wages you have paid.
      *   Tips your employees have received.
      *   Federal income tax you withheld.
      *   Both the employer’s and the employee’s share of social security and Medicare taxes.
      *   Current quarter’s adjustments to social security and Medicare taxes for fractions of cents, sick pay, tips, and group-term life insurance.
      *   Prior quarters’ adjustments to payroll taxes.
      *   Advance earned income tax credit (EIC) payments.

Deposit FUTA tax owed through March if more than $500.

Deposit Payroll tax for March if the monthly deposit rule applies.

4.   May, June:

Deposit Payroll tax for the month before if the monthly deposit rule applies.

5.   July:

Deposit Payroll tax for June if the monthly deposit rule applies.

Deposit FUTA owed through June if more than $500.

File Form 941 for the 2nd quarter of 2009.

6.   August, September:

 Deposit Payroll tax for the month before if the monthly deposit rule applies.

7.   October:

Deposit Payroll tax for September if the monthly deposit rule applies.

File Form 941 for the 3rd quarter of 2009.

Deposit FUTA owed through September if more than $500.

8.   November:

Ask employees whose withholding allowances will be different in 2009 to fill out a new Form W-4.

Ask employees who want to receive advanced earned income credit payments during 2009 to complete Form W-5. The EIC is a credit for certain workers. It reduces the tax an employee owes. It may give the employee a refund even if s/he doesn’t owe any tax.

Deposit Payroll tax for October if the monthly deposit rule applies.

9.   December:

Deposit Payroll tax for November if the monthly deposit rule applies.

Verify the names and Social Security Numbers of your employees by using the Social Security Number Verification Service (SSNVS).The Social Security Number Verification Service (SSNVS) allows employers to match their record of employee names and Social Security numbers (SSNs) with Social Security records before preparing and submitting Forms W-2. Making sure names and SSNs on the W-2 match our records is important because unmatched records can result in additional processing costs for you and un-credited earnings for your employees. Un-credited earnings can affect future eligibility to (and amounts paid under) Social Security’s retirement, disability and survivors program.

Place your order for W-2 forms for employees and 1099 forms for independent contractors. To order official IRS forms, call 1-800-TAX-FORM (1-800-829-3676) or Order Information Returns and Employer Returns Online, and the IRS will mail you the scannable forms and other products. You can also use W2 1099 Software to generate these forms.

Remind your employees to update their W-4 forms. The W-4 Form is completed by an employee so the employer can withhold the correct amount of federal income tax from his or her pay.

For more useful information about Payroll Terms, Payroll Software and payroll taxes, please follow the the link below: http://www.realtaxtools.com

Seloger.com: 2009 Full-Year Results
2009 Results in Line With Top Range of Target as Announced

Read more on PR Newswire via Yahoo! Finance

• General ledger, payables, and receivables
• Checkwriting, invoicing, billing, and payroll
• Process credit cards
• Generate custom reports
• Import product and contact data

Product Description
Bookkeeper enables you to organize and manage your daily accounting tasks from one screen. Easily write checks, pay bills, process payroll, invoice customers, track receivables, prepare for taxes, process credit cards, manage inventory, generate reports, and more. Bookkeeper gives you all the tools you’ll ever need at an affordable price…. More >>

Bookkeeper 2009