2008-2009 Payroll Checklist

DUE DATES FOR YEAR-END 2008 AND YEAR-BEGINNING 2009

by Lorelei M. Krucki, CPP, Instructor, St. Petersburg College, St. Petersburg, FL; Member, AIPB Board of Advisors.

By Dec. 1, 2008

�� Remind employees that if there has been a change in their filing status (marriage or divorce) or number of dependents (birth, adoption, child turning 21), that they may want to file a new W-4 for 2009.

�� See that employee paycheck names/SSNs match those on their SS card and/or W-4.

�� The Special Accounting Rule. Your firm may elect to treat taxable noncash fringes (i.e., personal use of company cars) provided any time in November-December 2008 as paid in 2009. (If you make this election for tax year 2008, you must notify affected employees no later than Jan. 31, 2009.)

Before Dec. 31, 2008

�� Do not apply the EITC to wages paid after this date unless you have a new W-5. Paychecks dated 2009 are 2009 wages, even if earned in 2008.

�� Check each employee’s SS withheld. If anyone exceeded the 2008 limit of $6,324.00, make adjustments/refunds before making the final payroll tax deposit for tax year 2008. Leave enough time to make adjustments and make refunds.

�� If you use a payroll service, consider asking for an adjustment run before you close out 2008 and run your W-2s. Verify and correct:

�� relocation expense reimbursements;

�� manual or voided paychecks that have not been put in the system;

�� personal use of company vehicles;

�� company-paid educational assistance; and

�� other taxable items paid via accounts payable.

�� Checks received in 2008 must be reported on the 2008 W-2, even if the check is dated 2009. Note: The employee must have had access to the wages without substantial limitation or restriction.

By Jan. 1, 2009

�� Process 2009 Forms W-4 and W-5 before making first wage payment in 2009.

By Jan. 16, 2009

�� Follow up on payroll checks outstanding for more than two pay periods to allow sufficient time to void and reissue checks before processing 2008 W-2s.

�� Verify that total taxes withheld and SS-taxable and Medicare-taxable wages reported on 2008 quarterly 941s equal totals of 2008 W-2s to be distributed.

�� If a third party made short- or long-term disability payments and is not issuing W-2s, you should now have 2008 data on payments and taxes withheld.

By Jan. 20, 2009

�� For DC, Form 2008 FR-900B due or within 20 days of your final payroll. If you have 50 or fewer Forms W-2, attach them to this form.

By Jan. 31, 2009

�� If you elected to use the Special Accounting Rule, you must notify employees by this date.

�� W-2 copies B, C, and 2 should be in employees’ possession, postmarked or available on a Web site (Feb. 15, 2009, for ME, NE, NJ, NY, and WV).

�� Have 1099-MISC, copies B, C and 2 for independent contractors whom you paid $600 or more for tax year 2008 postmarked by this date or available online.

By Jan. 31, 2009 (continued)

�� For ID, annual filers must file with payment annual reconciliation Form 956.

�� Postmark 1099-R copies B, C and 2 for recipients of pension, retirement, profitsharing, IRA, insurance, contract or other distributions by this date.

By February 2, 2009

�� State copy of the annual reconciliation due in CA (employee information is filed quarterly on the DE 6), KY, MS (if filing by paper), PA, PR, and WI. For MS, W-2s filed magnetically are due Feb. 28.

�� Form 941 or Form 944 due.

�� Form 940 due, unless all FUTA taxes were timely paid in 2008.

�� Form 945 due, to report non-payroll income tax.

By Feb. 10, 2009

�� Form 941 due. Form 940 or 940-EZ due if all 2008 FUTA taxes were timely paid and for the full amount.

By Feb. 16, 2009

�� Request new W-4s from employees who claimed exempt in 2008.

�� State copy of the annual reconciliation due in NJ. The state deadline is Feb.15, but the state will allow on Feb. 28.

�� Employees in NE, NJ, NY, and WV should have copies B, C and 2 of the W-2 on the Web site by this date.

�� Start withholding at single with no allowances from employees who claimed exempt in 2008 and did not submit a new 2009 W-4.

Due or postmarked by March 2, 2009

�� Paper W-2s, copy A, and W-3 at the SSA.

�� Paper 1099-MISC, W-2, 1099-R, W-2G and 1096, copy A, at the IRS.

�� Paper Form 8027, Annual Tip Report, at the IRS.

�� State copy of the annual reconciliation due in AL , AZ, AR, CO (not required), CT, DC, DE, HI, IA, IL, IN, KS, LA, MA (if filing paper W2s), ME, MD, MI, MN, MO (if using a medium other than paper), MS, MT, NJ, NY, NC, ND, OH, OR, RI, SC, UT, VT, VA and WV.

By March 16, 2009

�� Forms 1042-S and 1042 due at the IRS.

�� For NE employers, annual reconciliation and copy 1 due; if 250 or more W-2s, it must be filed electronically.

By March 31, 2009

�� File electronic Form 8027 with the IRS.

�� Electronic or magnetic media W-2s due in CO, CT, DE, ID, MA, ME, ND, and UT.

�� Electronic 1099-MISC, and 1096, copy A, at the IRS; electronic W-2, copy A, at the SSA and Forms 10999, W-2G and 8029 due at the IRS. States that do not require W-2’s to be filed with the state:

�� IA. Do not file W-2s, but keep copies on file (in case they are requested) for 3 years from the end of the year being reconciled.

�� IL. File annual reconciliation only. Keep copies of W-2s for 3 years and send only to the Department of Revenue if requested on magnetic media.

�� OK.

�� ME. Required only if employer failed to report quarterly W-2 information.

�� OR. File annual reconciliation only. Do not file W-2s.