2014 Payroll Checklist and 2015 Update

Payroll Checklist Fort CollinsYou may download a pdf of this 2014 Payroll Checklist here.

Following is a checklist to help employers with 2014 year-end payroll and prepare for 2015.

2014 Due Dates. Payroll tax payments and reports due dates vary depending on your company’s requirements. December payroll tax deposit for monthly depositors is due January 15, 2015. Fourth quarter payroll tax reports and quarterly deposits under $2,500 are due February 2, 2015. This is also the due date for businesses to provide W‐2’s to employees.

Colorado Due Dates. If you file paper W-2s with transmittal form DR 1093, the deadline is March 2, 2015. Any unpaid tax is also due on this date. If you file online through Revenue Online, the deadline is March 31, 2015.

In order to prepare accurate payroll reports and W-2’s, Rickards & Company needs the following information at least ONE WEEK PRIOR TO YOUR LAST SCHEDULED PAYROLL OF THE YEAR:

  1. Verifying Employee Information. Ask employees to verify that their name, address, and SSN are correct on their paycheck. The name & SSN should match the current W-4 on file. Employees who have changed their name due to marriage or divorce should not have it changed in the payroll program until they have received an updated social security card. Please, forward to our office any employee changes ASAP.
  2. Auto Usage. If a company vehicle is used by any owner or employee for non-business purposes, please provide the description and value of the car, the number of personal miles used, the total number of miles driven and the name of the employee. This information is used to calculate the amount of the fringe benefit to be included in the employee’s W-2 income. This income is subject to federal and state income tax, as well as Social Security, Medicare, FUTA and SUTA.
  3. Employer HSA contributions. Please provide any employer-funded amounts contributed to employee Health Savings Accounts for 2014. Provide HSA contributions for the owners separately and indicate if paid personally or by the company.
  4. S-Corp Health Insurance Premiums. If you are organized as an S-Corporation, we need to include company paid health insurance premiums for each shareholder on their W-2. Rules regarding SEHI (Self-Employed Health Insurance) for 2% shareholders:
    • SEHI deduction is allowed whether policy is in the name of the business or the individual.
    • Include in SEHI premiums paid for spouse and dependents (or children under 26).
    • If policy is owned and paid for by corporation – report as compensation on shareholder’s W-2 (box 1 and box 14). Health insurance is not subject to FICA tax.
    •  If policy is owned by shareholder – S-corporation must pay or reimburse premium during tax year; report as compensation on shareholder’s W-2 in order to qualify for the deduction.
    • Medicare Part B and Long Term Care insurance (up to certain limits) premiums qualify as SEHI if they are reimbursed by the corporation.
    • SEHI deduction is limited to the shareholder’s FICA wages from the corporation.
    • Deduction is not available if taxpayer is eligible to participate in any subsidized health plan maintained by any employer of the taxpayer or spouse. 3711 JFK Parkway, Suite 240 Fort Collins, CO 80525 Phone 970-493-6869 Fax 970-416-0040 www.rickardscpas.com

2015 PAYROLL UPDATE

By the end of November each employer should receive their state unemployment tax rates and tax deposit frequencies for 2015. Please email or fax this information to us as soon as you receive it.

Form W-4.

At the beginning of 2015, employers should remind employees to file an amended W-4 if their filing status, exemptions, or exempt status has changed since they filed their last W-4 form.

If you have any employees claiming exempt from federal withholding on their Form W-4 for 2014, this form expires January 1, 2015. They have a grace period until February 16, 2015 to submit a new 2015 form to you. If the new form is not received by that date, IRS regulations require you to change the allowances to “zero” and the filing status to “single” until a new form is received. You may download a 2015 W-4 here or you may contact our office.

2014 & 2015 Social Security tax:

  • 2014 Wage Base: $117,000; Maximum deduction: $7,254.00
  • 2015 Wage Base: $118,500; Maximum deduction: $7,347.00
  • Rate: 6.2% (both employee and employer match).

2014 & 2015 Medicare tax:

  • Wage base: No wage limit.
  • Rate: 1.45%

Employee wages in excess of $200,000 are subject to an extra 0.90% (only the employee-paid portion, employer does not pay additional tax).

Federal Standard Mileage Rates:

  • 2014 mileage rates: standard business mileage rate of $0.56;
  • 2015 mileage rates: standard business mileage rate of $0.575

Retirement Plan Limits.The elective deferral (contribution) limit for employees is:

2015  |   Max Contribution   |   Catch-up (age 50 and over)

401(k)  plans $18,000 (up $500) $6,000 (up $500)

SIMPLE plans $12,500 (up $500) $3,000 (up $500)

Employee contribution is required to be deposited to the plan account within seven days of when it was withheld.

Employer Contribution / Match.The maximum contributions allowed are:

  • 2014 401(k) plans –25% of wages, limited to lesser of 100% of wages or $52,000.
  • 2015 401(k) plans –25% of wages, limited to lesser of 100% of wages or $53,000.
  • SEP plans – 25% of wages, up to maximum $52,000 (2014) and $53,000 (2015).
  • SIMPLE plans – up to 3% of wages.

The employer contributions are due no later than the extended due date of the business tax return. For 2014 contributions, the due date is September 15, 2015.

You may download a pdf of this 2014 Payroll Checklist here.