Consulting and Upgrades
Looking for the W2 and W3 official instructions for preparing year end employee tax forms? The IRS published this guide (see below) in November 2011 which also includes a handy list of W2 Box 12 form codes and their proper use.
The DOL released its long-anticipated list of 2011 FUTA “credit-reduction” states on November 18, 2011. Employers in these 20 states and the Virgin Islands will experience associated tax increases.
The standard FUTA rate is 6.0% on the first $7,000 of wages. Employers in most states receive a credit of 5.4% against the rate, resulting in a net tax rate of .6%. However, some states had Federal Unemployment Trust Fund loans – taken to keep their unemployment insurance benefit programs solvent during recent periods of extended high unemployment that were still outstanding. As a result, these states will have their FUTA credit amount reduced for 2011 filing in a way to recover funds still owed to pay back these loans, resulting as noted, in higher taxes for employers in those states.
Instead of the standard 5.4% credit allowed, employers in these states will have a reduced credit of 5.1% for 2011, making their FUTA tax rate .9%.
Arkansas
California
Connecticut
Florida
Georgia
Illinois
Kentucky
Minnesota
Missouri
North Carolina
New Jersey
Nevada
New York
Ohio
Pennsylvania
Rhode Island
Virginia
Virgin Islands
Wisconsin
The following exceptions apply:
Employers in Indiana will have their credit reduced from 5.4% to 4.8% for 2011, making their FUTA tax rate 1.2%
Employers in Michigan will have their credit reduced from 5.4% to 4.5% for 2011, making their FUTA tax rate 1.5%
IMPORTANT NOTE: All rate calculations above are based on the current FUTA rate of 6.0%. This rate has been in effect since 7/1/11, when the .2% FUTA surtax expired. It is not known at this time how the IRS will handle the split year rates on its FUTA credit reduction calculations. Further guidance from the IRS is forthcoming.
The credit reduction only applies to employers who SUI wages to the states listed above. All other employers will receive the full FUTA tax credit of 5.4%.
IRS RULES CHANGE FREQUENTLY. CONSULT YOUR TAX ADVISOR FOR THEIR ASSISTANCE WITH THE ABOVE.
We believe the information above is accurate as of the date published – 11/29/11 – though changes may occur which are NOT reflected above. Schulz Consulting is NOT in the business of providing tax or accounting advice. You are advised to only make changes based on the advised of your financial professional.
Did you know that within all versions of Sage ERP MAS 90 and MAS 200 4.3 and higher there is a tool to print tax forms to plain paper – at no additional cost?
And for a small additional fee Sage will electronically file those forms with the federal government.
Sage posted an updated Sage ERP MAS 90 and 200 Federal & State eFiling and ReportingFrequently Asked Questions document in their partner file center. The eFiling is a relatively new component of Sage ERP MAS 90 and 200 and was added in version 4.30 for all users of the product.
What’s unique (and great) about the eFiling is clients can use this to print forms on plain paper — at no additional cost. There’s only a cost if they want to also have Sage submit (aka eFile) the forms on their company’s behalf.
It appears that Sage have updated their question #7 on this FAQ to include more volume pricing options for those with large numbers of employees. There’s not yet any volume information for 1099 filing which may become more of an issue for our customers if the government lets stand a ruling which in 2012 will require many more 1099 transactions to be reported.
Here’s the latest on changes for your 2009 FYE
Sage MAS 90 and 200 Year-End Updates
Sage MAS 90 and 200, 2009 year-end changes are limited to the 1099 portion of Electronic Reporting (formerly Magnetic Media Reporting) and form printing of W2s for New Jersey Family Leave Insurance Disability Insurance Private Plan Numbers.
When using Sage MAS 90 and 200 version 4.3 Federal and State eFiling and Reporting, you will no longer need to apply the IRD for 1099 or W2 printing, or Electronic Reporting. However, you will still need to download and install the Q1 2010 Tax Table Update.
We expect that on December 18 you will be able to access Federal and State eFiling and Reporting within the Payroll module to update W-2s or 1099s, and for updates to 1099s from the Accounts Payable module. Simply accessing eFiling and Reporting within Sage MAS 90 and 200 will prompt you to apply the online automated update.