Payroll Update: Revised Tax Tables

Intuit has released Payroll Update 21301, with revised tax tables. Several forms updates are included for Standard and Enhanced Payroll customers. This email also provides details on the following:
It's important that you receive everything in the Payroll Update so that you will be in compliance with legislation that affects your payroll. For details on the contents of this update, open QuickBooks, go to Employees > Get Payroll Updates, and click on thePayroll Update Info button.
How do I know I have the Payroll Update?To make sure that you have received the latest update, open QuickBooks and choose Employees > Get Payroll Updates. You should see a message that says, "You are using tax table version: 21301."
If you do not have version 21301, click Update. For more detailed instructions, click here.
QuickBooks also provides an automatic updates feature for Payroll Updates. To turn it on, choose Help > Update QuickBooks. On the Options tab, select Yes for Automatic Update. For more information, click here.
Disk delivery customers: The next disk delivery is scheduled for late December 2012. If you have an internet connection, we strongly recommend that you download this update now. Simply follow these instructions to install the update.

New Payroll Tax Item: Medicare Employee Addl Tax
Beginning January 1, 2013, employers will be responsible for withholding an additional 0.9% Medicare tax from an employee's wages and compensation paid over $200,000 in a calendar year. A new payroll tax item, Medicare Employee Addl Tax, is provided in Payroll Update 21301. Click here for details on how Intuit QuickBooks Payroll will support the additional tax.
What do I need to do next?
If you have employees who are subject to Medicare tax, you should set up the new payroll tax item in QuickBooks prior to creating paychecks for 2013. The Intuit Payroll team has created a brief guide with instructions to help you with setup. Click here to view the Additional Medicare Tax User Guide.
For more information, visit the IRS Questions and Answers for the Additional Medicare Tax website.
Federal Payroll-Related Changes
There are several federal payroll-related items that may affect you as an employer.
For tax year 2012, there are changes to the Federal Unemployment Tax (FUTA) - FUTA Credit Reduction, Form 940 and Schedule A (Form 940) and changes in the Form W-2 and W-3.
For tax year 2013, there are updates to the Social Security rates and wage base and a new Additional Medicare Tax.
For details on each topic and to see how Intuit QuickBooks is supporting these changes,click here.
Holiday Impact on Payroll Processing
Be sure to plan ahead for upcoming holidays as you schedule your payroll activities. Click here for more information.

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