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Checklist : PayYes
helps you plan ahead and organize year-end activities.
1. Verify the employer and employee data that is used
in processing your quarterly tax report and W-2s.
2. Confirm that employee names and social security numbers
are in the correct format.
3. Check wage, tax and benefits data.
4. Remind employees to fill out a new Form W-4 if their
situation has changed.
5. Determine whether all adjustments are applied or
that an adjustment payroll has been scheduled.
6. Ensure adequate payroll supplies to complete the
year and to begin the new year, including blank checks,
payroll forms and blank Form W-2s.
- Payroll Tax Deposit
Your year 2005 deposit schedule is determined from
the total taxes reported on the Forms 941 you filed
in a four-quarter lookback period, between July 1,
2003 and June 30, 2004.
If
you reported total taxes of . . .
-$50,000 or less, you are a monthly
depositor
-more than $50,000, you are a semiweekly
depositor
But, there are two exceptions:
1. Businesses that have accumulated less than $2,500
in quarterly employment taxes will be allowed to make
payments every three
months, rather than on a monthly basis.
2. If you accumulate a tax liability of $100,000 or
more on any day during a deposit period, you must
deposit the tax by
the next banking day,
whether you were a monthly or semiweekly depositor.
You must use EFTPS
(electronic transfer of deposit funds) to make deposits
of all depository tax liabilities (including social
security, Medicare, withheld income, excise, and corporate
income taxes) which you incur in 2005, if you deposited
more than $200,000 in Federal depository taxes in
2003, or you had to make electronic deposits in 2004.
If you first meet the $200,000 threshold in 2004,
you must begin depositing using EFTPS in 2006. Once
you meet the $200,000 threshold, you must continue
to make deposits using EFTPS in later years.
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