Audit employee data to ensure you are not missing critical Form W-2 information like complete Social Security numbers, employee names, and addresses. The Internal Revenue Service (IRS) may impose a penalty for each Form W-2 with a missing or incorrect Social Security number or employee name. If there are errors, you would then be subject to the following penalties:
Large Businesses with Gross Receipts of More Than $5 Million
Time Returns Files/Provided | Not More Than 30 Days | 31 Days Late - August 1 | After August 1 - Not at All | Intentional Disregard |
---|---|---|---|---|
Due 1/1/2021 - 12/31/2021 | $50 per return or statement –
$556,500 maximum | $110 per return or statement –
$1,669,500 maximum | $270 per return or statement –
$3,339,000 maximum | $550 per return or statement –
No limitation |
Small Businesses with Gross Receipts $5 Million or Less
Time Returns Files/Provided | Not More Than 30 Days | 31 Days Late - August 1 | After August 1 - Not at All | Intentional Disregard |
---|---|---|---|---|
Due 1/1/2021 - 12/31/2021 | $50 per return or statement –
$194,500 maximum | $110 per return or statement –
$556,500 maximum | $270 per return or statement –
$1,113,000 maximum | $550 per return or statement –
No limitation |
Furthermore, employee Forms W-2 and 1095-C must match what is printed on social security cards. For example, if an employee’s name is hyphenated on their social security card, but not on their Form W-2 or Form 1095-C, the IRS will return this as an error. Failure to verify this information as correct may result in penalties.
If you are not careful, these types of errors can add up to a sizable penalty. For some employees, updated addresses can be garnered from a new W-4 if their withholding allowances have changed or will change next year. Remind employees to fill out a new W-4 if their situation has changed:
Employers need to make sure all employee data is accurate, so they can avoid W-2 reprint fees. Employers who use a payroll processing company may have an online service where employees can review and correct data. If so, encourage your employees to use it as a means to review and edit critical data.
W-2 and 1099 Filing Deadlines
Due Date | Deadline |
---|---|
January 31st | Supply W-2s to employees and ex-employees who worked in 2021. Supply 1099s to independent contractors who worked in 2021, as well as other payees. |
January 31st | File paper W-2s and 1099s.
|
January 31st | e-File W-2s and 1099s. |
It is recommended you distribute W-2s and 1099s before the end of January. Mail or e-File copies of Forms W-2 and 1099 with government agencies. Send W-2s and W-3s to the Social Security Administration. Submit 1099s along with Form 1096 to the IRS. You may also have to mail or e-File copies of these forms to a certain state(s), along with any state transmittal forms required, so check the requirements. Many localities also require copies of informational returns, so double-check this as well.
Form 940 Filing Deadlines
Due Date | Deadline |
---|---|
January 31st | Submit Form 940 and deposit FUTA if your company owes any remaining amount.
|
February 10th (not recommended) | File Form 940 if your company has paid all deposits on time. |
Submit Form 940 for Federal Unemployment Insurance (FUTA). The FUTA tax rate is 0.6 percent, which applies to the first $7,000 in wages you paid each employee during the year. However, if you did not pay your state unemployment taxes on time, your FUTA rate will increase to 6.0 percent.
For additional information, please visit our FUTA Credit Reduction page. If your company owes more than $500 in FUTA tax for the calendar year, you must deposit at least one quarterly payment. View the IRS’ Publication 940 Employer’s Annual Federal Unemployment (FUTA) Tax Return for more information.
Something to Consider: If your company is filing 250 or more Form W-2s, the Social Security Administration (SSA) requires they be filed electronically unless a waiver has been granted. You may file electronic W-2s using the SSA’s Business Services Online (BSO) website. There is no charge for this service and you can register online.
Form 940 Filing Deadlines
Due Date | Deadline |
---|---|
January 31st | Submit Form 940 and deposit FUTA if your company owes any remaining amount.
|
February 10th (not recommended) | File Form 940 if your company has paid all deposits on time.
|
Something to Consider: If your company is filing 250 or more Form W-2s, the Social Security Administration (SSA) requires they be filed electronically unless a waiver has been granted. You may file electronic W-2s using the SSA’s Business Services Online (BSO) website. There is no charge for this service and you can register online.
This timeline can vary depending on your company’s benefits year. Review benefits renewals with current carriers and prepare an eligible employee/participant census to market a group for optional coverage with carriers.
Carriers require a complete census showing all eligible employees and all employees currently enrolled in benefits, along with the following:
Utilize your benefits administration system to conduct your benefits renewal reviews and prepare your census. Doing so will ensure all your data is accurate before submitting benefits plan information to your providers.
If your organization is not utilizing a benefits administration system, conducting open enrollment can be a challenge. APS’ Benefits Administration solution houses this necessary information in a unified database, making it easy to manage the following:
Determine if you had 50 or more full-time and full-time equivalent (FTE) employees in the previous calendar year and what type of insurance (self-insured or fully insured) you offered. If your provider offers an FTE Calculator, you can use it to determine how many full-time and FTE employees you had in the previous calendar year. Using this number and the type of coverage you offer, determine what forms you must use to report:
Note: When the combined total of full-time and FTE employees in a controlled group is 50 or more, each individual employer is subject to reporting.
If you are required to report, gather the information you need to complete the applicable forms and determine which reporting method you will be using. Depending on how you report, you will need to compile data, including:
ACA Annual Reporting Deadlines
Due Date | Deadline |
---|---|
January 31st* | Supply Forms 1095-C to employees.
|
February 28th | File paper Forms 1095-C with transmittal Form 1094-C.
|
March 31st | e-File Forms 1095-C with transmittal Form 1094-C.
|
APS’ Affordable Care Act solution takes the complexity out of the ACA. Our error-checking algorithm ensures codes are valid and data is formatted correctly for reporting. Accurately capture and report health plan coverage information to the IRS with pre-populated forms. ACA tracking has never been easier. We’ll even e-file for you.
Review employee classifications on a regular basis to ensure compliance. Refer to the duties tests and guidance provided by the Department of Labor to manage your employee classification.
For employer-sponsored plans providing prescription drug coverage, Medicare Part D reporting is due on October 15. Also, distribute creditable coverage disclosure notices to Medicare-eligible participants on October 15. The Centers for Medicare and Medicaid Services (CMS) provides guidance and sample notice forms.
Now is the time of year to start reviewing your existing budget and planning for next year. Here are some items to consider:
Open Enrollment
Open enrollment is a huge and overwhelming part of your yearly HR tasks - but it doesn’t have to be. Ask yourself the following questions and consider using a unified solution that can simplify your benefits administration:
A core HR solution using a centralized database that includes benefits administration with carrier connections for transmission of paperwork to benefits providers makes open enrollment a much easier process to manage.
Special tax law provisions may help businesses recover financially from the impact of a disaster. Depending on the circumstances, the IRS may grant additional time to file returns and pay taxes. Visit the IRS website for more information.
Audit employee data to ensure you are not missing critical Form W-2 information like complete Social Security numbers, employee names, and addresses. The Internal Revenue Service (IRS) may impose a penalty for each Form W-2 with a missing or incorrect Social Security number or employee name. If there are errors, you would then be subject to the following penalties:
Large Businesses with Gross Receipts of More Than $5 Million
Time Returns Files/Provided | Not More Than 30 Days | 31 Days Late - August 1 | After August 1 - Not at All | Intentional Disregard |
---|---|---|---|---|
Due 1/1/2021 - 12/31/2021 | $50 per return or statement –
$556,500 maximum | $110 per return or statement –
$1,669,500 maximum | $270 per return or statement –
$3,339,000 maximum | $550 per return or statement –
No limitation |
Small Businesses with Gross Receipts $5 Million or Less
Time Returns Files/Provided | Not More Than 30 Days | 31 Days Late - August 1 | After August 1 - Not at All | Intentional Disregard |
---|---|---|---|---|
Due 1/1/2021 - 12/31/2021 | $50 per return or statement –
$194,500 maximum | $110 per return or statement –
$556,500 maximum | $270 per return or statement –
$1,113,000 maximum | $550 per return or statement –
No limitation |
Furthermore, employee Forms W-2 and 1095-C must match what is printed on social security cards. For example, if an employee’s name is hyphenated on their social security card, but not on their Form W-2 or Form 1095-C, the IRS will return this as an error. Failure to verify this information as correct may result in penalties.
If you are not careful, these types of errors can add up to a large penalty. For some employees, updated addresses can be garnered from a new W-4 if their withholding allowances have changed or will change next year. Remind employees to fill out a new W-4 if their situation has changed:
Employers need to make sure all employee data is accurate so they can avoid W-2 reprint fees. Employers who use a payroll processing company may have an online service where employees can review and correct data. If so, encourage your employees to use it as a means to review and edit critical data.
Due Date | Deadline |
---|---|
January 31st | Supply W-2s to employees and ex-employees who worked in 2021. Supply 1099s to independent contractors who worked in 2021, as well as other payees. |
January 31st | File paper W-2s and 1099s. |
January 31st | e-File W-2s and 1099s. |
It is recommended you distribute W-2s and 1099s before the end of January. Mail or e-File copies of Forms W-2 and 1099 with government agencies. Send W-2s and W-3s to the Social Security Administration. Submit 1099s along with Form 1096 to the IRS. You may also have to mail or e-File copies of these forms to a certain state(s), along with any state transmittal forms required, so make sure to check the requirements. Many localities also require copies of informational returns, so double-check this as well.
Due Date | Deadline |
---|---|
January 31st | Submit Form 940 and deposit FUTA if your company owes any remaining amount. |
February 10th (not recommended) | File Form 940 if your company has paid all deposits on time. |
For additional information, please visit our FUTA Credit Reduction page. If your company owes more than $500 in FUTA tax for the calendar year, you must deposit at least one quarterly payment. View the IRS’ Publication 940 Employer’s Annual Federal Unemployment (FUTA) Tax Return for more information.
Something to Consider: If your company is filing 250 or more Form W-2s, the Social Security Administration (SSA) requires they be filed electronically unless a waiver has been granted. You may file electronic W-2s using the SSA’s Business Services Online (BSO) website. There is no charge for this service and you can register online.
Review and modify existing records, documents, and systems for updated laws, regulations, internal operations, jobs, compensation, benefits, and employees’ situations:
For most states, the computation date used to determine SUI tax rates for the 2022 calendar year is June 30, 2021.
Because of the unprecedented volume of initial claims during the COVID pandemic, the accumulation of benefits may significantly impact calendar year 2022 rates. You must provide any rate change notices you receive to your provider as soon as possible.
If you have determined you need to report, review your information to avoid any errors. If your payroll provider offers ACA reporting with an error-checking algorithm, you can automatically perform the following tasks:
Verify your department is adhering to record retention standards by keeping or purging individual records each year. Below are record retention guidelines with the length of time to keep records and which documents to retain:
Length of Time | Records to Keep |
---|---|
1 year | Physical exam results; employment tests, results and validation; ADA applications and other personnel records and requests for reasonable accommodation (keep for 1 year after personnel action). |
2 years | VETS-100; applications, resumes, other inquires sent to employer; help wanted ads, job opening notices, notices for opportunities for training, promotions, overtime, job opening notices sent to employment agencies or labor unions; employee personnel files (including hiring, disciplinary notices, promotions, demotions, discharges, training, tests, physicals, transfers, layoffs and recalls, job evaluations, merit systems, seniority systems). |
3 years | I-9s (or 1 year after termination); FMLA documentation (3 years after hire or 1 year after termination); polygraph tests; business records, including yearly total sales volume, total goods purchased; union contracts and individual employee contracts. |
5 years | Drug testing; OSHA forms 101, 200, 300A, and 301; compensation insurance, or for occupational injury or disease; first aid records of job injuries causing loss of work time. |
6 years | Standard ERISA documents (benefits plan, disclosure of Plan Description, Annual Reports Summary of Annual Reports, and Summary Plan Description). |
7 years | Employee wage records (time cards, wage rate tables, shift schedules, hours and days) explaining wage differentials, deductions from pay; all payroll records. |
30 years | Required medical exams and exposure records (OSHA). |
Review your retirement plan contributions and prepare annual or semi-annual employer contributions to retirement plans.
To give people a needed temporary financial boost, the Coronavirus, Aid, Relief, and Economic Security (CARES) Act allowed employers to defer payment of the employer’s share of Social Security tax. You should have received an IRS Notice LTR3064C indicating the balance due and payment dates for each applicable period.
Employers can make deferral payments through the Electronic Federal Tax Payment System or by credit or debit card, money order, or with a check. These payments must be separate from other tax payments to ensure they are applied to the deferred payroll tax balance. IRS systems won’t recognize the payment if it’s included with other tax payments or sent as a deposit.
EFTPS has a new option to select deferral payment and change the date to the applicable tax period. A separate notice was sent for each period, along with a coupon to send with payments by mail. Please visit the IRS’ website for more information.
Review existing policies and procedures, accrual balances, and next year’s communications to employees, including holiday schedules and pay schedules. Plan for operations, upcoming projects, and strategic/continuous improvement initiatives. Those may include:
Planning Topic | What to Review |
---|---|
Hiring & Staffing | Meet with your hiring managers to evaluate their staffing needs by department staffing needs and plan sourcing strategies. Consider retirements, terminations, promotions, turnover, company strategy, and other changes to staffing levels. |
Training & Development | Review employee development plans, training needs and/or requests, performance reviews, or training needs assessments to evaluate training needs. Schedule training and development activities for 2022.
|
Employee Relations | Plan an employee engagement survey to evaluate morale. Plan, schedule, and update critical employee events, activities, initiatives, paid holidays, etc. Distribute attendance and vacation calendars/planners to supervisors and managers. |
Performance Management | After reviews are finished, plan for the next performance management cycle, including goal setting for 2022. Work with managers to schedule follow-up, feedback, and support activities to enhance performance. |
Management Development | Review exit surveys, employee feedback, and other information about managers. Schedule recently promoted supervisors or managers requiring additional training for supervisory training or leadership development.
|
Compensation | Evaluate compensation and incentive practices for each of your employees and plan new pay programs. Schedule which salary surveys you will participate in next year. Budget for 2022 pay adjustments and/or merit increases. |
Benefits | Review ACA compliance and reporting regulations in effect in 2022 and schedule dates and tasks for compliance. Plan your benefits strategy for the upcoming year including benefit additions, enhancements, and removals. |
Compliance | Conduct an HR audit. Review federal and state compliance trends for 2022. Plan proactive efforts to maintain compliance or modifications to existing practices to ensure compliance.
|
Continuous Improvement | Plan initiatives (like deploying an HRIS) to streamline and make HR processes more efficient. Enhance processes and systems to reduce errors and improve the quality of deliverables. Evaluate vendors for HR services. For other systems in use, install updates for the most efficient use of systems and reporting. |
Review your company’s OSHA Form 300A for the required annual posting from February 1 – April 30 in a common area for employees.
APS provides a tracking system that makes it easy to manage work-related injuries and illnesses. The APS system generates the required OSHA reports in the format needed for simplified OSHA reporting.
It is essential to post the appropriate compliance posters, or employers may be subject to penalties. Depending on the employer, these posters may include:
Visit the Department of Labor (DOL) for assistance with poster compliance requirements. Ensure you also visit your state’s labor department page to determine which state compliance posters you must post.
When forecasting future hiring, it’s essential to look at your company’s current and future goals. Are you planning for growth? Most companies want sustainable expansion from year to year. The way to achieve those goals and stay on target is to grow your workforce. Here are some questions to consider when planning for future hiring:
APS Hire provides a complete applicant tracking, recruiting, and onboarding system to recruit, hire, and onboard talent for your company:
The first payroll of the year is an opportune time to review and update your employee deductions. You’ll want to check deductions like:
Retirement plan regular and catch-up contributions will deduct automatically out of the first payroll for 2022. Review your retirement plans, report any changes needed, and submit those updates to your first payroll for 2022.
Make sure you wrap up ACA annual reporting and filing to avoid penalties for late or incomplete paperwork:
Click here to get complete Minimum Wage Changes by state. If any changes apply to your business, be sure to update the information with your payroll provider.
If your employees receive paper copies only, communicate when they can expect to obtain their Form W-2s in the mail. If you have the option to provide your employees with online access to their W-2s, let them know how they can access their copies.
January 31, 2022, is the deadline to file Forms W-2 by paper or electronically.
January 31, 2022, is the deadline to file your 1099s with a Form 1096.
Form 1099-NEC is the income form employers must file for non-employees paid compensation of $600.00 or more (including fees, commissions, prizes, and awards) during the year. Employers typically issue Forms 1099 to contractors.
January 31, 2022, is the deadline to distribute W-2s to your employees and 1099s to contractors.
January 31, 2022, is the deadline to distribute Forms 1095-C to your employees.
February 28, 2022, is the deadline to file paper Forms 1094-C and 1095-C. If you are filing electronically, you have until March 31, 2022, to file.
Year-End HR Checklist
Use this checklist to keep track of your important year-end HR tasks.
SUTA Wage Bases
Find out what your SUTA wage base is for the new year.
FUTA Credit Reduction States
Check to see if your state has a FUTA credit reduction.
Payroll Taxes: Rates and Changes
Stay up-to-date on payroll tax changes from year to year.
Minimum Wage Rates
Look to see what the current minimum wage rates are for each state.
ACA Reporting and Compliance
Use this handy guide for navigating the year-end ACA reporting and compliance.