Small Business

Staffing is a common problem for businesses and your local CPA is in a excellent position to offer Human Resource consulting. In addition to your local CPA, you may contact The American Staffing Association at 703-253-2020, asa@staffingtoday.net or The Society for Human Resource Management at 703 548-3440, shrm@shrm.org.

The amount of the elected non-taxable deferral is reported On Form W-2 in box 12. Enter the code of D and the section 401(k) amount. Do not include this amount in the W-2, box 1, Taxable wage amount.

Elective deferrals from retirement plans and adjustments or deductions are listed with a code and an amount in Box 12.
CODES:
A = Uncollected SS or RRTA tax on tips
B = Uncollected Medicare tax on tips
C = Taxable cost of group life insurance over 50K
D through H,S,AA,BB,EE = Elective Deferrals and Roth contributions
J = Nontaxable sick pay
K = 20% excise tax on golden parachute payments
L = Employee business expense reimbursements
M = Uncollected SS or RRTA tax on life insurance
N = Uncollected Medicare tax on life insurance
P =excludable moving expense reimbursements
Q =Nontaxable combat pay
R = Employer contributions to Archer MSA
S = salary reduction under 408(p) Simple
T = Adoption benefits
V= income from stock option
W = HSA employer contribution
Y = 409A deferral
Z = 409A income
AA = Roth contribution under 401(k)
BB =Roth contribution under 403(b)
DD = employer health coverage
EE =Roth contribution under 457(b)

Redesigned Form 940 replaces previous Form 940 and Form 940-EZ. We have replaced both Form 940-EZ and Form 940 with a new simplified Form 940. If you filed Form 940-EZ before, you must now use the redesigned Form 940.

There are two Internet verification options you can use to verify that your employee names and Social Security numbers match Social Security's records.
You can: Verify up to 10 names and SSNs (per screen) online and receive immediate results.
This option is ideal to verify new hires.
Upload overnight files of up to 250,000 names and SSNs and usually receive results the next government business day.
This option is ideal if you want to verify an entire payroll database or if you hire a large number of workers at a time. While the service is available to all employers and third-party submitters, it can only be used to verify current or former employees and only for wage reporting (Form W-2) purposes. Register to Use the Social Security Number Verification Service (SSNVS) - at www.ssa.gov/bso/bsowelcome.htm.

Firms and workers file Form SS-8 to request a determination of the status of a worker for purposes of federal employment taxes and income tax withholding.
A Form SS-8 determination may be requested only in order to resolve federal tax matters. If Form SS-8 is submitted for a tax year for which the statute of limitations on the tax return has expired, a determination letter will not be issued.
The statute of limitations expires 3 years from the due date of the tax return or the date filed, whichever is later.
The IRS does not issue a determination letter for proposed transactions or on hypothetical situations.
The IRS may, however, issue an information letter when it is considered appropriate

Employees must report tip income on Form 4070, Employee's Report of Tips to Employer, (PDF) or on a similar statement.
This report is due on the 10th day of the month after the month the tips are received.
This statement must be signed by the employee and must show the employee's name, address, and SSN. Your name and address.
The month or period the report covers. The total tips received. No report is required from an employee for months when tips are less than $20.

If the business has 1 federal Identification number then 1 Form 941 should be filed. Employers with multiple locations or divisions must file one Form 941 per quarter. Filing more than one will cause processing delays and unneeded correspondence.

The IRS reminds employers that the Federal Unemployment Tax Act surcharge of 0.2% expired on June 30, 2011.
This means that the FUTA rate for employers decreased from 6.2% to 6.0% starting on July 1, 2011.
The IRS revised Form 940, Employer’s Annual Federal Unemployment Tax Return, to accommodate the two different rates
The surcharge was originally enacted in 1976, and Congress has extended it several times since. Unemployment benefits are not tied to the surcharge, so the expiration of the surcharge will not affect current or future unemployment benefits.