Small Business

Medicare was passed into law on July 30, 1965. Beneficiaries were first able to sign-up for the program on July 1,1966.

Social Security payroll taxes are collected under authority of the Federal Insurance Contributions Act (FICA). The payroll taxes are sometimes called "FICA taxes".
FICA is nothing more than the tax provisions of the Social Security Act, as they appear in the Internal Revenue Code.

Until June 2011, The first three digits are assigned according to the geographic region in which the person was residing at the time he or she obtained a number. Generally, numbers were assigned beginning in the northeast and moving westward. The remaining six digits in the number are randomly assigned.
Social Security is changing the way Social Security numbers (SSN) are issued. This change is referred to as “randomization.” Social Security is developing this new method to help protect the integrity of the SSN. SSN Randomization will also extend the longevity of the nine-digit SSN nationwide.
Social Security plans to implement the new assignment methodology on June 25, 2011. SSN randomization will affect the SSN assignment process in the following ways: n It will eliminate the geographical significance of the first three digits of the SSN, currently referred to as the area number, no longer allocating the area numbers for assignment to individuals in specific states. n It will eliminate the significance of the highest group number and, as a result, the High Group List will be frozen, but can be used for validated SSNs issued prior to the randomization implementation date. n Area numbers previously unassigned will be introduced for assignment excluding area numbers 000, 666 and 900-999.

The Internet has revolutionized the way the world does business on both a local and global level. From recruiting employees to gathering data on the competition, the ways businesses utilize the Internet are numerous, as are the benefits of the Internet to the business community. . Perhaps the most obvious benefit of the Internet is cost savings. Information at faster speeds saves time, which either saves or makes money. Many functions in the business process, i.e. bookkeeper, have been automated, which has helped to streamline processes and reduce the cost of labor. The Internet has been credited with providing a window into the global world. It allows anyone with a computer to think globally and has allowed the business world to forge international relationships with new vendors (to lower costs) and new customers (to increase sales). Today, communication is as easy as a mouse click, and much cheaper too. Anyone in the world can communicate with another person through text messages, emails, and even live video. For business, this means higher efficiency and quicker processing of sales

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.

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.

If, even after nudging from the IRS, your employer doesn't send you a replacement W-2 in time for you to file your return, you may file using Form 4852 in place of your missing wage statement.
After you complete the form, attach it to your tax return in place of your absent W-2.
A copy of Form 4852 also should satisfy your state tax collector for those returns.
Be aware, though, that using Form 4852 instead of an original W-2 may delay your refund while the IRS verifies the information you provided. And in cases where an employer has filed for bankruptcy or ceased operations, the IRS suggests you send a copy of Form 4852 to your local Social Security Administration office.
This should ensure that you get proper credit for the Social Security and Medicare taxes you paid so that your checks will be correct when it comes time to collect these benefits. .