Special Year-End Payroll Considerations for 2015

Special Year-End Payroll Considerations for 2015

By Claudia Womack, Small Business Advisor It is that time of the year to be thinking of processing your Special YE Payrolls for 2015.  Remember these payrolls must be reported as W2 wages for 2015. The Special YE Payrolls are: ·         Personal Auto Wages ·         S-Corporations Health Insurance ·         Year-End Bonuses ·         Gifts ($25.00 and over) ·         Maxing retirement deferrals for officers, owners, etc. Please review the following information and if any of the Special YE Payrolls pertains to you and your business, please be sure to process a payroll before 12/31/15. PERSONAL USAGE OF BUSINESS VEHICLES The personal usage to commute between work and home with a company owned or leased vehicle by an employee (including corporate shareholder/officers) is classified as payroll compensation and must be reported on the employee’s W2.  The personal auto usage compensation is subjected to FUTA, SUTA, LTD, Federal W/H, State W/H, and FICA. This auto payroll should be recorded on the employee’s W2 in box 14. We are available to help with the personal usage calculation, please send us the following information and we will be happy to do it for you.  Remember, if an employee drove more than one vehicle in 2015, then we need the information below for each vehicle that was driven by the employee. 1.    Vehicle make, type and year 2.    Total 2015 mileage and ending mileage for each vehicle 3.    2015 total personal mileage or percentage of total usage 4.    If an employee’s gross wage exceeds the Social Security limit, we will need the employee’s 2015 Social Security wages to determine Social Security tax for calculating the personal...