Year-End is One Month Away

11/28/17 | 9:00AM | Posted by TEAM Software

CATEGORIES: Affordable Care Act, News

ACA updates, deadline changes and more of what you need to know to prepare for year-end. 

As we get ready to close the book on another year, it’s a good time to start looking ahead to year-end and stay up-to-date on the latest news and changes. We’ve gathered the major updates from our TEAM Affordable Care Act (ACA) and Payroll/Compliance experts and compiled a shortlist of a few items you should be aware of before December 31 rolls around.

 

ACA Letter from the IRS and Other Updates

Earlier this month, the IRS released a sample of Letter 226J. This letter informs employers of the amount the IRS has calculated you owe as an Employer Shared Responsibility Payment (ESRP) under ACA legislation. In other words, it’s the penalty you owe for failing to comply with the ACA employer mandate, dating back to the 2015 tax year. This letter is automatically sent if at least one of your employees was allowed a premium tax credit for insurance on their individual tax return. So, what do you do if you receive the letter? TEAM’s Senior Director of Business Strategy and resident ACA expert Dwaine Sohnholz has some advice:

 

“First, just read your letter carefully. While some employers have received ‘non-filing’ letters from the IRS already, this letter will be the first notification of employer penalties associated with ‘non-compliance.’ You typically have 30 days to respond, and the IRS includes Form 14764 for your reply if you disagree with any part their payment proposal. They also include a detailed listing of employees who were allowed a premium tax credit, where you did not report a safe harbor or other relief on the employee’s Form 1095-C for the month(s) they received that credit. Take that information and compare with your records.”

 

As a TEAM customer, if you use WinTeam to process your 1095-Cs, you can access the information you need easily. Visit Solutions Online, our 24/7 help website, for assistance how on how access the information.

 

In addition to ESRP, here are a few tips to help ensure your company is prepared to complete your IRS reporting for ACA this year:

ACA Print-Mail-eFile Pricing

  • Large employers will need to complete 1095-Cs for every employee who was full-time at any point during 2017.
    • The deadline to furnish employees with the Form 1095-C is January 31.
    • The deadline to file ACA information returns with the IRS is February 28 if you’re filing on paper, or April 2, 2018, if filing electronically.
  • If you need an extra hand, TEAM can help. We offer print, mail and e-file services — review the Per Form Pricing chart. You provide your data from the WinTeam Insurance Benefits module. TEAM will handle this sensitive information with a guarantee of security, accuracy, timeliness and reliability. For more information or to sign up for the service, email dwaine.sohnholz@teamsoftware.com before December 31, 2017.

 

Tax and Payroll Update Checklist

  • Make sure to have login and other information needed for the IRS and the Social Security Administration (SSA).
  • Begin Form W-2 and 1099 preparation:
    • Verify employee information — correct name, Social Security number and address.
      • Tip: Use your W-4 update process to collect and validate employee address changes to prepare for the updated payroll tax engine in WinTeam.
    • Add additional information to the W-2, such as: Third Party Sick Pay, company auto, etc.
    • Identify 1099 vendors and ensure invoices are coded correctly in WinTeam.
    • The W-2 deadline to distribute to employees online or by mail is January 31.
    • The deadline for certain Forms 1099-MISC used to report non-employee compensation to independent contractors are due by January 31. You must file Copy A of the 1099-MISC by February 28 or electronically by April 2.
  • Reconcile total of Federal and State Quarterly Reports to YTD Totals.
  • Identify Tax Rate Changes effective January 1, 2018.
  • Update tax tables in Payroll in WinTeam.
    • Update local tax rates and SUTA rates in Payroll Taxes.
    • Update Taxes and Insurance Type table in Job Master File with updated SUTA and WC rates.
  • Validate balances in Payroll Liability accounts.
  • Balance Accounts Receivable and Accounts Payable accounts to the General Ledger in WinTeam.
  • Complete bank reconciliation for all Cash Accounts.
    • Enter any necessary year-end Adjusting Journal Entries.
    • Perform year-end rollover in General Ledger to pull Balance Sheet balances forward.

 

We’re working on the year-end guide now and will have it available soon. Be sure to visit Solutions Online, our 24/7 help website, for additional year-end help. TEAM is happy to help our customers close out another successful year and start off 2018 on the right foot.