2011 End of Year Letter for PBS Clients

We wish to remind you that all information that is to be reflected or included in the 2011 payroll tax returns and the employee W-2 forms should be reported by your last payroll in 2011.  The payroll Check Date (pay date) will determine to which tax year a payroll is posted. Therefore, your last payroll of 2011 should be checks dated on or before Friday, December 30, 2011. Any payroll closed after December 31, 2011 will incur additional cost above your normal payroll processing fees.
 
Please review your employee records to ensure that all additions and corrections are submitted on or before your last payroll dated in 2011. 
 
The following items must be reported to PBS by Thursday, December 15th, 2011.
  • Manual payroll checks issued in-house
  • Voided checks
  • Taxable fringe benefits
  • Personal Use Auto
  • Third Party Sick Pay
W-2 Forms
Please be sure to submit all of your year-end data accurately and on time. Take special notice to ensure that you have correct Social Security Numbers on all of your employees. Contact your PBS Representative if you have questions. If there are any adjustments that need to be made after the W2 cutoff, we can accommodate them; however there will be additional charges for this service. W2 forms will be delivered in bulk to your company for distribution.
 
1099 Forms
If you have independent contractors that were paid through our payroll system in 2011, PBS will automatically prepare Form 1099-MISC. If your independent contractors were not paid through our payroll system, we can still prepare and file the 1099 forms for you, if the information is received by January 14, 2011. Simply provide us with the contractor’s name, federal ID Number, address and amount paid and we will include the 1099’s in your year-end package.
 
2012 Social Security Wage Base Announced
The Social Security Administration (SSA) has announced that the maximum amount of earnings subject to the social security tax (the wage base) will change to the new amount of $110,100 for 2012.
 
2012 Pension Plan Limits
The limitation on the exclusions for elective deferrals for 401(k) and Section 457 plans will also also change from the 2011 amount to the new amount of $17,000. The additional “catch-up” contribution allowed for individuals aged 50 and above participating in a qualified plan will remain unchanged at $5,500.  
 
2012 Federal and State Filing Requirements
Any IRS and/or state agency mailings to you in reference to filing requirements should be sent directly to PBS. These notices are sent directly to you and we rely on you to forward them to us for implementation of any changes. This includes SUI tax rate changes and local agency reporting booklets, as well. Note that your company will be responsible for any penalties and interest that may occur for non-compliance.