Thinking about switching payroll providers? Now is the perfect time! A new year means a fresh start and an easy transition to a new payroll company. Before you switch, however, there are things that you can have lined up to ensure a smooth transition.
Payroll taxes are based on when your employees were paid, not when they worked. That means that if they got paid January 1 (or after) for work they did in the prior December (or before), those wages are reflected in the new year’s books for tax purposes. That being said, take a look at your last pay date of the year, and if it falls in 2021 for whatever reason, make sure that is taken care of with your new payroll company.
Prior or Most Recent Account Data
When making the transition to a new provider, make sure that, prior to closing the account, you extract important data, such as employee information, payroll reports, and annual tax forms, to keep for records. A lot of times, after an account is closed, it can be difficult to go back and retrieve this information.
When switching payroll companies, you will need important information to gain access to all your payroll tax accounts to ensure a smooth transition. You are going to need your EIN, state employer identification number as well as other payroll tax account numbers, legal business name, and bank account information.
All of this may seem overwhelming, but Payroll Service Solutions is here to help guarantee a smooth transition to our team of experts you can depend on throughout the longevity of your business. Call us today to get started!
If your check date falls on Friday, January 1, 2021 you must decide if you want to move the check date to either December 31, 2020 or keep the check date in January of 2021.
Please be aware of the following should you change your January 1st check date to December 31st:
• Paying employees on December 31, 2020 will cause an extra paycheck in tax year 2020. This check will be included on the 2020 W2.
• This may affect retirement contributions (especially if the contribution is setup to meet maximums).
• This may affect your budget for the year.
• There could be tax consequences for both employees and employers if you add a paycheck to 2020.
• We strongly recommend that you consult with your CPA or tax attorney for guidance on this.
• Payroll Service Solutions will not change the check date unless you request it.
• If you decide to change your check date to December 31st, please request that we hold your end of year processing.
Please let us know when you call in your last scheduled payroll for 2020.
It used to be that direct deposit was a luxury, but now, as it has grown to be the norm, employees have come to expect it. Payroll Service Solutions offers direct deposit services that will keep your employees happy, while also taking a big burden off your plate when it comes to payday details.
Direct deposit is loved for many reasons. For example, it eliminates multiple steps that paper checks require for the funds to be accessible within an account, such as a trip to the bank and a long waiting period. Paper checks can take up to five business days to clear an account, but with direct deposit, funds are directly deposited to the employee’s account through ACH transactions. This means that on payday, employees immediately have access to those funds, without having to wait in a long line at the bank.
Another large perk to using direct deposit is the safety benefits. Generally, paper checks are much riskier because they can be lost, stolen, or fraudulently cashed. When using direct deposit, the money is directly debited from the employer’s account and deposited to the employee’s account so there is no room for theft or fraud.
Switching to an electronic pay system saves everyone involved both time and money. If you’d like to set up direct deposit or talk to us about how we can better your current systems, call Payroll Service Solutions today! We are proud to serve small businesses in the Philadelphia area as well as the entire U.S. with full-service payroll solutions.
Benefitting Local Bucks County Food Pantries, PSS will be collecting donations via a donation box in our lobby from 11/2/2020 through 11/16/2020.
All donations can be made between the hours of 7 AM and 6 PM, Monday through Friday. Please wear a mask when entering and exiting the lobby.
Acceptable donations include:
- Stuffing Mix
- Rolls or Bread Mix
- Canned Potatoes
- Canned Yams/Sweet Potatoes
- Cranberry Sauce
- Canned Vegetables (corn, asparagus, mushrooms etc.)
- $15-$20 gift cards to purchase a turkey. (Giant, ACME, Weis, Shop Rite or Redner’s)
- Anything else you think would make dinner special for a family.
Drop off location is 900 Jaymor Rd. Southampton, PA 18966
For questions or to drop off perishable items contact Nicole Christmann
Nicolec@payrollservicesolutions.com or 215-624-0922
On August 8, 2020, President Trump signed a memorandum allowing employees making up to $4,000.00 pretax biweekly to defer paying their portion of Social Security taxes. The tax deferral went into effect on September 1, 2020, and will end on December 31, 2020.
At this point and time, the monies deferred will have to be paid back in full. Guidance put out by the IRS on August 28, 2020, suggests that it will have to be paid back in full by April 30, 2021. It will be an additional deduction from the employee’s check. The guidance also suggests that ultimately the employer is responsible for the repayment of these taxes.
Payroll Service Solutions is not automatically deferring this tax. If you have an employee who would like to his or her their Social Security tax, contact our office to obtain the necessary paperwork.
This Act allows some flexibility with the way the loan money is used to still receive forgiveness.
The key changes are as follows:
- The 75% requirement of funds for payroll has been reduced to 60%
- The 8-week period in which you had to use the funds is now extended out to 24 weeks
- You now have until December 31, 2020 to restore workforce levels to pre-pandemic levels
- You now have 5 years to pay back unforgiven loans instead of the previous 2-year timeline
- You may also delay payments of payroll taxes which was originally prohibited under the CARES Act
More information will be forthcoming as it is made available, please check back often.
Payroll Service Solutions can do your PPP (Paycheck Protection Program) loan through our partner Tioga Franklin Savings Bank.
This loan provides 100% federally guaranteed loans to small businesses. Importantly, if all employees are kept on payroll for eight weeks, SBA will forgive the portion of the loan used for payroll, rent, mortgage interest or utilities. Up to 100% of the loan is forgivable.
Payroll Service Solutions will help you gather the payroll information you need to apply. As always, we are here to assist and support you through these challenging times.
To apply, email Amanda Keiper at email@example.com.
The following link to upload your documents:
Many small businesses and their employees have been impacted by COVID-19.
To help small businesses and their workers though this pandemic, the President has authorized the SBA to provide assistance.
There are several SBA loan programs including Enhanced Debt Relief and Disaster relief programs to assist businesses during this tough time.
The Coronavirus Aid Relief, and Economic Security (CARES) Act is allocating $350 billion. Also known as the Paycheck Protection Program, it provides 100% federally guaranteed loans to small businesses.
Importantly, if all employees are kept on payroll for eight weeks, SBA will forgive the portion of the loans used for payroll, rent, mortgage interest or utilities. Up to 100 % of the loan is forgivable.
SBA guidelines have not yet been issued on these loans. Once the administration releases more details we will share that information with you.
As always, Payroll Service Solutions is here to assist and support you through these challenging times.
Employers must post this notice of employee rights.
The act reserves the right for the secretary to exclude certain care providers and first responders from the list of eligible employees and to exempt small businesses with fewer than 50 employees from providing paid leave for child care if business viability is jeopardized.
We strongly advise that you read through the entire document prior to Wednesday, April 1st so you have an understanding of how the leaves work. You can find the link below. The following are some highlights from the updated guidance.
- These leaves are not available to employees with reduced hours, furloughed employees, or employees whose workplaces are closed. See questions 23-28.
- These leaves are not available to employees whose workplaces are closed due to a federal, state, or local shelter-in-place or stay-at-home orders, or due to business slowdowns. See question 23.
- These leaves (and payroll tax credit) are not retroactive. Employees are not entitled to pay under these leaves if they were absent or out of work (for any reasons) prior to April 1. See question 13.
- Both emergency paid sick leave (EPSL) and emergency Family and Medical Leave (EFMLA) can be taken on an intermittent basis in certain situations. See questions 20-22 for explanations about when intermittent leave is allowed.
- Employees may not be required to use other forms of paid leave prior to or concurrently with EPSL or EFMLA. See questions 32 and 33.
- Employers should keep documentation to show that employees who received leave were actually in need of leave. The documentation requirements will be outlined in soon-to-be-released IRS guidance. See Questions 15 and 16.
Questions about the Employee Rights poster link:
FFCRA Leaves Questions and Answers:
On Friday, March 27th the President signed the CARES Act. The new law is a $2 trillion economic stimulus package designed to repair the economic damage caused by COVID-19 and provide additional protection to individuals and businesses who may lose income due to the pandemic. While most of the act pertains to direct payments and loans, there are some sections that affect employers.
Providing Alternatives to Closure and Layoffs
The CARES Act gives employers the following options and benefits, which may allow them to stay open and keep more people employed:
- Small businesses may be eligible for emergency grants of up to $10,000 to cover immediate operating costs.
- The Small Business Administration (SBA) may provide loans of up to $10 million per business; any portion of that spent to pay employees, keep workers on payroll, or pay for rent, mortgages, or existing debt could be forgiven, provided workers remain employed through the end of June.
- Small businesses with existing SBA loans may have up to six months of payments waived.
- Businesses who have experienced a decline in gross receipts of 50% as compared to the same quarter of 2019 or who have been fully or partially shut down by order may be eligible to receive a refundable tax credit for 50% of qualified employee wages up to $10,000 per employee. This is unrelated to the dollar-for-dollar payroll tax credit that can be taken for FFCRA leaves.
- Businesses may defer payment of employer payroll taxes imposed between the enactment of this law and December 31, 2020 with half of the deferred taxes due by December 31, 2021 and the rest due by December 31, 2022. This is unrelated to the dollar-for-dollar payroll tax credit that can be taken for FFCRA leaves.
We are unable to advise on these topics as they are outside the scope of our expertise. We encourage you to follow the IRS Coronavirus Tax Relief page and the SBA Coronavirus Loan Resources page, as well as consult with your tax professional or financial advisor. Detailed guidance on how to access these financial resources should be coming soon from those sources.
First we would like to express our sincerest wishes for the health and safety of you, your employees and loved ones.
Please be aware that there will be no interruption in your service with us as this ban goes into effect. We have made provisions to accommodate the PA governor’s order.
Effective Monday, March 23rd we will be temporarily suspending the pickup of payroll packages at our office. We have several options for you to choose from to get your information to you.
At present, the Federal Reserve has not announced any changes in their daily operations. Unless and until changes are announced, we are fully prepared to meet all existing payroll deadlines. We are pleased to assure you that we remain ready and available to handle your payroll needs.
While we cannot predict how long this emergency will continue, we are prepared to serve you for an extended period. We do not anticipate interruptions in the high level of service you are accustomed to receiving.
The president has authorized the SBA to provide assistance. We would encourage any small business in the effective areas to consider seeking relief if needed. You can apply here.
We wanted to address some of the specific questions that we have been asked:
Can I still expect delivery of my payroll? Yes, at this time our courier service is operating as normal. If you have specific instructions or need to change the delivery address please let us know.
Can my employees file for unemployment benefits if my business is temporarily closed because of COVID-19? Yes, they may be eligible for benefits.
Can I reduce my employee’s hours because of COVID-19? Yes
Will my unemployment tax rate increase if my employees file for benefits due to COVID-19? No, businesses that are temporarily closed will be granted Relief from Charges and your tax rate will not be increased because of COVID-19 related claims.
Is there somewhere I can find more information about unemployment? Yes. Go to https://www.uc.pa.gov/COVID-19/Pages/Employer-COVID19-FAQs.aspx
Are there programs to help employers having financial difficulties due to COVID-19? Yes, the Shared Work Program can help https://www.uc.pa.gov/employers-uc-services-uc-tax/shared-work/Pages/default.aspx as well as the PA Department of Community and Economic Development https://dced.pa.gov/resources/.
We will continue to monitor the situation and update you.
Please call us with any questions or concerns at 215-624-0922 as we are here to help you.
Download this informative guide now:
- 43% of all Cyber Attacks are aimed at small businesses.
- In the last year, 76% of businesses reported that they have been a victim of a phishing attack.
- The cost of a data breach is now averaging $160 per record. How many records do you maintain?
Small businesses can affordably obtain the same protection large corporations can.
Call us today at 215-624-0922 to find out how.
The New Jersey Mandatory Employment Retirement Account has officially passed NJ legislature.
Did you know seven states already have mandatory retirement saving requirements including:
More states – including Pennsylvania – are in the process of proposing legislature right now! Is your business prepared? Payroll Service Solutions has the answers you seek. We look forward to helping your business ensure they are completely compliant with the law. Payroll Service Solutions has your answers! Call us today and ask about our low cost EZ IRA option. Employee deduct IRA contributions have never been so easy. Call 215-624-0922 to talk to one of our experts today!
Learn more about the updates to the New Jersey Family Leave Act that now impacts companies with 30 or more employees.Click here to download the PDF.
Please join us in extending best wishes to Peggy Kudrick who is retiring from Payroll Service Solutions on March 30th. Peggy has been an esteemed member of our company for 12 years.
Peggy’s positive attitude, willingness to help everyone and her thoughtfulness helped make Payroll Service Solutions who we are today. She genuinely cares about clients and coworkers alike always willing to go the extra mile to help us all.
In addition to her skills and commitment to excellence, Peggy has been a friend to us all. We are happy for her, and at the same time, sad to see her go. She will be greatly missed by her coworkers and clients alike. Please join us in wishing Peggy well as she starts her next chapter in life. We wish her many, many years of good health and happiness!
Payroll Service SolutionsⓇ now offers HR Services and Labor Law Posters.
Our friendly client experience team is happy to speak with you regarding your payroll, benefits and HR needs. Payroll Service SolutionsⓇ can deliver comprehensive solutions customized and integrated to meet your needs.
The employees of Payroll Service SolutionsⓇ justifiably take pride in consistently meeting and frequently exceeding the standards and expectations of our clients. Many clients have kindly shared their satisfaction with us in writing. Following are some examples of our successes.
At Payroll Service SolutionsⓇ we have a team of payroll and tax experts whose only job is to stay up-to-date on tax rates, compliance issues and government regulations so you don’t have to. Our expertise truly makes payday easy for you.
Payroll Service Solutions® was established in 2001 to cater to the payroll needs of the small business owner. We are proud to offer top of the line services for small business owners that they can afford.