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Important Information Regarding New Year’s Day

Published by Payroll Service Solutions on December 7, 2020

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.

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