Lisas Payroll Software and 1099 Forms Blog

Form 1099-R Codes : Form 1099-R Distribution Codes

2011-10-10T03:34:00.000-07:00

I have been searching for a list of Form 1099-R Distribution Codes, but I could not locate anything complete online, so I went to the IRS website and I created the list below.

1: Early distribution, no known exception (in most cases, under age 59½). Check the back of form 1099-R or the 1099R manual for more details.
2: Early distribution, exception applies (under age 59½).
3: Disability.
4: Death.
5: Prohibited transaction.
6: Section 1035 exchange (a tax-free exchange of life insurance, annuity, qualified long-term care insurance, or endowment contracts).
7: Normal distribution.
8: Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2011.
9: Cost of current life insurance protection.
A: May be eligible for 10-year tax option (see Form 4972).
B: Designated Roth account distribution.
E: Distributions under Employee Plans Compliance Resolution System (EPCRS).
F: Charitable gift annuity.
G: Direct rollover of a distribution (other than a designated Roth account distribution) to a qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA.
H: Direct rollover of a designated Roth account distribution to a Roth IRA.
J: Early distribution from a Roth IRA, no known exception (in most cases, under age 59½).
L: Loans treated as distributions.
N: Recharacterized IRA contribution made for 2011 and recharacterized in 2011.
P: Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2010.
Q: Qualified distribution from a Roth IRA.
R: Recharacterized IRA contribution made for 2010 and recharacterized in 2011.
S: Early distribution from a SIMPLE IRA in first 2 years, no known exception (under age 59½).
T: Roth IRA distribution, exception applies.
U: Dividends and Distributions from ESOP under sec. 404(k). Note. This distribution is not eligible for rollover.
W: Charges or payments for purchasing qualified long-term care insurance contracts under combined arrangements.

To learn more about 1099 Retirement Distribution Codes, please visit the IRS website. If you are trying to print or E-File 1099 R forms, you can visit the CPA technology advisor website.

1099 DIV Software: 1099 DIV Electronic Filing Record Layout

2011-10-05T12:07:00.000-07:00

If you are required to file 250 or more 1099 DIV returns, you must file electronically. If you are required to file electronically but fail to do so, and you do not have an approved waiver, you may be subject to a penalty.

In this post we will cover the 1099 DIV electronic filing layout. You can use 1099 DIV software to generate a file according to IRS Publication 1220.

To learn more about 1099 DIV electronic filing, please visit

http://www.realtaxtools.com/

and download a FREE 1099 software demo.

Amount Codes Form 1099-DIV - Dividends and Distributions For Reporting Payments on Form 1099-DIV:

1 : Total ordinary dividends

2 : Qualified dividends

3 : Total capital gain distribution

6 : Unrecaptured Section 1250 gain

7 : Section 1202 gain

8 : Collectibles (28%) rate gain

9 : Nondividend distributions

A : Federal income tax withheld

B : Investment expenses

C : Foreign tax paid

D : Cash liquidation distributions

E : Non-cash liquidation distributions

Payee "B" Record - Record Layout Positions 544-750 for Form 1099-DIV

Field Position: 544
Field Title: Second TIN Notice (Optional)
Length: 1
Description and Remarks: Enter "2" (two) to indicate notification by IRS twice within three calendar years that the payee provided an incorrect name and/or TIN combination; otherwise, enter a blank.

Field Position: 545-546
Field Title: Blank
Length: 2
Description and Remarks: Enter blanks.

Field Position: 547-586
Field Title: Foreign Country or U.S. Possession
Length: 40
Description and Remarks: Enter the name of the foreign country or U.S. possession to which the withheld foreign tax (Amount Code C) applies. Otherwise, enter blanks.

Field Position: 587-662
Field Title: Blank
Length: 76
Description and Remarks: Enter blanks.

Field Position: 663-722
Field Title: Special Data Entries
Length: 60
Description and Remarks: This portion of the "B" Record may be used to record information for state or local government reporting or for the filer's own purposes. Payers should contact the state or local revenue departments for payroll software filing requirements. If this field is not utilized, enter blanks.

Field Position: 723-734
Field Title: State Income Tax Withheld
Length: 12
Description and Remarks: State payroll tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting state tax withheld, this field may be used as a continuation of the Special Data Entries Field.

Field Position: 735-746
Field Title: Local Income Tax Withheld
Length: 12
Description and Remarks: Local income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries Field.

Field Position: 747-748
Field Title: Combined Federal/State Code
Length: 2
Description and Remarks: If this payee record is to be forwarded to a state agency as part of the Combined Federal/State Filing Program enter the valid state code from Part A, Sec. 10, Table 1. For those payers or states not participating in this program, enter blanks.

Field Position: 749-750
Field Title: Blank
Length: 2
Description and Remarks: Enter blanks or carriage return/line feed (CR/LF) characters.

To learn more about 1099 E-File Software and filing forms 1099 Dividends and Distributions electronically please visit http://www.realtaxtools.com/

New Hire Act- Payroll Software

2010-06-23T14:42:00.000-07:00

Washington has recently enacted the HIRE Act (Hiring Incentives to Restore Employment). This new law includes two tax incentives to be claimed by employers who hire workers who were previously unemployed or only working part time. The tax benefits apply to workers hired after Feb. 3, 2010 and before Jan. 1, 2011 and/ or for each worker employed for at least a year.

The first payroll tax exemption involves the employer’s share of Social Security tax on qualified employees starting on wages paid on March 19, 2010. The employer will be exempt from their 6.2% Social Security tax through December 31, 2010.

The second payroll tax credit (hire retention credit) applies in the case of the newly hired workers staying employed for at least a year. Business owners may claim an additional general business tax credit, up to $1,000 per worker, when they file their 2011 tax returns.

Employees must certify by a signed affidavit, under penalties of perjury, that they have not been employed for more than 40 hours during the 60-day period ending on the date they started employment. The IRS has issued Form W-11 that business owners may use as the affidavit. You are allowed to use another similar statement if it contains employee name, Social Security Number, first date of employment and name of employer. The employee must sign it under penalties of perjury.

The IRS has released a modified 2010 Form 941 in order to claim the payroll tax exemption. Employers will start using this form for second quarter 941 filing. The payroll tax exemption is based on when the wages were paid regardless of when the wages were earned. Wages paid to qualified employees during the first quarter from March 19, 2010 to March 31, 2010 are claimed on the second quarter Form 941 as a credit. The amount of the credit will be refunded to the employer or applied towards a liability in a following quarter. The exemption must be claimed on the return for the quarter in which the wages were paid.

Use Form W-11,Employee Affidavit,to confirm that an employee is a qualified employee under the HIRE Act. Claim your payroll tax exemption using Form 941 and Payroll Mate payroll program.

Download a free trial of Payroll Mate small business payroll software .

2010 Form 941- First Quarter

2010-02-22T12:29:00.000-08:00

Use Payroll Mate payroll software to print Form 941. 941 Form is a quarterly form used to report wages you have paid,tips your employees have received,federal income tax you withheld,both the employer’s and the employee’s share of social security and medicare taxes, current quarter’s adjustments to social security and medicare taxes for fractions of cents, sick pay, tips, and group-term life insurance,advance earned income tax credit (EIC) payments and credit for COBRA premium assistance payments.

Payroll Mate automatically populates form 941 with payroll information that has been entered in the program. The first quarter 941 form is due April 30, 2010.

Business owners try our free payroll software download easily print Form 941.

Free 1099 Software

2010-02-15T11:07:00.000-08:00

It is a busy time of year trying to issue W2/1099 forms,file W2/1099 forms and starting new payroll for the year. As many of you know Payroll Mate includes W2 forms however for those of you who need to issue 1099 forms you may need different software. Deadlines are approaching for filing 1099/1096 forms. The deadline for 2009/2010 is March 1, 2010.

Try this free 1099 software.

W2 Mate supports 1099 MISC, 1099 INT, 1099 DIV and 1099 R forms. This 1099 software will print recipient copies to blank paper and 1099 A/ 1096 data to preprinted red ink laser forms per IRS regulations.

Fourth Quarter 941 Form

2009-12-22T12:23:00.000-08:00

The IRS deadline, to file form 941 (Employer’s Quarterly Federal Tax Return), is soon approaching. Quarter Four Form 941, which includes payroll periods from October, September and December, is due on January 31, 2010.
Form 941 is one of the many payroll forms that a business owner or an employer needs to prepare to be in compliance with government regulations. This payroll form is used by employers to report wages paid, tips employees have received, federal income tax withheld, both the employer and employee share of social security and Medicare taxes, the current quarter’s adjustments to social security and Medicare tax for fraction of cents, sick pay, tips group-term life insurance, advanced earned income tax credit (EIC) payments and credit for COBRA premium assistance payments. Credit for COBRA premium assistance payments is new to form 941 this quarter. This box has been added to accommodate COBRA premium benefits set forth in the economic stimulus package.

Using payroll software can save a business owner vast amounts of time and energy. An automated payroll solution can keep a business owner from possible mistakes during tedious calculations.

1099 Software Review

2009-12-17T07:59:00.000-08:00

It is that time of year to be thinking about W2 and 1099 forms. Payroll Mate generates W2 forms for the user however if you also need to complete 1099 Misc forms for your vendors you may want to consider trying W2 Mate. W2 Mate supports 1099 Misc form printing. This software prints 1099 Misc copies B, C, state 1 and 2 to blank paper. W2 Mate supports a multitude of features/optional
features that you can add to the program if they fit your needs such as e-filing.

1099 Software Reviews can be a valuable tool when evaluating a product or you may want to test the product for yourself.

Download a free demo of 1099 software: W2 Mate download

Payroll Mate 2010

2009-12-10T13:22:00.000-08:00

Real Business Solutions has released Payroll Mate 2010. A few new features in the program are state reporting for California and New York and a general ledger report. The general ledger report can be exported as a .qif file to be imported directly into Quicken or an excel file.

Remember besides preparing for next year's payroll you have to prepare for end of the year wage reporting. Employers are required to file W-2 Forms (Wage and Tax Statements) for each of their employees. Employees whom have had income, Social Security and Medicare taxes withheld from their pay. A W-3 form is required to be filed with the W-2 Forms. A W-3 Form is a transmittal summary. This form gives a total amount and number of the W-2 forms being filed. W-2/W-3 forms are filed with the Social Security Administration not the Internal Revenue Service. At this time the SSA requires any employer filing more than 250 W-2 Forms to file those forms electronically versus mailing paper forms. W2 forms are to be issued to employees no later than January 31st. Employee copies consist of copies B, C and 2.
Payroll Mate supports these forms.

Fourth quarter 941 forms are due January 31st encompassing payroll in October, November and December. Use Form 940 to report your annual Federal Unemployment Tax Act (FUTA) tax which is due February 1st. Payroll Mate supports both these federal tax forms.

To try this comprehensive payroll software for yourself download a free demo program from the following link:
Payroll Mate Demo

For more information about software and wage reporting supplies visit Real Business Solutions

Third Quarter 941 Form

2009-10-26T12:14:00.000-07:00

The leaves are falling and we are preparing the third quarter 941 form. October 31st is the deadline for filing the
941 form. Payroll Mate makes generating this form a simple process. I have relieved myself of headaches and worry when it comes to filing payroll tax forms. This payroll software company is getting ready to release their 2010 payroll program.

To try this program for yourself:
Payroll software download

For more information about 941 form deadline:
941 form deadline

Video Tutorial- Payroll Software

2009-10-19T08:22:00.000-07:00

Payroll Mate is a user friendly comprehensive payroll solution.

A new addition to the Payroll Mate website:
Payroll, W2 and 1099 Blog

Payroll Software Review

2009-10-09T12:02:00.000-07:00

I saw this payroll software review. If you would like to read the review follow this link: payroll software review

For more information about the software or a complete feature and price list visit http://www.realtaxtools.com/

1099 Software Review

2009-10-08T09:00:00.000-07:00

I saw this review for another product by the makers of Payroll Mate. For business owners that hire contractors this is a nice form printing software. To read the review: 1099 software review

For more information about the software or a complete feature and price list visit http://www.realtaxtools.com/

State Reporting- Payroll Software

2009-10-07T11:23:00.000-07:00

Payroll Mate is a wonderful small to medium business payroll software. The makers of Payroll Mate are consistently updating their product and adding new features to benefit their customers. The newest feature available is state reporting. This feature is available to Illinois and Texas customers now. I have been assured more states will be added over the coming months.

Payroll Mate automatically calculates net pay, federal withholding tax, Social Security tax, Medicare, state and local payroll taxes. Payroll Mate also supports different types of payroll pay periods, prints checks, prepares payroll forms 941, 944, 940, W2 and W3. This payroll software also supports user-defined Income, Tax, and Deduction categories. The software supports up to 10 companies with 75 employees per company.

This payroll software has many options that can be added to the basic program. For a complete list of features, options and a free trial go to http://www.realtaxtools.com/index.html

New Jersey Tax Changes

2009-10-05T11:02:00.000-07:00

New Jersey is another state in a list of states this year that is implementing tax increases mid year. These types of increases are one of many reasons I strongly recommend
automated payroll software.

New withholding rates for New Jersey taxpayers grossing more than $400,000 go into effect no later than October 1, 2009. The increase applies to the entire 2009 tax year. On January 1, 2010 the withholding rate will revert back to the prior rate.

A reminder to New Jersey employers f you have questions about your responsibilities as an employer, call the Division's Customer Service Center at 609-292-6400 or e-mail us at nj.taxation@treas.state.nj.us.

For a free trial of Payroll Mate follow this link: Payroll Mate

End of the Year Wage Reporting Preparation

2009-10-01T08:55:00.000-07:00

The leaves are falling and though we may not want to believe it is already that time of year it is coming. The end of the year can be busy for many different reasons back to school, holidays and the looming tax season. Now is the time to start preparing for end of the year wage reporting. New business owners and seasoned veterans alike should get themselves organized for the end of the year. Preparation is key to the process running smoothly.

Beginning in October you can order your forms. You can order paper forms or form printing software. Form printing software allows the user to print W2 and W3
forms A beneficial feature to look for when purchasing software is laser substitute printing. Laser substitute printing government approved W2 copy A and W3 forms to blank paper. You may have a payroll software that generates W2 forms in this case you may already be equipped with the supplies you need.

In November you can expect Federal Tax Employment Forms, IRS Pub No. 393 and MMREF-1 (Magnetic Media Reporting and Electronic Filing) booklet. IRS Pub No. 393 should include a label which is to be attached to the W3 form. MMREF-1 booklet is for those employers whom electronically file their wage reports. The booklet contains specifications and edits for filing wage reports electronically. An electronic file must meet the government specifications. To generate an acceptable file employers must use a software program that generates that particular format. As stated earlier form printing software that also has this capability can be most beneficial.

By December you should have informed your employees to update their federal income tax withholding form (W-4), file a new Earned Income Credit Advance Payment Certificate (W-5) and report any name changes if necessary. If you have any employees which claimed an exemption from federal income tax withholding in the past year should file a new W-4 forms before February 18th. On February 19th you will have to start withholding at a single person rate with zero exemptions if those employees have not filed a new W-4 form.

These few steps will help you prepare to issue W2 form to your employees and file W2 A and W3 forms with SSA. You will also be organized going into the next year. If you do not use payroll software or are being priced out of your current software the beginning of a new tax year is a perfect time to invest in a new program.

Employer Wage Reporting

2009-09-28T14:23:00.000-07:00

Employers have a responsibility to complete specific tasks related to wages paid to employees. Different types of businesses may require additional forms. It is always best to confirm your particular requirements with the IRS.

In January employers will be wrapping up the previous year’s reporting issues. Employers will file, with the IRS, the previous year’s 4th quarter 941 form. Determine if the tax withholding (federal, Social Security and/or Medicare) rates have changed from the previous year. If rates have changed you will need to make the necessary changes accordingly. The deadline for issuing W2 forms to employees also comes at the end of the month.

With the second month of the year come a few more tasks. This is the time to file W2 forms A and W3 with the SSA. Take the time to match form 941b totals W3 information.

April starts the second quarter of the tax year. File 1st quarter 941 form by the last day of April. The 2nd quarter 941 form is due the last day of July this includes payroll from April 1st through June 30th. In October third quarter 941 form is due including payroll periods July through September.

In November request Publication 393, MMREF instructions from SSA or IRS, if you have not received it. If employers plan on electronically filing W2 information they should update their password at SSA’s Business Services Online. Before the end of the year have your employees update their W-4 and W-5 forms for the next year. Whether electronic filing or paper filing submitters should test their form processes for the next year.

The beginning of the new tax year may be an excellent time to consider investing in payroll software. A complete payroll program can save users time and money at the same time avoiding costly calculation errors on payroll forms. For a free trial of Payroll Mate follow this link: payroll software download

To read this article in Spanish please follow this link:

Reporte De Salarios Para
Los Empleadores Con Software De Nomina

Avoiding W2 and W3 Errors

2009-09-10T12:56:00.000-07:00

The fourth quarter of the tax year brings around the time to start preparing for end of the year wage reporting. Being organized and primed for this time of the year alleviates unnecessary last minute stress and mistakes. The IRS and SSA host a Small Business Seminar for both paper filers and/or electronic filers. Business owners may want to attend the seminar for valuable information on reporting wages and taxes and to receive the latest electronic filing instructions. If this is your first time generating W2 forms for your employees these seminars may be helpful. For information regarding the seminars contact the IRS (1-800-829-1040) or the Employer Service Liaison Officer (ESLO).

SSA asks employers to abide by a few guidelines when generating W2 and W3 forms. Keep your entries inside the boxes, use dark ink, do not erase or use white out on the form they also do not require dollar signs to be printed in the boxes.
W2 Box a – Employee’s nine digit Social Security number
W2 Box b – Employer’s nine digit identification number
W2 Box e – Employee’s name as shown on Social Security card and address
W2 Box 1 – Regular wages, tips and compensation
W2 Box 3 – Social Security wages, do not exceed maximum wages for the year
W2 Box 5 – Medicare wages, there is no limit on Medicare wages
W2 Box 7 – Tips paid

W3 Box b – This box must always be completed
W3 Box c – Show the total number of W2 forms included with this W3 form
W3 Boxes e, f, g – Position the label provided by the IRS in Publication No. 393 or enter EIN,employer’s name and employer’s address
W3 Box h – Show any other EIN number used during the tax year

This is a list of commonly used or required boxes on the W2 and W3 forms. Employers may be required to fill in additional boxes depending on their circumstances. Remember both the IRS and SSA websites can be very informative.

In October you can order W2 and W3 forms. You can order paper forms or W2 form printing software. By November the IRS will mail tax forms and IRS Publication No. 393 with a label identifying you as an employer. The label includes employer’s name, address and EIN, affix the label over Boxes e, f, g on the W3 form. For employers that file electronically you will receive the Magnetic Media Reporting and Electronic Filing booklet (MMREF-1). Before December your employees should update their W-4 and W-5 (Earned Income Credit Advance Payment Certificate) forms.

Before you actually file your wage reports you should balance your 941 form to your W3 form for the tax year. Annual amounts from payroll records should match the total amounts reported on all 941 forms for the year; the total amounts reported on all 941 forms for the tax year should match the sum of the same data fields shown in the W3 totals. To help you with balancing your records the SSA has prepared two worksheets. The first is a worksheet for the W3 form, the second is a worksheet for the fourth quarter 941 form. If you would like to use the worksheets to help you match your total amounts you can request a paper copy of the Employer’s Guide from SSA.

Strictly adhering to IRS and SSA guidelines and filing dates is the number one way to avoid errors and fines. Payroll software that automatically calculates Federal, Medicare, Social Security taxes and populates W2/3 and 941 forms lessens the tendency to make manual calculation errors.

Try a nice small business software:Payroll Mate

Payroll Forms Reporting Errors

2009-08-24T09:36:00.000-07:00

Mistakes on payroll reporting forms can be time consuming and costly. With 941 time (always seems to be that time) and W2 season approaching fast now may be a good time to take a look at some of the frequent mistakes.

In general some of the most frequent reporting errors revolve around identifying the business and employee. The SSA and the IRS use the EIN and SSN for identification purposes. Your nine digit EIN should be correct and match on both your 941 and W3 forms. The social security number and employee’s name must match in the SSA’s file. Using titles such as Mr. and Mrs. in the name field may hinder the electronic identification of an individual. Another mistake can be made when reporting wages the year after an employee has passed away. These payments cannot be considered wages they must be reported on a 1099 Misc form in box 3.

Out of balance reports can occur due to several different circumstances. Omitting wages and/or taxes on a wage report or making a decimal error when reporting the wages and/or taxes. Always use a decimal point and report dollars and cents even if it is .00. Using the maximum Social Security wage amount for a prior year instead of the amount for the current tax year reported can be avoided by being an informed employer.

Specific W2/W3 form mistakes may be: not filing with SSA, using incorrect forms, not reporting the correct Medicare wages, or checking and/or not checking the proper boxes on the W2 form itself. W2 forms are to be filed with SSA not the IRS. Paper W2 copy A and W3 forms must be printed in OCR red drop-out ink on paper of the proper weight, margins and format. All paper forms must meet IRS regulations, red ink forms must be scannable and the forms must be for the correct reporting tax year. Remember, Medicare wages/tips do not have a limit that is subject to Medicare tax such as social security wages. Avoid checking the void box unless you do not want those wages reported. Another box to pay attention to is box 13 this includes the retirement plan box always check this box if your employee participates in a retirement plan.

Another important reporting form with frequent errors is the 941 Form. Some mistakes pertaining to these forms are again incorrect Medicare/Social Security wages and box 13, as pertaining to third party sick pay, also failing to file corrected forms and filing duplicate 941 forms. As with W2 forms separately report Medicare and Social Security wages but do not report amounts not covered by Social Security/Medicare wages such as employee earnings exceeding the yearly taxable amount for Social Security wages and payments to an independent contractor shown as wages.

If you need to adjust a prior year’s earnings on a 941 Form you must file W2c and W3c forms. Do not file duplicate 941 forms. This may happen if you include information from one month in two different quarterly filing reports. All these mistakes can be time consuming for the business owner to rectify and possibly incur monetary penalties.

Let’s try not to give anymore time and money than is required. Being vigilant and informed when inputting information and generating forms can help us avoid mistakes. Measure twice cut once as the saying goes, double check your forms the first time around to avoid a second time around.

Federal Minimum Wage Increases

2009-08-10T10:55:00.000-07:00

On Friday July 24, 2009 the federal minimum wage increased to $7.25. This increase affects a number of states and all employees who are covered by the Fair Labor Standards Act (FSLA). The increase is the third and final in a succession of increases, over a three year period, mandated by a bill that was passed in 2007.

The most recent increase will improve the wages, for employees, in thirty states (Alabama, Alaska, Arkansas, Delaware, Florida, Georgia, Idaho, Indiana, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New York, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Wisconsin and Wyoming) across the country. These states were either below the federal minimum wage or did not have a minimum wage. Under the Fair Labor Standards Act all employers, with very few exceptions, are required to the federal minimum wage to their non-exempt employees.

To be in compliance with the FLSA all employers subject to the requirements, must post a notice explaining the act. This notice must be posted in a prominent workplace so that employees can easily read the provisions. Posters and other compliance assistance materials concerning the minimum wage increase are available free of charge from the Labor Department's Wage and Hour Division.

In today’s economic climate full-time and part-time employees, whom the change affects, will welcome a boost in their paycheck. Employers may be nervous about the change if they are still manually calculating payroll. A simple solution, for small business owners in this situation, would be to invest in employee payroll software. A small upfront investment saves time, money and aggravation in the long run.

Try a free demo version of this small business payroll software: software download

Second Quarter 941 Deadline

2009-07-13T10:24:00.000-07:00

The IRS deadline, to file the second quarter 941 form (Employer’s Quarterly Federal Tax Return) is nearing. To be compliant with government regulations this is one of many payroll forms business owners and employers need to prepare. Employers use this form to report wages paid, tips received by employees, federal income tax withheld, both the employee and employer portion of Social Security and Medicare taxes, the current quarter’s adjustments to Social Security and Medicare tax for fraction of cents, sick pay, tips, group-term life insurance, advanced earned income tax credit (EIC) payments and credit for COBRA premium assistance payments.

Those employers, who filed the first quarter 941 form, for 2009, may recall the credit for COBRA premium assistance payments line was a new addition at the time. This line was added to accommodate the COBRA premium benefits outlined in the American Recovery and Reinvestment Act of 2009.

Form 941 is due the last day of the month that follows the end of the quarter. Second quarter 941 Form is due on July 31, 2009 and includes payroll periods in April, May and June. Third quarter 941 Form is due October 31, 2009 and includes payroll periods in July, August and September. Fourth quarter 941 Form is due January 31, 2010 and includes payroll periods in October, November and December.

Preparing this can be cumbersome and time consuming. Comprehensive payroll software that includes payroll forms and reports can save business owners time and money. An automated payroll solution can save employers from possible mistakes during tedious calculations when completing payroll forms.

Many states have undergone tax table changes in 2009. Another dilemma averted by an automated payroll program. Receive automatic tax table updates and payroll forms with Payroll Mate. Payroll Mate is a user friendly, cost effective payroll solution.

A free demo version can be downloaded at payroll software download

2009 California Withholding Schedules Replaced

2009-07-06T12:37:00.000-07:00

Recently a number of states have amended their tax withholding schedules.Using a payroll software can assist you in achieving a smooth transition when applying income tax changes.

As a result of the recent budget, the California Withholding Schedules for 2009 included in the 2009 California Employer’s Guide have been replaced.The schedules have been updated to accurately reflect the withholding amounts that should be withheld in each bracket of income at the time of the employee’s payroll.

Information regarding Method B- Exact calculation method can be found at http://www.edd.ca.gov/pdf_pub_ctr/09methb.pdf

For additional information about California Personal Income Tax www.ftb.ca.gov

This California payroll software has completed the updates and sent the new tax changes, by the internet, to their customers.

Download a free demo of this payroll software: Payroll Mate

Virginia Employers to Utilize Paycards

2009-06-29T10:06:00.000-07:00

Virginia has authorized employers to make payment of wages and salaries by credit to a prepaid debit card or card account. This is effective for employees hired after January 1, 2010 and does not require affirmative written consent from the employee,if the employee fails to designate a financial institution to which payroll could be made by direct deposit and the employer arranges for the card or card account to be issued through a network system through which the employee will have the ability to make at least one free withdrawal or transfer per pay period.

Utilizing this Virginia payroll software with the capability to direct deposit payroll can save employers time and resources.

To download a free demo version of the software:Virginia payroll software download

New Jersey Mandates Electronic Filing

2009-06-22T09:13:00.000-07:00

New Jersey is requiring all employers to electronically file their quarterly wage reporting information Form- WR30. This requirement is effective the first quarter of 2009.

Currently there are two options to file electronically. You choose the one that is best for your business.

Online SFTP Filing:

Using your PC and the PIN number indicated in your quarterly packet, update the employee information that is online.

You may complete the job in one or multiple sessions by saving the information.

When you are through updating the data, submit it. You will be provided confirmation in this secured site. File online now.

Amended returns may also be filed online.

SFTP Filing:

The Request for Authorization to Report WR-30 Electronically can be downloaded and faxed to the Division for processing. This document is usually processed within 24 hours.

A test file must be submitted and approved. Record specifications are available by clicking layout format.

For more information visit http://www.state.nj.us/njbgs/revtemplate.htm

For your payroll needs including software and federal forms visit Real Business Solutions.

Revised New York State and Yonkers Withholding Tax Computation Rules

2009-06-15T11:16:00.000-07:00

Effective May 1, 2009 the New York State personal income tax rates and the Yonkers resident personal income surcharge tax rates have changed for certain taxpayers.

The following rules apply for computing the amount of New York State personal income tax and Yonkers resident income tax surcharge to be withheld:

• If you use Method I, Wage bracket tables (look-up tables), to compute withholding tax for your employees, you
can continue to use the New York State and Yonkers tables contained in Publication NYS-50-T (dated 1/06).

• If you use the dollar-to-dollar withholding tables instead of the exact calculation method, you can continue to
use the dollar-to-dollar withholding tables contained in Publication NYS-50-T (dated 1/06).

• If you elect or are required to use Method II, Exact Calculation Method, you must use the revised exact
calculation method(s) in this publication. Effective May 1, 2009, the New York State personal income tax and
Yonkers resident personal income tax surcharge Method II exact calculation methods on pages T-13, T-14,
T-14-A, T-57, T-58, and T-58-A in Publication NYS-50-T (dated 1/06) are no longer valid.

Supplemental withholding rates Effective May 1, 2009, if you pay supplemental wages (bonuses, commissions, overtime pay, sales awards, etc.), the following withholding rates apply (the New York City and Yonkers Nonresident rates are unchanged):

New York State 11.03% (.1103)
New York City 4.00% (.04)
Yonkers Resident 1.103% (.01103)
Yonkers Nonresident 0.50% (.0050)

Visit www.nystax.gov for more information on the changes.

A New York payroll software can make this transition very simple. Payroll Mate conveniently updates the tax tables for their customers. All mid year tax changes are sent to the users, free of charge, via the internet.

Payroll Mate is a comprehensive payroll software that fits the needs of accountants and small to medium size businesses.Payroll Mate automatically calculates net pay, federal withholding tax, Social Security tax, Medicare, state and local payroll taxes. Payroll Mate also supports different types of payroll pay periods, prints checks, prepares payroll forms 941, 944, 940, W2 and W3. This payroll software also supports user-defined Income, Tax, and Deduction categories making it very flexible and powerful.

Download a free demo version of the software and try it for yourself:Payroll Mate.

Changes to Arizona Income Tax Withholding

2009-06-11T09:42:00.000-07:00

Effective May 1, 2009 Arizona withholding options have changed. The amounts, on or after May 1, 2009 through June 30, 2010, required to be withheld for Arizona withholding purposes will continue to be a percentage of the federal withholding.The new percentage options are available at http://www.revenue.state.az.us/Newsroom/Releases/SB-1185-Withholding-Q-A.pdf or by contacting the Arizona State Revenue Department . Amounts withheld on or after July 1, 2010, must be based on a table prescribed by the department. The department plans to have the new withholding tables available sometime in the late spring of 2010.

All current employees withholding options should be changed to the new applicable rate. Employers must notify their employees of the change and make available the revised Arizona form A-4 or A-4v if employees elect to chose a different rate.

A new employee must complete the revised 2009 Arizona Form A-4 within the first five days of employment to elect an Arizona withholding percentage. If the new employee does not complete the revised Arizona Form A-4, the employer must withhold Arizona income tax from the employee’s wages at the greater of the applicable minimum percentage (11.5% or 21.9%). A new employee who is an Arizona resident working outside of Arizona may elect voluntary Arizona income tax withholding for 2009 by completing the revised Arizona Form A-4V. The employer must withhold Arizona income tax from the employee’s compensation at the greater of either the percentage elected by the employee or the applicable minimum percentage (11.5% or 21.9%).

An Arizona payroll software can make this transition very simple. Payroll Mate conveniently updates the tax tables for their customers. Users will not need to manually input any percentage rates.

Payroll Mate is a comprehensive payroll software that fits the needs of accountants and small to medium size businesses.Payroll Mate automatically calculates net pay, federal withholding tax, Social Security tax, Medicare, state and local payroll taxes. Payroll Mate also supports different types of payroll pay periods, prints checks, prepares payroll forms 941, 944, 940, W2 and W3. This payroll software also supports user-defined Income, Tax, and Deduction categories making it very flexible and powerful.

Download a free demo version of the software and try it for yourself:Payroll Mate.

Direct Deposit Green Facts

2009-06-08T08:59:00.000-07:00

Payroll software direct deposit is not only a convenience for the employee and employer but it also benefits the environment. This is one way businesses and their employees can help the environment in one easy step. Each pay day you can make a small contribution to the environment without thinking about it. These small contribution really add up over time.

One individual employee, paid with a paper, can save pounds of paper per year, avoid the release of multiple gallons of wastewater into the environment and avoid pounds of greenhouse gases being released into the atmosphere by switching to direct deposit. This is just one individual employee, the numbers for a business, that employs many people, rise exponentially they can save hundreds of pounds of paper, avoid the release of thousands of gallons of wastewater into the environment and hundreds of pounds of greenhouse gas into the atmosphere per year.

If those U.S. employees who have access to Direct Deposit but choose not use it, would opt to be paid by direct deposit, they would be:

Saving 11,082,971 pounds of paper
Avoiding the release of 105,709,380 gallons of waste water into the environment
Saving 4,105,889 gallons of gas
Avoiding the release of 31,581,675 pounds of greenhouse gas into the atmosphere.

This amount of greenhouse gas is equivalent to:
1,345,379 trees planted (and grown for 10 years)
13,756,978 square feet of forest preserved

Payroll Mate has added a direct deposit option to its simple to use comprehensive payroll software.

Download a free demo version of the software at
Payroll Mate download.

Hawaii Increases Income Tax

2009-06-03T14:12:00.000-07:00

On May 8, 2009 a law passed to raise Hawaii's income tax. For taxable years beginning after December 31, 2008, Act 60 increases the income tax for the highest income bracket. Increases to the income brackets, by Act 60, will be repealed on December 31, 2015 and the rates, in effect prior to January 1, 2009, will automatically be reenacted.

For the majority of taxpayers, this means:

Taxpayers who file a joint return will pay:
9.00% on taxable income over $300,000, but not over $350,000;
10.00% on taxable income over $350,000, but not over $400,000; and
11.00% on taxable income over $400,000.

Heads of a household will pay:
9.00% on taxable income over $225,000, but not over $262,500;
10.00% on taxable income over $262,500, but not over $300,000; and
11.00% on taxable income over $300,000.

Unmarried individuals and married individuals who file separately will pay:
9.00% on taxable income over $150,000, but not over $175,000;
10.00% on taxable income over $175,000, but not over $200,000; and
11.00% on taxable income over $200,000.

For more specific information on the income tax change and/or the personal exemption, and standard deduction changes see http://www.state.hi.us/tax/announce/ann09-04.pdf

A payroll software makes state income tax changes simple. Payroll Mate automatically updates federal and state income tax withholding tables for their customers.

Download a free demo of Payroll Mate: http://www.realtaxtools.com/Downloads/PayrollMateSetup.exe

New York Enacts a New Payroll Tax

2009-06-03T13:21:00.000-07:00

As of March 1, 2009 The Metropolitan Commuter Transportation Mobility Tax (MCTMT) has imposed a new tax on certain employers and self-employed individuals engaging in business within the Metropolitan Commuter Transportation District (MCTD). The MCTD includes New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island) , Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester counties.

This tax applies to employers required to withhold New York State income tax from employee's wages and whose payroll expense exceeds $2,500 in any calendar quarter and individuals with net earnings from self-employment allocated to the MCTD that exceed $10,000 for the tax year.

The rate of the tax is 0.34% on subject wages. Payment is due November 2, 2009 for the initial payment period: March 1, 2009 - September 30, 2009.

Specifics on the new tax can be found at http://www.tax.state.ny.us/sbc/mta.htm and/or http://www.tax.state.ny.us/pdf/memos/mta_mobility/m09_1mctmt.pdf

Customizable payroll software like Payroll Mate can be easily updated to implement the new Metropolitan Commuter Transportation Mobility Tax.

Download a free demo of Payroll Mate: http://www.realtaxtools.com/Downloads/PayrollMateSetup.exe

1st Quarter 941 Form

2009-03-30T10:26:00.000-07:00

The time has already come to be thinking about the Employer's Quarterly Federal Tax Return (Form 941). Employer's are required to report wages paid, tips received by employees, federal income tax you have withheld, both the employer's and employee's Medicare and Social Security taxes withheld, your current quarter's adjustments to social security and Medicare taxes for fraction of cents, sick pay, tips, group-term life insurance, advanced earned income tax credit payments and credit for COBRA premium assitance payments. The COBRA premium assistance payments box is new to the 941 this quarter. The 941 form is due April 30, 2009 and includes payroll from Jan, February and March.

Employers whom are still calculating withholding taxes and generating their federal forms manually could save vast amounts of time and energy by using a Payroll Software. The IRS has changed the federal income tax tables due to the The American Recovery and Reinvestment Act of 2009 (The Stimulus Package) and ,as stated above, the 941 form. This may be the perfect time for employers to invest in a Payroll Program that could make this transition painless.

I am a small business owner and have been using this particular payroll software for almost a year now. I am continually impressed by this software and the support I get from the company.Payroll Mate has been completely updated (tax tables and 941 form) and frequently sends new updates, for the year, at no additional cost.

Please try a free download of the payroll software

W2/1099 Electronic Filing Deadline

2009-03-23T09:08:00.000-07:00

The deadline for electronically filing W2 and 1099 forms is nearing. Per IRS and SSA regulations any person/s required to file 250 returns or more must file those returns electronically. Others with less than 250 returns may also choose to electronically file their returns.

For the tax year 2008 the deadline to E-File your W2 and 1099 Misc forms is March 31, 2009. In order to E-File a return you must have a software that generates an electronic file that meets IRS/SSA specifications.

W2 Mate offers a complete solution for importing, preparing, processing, printing and E-Filing 1099 and W2 forms. This W2/1099 form printing and reporting software supports an unlimited number of companies, employees, recipients and forms.

You can download a free demo version of the software at http://www.realtaxtools.com/download.html

Form 941 Changes

2009-03-16T08:24:00.000-07:00

The federal government has changed the 941 form. With the stimulus package income tax changes the form 941 has changed to accommoate the COBRA payments. The COBRA premium payment assistance payments are reflected on box 12a. Box 12b reflects the number of individuals provided COBRA premium assistance. Box 13 has been added, this box will be filled with the total from boxes 11 and 12a. The value of box 12b will not affect the values in boxes 13, 14 or 15.

The other change is with box 7. Box 7 now includes this quarter's adjustments only which are 7a, 7b and 7c. This means adjustments 7d, 7e 7f and 7g no longer exist on the form.

The Payroll Software I use, Payroll Mate, has updated the 941 form. The three new boxes 12a, 12b and 13 have been added to part 1of the 941 form. Payroll Mate calculates box 13 from boxes 11 and 12a. However, Payroll Mate does not calculate the values of boxes 12a and 12b the user inputs the values. Payroll Mate will reflect the value of both boxes on the printed form.

My Payroll Program has been updated to reflect the income tax changes of the The American Recovery and Reinvestment Act of 2009.

You can download a free demo version of the program at http://www.realtaxtools.com/Downloads/PayrollMateSetup.exe

Stimulus Package Changes Withholdings

2009-02-27T07:37:00.000-08:00

President Obama has signed the stimulus package. What does this mean for employers? We are required to have the tax table changes in effect for our employees as soon as possible no later then April 1, 2009.

I have contacted my Payroll Software provider, they have advised me that the program will be updated. As I have stated before Payroll Mate makes doing payroll easy, predictable, and affordable. Any updates to the Payroll Program are free of charge including the new IRS tax tables. All updates for Payroll Mate are sent via the Internet. This makes getting the updates quick and hassle free.

This software has been wonderful at a time when we need to be cutting back on spending, I feel this program is economical. As with other providers Payroll Mate fees were not raised. For $99 you get a terrific program, helpful technical support and free updates.

You can download a free demo version of the software from the following link http://www.realtaxtools.com/payrollsoftware/Small-Business-Payroll-Software.html [Payroll Software Download].

Printing My W2 Forms

2009-02-06T08:43:00.000-08:00

It's that time of year again. It does seem to come around awful quickly. Hopefully, by now, we have all printed and mailed W2 forms to our employees.

I was able to complete this task directly from my
Payroll Program . Payroll Mate allows me to print W2 copies B, C, D, state 1 and 2 to blank paper. The employees' W2 numbers are automatically generated from the year's payroll.

As I talked about last year Payroll Mate added a new feature for laser substitute printing. This feature allows me to print W2 copy A and the W3 forms to blank paper. I paid an additional $25 for the convenience of bypassing the red ink forms of the past. The option is well worth the money. One note, you do need to print the laser substitute forms with a laser printer.

I was able to print all copies of W2 and W3 forms to blank paper directly from Payroll Mate .

You can download a free demo if you want to from the link below:
Payroll Software Download

2009 Payroll Reminders

2008-12-29T09:37:00.000-08:00

Just a reminder of deadlines to come

1.February

Furnish 1099-MISC Forms to independent contractors and W-2 forms to employees who worked for you during 2008.

Deposit FUTA tax owed through Dec 2008 if $500 or less.

File 2008 Form 940 (Employer’s Annual Federal Unemployment (FUTA) Tax Return).

Deposit Payroll tax for January if applicable.

2.March

File Form W-3 (Transmittal of Wage and Tax Statements) with Copy A of all Forms W-2 you issued in 2008.

Deposit Payroll tax for February if applicable.

3.April

File Form 941 for the 1st quarter of 2009. Deposit FUTA tax owed through March if more than $500.

Deposit Payroll tax for March if applicable.

4.May,June

Deposit Payroll tax for the month before if applicable.

5.July

Deposit Payroll tax for June if applicable.

Deposit FUTA owed through June if more than $500.

File Form 941 for the 2nd quarter of 2009.

6.August,September

Deposit Payroll tax for the month before if applicable.

7.October

Deposit Payroll tax for September if applicable.

File Form 941 for the 3rd quarter of 2009.

Deposit FUTA owed through September if more than $500.

8.November

Ask employees whose withholding allowances will be different in 2009to fill out a new Form W-4.

Ask employees who want to receive advanced earned income credit payments during 2009 to complete Form W-5.

Deposit Payroll tax for October if applicable.

9.December

Deposit Payroll tax for November if applicable.

Verify the names and Social Security Numbers of your employees by using the Social Security Number Verification Service (SSNVS).

Place your order for W-2 forms for employees and 1099 forms for independent contractors.

Remind your employees to update their W-4 forms.

I have found useful information about payroll software and W2/1099 forms and supplies on the website www.realtaxtools.com

Changes for 2009 Wage Withholding

2008-12-29T09:31:00.000-08:00

Thought this may be helpful information

As in past years the IRS issued a 2009 tax guide for employers. Below is a summary of the new changes for the new year.

1. Social security and Medicare taxes (rate and cutoff)

Employers must stop withholding social security tax after an employee reaches $106,800 in social security wages in 2009. The maximum social security withholding amount in 2008 was $102,000.

2. New employment tax adjustment and claim for refund process

The IRS is introducing two new forms for the 2009 tax year: Form 941-X, Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund, and Form 944-X, Adjusted Employer’s ANNUAL Federal Tax Return or Claim for Refund.

3. Credit card payments

Employers can pay the balance due on Form 943 (Employer’s Annual Federal Tax Return for Agricultural Employees) and Form 945 (Annual Return of Withheld Federal Income Tax) by credit card. Employers can't use a credit card to make federal tax deposits.

4. Social Security Administration and magnetic media

Employers requesting verification of names and social security numbers between 51 and 250,000 employees can no longer use magnetic media to submit their requests to the Social Security Administration. Employers can upload a file through the Social Security Number Verification System (SSNVS).

5. Paid preparers must sign Form 941 and Form 944

The paid preparer’s section is no longer optional and is included in Part 5 of Form 941(Employer’s QUARTERLY Federal Tax Return) and Form 944 (Employer’s QUARTERLY Federal Tax Return).

Employers using an up to date 2009 payroll software to generate payroll and calculate withholding, shouldn't have a problem dealing with any of these changes for tax year 2009.

New Features for Payroll Mate

2008-10-01T12:25:00.000-07:00

I recently received a call from Payroll Mate. It was a call to let me know updates were sent out and they added new options for the program. The company is also offering a $10 discount to customers who preorder the 2009 Payroll Software.

The new options you can add to the program are laser substitute printing for W2 copy A and the W3 Transmittal Summary forms, Direct Deposit and more employees and/or companies.

Laser substitute printing is wonderful if you do not want to purchase forms. You will be able to print the forms on blank paper.

Many companies/employees like to use direct deposit instead of paper checks nowadays. I'm sure this option will be well received by many customers.

The Payroll Program as it is will accommodate up to 10 companies with 75 employees per company all for $99. This new option will allow for larger companies to utilize the software. This option will accommodate up to 100 companies with 1000 employees per company.

Convenience this is what I think these new option add to the program. Since this is my first year using the program I was pleasantly surprised to find out that the price did not go up. Really, what product, especially today, has not gone up in price. As a matter of fact I purchased the program for less than last year because I got the $10 discount.

The updates to the program include the end of the year forms and check printing options. You can now print the checks in last name, first name or check number order.

You can download a free demo if you'd like from the link below:
Payroll Software Download This payroll solution is very easy to use and affordable.

Payroll Software- Deleting a Check

2008-09-08T11:25:00.000-07:00

Last I posted I was entrusting the Payroll Program to a new user. As I have raved, the program is very simple to use, so I foresaw no problems. It was no surprise payroll checks were issued without a major problem. She was able to use the Payroll Software without asking a single question. Because she created payroll during the week while she had access to the program she dated the payroll checks the day she created them. This is only a problem for my own records.
All payroll checks were correct. I just need to go back into the Payroll Program to change the pay date. The two things you cannot edit on a previously created check are the pay date and the check number. I recreated my payroll choosing the correct pay date. Then I went to the listing of all my checks. I selected the checks from the same pay periods with the wrong pay date. From here I delete the checks I don't want in the program.
I will continue using this Payroll Product through the end of the year. If I come across any problems I will create a new posting. I will definitely let everyone know how the well the program works to create W2 forms. I will absolutely be ordering Payroll Mate 2009.

You can download a free demo if you want to from the link below:
Payroll Software Download

New User

2008-08-18T07:26:00.000-07:00

I will be leaving on vacation. A new user to the Payroll Software will run my payroll while I'm gone. I plan on returning before checks go out so I will double check the completed payroll before releasing the checks. I am completely confident that with very little explanation she will be able to use the program. Time for sun, sand and no worries.

Payroll Software- Deposit Requirements

2008-08-11T08:14:00.000-07:00

I mentioned the reports this Payroll Program supports. This Payroll Software has nine different reports. These forms are built into the program at no additional cost. They are included in the $99. The reports can be used for many purposes. You can view as many or as few employees’ details at once. You can choose to view per pay period or a longer time frame. Each report gives different information, one may give a complete break down of all withholdings, another may give totals for the time period selected. There is no shortage of report options to select from.

I will be using the Deposit Requirement Report to fill in my monthly state tax form. The Deposit Requirement Report breaks down all the tax and deduction amounts individually. I can bring up the report for any time period I choose. So the report can give me totals for one month, quarterly or longer. Using this report gives me the tax information I need to fill in my monthly state forms.

I can also see my 941 total. This Payroll Software does support the 941 form, which I think I wrote about previously. I find using this report to view my monthly liability easier than using the totals directly from the 941 form. I do like to see the breakdown and the total on one page.

I cannot stress more, to the small business owner, the ease of this Payroll Program. I mention small business owner or larger companies because that is what I consider myself. I'm sure this software has benefits for all sized companies. In the past I have used software or services that have cost me much more than this program.

I want to share with you, the name of the solution to your needs, is Payroll Mate, and you can download a free demo if you want to from the link below:Payroll Software Download

Editing a Check

2008-08-04T08:32:00.000-07:00

Just a quick note regarding editing a previously created check. In Payroll Mate there are two things that cannot be edited, the check number and the pay date. An employer can have many different scenarios as to why a check may need to be edited.

Sometimes it can be a bad idea to change a check that has already been created, especially if the employee has been paid. Changing tax withholdings paid by the employee should not be done. Creating a new income, deduction or tax category and adding that to the previously created checks can also not be done.

A scenario that editing a check may be beneficial pertains to employer withholdings. In this Payroll Program if a mistake has been made concerning, lets say, unemployment withholdings editing the check becomes helpful. I recently wrote about my unemployment not calculating. The situation was rectified but I had created some checks before noticing my mistake. Did I need to delete these checks? Did I need to recreate the checks? The easiest solution was to edit the check. When editing this withholding I was not changing anything for the employee portion of the check. Neither the net pay nor the gross pay of the check was affected. The only thing this changed was my own employer records. Using the edit function in the Payroll Software in this manner was extremely beneficial to me.

This change was instantly seen in the reports supported by the Payroll Software. The many reports supported by Payroll Mate will be something discussed in the future. If you’d like to view the forms or the software for yourself you can download a free demo if you want to from the link below:
Payroll Software Download

1099 Misc / Contractors

2008-07-28T09:02:00.000-07:00

I have been using Payroll Mate for 4 pay periods now. I think the decision to do my own payroll was the right choice. This Payroll Software has saved me money without taking up a large chunk of my time.

At this point I hired a contractor to do some temporary work for me. Payroll Mate is a program for employees but the company has a solution for those customers who need to pay contractors. Contractors receive 1099 Misc forms at the end of the year versus employees who receive W2 forms. Adding my contractor to my company, with my employees, could cause problems with my 941 form. The solution Real Business Solutions gave me was to add a second company.

Open the Payroll Program, go to file, open new company. This is the same process as I went through before but I will now use this company just for my contractor(s). Using the program in this manner keeps the contractor(s) separate from my employees, at the same allows me to create a check for the contractor(s).

Just a note about one feature of the Payroll Program. Payroll Mate can accommodate up to ten companies with 75 employees per company. This ability to accommodate 10 companies comes standard for $99 per year. If you have the need Payroll Mate can be upgraded. The upgraded version does not limited companies or employees.

You can download a free demo if you want to from the link below:
Payroll Software Download

Payroll Software- W2 Form Local Tax

2008-07-21T10:01:00.000-07:00

I added a local tax category to the program, which I discussed before, but the steps are simple.

This Software Program gives the user the ability to add virtually unlimited number of customized tax and deduction categories to do so please follow those steps.
1. Start by going to the Company Setup. You can do that by clicking on the "Company" icon on the left side of the application.
2. Now Click on the "Tax Categories" Button.
3. Click on Add to create a new Tax Category.
4. Fill in the different fields. Below are suggested values:a. Title: School Tax.b. Abbreviation: School Tax.c. Calculation: Fill in the way you will calculate this deduction.e. Select OK to finish.
5. Go to the employees list by clicking the "Employees" button on the left side of the application.
6. Select the employees to whom this tax applies and click edit.
7. Continue clicking next until you reach the "Taxes" Page, you should see the tax you added as one of the listed taxes. Make sure you check the box next to it. Click next and then Finish to finalize your changes

Now the problem is it is not showing the withholdings on my employees’ W2 form. This problem has a simple solution.
1.Start by going to the new category in the company- tax information. You can do that by clicking on the "Company" icon on the left side of the application. Then clicking the Tax Categories tab.
2.Now click on the new tax you have created.
3.Click on the edit tab near the bottom of the box.
4.In the new box that pops up you will see W2 Options. To see the withholdings, in the local tax section of the W2 form, check the box that states use on Box 19.
5.Click ok to complete the change.

The Payroll Program will now populate the local tax line on the W2 form.

This is a wonderful Payroll Solution for employers who are tired of being taken advantage of by the large companies. The outrageous prices, paying for tech support and forcing us to purchase options we do not need.

You can download a free demo if you want to from the link below:
Payroll Software Download

2nd Quarter 941 Form

2008-07-14T08:06:00.000-07:00

It’s that time, it is time to turn in my 2nd quarter 941 form. I will be using Payroll Mate to complete my 941 form. This Payroll Program makes generating my 941 form simple. The Payroll Program uses the payroll numbers from the second quarter payroll to fill in the form. That leaves me with the task of inputting my total deposits to complete the form. Once I in put my total deposits the software automatically calculates my over or underpayment.

The Payroll Program then prints the form in its entirety.

The Payroll Program does have the schedule B and payment vouchers for the customers who need these forms.

You can download a free demo if you want to from the link below:
Payroll Software Download

Finding Answers to My Questions

2008-07-07T10:25:00.000-07:00

Why is my unemployment not calculating correctly? I was not sure why the incorrect dollar amount was being deducted from the paychecks. I went back through the steps of setting up my company information. Clicking on company and then state tax information. Here a basic fill in form appears. I look, I think my information is correctly filled in, what next?

I called the Payroll Software company. My call was answered promptly. The support representative knew what my problem could be right away and she was right. The program wanted my state’s rate as a percent, I had plugged in the number as a decimal. This seemed so simple I wanted to be able to find answers on my own.
I logged on to the website www.realtaxtools.com to see if my questions could be answered in the FAQ’s as stated in some of the emails I received from the company. I was able to find many subjects were covered in this section of the website.

Another place to look for answers is the help section of the Payroll Program itself. If a user needed help inputting information this is a wonderful guide. The help menu can even be printed if the user wanted to have the information right in front of them.

As long as I was researching my help options I thought I would try the live chat feature on the website www.realtaxtools.com. This is just one more option customers have to get help. From the home page you can click on contact us or from the Payroll Software page you can also access the online chat. I clicked on the online live chat button entered my name, email and question. I asked about the unemployment again. I received the same prompted answer as when I called the office. Even though the the Payroll Program is simple to use, it is nice to know that my questions will be answered.

You can download a free demo if you want to from the link below:
Payroll Software Download

Creating Payroll Checks

2008-06-30T08:39:00.000-07:00

It is time to create my first payroll. I have already input my employees information through the employee set up wizard. The set up wizard is a step by step guide to inputting employee information.

This Software Solution prints on preprinted checks. I start by clicking on pay. This brings up a check details page. My employees are paid per hour so all I do is put in the number of hours worked. The Software Solution automatically calculates all related taxes and deductions. The check details page does ask for the pay period dates and the pay date. In this Payroll Program , as I understand,the pay date is important. The pay date is the date all the reports are generated around. Remembering this fact is very helpful in utilizing the reports in the program.

Naturally, printing the checks for my employees is the next step in the process. I have the choice to print each check individually or print multiple checks at one time. The easiest choice for myself is to print all my checks at once. I click on that option and choose my dates, again according to pay date. I can then preview the checks. Better safe than sorry. Once I’m completely comfortable with this program I’m sure I will not need to preview.

Once printed, the check has two pay stubs, one for the employee and one for my paper records. The Payroll Program does save all created checks for reference if need exists.
One additional note about creating checks the check number and pay date cannot be edited. If I need to edit those entries on a check I will need to create a new check and delete the previous check.

You can download a free demo if you want to from the link below:
Payroll Software Download

Adding Categories to Payroll Mate

2008-06-23T09:00:00.000-07:00

The Payroll Program allows you to add income, tax and deductoin categories. This feature is nice. Not all companies have the same income, tax and deductoins. This step is simple. You basically fill in the fields that pop up.

To give you an idea how the process works 1. Start by going to the Company Setup. You can do that by clicking on the “Company” icon on the left side of the application.2. Now Click on the “Tax Categories” Button.3. Click on Add to create a new Tax Category.4. Fill in the different fields. Below are suggested values:a. Title: School Tax.b. Abbreviation: School Tax.c. Calculation: Fill in the way you will calculate this deduction.e. Select OK to finish.5. Go to the employees list by clicking the “Employees” button on the left side of the application.6. Select the employees to whom this tax applies and click edit.7. Continue clicking next until you reach the “Taxes” Page, you should see the tax you added as one of the listed taxes. Make sure you check the box next to it. Click next and then Finish to finalize your changes.

I am finding this Payroll Program to be very easy to use. I am getting ready to complete and file my 941 form. My first step was to recreate my payroll for the year. I needed to have my employees current year to date information in the software. I did this by creating dummy checks for each month. When creating checks you can override the tax calculations the program computes if need be. If I were to create my entire payroll per pay period I may not have had to override the withholdings. This week I will be working on generating checks for my current pay period.

You can download a free demo if you want to from the link below:
Payroll Software Download This payroll solution is very easy to use and very affordable.

Starting a New Payroll Software

2008-06-16T11:04:00.000-07:00

I am a small business owner. Many payroll softwares are getting to be overpriced for my needs. I have done my research and decided to purchase Payroll Mate 2008. I found Payroll Mate at www.realtaxtools.com. Before making a purchase I reviewed the program using a trial version of the
Payroll Software . There is no charge for the trial and it allowed me to view the features of the program before commiting to buying the product. I did call the company to ask a few questions. A real person answered the phone right away. She was very helpful and reassured me that I could call back if I had any other questions. You can contact them through email, live chat or a phone call. I haven't tried live chat yet; I can let you know how that goes when I do.
I did order the program by download, which came right away, but for those who prefer the company can ship a program CD.

At this point I have entered my company and employee information with no problems. The program does have some built-in income, tax and deduction categories but I will need to add some of my own. I will let you know how I progress with the software.

For those who would like to try here's a link to the Payroll Software Download .