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December 1, 2020

2021 Payroll Tasks and Reminders

As we focus on closing out the 2020 tax year, it’s equally important to look ahead and begin planning for the new year. Here are a few important items to review and mark on your calendar for 2021.

2021 State Unemployment Insurance Tax Rate Notices and Deposit Frequency Notices

Please forward your state unemployment tax rate and updated deposit frequency notices to your payroll specialist or fax directly to our tax team at 888.403.5750.

Distribute 2020 Year-End Forms to Your Employees

Employee Copies of Form W-2 and 1099 will begin shipping on January 11th, 2021.  These forms will be sent to the shipping address on file for your business, but digital copies will also be posted and available online for both administrative and employee self-service users.

Benefits of Electronic Copies of Year-End Forms

  • Self-Service: Copies of current and prior W-2s and 1099s are available to you and your employees to view and print on demand from our secure online portals. If a W-2 or 1099 is lost or destroyed, a copy can be printed from the portal immediately and free of charge.
  • Rapid & Seamless Delivery: Electronic copies of the year-end forms will be available online before the traditional paper forms are delivered. This means employees can access their year-end forms earlier and easier through a secure online portal. In addition, digital versions of year-end forms can be easily uploaded into many tax preparation programs, reducing data entry.
  • Security: If your employees consent*, you can provide electronic copies of their year-end forms (W-2s/1099s) instead of paper copies. Online delivery to a secure portal reduces the chance that a W‐2 statement will be lost or misplaced in the mail all while saving you the time and expense associated with distribution and shipping.

    *The IRS has outlined specific requirements for employers who wish to furnish year-end forms to their employees exclusively online. Please click the following link for additional details https://www.irs.gov/pub/irs-pdf/p1141.pdf

Review Your Quarter End & Year End Tax Returns

  • Reference copies of your 4th quarter and year-end tax returns will be available through your secure online portal. To access these returns click on your business name under the Documents menu from the left side of your portal homepage. Once the page loads, select the Accounting option, then select the folder labeled 12-31-20.

2021 Form W-4 Updates

A W-4 form remains in effect until an employee submits a new one. You are not required to obtain new W-4s for your employees each year unless they claim exemption from income tax withholding. We recommend that you send a courtesy reminder to your employees prompting them to review their withholding and submit a new Form W-4 if changes apply.

Exempt W-4s expire on February 15th of the following year. If employees claim exemption from tax withholding, you must obtain a new Form W-4 annually.

2021 Minimum Wage Rates

Many states will increase their minimum wage rates for 2021. Most of these updated rate requirements go into effect January 1, 2021. Please be sure to update your employee rates accordingly.