Year End Quick Reference Guide - December 2015

Dear ValuedClient:

In an effort to help answer many of your year-end/new year payroll related questions we have designed this Quick Reference Guide. During the close of 2015 and the roll out of the new calendar year this guide will be a helpful time- saving resource. Should you have additional questions or concerns, please call our office and speak to your Customer eXperience Representative. It has been our pleasure to serve you in 2015 and we look forward to working with you in2016!

CriticalDatesandImportantDeadlines

December
24th, Thursday / Payville USA will be CLOSING at 12:00pm (Noon) – Please submit payroll prior to11:00am.
25th,Friday / Payville USA will be CLOSED. This is a federal bankingholiday.
30th,Wednesday / DEADLINE: Last day to submit your final 2015 payroll with check date December31.
31st, Thursday / Payville USA will be CLOSING at 12:00pm (Noon) – Please submit payroll prior to11:00am.
January
1st, Friday / Payville USA will be CLOSED. This is a federal bankingholiday.
4th,Monday / DEADLINE: Last day for Tax Filing Service clients to submit 2015 4th Qtr. adjustmentswithout incurring fees.
8th,Friday / Last day to submit all information for processing of W-2, 1099 and 1095 forms, as well as, submit ER Health Care coverage amounts for W-2Forms.
February
1st,Monday / DEADLINE: Last day to distribute your employees’ W-2, 1099 and 1095 forms.

AcceleratedDepositRuleFED/FICA100KorGreater

Check dates:
Thursday, Dec. 24th and Friday, Dec. 25th FED/FICA 100K orgreater;
Accelerated Deposit Ruleapplies / Payroll must process byFriday
December 18,2015 / Payville USA must have confirmation ofa successful wire transferby
Monday, December 21nd by12:00pm
Please visit our Knowledge Base at for wire instructions
Checkdate: / Payroll mustprocess / Payville USA must have confirmation ofa
Thursday, Dec.31stand Friday, Jan. 1st / byThursday / successful wire transferby
FED/FICA 100K orgreater; / December 24,2015 / Monday, December 28th by12:00pm
Accelerated Deposit Ruleapplies / (11:00 am) / Please visit our Knowledge Base at for wire instructions

Last Payroll of2015

The last day to process a 2015 payroll is Wednesday, December 30th, for a check date of Thursday, December 31,2015.

800 Enterprise Dr. #201 Oak Brook, IL60523 Ph: (630) 366-2600 Fax: (630)368-3900

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Employer2015 YearEndChecklist

ItemstobeverifiedPRIORtoyourlastpayrollprocessingin2015(nolaterthanMonday,December28th).

  • All Fringe Benefits havebeenreported.
  • All voided checks havebeenreported.
  • All manual checks havebeenreported.
  • AllW-2⌧boxeshavebeenreported.
  • All3rdpartySickPayhasbeenreported.
  • For Box 12 Code DD, any Employer Healthcare coverage amounts have been reported. This is optional for smallemployers with < 50 employees.
  • AllBox14(other)ItemshavebeenreportedtoyourCustomer eXperience Representative.
  • AllPensionBoxeshavebeenchecked(SeePensionPlans).
  • All Company Legal Name and Numbers have been verified (see pg. 3 for more details).
  • BusinessLegaladdresschanged?Besuretonotifythefollowing:
  • IRS(viaForm8822)
  • IDES (via Notice of Change Form UI 50A)
  • IDOR (By phone, mail orinternet)
  • Customer eXperience Representative at PayvilleUSA
  • All Employee Soc. Sec. No.’s, Names, and Addresses have been verified/updated as needed (see pg. 3 for more details). Changes submitted after Monday, December 21stmay result in extrafees.
  • Bank Account Changed? Request a Payville USA Bank Account Authorizationform.
  • Is there a planned reorganization(NEWFEIN#)intheNewYear?CallPayvilleUSAimmediately.
  • Preparetoreportanychanges/modificationstoemployeeinsurancedeductions,pensionamounts,etc.in2016.
  • Forward any 2016 tax frequency changes and 2016 unemployment rates prior to your 1st payroll of2016.
  • Submitted detail to your Customer eXperience Representative on any additional independentcontractors(not already in the system) for whom Payville USA should produce aForm:
  • 1099-M
  • 1099-DIV (Provide detail regarding specific 1099 Boxes to be populated per governmentspecifications)
  • 1099-R (Provide detail regarding specific 1099 Boxes to be populated per governmentspecifications)
  • 1099-I (Provide detail regarding specific 1099 Boxes to be populated per governmentspecifications)
  • WillanyyearendpayrollprocessingrunshaveaFederalTaxDepositgreaterthan$100,000?
  • If “yes,” the FED/FICA payment is due the next business day after check date; plan to process at least 2 business days PRIOR to your check date. Please be prepared to initiate a wire transfer to our bank to ensure your payment can be made. (Please refer to the schedule outlined on page 1 of thisguide.)
  • Holidays are NOT always considered Banking Businessdays.
  • Remember that if a scheduled payroll check date and a bonus payroll check date fall within the same tax deposit period, the liability is combined to determine the due date even though the payrolls were runseparately.

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A report titled Name & Address Verification (B425) was produced withyour first payroll check dated in December. Please read through the instructions below with attentiveness, make any/all necessary changes and send the changes back to us no later than Monday, December 21st, 2015.

If we do not hear back from you, we will assume all of the information contained on the report is correct. Fees may be applied if you need to make any corrections after this time.

Page 1

This page contains your Legal Name and Federal Identification Number. This is how the information will appear on your printed Federal and State Forms, such as W-2, 941, 940, 1099, etc. It is best to verify this information against a document you have received directly from the Internal Revenue Service.

Page 2

This page contains information on each state Payville USA has on file for your account. You will see the State Withholding Number, State Disability Insurance Number, State Unemployment Number and State Unemployment Rate (for all states where this information applies). If any of the information is missing or shows “Applied For” that means Payville USA does not have this information on file for your account. We will be unable to file any returns where information is missing. Fees will be applied for late filings and Payville USA will not be responsible for any penalties or interest incurred due to missing client information. It is best to verify this information against documents you have received directly from each state.

Page 3 - ?

The next pages contain all pertinent employee information needed for completing W-2 and/or 1099 Forms. Review Social Security Numbers, Names and Addresses for accuracy. The Social Security Administration may apply fees for incorrect or missing W-2 information. Review the last column on these pages to ensure the employee type is accurate; either W-2 and/or 1099.

Last Page

All changes being returned to Payville USA must be accompanied by this Signature Page. We will not make changes without the proper authority to do so.

Remote Users – Please use the report for your review and make all needed employee changes within Evolution. Should you need to make any corrections to Social Security Numbers or Client information, please make the corrections on the report, have an authorized user sign the last page of the report, and return the information to us no later than Monday, December 21st, 2015.

Should you have any questions or require any additional support, please reach out to your Client eXperience Representative no later than Monday, December 21st, 2015.

Please fax completed form to (630) 368-3900 or email

CompanyName Client/Co# ContactName CXR Name

EmployerNewYear2016Checklist

•Verify your Payroll Calendar for all payroll processing/check dates in 2016. Make scheduling changes with your Customer eXperience Representative asneeded.

•Verify all Time off Accrual balances/changes and roll-overamounts.

•Report any employee withholding changes for2016.

•Did your business change entity or reorganize beginning in 2016? Call Payville USA immediately.

•Ensure that all changes/modifications to insurance deductions for 2016 are reflected on your 1st payroll of2016.

•Forward any 2016 tax frequency changes and 2016 unemployment rates prior to your 1st payroll of2016.

•Are you prepared to report EE and ER Healthcare costs and coverage monthly starting in 2016? (This applies to employers with over 50 full time equivalent employees.)

•Distribute and collect W-4 Forms for the tax year 2016. You may request Payville USA to print a copy of the 2016 W-4 FORM PRE-FILLED for each active employee.

•To receive this service please ⌧ “YES,” complete your company information above and fax or email this form to our office. This service can help keep you in compliance with government guidelines, as a new W-4 Form should be completed eachyear.

OYES ONO

Please fax completed form to (630) 368-3900 or email

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CompanyName Client/Co# ContactName CXR Name

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QuarterEndHoldQuestionnaire

1.Will all payments to employees be processed on or before Tuesday, Dec. 29th2015?

OYESONO

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a.If you answered “No,” please list allexceptions:

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2.Will all voids to employee records be completed on or before Tuesday, Dec. 29th2015?

a.If you answered “No,” please list allexceptions:

OYESONO

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3.Will all 3rd Party Sick Pay records be submitted in writing on or before Tuesday, Dec. 29th 2015? OYES ONO

a.If you answered “No,” please list allexceptions:

4.Will all Fringe Benefits be submitted in writing on or before Tuesday, Dec. 29th 2015? OYES ONO

a.If you answered “No,” please list allexceptions:

Ifyouanswered“No”toanyoftheabovequestionsandyourcompanyutilizesourtaxfilingservices,

Please complete the “Waiver of Penalty & Interest Form” in this guide and fax both pages to ouroffice.

Please note: While this is our busiest time of year, we like to give all of our clients the individual attention they deserve. Please allow enough time for us to address your individual payroll needs.

Please fax completed form to (630) 368-3900 or email

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CompanyName Client/Co# ContactName CXR Name

PenaltyandInterestWaiverForm

FederalID#-

_

PayrollProcessingDatePayrollCheckDate

Client authorizes Payville USA to process a prior period payroll, and understands that the tax deposits associated with this payroll may be late, according to the Internal Revenue Service and State/Local payroll tax deposit schedules. Client accepts responsibility for payment of all penalties and interest that may be imposed by the agencies to which payments aredue.

If Client requests, Payville USA will review, research and resolve any notices with respect to the above-mentioned prior period payroll, at the rate of $ 75.00 perhour.

The individual whose signature appears below warrants that he or she possesses the full power and authority to execute thisform.

AuthorizedAgentNameTitle

AuthorizedAgentSignatureDate

PayvilleUSAAuthorizationDate

Please fax completed form to (630) 368-3900 or email

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CompanyName

Client/Co#

ContactName

CXR Name

BonusPayrollPreparationQuestionnaire

Please answer the following questions concerning your Bonus PayrollProcessing.

1. RunBonusChecksWITHournormalpayroll?OYESYES:ShouldBonusdollaramountsbeonseparatechecks? OYES / or or / ONO
ONO
2. RunaseparatepayrollforBonusChecks?OYES / or / ONO

If YES: Indicate the Bonus payrollCheckDate//

Bonus CheckSpecifications

Please CheckSelections

(Specifications will apply to ALL employees. Please note anyexceptions.)

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Bonus dollar amounts listed are: Payment Type

ODirectDeposit OUpdate Only/ManualCheck OLive Check

ONET$OGROSS $

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Override Federal IncomeTax:

OSuppress OFlatPercent% OFlat Dollar $

O2015 Supplemental Rate Flat25%

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By Tax Freq: OWklyOBi-wkly

O Semi-mthlyOMthlyOQuarterly

OAnnual

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(PER IRS, ALL SUPPLEMENTAL INCOME > $1 MILLION MUST BE TAXED AT A FEDERAL FLAT RATE OF39.6%)

Override State IncomeTax:

OSuppress OFlatPercent% OFlat Dollar $

By Tax Freq: OWklyOBi-wklyOSemi-mthlyOMthlyOQuarterly OAnnual

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Social Security/Medicare Taxes:

6.2 % and 1.45% respectively - NotOptional

VoluntaryDeductions:

SuppressAll?OYESONO (if no seebelow)

Check all that should be deducted from BonusChecks:

O401K/Def.CompOInsuranceO LoansO UnionO GarnishmentsO Other

Please list any other specialinstructions:

Please fax completed form to (630) 368-3900 or email

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CompanyName

Client/Co#

ContactName

CXR Name

FringeBenefitPreparationQuestionnaire

Please answer the following questions concerning your Fringe Benefits. If your company has MORE than one type of FringeBenefit;pleasesubmitaseparatecopyofthisformforEACHdifferentbenefittype.

Who will be paying the EE portion of the Social Security and Medicare tax (FICA)?

OCompanyOEmployeeOBenefit is not taxable forFICA

Who will be paying the EE portion of the Federal , State, and Local income taxes?

OCompanyOEmployee

How should the applicable FICA, Federal, State, and Local income taxes calculated on the benefit be handled in the payrollsystem?

OWithhold only FICA from theEE

OWithhold all applicable taxes from theEE

OPlease do not gross up the wages, offset the taxes with a misc. deduction in order for the Company to pay all applicable Withholding taxes for the EE on this Fringe benefit if there are not enough wages to cover thetaxes

OPlease gross up the wages in order for the Company to pay all applicable Withholding taxes for the EE on this Fringebenefit

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What type of Fringe Benefit (circleone):

O 2% Shareholders Ins. (FICATaxable)

OAutoOGTLIOChild Care

O2% Shareholders Ins. (Non-FICATaxable)

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O125 PlanDependentCareOMovingExpenseOOther

SpecialInstructions:

If we have questions on any of the above, please list a contact forus:Contact:at

()-ore-mail.

Is this contact your Accountant/CPA? OYesONo

Please fax completed form to (630) 368-3900 or email

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2016 WageBaseLimits,PercentagesandContributionRates

(Data as of 11/30/2015)

Type2016 / Rate / Wage Base Limit 2016 / MaxPaid (ER) / Max Withheld (EE)
OASDI
(remains the same) / EE/ER6.2% / $118,500 / $7347.00 / $7347.00
Medicare
Wagesover
$200,000 / EE/ER1.45%
EE Only Additional 0.9% / NoLimit / NoLimit / NoLimit
FUTA
(for Credit Reduction States) / 0.6% / $7,000.00 / $42.00/perEE / NA
UI(IL) / 0.550%-
8.55% / $12,960.00 / Varies / NA
New
Business
3.75%
UI(IL) / Small Business 5.4% / Anemployerwhosecontributionrateis5.4%orhigherandwhosetotalquarterlywagesare less than $50,000 pays contributions at 5.4% in thatquarter.
Every new employing unit must register with IDES within 30 days of start-up. "ReporttoDetermineLiabilityUndertheIllinoisUnemploymentInsuranceAct".
Register electronically through the Illinois TaxNetwebsite.
IRS2016
Standard MileageRate / 56cents permile / For Business MilesDriven
(23.5 cents per mile driven for medial or moving purposes)
(14 cents per mile driven in service of charitableorganizations)
Supplemental wage payments$1,000,000 / 39.6% / Excess is subject to withholding at this percentage without regard to the employee’s Form W-4 status designation andexemptions
2016 Federal TaxSupplementalRate / 25%
401K / $18,000
+ $6,000Catchup (age 50 +only) / Total ER and EE contributions to all of an employer’s plans are subject to an overall annual limitation the lesserof:
-100 percent of the employee’s compensation,or
-$53,000 in2016
IRA / $5,500
+ $1,000 CatchUp
SIMPLE / $12,500
+ $3,000 Catchup
(age 50 +only) / ER contributions to a SIMPLE 401(k) plan are limited toeither:
-Adollar-for-dollarmatchingcontribution,upto3%ofpay;
or
-Anon-electivecontributionof2%ofpayforeacheligible employee.
No other ER contributions can be made to a SIMPLE 401(k) plan, and EE’s cannot participate in anyother retirement plan of the employer.
HSA / PerEmployee / $3350+
$1000 CatchUp
$6750+
$1000 CatchUp
FSA / $2,550
Maximum
Compensation / $265,000 / The maximum of an employees’ wage that may be considered forthe calculation of a participants’ retirement benefitamount.
HCEThreshold / $120,000 / Considered highly compensated employee for the purpose of401K non-discriminationtesting

All clients with 50 or more Full Time Equivalent Employees must complete the Health Care Plan Information and ACA Solutions Agreement found HERE on our webpage ( in order to begin the year end process for ACA forms and filing.

This information needs to be returned to us no later than December 15, 2015.

Any ACA implementation information received after that time will not be guaranteed for timely form distribution to your employees and subsequent filing with the Internal Revenue Service. Late information may also incur additional implementation fees.

Those clients who have completed the necessary implementation documents for the Affordable Care Act will be receiving an Excel Spreadsheet the week of December 14th. This spreadsheet will need to be completed in its entirety and returned to Payville USA no later than Friday, January 8, 2016. Individual employee Health Care Offer Information will need to be provided to ensure accurate completion of Form 1095C.

O The spreadsheet will be pre-populated with each employee’s name.

OIn the column titled “Benefit Eligible” select Yes or No for each employee. If the employee is NOT “Benefit Eligible”, you DO NOT need to provide any additional information on the spreadsheet.

OYou will need to provide the appropriate codes for Boxes 14 and 16 on Form 1095C (Find details HERE).

OIf there were changes during the year, you will need to provide the start date for each change.

OYou will need to designate the Policy Origin. You will be provided with a list of available options.

OIf your Health Insurance Policy is Self-Insured, please contact our offices immediately. There will be spouse and dependent information needed in addition to all employee information.

Payville USA will be hosting two webinars to support our clients in completing this information. We cannot offer legal advice or provide you with client specific ACA compliance requirements. If you have questions in that regard, we suggest you reach out to your own legal counsel. If you would like Payville USA to put you in contact with our preferred legal counsel, we will gladly assist you in facilitating a meeting.

You can sign up for either session based on your availability.

Thursday, December 17th 2:30 – 3:30pm CT Connect HEREAudio: 1-650-479-3208 Access Code: 804 364 350

Friday, December 18th 10:30 – 11:30am CT Connect HEREAudio: 1-650-479-3208 Access Code: 801 050 295

(If a password is requested please use “Payville”)

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