Tax Day 2024 and How to Get an Extension from the IRS
Tax Day is on Monday, Apr 15, 2024. Not ready to file? Submit an electronic request to the IRS for an extension ASAP!
We all seek ways to get rid of the paper in our business lives. More and more, Payroll and human resources related transactions are done as part of employee self-service.
We all seek ways to get rid of the paper in our business lives. More and more, Payroll and human resources related transactions are done as part of employee self-service.
Saving the steps
Automating your federal, state and local withholding forms is another way for you to go 'paperless.' Here are some things to consider when developing your process:
Compliance Methods
The IRS set forth a number of requirements for electronic withholding forms to be acceptable in section 31.3402(f)(5)-1 as described in Publication 15A. This section describes:
States have their own unique withholding forms and settings, as well as some state that use the Federal W-4 for state purposes. In the latter, there are a variety of rules on if the settings must match exactly, if it allows the employee to have a lower number of allowances than on Federal or if the state allowances can exceed the federal. Local tax settings can be derived from a jurisdictions actual form (as in Michigan cities) as a parameter that is set as part of the State withholding form.
Reciprocity and Nexus
To determine what forms are required, an employee's resident state and work state must be examined to see if there is a reciprocity agreement between the states and/or if the employer has nexus in the state where the employee resides. There are numerous non-resident withholding certificates across the states, and having the proper forms prepared will greatly increase the accuracy of the payroll tax withholding for the employee. There is legislation pending at the Federal level that will make consistent rules across all state for treatment of the non-resident withholdings.
Plan for Exceptions
When you are building an online system, employers must allow for their process to work for employees that may not access to the standard processes. An example would be a field worker that may not have access to a computer. Your facilities may have kiosks in certain areas, and security of the employee data must be paramount for your process. Bottom LineAn electronic solution for withholding forms preparation delivers better services to your employee, reduces your paper handling and filing, allows Payroll to only work with exceptions and automates a very basic but extremely critical piece of the employment process.
Frank Tresnak is Business Development Manager at Symmetry Software, the company behind paycheckcity.com. This article appeared in the November 2008 Issue of Paytech Magazine. PayTech is the official member publication of the American Payroll Association.
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