Payroll Tax Info** Click Here for Form W2 Information NOTE: The Payroll Tax information and Form W2 Information documents listed in this site are available as Adobe Acrobat documents on our "Year-End Downloads" page in the event that you wish to save or print this information.The following is information regarding payroll tax rates for 2016. There are changes in the payroll tax rates and wage limits for the Federal and California tax tables. These changes are effective January 1st, 2016. Reporting the Cost of Group Health Insurance Coverage: Beginning in the 2012 tax year (W-2s printed in January 2013 for 2012 wages) the Affordable Care Act required employers to report the cost of coverage under an employer-sponsored group health plan on an employee's Form W-2, Wage and Tax Statement, in Box 12, using Code DD. Reference: IRS Affordable Care Act Tax Provisions
The Compusource Payroll software supports this feature by allowing you to enter the total cost of the employer sponsored health plan on the W-2 screen of the Last Year Employee Maintenance. These will print in box 12 on the W-2 and a code of DD should be used (refer to the online help for more information). Transition ReliefFor certain employers, types of coverage, and situations, there is transition relief from the requirement to report the value of coverage on the 2015 Forms W-2 (the forms for calendar year 2015 that employers generally are required to provide employees in January 2016). This relief will apply to future calendar years until the IRS publishes additional guidance. However, any guidance that expands the reporting requirements will apply only to calendar years that start at least six months after the guidance is issued. See the 'Optional Reporting' column in the below chart for the employers, types of coverage, and situations eligible for the transition relief. Refer to the Form W-2 Reporting of Employer-Sponsored Health Coverage page for more information or contact your IRS representative. Form 1095-C Most employers with 50 or more employees will be required to file form 1095-C for the calendar year 2015. Compusource is partnering with Nelco to generate these forms. For more information about this partnership with Nelco, please review the Compusource Web Reporting Center webinar listed below, or contact your Compusource Support representative. To determine if you meet the requirements for filing form 1095-C, please consult the Healthcare information website at https://www.healthcare.gov/. Compusource Web Reporting CenterCompusource is pleased to announce the addition of paperless ACA reporting with the Web Reporting Center. The Compusource
Web Reporting Center is powered by Nelco, a leader in electronic reporting solutions. This web based service launches directly
from Compusource allowing users to report using the information in their software. The Compusource Web Reporting Center will
help you meet your ACA reporting needs.
Click on the Federal Tax Changes link to access the US tax rate changes
and the California Tax Changes link to access the California tax rate changes.
These changes should be made AFTER the final payroll of 2015 has been run, AFTER the "Save Year-end Info and Reset" program has been run, but BEFORE the first payroll run of 2016 is begun. Do NOT change your tax tables with year-2016 rates until you have completed the "Save Year-end Info and Reset" for 2015: the system saves some of the 2015 tax rate information along with the 2015 employee data for later use by the W2 programs. ** If you change your tax tables before you run the "Save Info and Reset" option, you will save year-2016 tax rates with year-2015 employee data and your W2 forms won't print the correct amounts. Use the "State/Federal Tax Tables" option in your Payroll system to make the table changes. (Note: on some systems, the option is called "Tax Parameter File Maintenance".) If you require assistance entering payroll tax rates for other states, please contact your Compusource Support Representative.
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