Contenu connexe Similaire à Payroll Webinar: Forms W-2/941/940 for 2021: The Information You Need to Know! (20) Payroll Webinar: Forms W-2/941/940 for 2021: The Information You Need to Know!2. Organize. Humanize. Maximize.
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4. Organize. Humanize. Maximize.
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8. Organize. Humanize. Maximize.
8
Today’s Speaker
Vicki is President and Academic Director of The Payroll Advisor™, a firm specializing
in payroll education and training. The company’s website
(www.thepayrolladvisor.com) offers a payroll news service which keeps payroll
professionals up-to-date on the latest rules and regulations.
With 40 years of hands-on experience in all facets of payroll functions as well as over
three decades as a trainer and author, Ms. Lambert has become the most sought-
after and respected voice in the practice and management of payroll issues. She has
conducted open market training seminars on payroll issues across the United States
that have been attended by executives and professionals from some of the most
prestigious firms in business today.
A pioneer in electronic and online education, Ms. Lambert produces and presents
payroll related audio seminars, webinars and webcasts for clients, APA chapters and
business groups throughout the country. Ms. Lambert is also a faculty member at
Brandman University in Southern California where she is the instructor for American
Payroll Association’s “PayTrain” online program.
Vicki M. Lambert, CPP
9. Our Focus
For Today
©2021 The Payroll Advisor 9
Form W-2 for 2021
Form
Form 941 for 2021
Form
Form 940 for 2020 filed in
2021
Form
11. Our Focus
For This
Section
©2021 The Payroll Advisor 11
The “changes” to the
Form W-2 for 2021
Box by Box instructions for
completing form
Reconciliations
Due dates
13. ©2021 The Payroll Advisor
Changes to
2020
Instructions
(2021 not
yet
available)
13
They appear to
change the electronic
filing limit to 100 on
page 3:
15. Box by Box Review
15
Let’s begin our box
by box review of
the Form W-2 for
2021
We begin with
boxes a-f.
These are the info
boxes
©2021 The Payroll Advisor
16. Void. Check this box when an
error is made on Form W-2 and
the form is being voided
because a new Form W-2 is
being completed.
Box a—Employee's social security
number. Enter the number shown on
the employee's social security card.
Box b—Employer identification number
(EIN). Show the employer identification
number (EIN) assigned by the IRS (00-
0000000).
Box c—Employer's name,
address, and ZIP code. This
entry should be the same as
shown on the Form 941, Form
943, Form 944, Form CT-1, or
Schedule H (Form 1040).
16
Boxes A-C
©2021 The Payroll Advisor
17. Box d Control Number
17
Use this box to identify individual Forms W-2.
This box does not have to be used.
©2021 The Payroll Advisor
18. Boxes e and
f—
Employee’s
name and
address
Enter the name as shown on
the employee's social
security card (first, middle
initial, last).
May truncate on employee
copies but not copy A or for
states in most cases
©2021 The Payroll Advisor 18
19. Boxes e
and f
continued
©2021 The Payroll Advisor 19
Include in the address the number, street, apartment or
suite number (or P.O. box number if mail is not delivered
to a street address)
Include in
For a foreign address, give the information in the
following order: city, province or state, and country
Give
Follow the country's practice for entering the postal
code
Follow
Do not abbreviate the country name
Do not
abbreviate
20. Box 1—Wages, tips, other
compensation
20
Show the total taxable wages, tips, and other
compensation, (before any payroll deductions),
that were paid to the employee during the year.
©2021 The Payroll Advisor
21. Box 2—Federal income tax
withheld
21
Show the total federal income tax withheld
from the employee's wages for the year
Include the 20% excise tax withheld on excess
parachute payments.
©2021 The Payroll Advisor
22. Box 3—Social security wages
22
Show the total wages paid (before payroll
deductions) subject to employee social
security tax but not including social security
tips and allocated tips
The total of boxes for social security wages
and tips cannot exceed $142,800 (2021
maximum social security wage base).
©2021 The Payroll Advisor
23. Box 4—Social security tax
withheld
23
Show the total employee social security tax
(not employer’s share) withheld, including
social security tax on tips. For 2021, the
maximum is $8,853.60
Include only taxes withheld (or paid by
employer for the employee) for 2021 wages
and tips.
©2021 The Payroll Advisor
24. Box 5—Medicare wages and tips
24
Enter the total Medicare wages and tips in
box 5 including the wages subject to the
Additional Medicare Tax
Be sure to enter tips that the employee
reported even if there was not enough
employee funds to collect the Medicare tax
for those tips.
©2021 The Payroll Advisor
25. Box 6—Medicare tax withheld
25
Enter the total employee Medicare tax (not
the employer’s share) withheld
Include only tax withheld for 2021 wages and
tips
Additional Medicare Tax withholding on
wages subject to FICA taxes are reported in
combination with withholding of regular
Medicare tax
©2021 The Payroll Advisor
26. Box 7—Social security tips
26
Show the tips that the employee reported
even if there was not enough employee funds
to collect the social security tax for the tips
The total of boxes 3 and 7 should not be
more than $142,800
©2021 The Payroll Advisor
27. Box 8—Allocated tips
27
If a food or beverage establishment, show
the tips allocated to the employee
See the Instructions for Form 8027,
Employer's Annual Information Return of Tip
Income and Allocated Tips
Do not include this amount in boxes 1, 3, 5,
or 7.
©2021 The Payroll Advisor
28. Best Practices for
Gathering, Collecting and
Reconciling Data
Taxation of fringe benefits
awards and prizes
educational assistance
moving expenses
personal use of
company cars
gift certificates
Best practices for gathering
the data
©2021 The Payroll Advisor 28
30. Box 10—Dependent Care
Benefits
30
Show the total dependent care benefits
under a dependent care assistance program
(section 129) paid or incurred by the
employer for the employee
Report all amounts paid or incurred
(regardless of any employee forfeitures),
including those in excess of the $5,000
exclusion
©2021 The Payroll Advisor
31. Box 11
31
The purpose of box 11 is for the SSA to
determine if any part of the amount
reported in box 1 or boxes 3 and/or 5 was
earned in a prior year
The SSA uses this information to verify that
they have properly applied the social
security earnings test and paid the correct
amount of benefits
©2021 The Payroll Advisor
32. Box 11 Continued
32
Show distributions to an employee from a
nonqualified plan or a nongovernmental
section 457(b) plan
These will also be reported in box 1
Make only one entry in this box
See page 18 and pages 31-32 of Form
instructions for more details
©2021 The Payroll Advisor
33. Box 12—Codes
33
Complete and code this box for all
items described in the instructions
Note that the codes do not relate
to where they should be entered
in boxes 12a-12d on Form W-2
For example, if required to report
code D in box 12, enter code D
and the amount in box 12a of
Form W-2
Do not report in box 12 any items
that are not listed as codes A-HH.
©2021 The Payroll Advisor
36. Box 14—
Other
Employers may also use this
box for any other
information that they want
to give to the employee
Please label each item
COVID-19 wages will
probably be reported here
again in 2021
©2021 The Payroll Advisor 36
37. Boxes 15-20
37
Belong to the states
Use individual state requirements for reporting
wages correctly
Be careful to follow state requirements when
handling multistate employee reporting
©2021 The Payroll Advisor
38. State Disability Examples Boxes
15-20
38
Example: SDI for CA goes in Box 18-20
Example: TDI Worker Contributions for NJ goes in Box
14
©2021 The Payroll Advisor
39. Their Reconciliation Process of
Your Forms
39
The following slides demonstrate the IRS’s
and the Social Security Administration’s
process of reconciling your submitted forms
to their records…
©2021 The Payroll Advisor
43. Review of Filing Deadlines for
2021
43
To employee: January 31, 2022
Paper filers to SSA: January 31, 2022!
Electronic filers to SSA: January 31, 2022!
If employment ends before December 31,
2021 and employee asked for Form W-2 they
must receive the completed copies within 30
days of the request or within 30 days of final
wage payment, whichever is later
©2021 The Payroll Advisor
46. Our Focus For This Section
©2021 The Payroll Advisor 46
941 Line by
Line Review
What each
line now
requires
Worksheet 1
Schedule B
and Line 16
Completing Reconciliation
49. Step 1
©2021 The Payroll Advisor 49
Used to determine employer share of social security after reducing for
certain credits
50. Step 2
©2021 The Payroll Advisor 50
Used to determine sick and family leave credit
51. Step 3
©2021 The Payroll Advisor 51
Used to determine employee retention credit
53. This is the
federal income
taxable wages
for the quarter
This is the total FIT
withheld from the
employees for the
quarter
Part 1 Lines 1, 2, 3 & 4
©2021 The Payroll Advisor 53
This is the
number of
employees for
the quarter
No changes to these lines
54. Lines 5 a-e: Calculating FICA
©2021 The Payroll Advisor 54
55. Do the
math
Line 5 a: Taxable social security
wages
©2021 The Payroll Advisor 55
No paid sick
leave or paid
family leave
wages
Both employee and
employer rates are
used
Total Wages
including
wages for
retention
credit
Step 1 Line 1a of Worksheet 1
56. Do the
math
Line 5 a(i): Qualified sick leave
wages
©2021 The Payroll Advisor 56
Emergency
Paid Sick Leave
Act
Only employee rate
is used
Qualified
sick leave
only wages
Step 2 Line 2a of Worksheet 1
57. Do the
math
Lines 5 a(ii): Qualified family
leave wages
©2021 The Payroll Advisor 57
Emergency
Family and
Medical Leave
Expansion Act
Only employee rate
is used
Qualified
family leave
only wages
Step 2 Line 2e of Worksheet 1
58. Do the
math
Line 5 b: Taxable social security
tips
©2021 The Payroll Advisor 58
Both rates are used
No change
as to the
reporting of
wages
59. Do the
math
Line 5 c: Taxable Medicare & tips
©2021 The Payroll Advisor 59
Both rates are used
No change
as to the
reporting of
wages
Include paid
sick leave,
paid family
leave, and
employee
retention
wages
60. Do the
math
Line 5 d: Taxable wages & tips
subject to Additional Medicare Tax
Withholding
©2021 The Payroll Advisor 60
Employee rate only
No change
as to the
reporting of
wages
Include paid
sick leave,
paid family
leave, and
employee
retention
wages
61. Do the
math
Line 5 e: Total social security
and Medicare taxes
©2021 The Payroll Advisor 61
62. Line 5f
©2021 The Payroll Advisor 62
Enter the tax due from a Section 3121(q) Notice and Demand on this line.
This notice will advise the employer the amount of tips received by
employees who either failed to report or underreported tips to the
employer as determined by the IRS. Employers are not liable for the
employer share of FICA taxes until the Notice and Demand is received. Do
not wait to deposit taxes until the Form 941 is due unless the employer
normally makes their tax deposit with the Form 941.
Deposit the tax within the normal deposit schedule for the employer.
Step 1 Line 1g of Worksheet 1
63. Line 6: Total taxes before
adjustments
©2021 The Payroll Advisor 63
Add the total federal income tax withheld from
wages, tips, and other compensation (line 3) and
the total social security and Medicare taxes
before adjustments (line 5e) plus line 5f if
needed
The math: line 3 + line 5e + line 5f = Line 6
66. Line 11a
©2021 The Payroll Advisor 66
For “Qualified small business payroll tax credit for increasing
research activities”
If using, must attach Form 8974
Worksheet 1: step 1, line 1i
67. Line 11b
©2021 The Payroll Advisor 67
After nonrefundable credits are taken, the excess of remaining
amount of employer’s social security tax is refundable on line 13c
Worksheet 1: step 2, line 2j
Nonrefundable portion of credit is limited to employer share of social
security tax reported on lines 5a and 5b after reducing credit by 11a
68. Line 11c—2021
©2021 The Payroll Advisor 68
The employee retention credit has been
extended to this will probably change before
the form is released
69. Line 11c—2020
©2021 The Payroll Advisor 69
Nonrefundable portion of credit is limited to employer share of social
security tax reported on lines 5a and 5b after reducing credit by 11a &
Line 11b
After nonrefundable credits are taken, the excess of remaining
amount of employer’s social security tax is refundable on line 13d
Worksheet 1: Step 3, line 3j
73. Line 13a-2021
©2021 The Payroll Advisor 73
Don’t include deferred social security or any amounts you didn’t deposit in anticipation
of new credits
74. Line 13b—2020
©2021 The Payroll Advisor 74
Enter amount of social security you are deferring for the quarter
Employee portion separated out on line 24
75. Line 13c—2020
©2021 The Payroll Advisor 75
Use Worksheet 1: Step 2, line 2k
Enter refundable portion of credit for paid sick leave, and paid family
leave
76. Line 13d—2020
©2021 The Payroll Advisor 76
Use Worksheet 1: Step 3, line 3k
Enter refundable portion of credit for employee retention credit
78. Line 13f—2020
©2021 The Payroll Advisor 78
Enter total advances received from filing Form 7200. If a form is filed
but advanced not received before filing Form 941, don’t include that
amount.
81. Line 16
©2021 The Payroll Advisor 81
You will need to
account for
nonrefundable credits
under tax liability…we
will discuss how that is
done under the
Schedule B section
89. Line 22—2020
©2021 The Payroll Advisor 89
Worksheet 1: Step 3, line 3b
Allocable to wages reported on line 21
90. Line 23—2021
©2021 The Payroll Advisor 90
Used to notify IRS that you are filing Form 5884-C for the quarter and
reducing the amount of employer share of social security tax that is
available to be reduced by the nonrefundable portion of the credit for
sick and family leave wages
Credit for hiring qualified veterans by qualified tax-exempt
organizations
91. Lines 24 & 25—2021
©2021 The Payroll Advisor 91
92. Lines 24 & 25—2020
©2021 The Payroll Advisor 92
Line 25 reserved for future changes
Line 24 is employee portion of deferred social security
94. ©2021 The Payroll Advisor
94
New instructions
in draft but no
new form…still
using 2017
95. Schedule B (and Line 16)--2020
©2021 The Payroll Advisor 95
• lists the dates of your payroll liabilities or
paydays and the amount of the taxes that
were due
Schedule B:
• lists the amounts by month
Line 16:
• Line 11a, 11b and 11c
Need to adjust liability
for nonrefundable
taxes only
• Paid wages
Do not adjust for:
• must equal line 12 (before credits
are taken)
Total tax liability:
97. Form 940 for
2020
Final version now
available
Appear to be no changes
©2021 The Payroll Advisor 97
105. Parts 6 & 7
©2021 The Payroll Advisor 105
107. Organize. Humanize. Maximize.
107
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