Reminder: Year-End Payroll Reminders
It’s that time of year again! As Quarter 4 comes to an end, we wanted to remind you to submit a Hold Form if any adjustments need to be made to your quarterly tax filings.
This form is your way of notifying us if you have any adjustments to your payroll information for the quarter before we file your quarterly tax returns to avoid an amendment.
Hold forms are due to SDP by Dec. 10, 2021, and any quarter-end adjustments must be submitted by Jan. 3, 2022.
After January 3, corrections cannot be processed until all returns have been filed, requiring an amendment. Our team will begin processing W-2Cs and amendment requests for Q4 2021 and prior beginning Monday, February 7, 2022.
- Quarterly Tax Processing Hold Request Form – submit to SDP by Dec. 10, 2021, if you require a payroll adjustment
- Year-End Packet – more year-end reminders, minimum wage increases, compliance updates, and more
- 1099 Processing Spreadsheet – submit to SDP by Jan. 14, 2022, with all columns completed if you would like SDP to process your 1099s
- How To: Run Your W-2 Edit Report
Holds, Adjustments, & Amendments
- Deadline to submit Hold Form to SDP to delay Q4 Quarterly & Year-End Processing: Friday, December 10, 2021
- Q4 2021 Adjustment Deadline: Monday, January 3, 2022
SDP’s Standard Adjustment fees for payroll adjustments not related to ERTC, CARES, and/or COBRA are:
- Adjustment without Amendment: $150 per quarter
- Adjustment with Amendment: $300 per quarter
- SSN/Name Correction & Amendment: $75 per quarter
Reports, Tax Forms, and W-2s
Report & Tax Form Delivery
All client copies of Q4 2021 reports will be delivered by January 28, 2022, either through SDP Connect (in the Reporting module) or via secure file download.
Please note that in our efforts to be more eco-friendly, SDP no longer prints and mails quarterly tax forms and reports for clients with SDP Connect access. As always, you will be able to download these from the Reporting module in your portal if you require hard copies.
Our team will be working hard to prepare and ship your paper W-2s by January 25, 2022. Please keep in mind that our payroll team will only be able to track the status of W-2 packages after January 25, 2022.
Because we are printing, packaging, and shipping around the clock, we cannot make exceptions to accommodate expedited shipping requests.
Quarterly Auto Processing
If your account is currently set up for automatic quarterly payroll processing, your fourth quarter payroll will be processing soon! As a reminder, if you need to change or confirm payroll numbers, please contact our support team by 2 PM PT on December 27, 2021.
Employee Retention Tax Credits (ERTC)
On Nov. 15, 2021, President Biden signed H.R. 3684 into law. This ended the ERTC as of Sep. 30, 2021, for most employers.
If you still need these credits applied for Q3 2021 or prior quarters, please contact our support team for more information on adjustments and amendments for quarters needed.
SS-R Deferred Tax Repayment
For employers who opted to defer payment of the employee and employer portions of Social Security tax, employers must pay back these deferred taxes by their applicable dates.
Repayment of the employee’s portion of the deferral began Jan. 1, 2021, and will continue through Dec. 31, 2021.
The deferral deposits of the employer’s share of Social Security tax must be deposited by the following dates to avoid a failure to deposit penalty:
- On Dec. 31, 2021, 50% of the eligible deferred amount, and
- On Dec. 31, 2022, the remaining amount.
You can learn more about this deferral and its repayment terms here.
Employee & Company Maintenance
To avoid costly adjustments and amendments down the line, take a moment to make sure all of your payroll data is up-to-date. We recommend checking in with employees to confirm their name, address, and SSN on file to ensure accurate reporting throughout the year.
If you have not already, be sure to run your W-2 Edit Report to streamline your year-end employee information verification process.
Additionally, notify SDP if any company-level information has changed. (For example, your mailing address for payroll packages and poster subscriptions!)
If you have any questions please feel free to contact us at (866) 946-2032 and a member of our team would be happy to assist you!
Additionally, for more business tips and reminders, be sure to check out the SDP Blog. Here, we post weekly content to keep you compliant and informed. And don’t forget to follow us on Facebook, Twitter, and LinkedIn for even more HR and business updates!