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March 2010

Dear Valued Client:

Paychex is committed to providing you with the highest level of customer service. To help ensure accurate processing of your quarterly payroll reports, tax deposits, and tax returns, we have enclosed guidelines for reviewing payroll information.

This instructional guide outlines information that needs to be reviewed and reported to Paychex. Items that require action are indicated by a check box ().

Please keep in mind that Paychex is not rendering legal or accounting advice. You are solely responsible for determining, exercising, and managing your own rights and obligations under applicable laws. The information provided herein is of a general nature and is not intended to replace the advice and services of an attorney or accounting professional.

If you have any questions, please contact your client service representative.

Sincerely,

The Specialists at Paychex

Table of Contents

Quarter-End Reporting Deadlines 2

Items to Report 3

Bonus Checks 3

Negative Wages 3

Reporting Changes and Missing Information 4

Federal Updates 6

COBRA Subsidy Project 6

EFTPS Enrollment 7

FUTA Threshold 7

OFAC Requirements for Foreign- Funded Payroll 8

Supplemental Wages Over $1,000,000 8

Reporting Taxable Adjustments for Separated Employees 8

State Updates 9

Contact Information

Correspondence Address:

Paychex

8605 Freeport Parkway

Irving, TX 75063

Telephone:

(972) 868-9990

8:00 a.m. - 5:00 p.m. Central Time

Monday - Friday

Fax:

(972) 869-2070

Paychex Web Site:



Quarter-End Reporting Deadlines

The deadline for reporting first quarter payroll information or changes to your client service representative is March 31, 2010, or before a payroll with an April 2010 check date is processed, whichever is earlier. If any adjustments are needed after the deadline, there is an additional charge to amend tax returns and a processing delay for those returns.

Taxpay( Clients

If changes are necessary for first quarter payroll information after the reporting deadline, refer to the following table to review a summary of responsibilities. If you have any questions, contact your client service representative.

|Taxpay Clients: Summary of Responsibilities |

|If Adjustments Are Made After the Deadline: |Paychex Responsibility |Your Responsibility |

|Increase wages |Collect and deposit any additional liabilities |Pay penalties or interest incurred as a result |

| |on request. |of late payments. |

|Increase wages, and the accumulated federal tax|Collect and deposit any additional liabilities |Pay penalties or interest incurred as a result |

|liability is $100,000 or more for any check |on request. |of late payments. |

|date | | |

| |In all likelihood, Paychex will not be able to | |

| |make the tax deposit on time. | |

|Increase wages, and the check date is out of |Collect and deposit any additional liabilities |Pay penalties or interest incurred as a result |

|sequence (backdating) |on request |of late payments. |

|Decrease wages |Overpayment is shown on Form 941 and applied to|None |

| |the next quarter. | |

| |Overpayment is shown on state return and, | |

| |depending on state requirement, applied to the | |

| |next quarter or refund is requested. | |

Items to Report

□ Please review your first quarter payroll information and report any of the following items to your client service representative on or before your final payroll of the quarter so that we can accurately calculate your payroll and tax deposit information:

• Payroll checks you issued in-house and have not reported

• Payroll checks you voided and have not reported

• Sick pay or disability payments made to your employees by a third party

Bonus Checks

Bonus checks can be processed with your regular payroll but must be processed independently if a separate Payroll Journal is necessary or if checks are issued with a date other than your normal payroll date.

□ Please review your payroll reports to ensure that Paychex accurately collected tax liabilities for bonus checks processed during the quarter.

If you use our Taxpay service:

• We will automatically make tax deposit(s) related to your bonus payroll.

• If you have already made the tax deposit for a bonus payroll or intend to make a deposit, inform your client service representative to avoid an overpayment through duplicate tax deposits. Because of federal and state agency requirements, agencies will only refund overpayments directly to employers; Paychex cannot refund a duplicate payment.

Negative Wages

Negative wages are not accepted by federal or state tax agencies.

□ Confirm that your employees do not have negative wages for this quarter. If you have any questions, contact your client service representative.

Reporting Changes and Missing Information

□ Please review your company name, address, and federal and state identification (ID) numbers on your payroll reports. If any of this information has changed or is missing, refer to the following table to ensure that your tax payments and returns are calculated and reported correctly.

|Changes or Missing Information |Client Action |Paychex Action |

|Company's legal name changed. |Provide Paychex with name change documentation from the Internal Revenue Service|Paychex will make a name change|

| |(IRS). |only if we receive verification|

|Federal, state, local, and state |Provide Paychex with name change documentation from the SUI, state, and local |from the IRS. |

|unemployment insurance (SUI) ID |tax agency. | |

|numbers, organization, or ownership| |If your company is enrolled in |

|did not change. | |the Electronic Federal Tax |

| | |Payment System (EFTPS), the IRS|

| | |will forward the name change to|

| | |the Treasury Financial Agent |

| | |(TFA). |

|Business federal address changed. |Request an IRS Form 8822, Change of Address form. You can access this form |Paychex will make an address |

| |online at: . |change when you inform your |

| |It is your responsibility to complete Form 8822 and file the form with the IRS. |client service representative. |

| |Complete Form 8822. Send the original to the IRS and a copy to your payroll | |

| |specialist. | |

| |Send the IRS confirmation of your address change to your client service | |

| |representative. | |

|Business, state, and local agency |It is your responsibility to complete Form 8822 and file the form with the IRS. |Paychex will make an address |

|address changed. |(See above for link to form) |change when you inform your |

| |Refer to the state or local agency Web site where your business is located for |client service representative. |

| |procedures about how to change your address. Complete the appropriate paperwork | |

| |with the state/local agency to change your business address. | |

| | | |

| | | |

| | | |

|Federal, state, and local ID |Review copies of last quarter’s tax returns for missing ID numbers. |Update our system to ensure |

|numbers |Provide missing information to your client service representative. |that all quarterly and annual |

|Note: Agencies are increasingly | |returns are correct. |

|rejecting returns and/or penalizing| | |

|employers who file with missing or | | |

|“applied for” ID numbers. | | |

|Social security numbers (SSNs) |Review the last timesheet you received in your payroll package for incorrect or |Update our system to ensure |

|Note: Agencies are increasingly |missing employee SSNs. |that all quarterly and annual |

|rejecting returns and/or penalizing| |returns are correct. |

|employers who file with missing | | |

|SSNs. | | |

|SUI rate change |Write your client name and number on the notice you received and fax or mail a |Update our system to ensure |

| |copy to your client service representative. |that SUI payments and returns |

| | |are calculated correctly. |

|State deposit frequency change |Write your client name and number on the notice you received and fax or mail a |Update our system to ensure |

| |copy to your client service representative. |that state withholding payments|

| | |and returns are calculated |

| | |correctly. |

|Electronic funds transfer (EFT) |Write your client name and number on the notice you received and fax or mail a |Update our system to ensure |

|requirement notifications |copy to your client service representative. |that SUI payments and returns |

| | |are calculated correctly. |

Federal Updates

□ Please review this summary of changes to federal tax deposit rules and regulations that could affect you.

COBRA Subsidy Project

The American Recovery and Reinvestment Act of 2009 (ARRA), commonly known as the Economic Stimulus Act, is now scheduled to run through February 28, 2010.

If you are an employer subject to federal COBRA or similar requirements under state law, you may be required to accept a 35 percent premium payment from certain participants eligible under ARRA as payment in full for their monthly premium. Employers must pay the remaining 65 percent of the premium on behalf of COBRA participants.

You may recover the 65 percent subsidy provided to assistance-eligible individuals by taking the subsidy amount as a credit on your Employer’s Quarterly Federal Tax Return (Form 941). The revised Form 941 now includes additional lines to report the number of COBRA premium assistance individuals and the total dollar amount of COBRA premium assistance payments.

For Paychex to accurately complete the Form 941 for you, we require that written documentation of COBRA premium assistance payments be submitted on the Economic Stimulus Act: COBRA Subsidy Information form. Contact your client service representative for a copy of this form. Subscribers to the Paychex COBRA Administration service need not take any action as this information is automatically updated in the payroll system.

To learn more about ARRA requirements and review updated information, please visit the IRS Web site: . This Web site also explains the documentation you must retain to substantiate amounts paid on behalf of COBRA recipients receiving assistance.

For the latest updates about how this and other economic stimulus legislation may affect your business, visit stimulus.

If you have any questions, please contact your client service representative. If you do not use the Paychex COBRA Administration service and you have questions about whether or not employees may be eligible for the COBRA subsidy, contact your COBRA provider.

EFTPS Enrollment

The EFTPS deposit threshold remains at $200,000.00 in aggregate federal tax deposits for 2010. “Aggregate deposits” refer to the total amount of all taxes that were deposited during the calendar year. Employers who meet the following criteria are required to enroll in EFTPS.

|If you: |Then you are required to make deposits using EFTPS: |

|Exceeded the threshold in 2008 |Starting January 1, 2010 |

|Made electronic deposits in 2009 |Starting January 1, 2010 |

|Exceeded the threshold in 2009 |Starting January 1, 2011 |

If you use our Taxpay service, we enroll you in EFTPS. However, it is also important for you to enroll on your own in the event that you need to make a tax deposit. If you are mandated by the IRS to file through EFTPS, non-compliance penalties will be assessed if you fail to comply with this requirement

□ Enroll with the IRS by using Form 9779, or visit . Enrolling enables you to make tax payments when needed and verify that payments are being posted properly to your account.

Note: It is ultimately the taxpayer’s responsibility to ensure that all taxes are being remitted on time to the IRS. Using a payroll service does not absolve the employer of this responsibility.

Fair Labor Standards Act (FLSA) Reminder

Commissions, certain bonuses, and some other types of non-hourly compensation are often included in overtime rate (i.e., regular rate) calculation under the FLSA and state wage laws. Unless directed otherwise, the Paychex overtime calculation uses a typical default overtime rate of 1.5 times the employees’ hourly rate, and does not include these other types of payments.

If you would like to include commissions, bonuses, or other types of compensation into your overtime calculation, talk to your client service representative. If you are uncertain whether to do so, you should consult your attorney or accountant.

FUTA Threshold

□ For 2010, employers are required to make a quarterly deposit for FUTA if accumulated tax exceeds $500.00 in the quarter.

OFAC Requirements for Foreign-Funded Payroll

The United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) is requiring that all financial institutions and payroll companies determine if they have clients who are foreign-funded and flag those clients’ ACH transactions with an indicator prompting their payroll transactions to be screened by banks before funds are deposited.

If your company is identified as foreign-funded, Paychex will code your payroll transactions with an international indicator. In addition, even if your company is not foreign-funded, if any of your employees have a non-U.S. address, their transactions will be coded as international. The international indicator will prompt the payroll transactions to be screened by banks before being deposited. The availability of your employees’ payroll funds may be affected since international ACH entries (IAT) are not required to be available as of the start of business day. In addition, if a transaction is determined to be suspect during the OFAC screening, the transaction must be held until the issue is resolved and cleared, or the item is identified as an actual OFAC violation, in which case, the assets would be blocked.

*Visit ofac for additional information on OFAC and current lists of countries, individuals, groups, and entities such as terrorists and narcotics traffickers (SDNs) that are prohibited from engaging in trade or financial transactions with U.S. persons.*

Supplemental Wages Over $1,000,000

Special rules apply if supplemental wages paid to any one employee exceed $1,000,000 during the calendar year. If total supplemental wage payments paid to an employee for the year exceed $1,000,000, the excess is subject to withholding at 35 percent for 2010 — regardless of any other withholding rules and the employee’s Form W-4. Supplemental wages paid to an employee during the calendar year that are equal to or less than $1,000,000 follow regular withholding rules for supplemental wages.

□ Notify your client service representative if your payroll includes a payment that will put an employee over $1,000,000 in supplemental wages paid year-to-date.

Reporting Taxable Adjustments for Separated Employees

Taxable adjustments (for example, personal use of a company car, imputed value of group-term life insurance) should be reported with regular payroll whenever possible. Regular reporting of these adjustments allows required employee taxes to be withheld from wages. If taxable adjustments are reported without wages, the employer may be liable for the employee portion of taxes.

□ When employees leave the company voluntarily or involuntarily, report taxable adjustments with their last checks; otherwise, you may be liable for the employee portion of taxes.

If you pay any part of an employee's income tax or FICA withholding, the amount paid must be reported as additional taxable wages for the employee. Additional employment taxes, both employee and employer portions, are required to be withheld on this added income.

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□ If you cannot report taxable adjustments on an employee's last check, discuss it with your client service representative. We can help you calculate the additional amount needed to cover the employee portion of FICA.

State Updates

This section is a summary of important state tax filing rules and regulations that could affect you.

Alabama Employers

The Alabama Department of Industrial Relations Unemployment Compensation Division requires the agency ID number on Alabama filings.

□ Obtain the employer ID number by completing Form SR2 located online at dir.. Report the ID number to your client service representative.

Alaska Employers

Non-Taxpay Clients

The Alaska Department of Labor and Workforce Development requires employers with 100 or more employees to file the contribution and wage return Form TQ01C on their Web site. Information regarding Web filing can be obtained at labor.state.ak.us/estax or by calling 888-448-3527.

□ If you have 100 or more employees, file your Form TQ01C through the Web site.

Taxpay Clients

The Alaska Department of Labor and Workforce Development requires that employee occupational codes and geographic codes be entered on the Contribution Report Form TQ01C.

□ If these codes are not already on file, obtain both codes by referencing the Occupational Coding Manual at: labor.state.ak.us/research/erg/occmanual.pdf. Report these codes to your client service representative.

Arkansas Employers

The Arkansas Department of Workforce Services requires the agency ID number on Arkansas returns.

□ Obtain your employer ID by calling the Arkansas Department of Workforce Services at 501-682-2121. Report the ID number to your client service representative.

Non-Taxpay Clients

The Arkansas Department of Workforce Services requires the contribution payment amount to be reported with quarterly Arkansas wages. Paychex is no longer able to file quarterly wages for non-Taxpay clients who exceed the 250 employee threshold requirement for magnetic media required by the agency.

Wages can be reported online at:



California Employers

The California Employment Development Department requires that wages be reported on a separate Form DE6 for employees who meet the following criteria:

( Religious Exemption - employees who file and are approved by the state for an exemption from state disability insurance (SDI) taxes under Section 2902 of the California Unemployment Insurance Code (CUIC).

( Sole Stockholder - an individual approved by the state who elects to be excluded from SDI coverage for benefits and taxes under Section 637.1 of the CUIC.

( Free Venture Program - youth employees who are incarcerated with the California Youth Authority.

( Joint Venture Program - adult employees who are inmates of the California Department of Corrections.

If you have employees who qualify:

□ Provide the names of current qualifying employees to your client service representative; report this information as you add new employees.

Colorado Employers

The Colorado Department of Labor and Employment 20 percent tax credit will not be in effect for 2010.

The Colorado Department of Labor and Employment requires that wage information be reported separately for regular and seasonal employees. Only employers who have been granted seasonal status may report seasonal wages. If you have employees who qualify:

□ Provide the names of current qualifying employees to your client service representative; report this information as you add new employees.

Taxpay for Colorado Locals:

□ Contact your client service representative to obtain the Paychex Colorado Local Occupational Privilege Tax Contract Addendum (Form TP0071) and Colorado Local Occupational Privilege Tax Client Information Form (Form TP0072).

□ Immediately submit any changes in tax information to your client service representative.

Florida Employers

The Florida Department of Revenue requires employers with 10 or more employees to electronically file UCT 6 and UCT 6A and make SUI payments using electronic funds transfer (EFT).

□ If you have 10 or more employees, file Forms UCT 6 and UCT 6A online and pay your SUI tax using EFT. You can enroll in e-Services by accessing the Florida agency Web site at dor. If you are required to file electronically, but file on paper, you may be assessed a penalty.

Iowa Employers

The Iowa Workforce Development Department requires employer county codes (worksites) on the Contribution Return (Form 65-5300) or Multiple Worksite Report. Iowa county names and numbers are printed on the back cover of your Iowa tax packet.

□ Report the Iowa county codes that apply to your company to your client service representative.

Maine Employers

The Maine Bureau of Employment Security requires seasonal businesses to report their seasonal code and period on the SUI portion of the Combined Withholding Return.

□ Report seasonal information to your client service representative.

Form 941/C1-ME

The Maine Bureau of Employment Security has partnered with the Maine Bureau of Revenue Services to jointly report state unemployment and state withholding on the Maine quarterly contribution and wage report. SUI-exempt clients, not-subject clients, and withholding-only clients should use Form 941-ME. All other employers, except those who filed on Form 941-ME, should use Form 941-ME/C1. If you are not using our Taxpay service, Paychex will provide you with agency-ready returns for you to sign and file, as well as copies of the returns for your records, on a quarterly basis.

You can either file Forms 941-ME and 941-ME/C1 using paper returns or through electronic filing. :

If you choose to file paper returns:

1. Verify your ID number, name, and address on the return.

• If your ID number is missing, print it on the return and provide the number to your client service representative along with documentation from the agency.

• If your ID number, name, and/or address is incorrect, contact your client service representative immediately.

2. Sign and enclose a check made payable to Maine Revenue Services if the return shows a balance due. Write your ID number on the check.

3. Make a copy of the completed return for your files. Do not staple the pages.

4. Mail all pages of the return with any payment on or before 04/30/2010 to:

Maine Bureau of Revenue Services

Income/Estate Tax Division

PO Box 9103

Augusta, ME 04332-9103

If you choose to file electronically:

Enter the information provided on your Paychex agency-ready return into the Maine Web site. If you file electronically, you are not required to remit the paper return. For information on filing through the Maine Web site, refer to .

Notes:

• If you are exempt for state unemployment insurance, you will receive only

Form 941-ME.

• To confirm that a payment has been received or to inquire about other matters, you can contact Maine agencies as follows:

Maine Revenue Services 207-626-8475 revenue

Maine Department of Labor 207-287-3176 labor

Massachusetts Employers

Effective 2010, the Massachusetts Department of Unemployment Assistance (DUA) has mandated that all employers regardless of subjectivity are required to electronically file their quarterly unemployment tax and wage data. Massachusetts quarterly wage data must now be reported to MA DUA instead of the MA Department of Revenue. Paper submissions of the previously accepted MA DOR Form WR-1 and MA DUA Form-1 and 1700-HI will no longer be accepted by the DUA.

The Massachusetts DUA will no longer send a SUI Form-1, a Health Form 1700-HI or a quarterly wage report to employers. We produce a facsimile sample copy return for your client as part of our service. Please note the facsimile sample copies are for reference purposes only and are not file-ready.

□ Report the Massachusetts unemployment tax and health insurance tax rates to your client service representative immediately.

Nevada Employers

If you are subject to SUI tax in Nevada, you are required to file the Nevada Modified Business Tax return on a quarterly basis with the Nevada Department of Taxation. If you have employer contributions to health insurance/health benefits plans, this amount must be reported to your client service representative prior to each quarter-end deadline date. If employer contributions are not reported on time, they will be entered in the following quarter.

□ If Paychex prepares your Nevada Modified Business Tax return, report employer-paid health care amounts prior to the quarter-end deadline date.

New Hampshire Employers

For tax year 2010 New Hampshire Unemployment Security has reduced the Fund Balance Reduction rate to 0.0 percent. This reduction only applies to Positive Fund Balance employers and new employers.

New Jersey Employers

New Jersey will no longer mail or provide paper returns (NJ-927, NJ-927W, and WR-30) to employers. Filing options include Web filing, bulk filing, and Secure File Transfer Protocol (SFTP). Payment options include electronic funds transfer (EFT), E-check, or credit card payments.

□ To learn more about New Jersey payment and filing requirements, access the agency Web site at .

The New Jersey Department of Labor requires an SSN for each employee whose wages are reported on Form WR-30. The number of weeks worked must be reported for each employee who earned at least $145.00 in a week. If this information is missing, the state may assess a fine for missing information ranging from $5.00 per employee for the first occurrence to $25.00 per employee for subsequent occurrences.

□ Review the last Timesheet from your payroll package for missing or incorrect SSNs.

□ If you are new to Paychex this quarter, verify the number of weeks worked listed for each employee on the Timesheet.

□ Report any missing or incorrect information to your client service representative.

New Mexico Employers

New Mexico mandates that filers report the workers' compensation fee due for each employee on the quarterly Form ES903B (wage continuation sheet). This fee is either a $4.30 flat fee per employee, or zero, and is reported and paid separately using Form WC-1. This return is not supported by Taxpay and will continue to be paid and filed by the employer.

□ Review the following exceptions to the current reporting of the workers' compensation fee due on Form ES903B and report any exceptions to your client service representative.

New Mexico Workers’ Compensation Fee Exceptions

If there are three or more employees:

If the business had three or more employees that were employed on the last working day of the quarter and reported wages in the quarter (for all agencies, not just NM), a $4.30 flat fee will be reported for each employee and totaled for all employees for that client.

Exceptions:

• $0.00 should still be reported in cases where the only employees are domestic servants, real estate salespeople, or farm and ranch laborers, unless the business elects coverage for these employees.

In some circumstances, an executive employee of a corporation or a limited liability company may choose to be exempt from coverage under the company’s policy. If an executive is exempted from the policy, the $4.30 fee should not be reported. However, even if $0.00 is reported, the employee still counts toward the threshold of three. If this threshold is met, the $4.30 fee is required to be reported for each of the other two employees.

If there are fewer than three employees:

If the business had less than three employees that were employed on the last working day of the quarter and reported wages in the quarter (for all agencies, not just NM), $0.00 will be reported for each employee and totaled for all employees for that client.

Exceptions:

• All construction industry employees are required to report the $4.30 fee, regardless of the number of employees of the business.

• Even if a business has fewer than three employees and is not required to have coverage, it may still elect to have workers’ compensation coverage. If a business has chosen to have coverage, the business must pay the $4.30 fee per employee.

New York Employers

Prevailing Wage Requirement

Contractors and subcontractors working on a public works contract must report the prevailing wage rate and supplemental rate for the particular job classification(s) that the worker performs. This information must be reported on the worker’s pay stub. The prevailing wage rate and supplemental (benefit) rate are separate amounts and must be listed on the pay stub separately. The worker’s classification description may be abbreviated on the pay stub if it is understandable.

In addition, the contractor/subcontractor must notify all workers in writing, on their first paycheck at the beginning of the contract and with the first paycheck after July 1 of every successive year, the number and address of the public works department and the worker’s right to contact that department if at any time the worker does not receive the proper prevailing wage or supplemental rate for the job classification.

The New York State Department of Labor assesses the contractor or subcontractor a fine of up to $50.00 for a first violation, $250.00 for a second violation, and $500.00 for each subsequent violation.

New York Metropolitan Commuter Transportation Mobility Tax

The New York State Department of Taxation and Finance administers the transportation mobility tax for the Metropolitan Transportation Authority. The Metropolitan Commuter Transportation Mobility Tax (MCTMT) is imposed on certain employers and self-employed individuals engaging in business within the Metropolitan Commuter Transportation District (MCTD). The MCTD included New York (Manhattan), Bronx, Kings (Brooklyn) Queens, Richmond (Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester counties. To learn more about this tax requirement, refer to

.

Vermont Employers

Employers with more than four employees will be required to report and pay an employer’s health care contribution premium that is based on a calculated number of uncovered full-time equivalent employees (FTEs) multiplied by a rate of $102.20.

□ Report the number of uncovered FTEs to your client service representative.

 

Note: Additional information regarding the health care contributions is available at the Vermont Department of Labor Web site at: labor..

Washington Employers

Washington Employment Security, as well as Washington Labor & Industries, requires that the number of hours worked by all employees (including salaried employees) be reported. Washington Employment Security also requires the SSNs of all employees to be reported. Returns filed without this information are subject to penalty.

□ Review the last Timesheet from your payroll package for missing or incorrect SSNs.

□ If you are new to Paychex this quarter, verify the number of weeks worked listed for each employee on the Timesheet

□ Report any missing or incorrect information to your client service representative.

Washington Employment Security Forms 5208A and 5208B are required to be scanned by the agency; therefore, it is imperative that only the file-ready copy be mailed to the agency. Please do not fax, copy, or make any changes to the file-ready form or file the “reference copy”; this could affect the ability to scan the form and could result in penalties.

West Virginia Employers

Non-Taxpay Clients

The West Virginia State Tax Department requires Form WV/IT – 101Q (a quarterly reconciliation) to be filed. This return must be filed by all employers on or before the last day of the month following the end of the quarter.

□ If you have 250 or more employees, you must file your Form WV/IT – 101Q online at . If you are required to file electronically but file on paper, you may be assessed a penalty of $25.00 per employee.

Notify your client service representative if your employees are subject to one or more of the following fees:

|Employees Who |Fee Amount per Week |Employers Were Notified By |

|Work in Huntington |$3.00 |A notice from the Division of Finance |

|Physically report to the Charleston |$2.00 |A notice from the City Collector’s Office |

|location | | |

|Work in Weirton |$2.00 |A notice from the Division of Finance |

| | | |

Employers who file a quarterly return for 250 or more employees must file electronically at . Employers who are required to file electronically but fail to do so are subject to a penalty of $25.00 per employee.

Wyoming Employers

The Wyoming Employer Tax Division requires that wage information be reported separately on the Wage Detail Return, WYO-078. The return is divided into two sections: regular employee information at the top and corporate officer information at the bottom.

□ Provide your client service representative with the name of any employee who is a corporate officer to ensure that your quarterly return is prepared correctly.

-----------------------

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Example of Tax Adjustments for Separated Employee:

Scenario: You need to report $100.00 as the imputed value of personal use of a company car in excess of $50,000.00.

• If you report the $100.00 with the employee's last paycheck, $7.65 in employee FICA tax is withheld from the employee's wages. You are liable only for the employer's share of FICA. Your total cost is $7.65.

• If you report the $100.00 after the employee's last paycheck is issued, employee FICA cannot be withheld because no wages are being paid. You will be liable for the employee portion of FICA, plus the employer portion of FICA. You must report $8.28 as wages to cover employee FICA. You will also have to pay $8.28 for employer FICA. Your total cost is $16.56.

The IRS formula for calculating the additional wages is:

Total amount (gross) = taxable adjustment

1 - (Sum of all employee tax percentages)

Only FICA tax is required in this example:

Step 1: Total amount (gross) = $100 = $100 = $108.28

1 - .0765 .9235

Step 2: Total amount - taxable adjustment = additional wages

$108.28 - $100.00 = $8.28

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