2011 Year-end Newsletter - Digit Payroll
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2011 Year-end Newsletter

Dear Client:

Please review this notice and make note of any items pertaining to you.  If you have any questions concerning any of this information, please let us know as soon as possible.


DIGIT PAYROLL CORPORATION will be closed Monday, December 26th, and Monday, January 2nd.  We will be closing at 12:00 noon on Friday, December 23rd and Friday, December 30th. Arrangements will be made with all affected clients.  If your holiday schedule differs from this and your payroll may be affected, please let us know as soon as possible.


We will be running the quarter end and year end payroll tax returns promptly on January 1st.  Therefore, we must have all year-end adjustments done no later than December 23rd.  Any adjustments made after this date may be subject to a surcharge.

There are various payroll adjustments you may need to make at year end.  Some of the more common items are listed below.  For a more detailed discussion, go to richardf152.sg-host.com  click on “News and Tax Updates” and click on the “Year End Adjustments” article.

DISABILITY PAYMENTS:  If you have received notification during the year of any disability benefits paid to your employees during 2011, please contact us immediately if you have not done so already.  This information affects the preparation of the payroll tax returns and W-2.

FRINGE BENEFITS: Any taxable cash or non-cash benefits provided to employees must be included on Form W-2.  If you have any amounts to report, please let us know prior to transmitting your last payroll of the year.

GROUP TERM LIFE INSURANCE: Please report the value of group-term life insurance in excess of $50,000 before your last payroll of the year.

2% SHAREHOLDERS OF S-CORPS: If you are a S-Corporation and you paid health and accident insurance premiums on behalf of 2% shareholder / employees, please report the premium amounts to us before the last payroll of the year.

BONUS PAYROLLS: If you plan on running a separate bonus payroll, please give us at least two days notice.

If you receive a notice from either the IRS or a state notifying you of your tax deposit frequency for 2012, please advise us as soon as possible.  This is EXTREMELY IMPORTANT INFORMATION.  Please send us a copy of this notice as soon as possible, especially if your status has changed for 2012. If you have payroll in a state outside of New Jersey and you receive a 2012 unemployment rate notice, please fax or mail a copy to us as soon as possible.

On the Form W-2, the IRS requires that a box be checked if an employee is an active participant for any part of the year in a company-maintained retirement plan.  Please let us know by December 23rd of any employee who:

1)         Only had employer contributions made to their account,

2)         Was an active participant but did not have employee

contributions withheld, or

3)         Participated in a collectively bargained plan.

Please contact your accountant if you are unsure of who would qualify under these circumstances.


Mail deliveries can be slow during the month of December, and we cannot assure timely delivery as can be expected other times during the year.  If you prefer, we can provide courier delivery of your payroll for an additional charge.  If you would like to take advantage of this service, please let us know.  If you would like to pick up your payroll, please call to make arrangements.


Go to WWW.DIGITPAY.COM for information about our services and links to many state and federal tax web sites.  Click “News and Tax Updates” to get the latest information on payroll matters affecting your business.  Click “Digit’s Blog” for timely comments on issues affecting small business.  We encourage you to add your own comments too!


– If you have a Simple Plan or 401k Plan in place, please forward to us a list of each participant’s birth date (if you have not done so already).  The deferral limits are higher for participants over the age of 50, and we can automatically consider that in the deferral calculation.

– If your electronic tax debit, direct deposit debit, or check payable to us is returned for insufficient funds, a $50.00 charge will be imposed to your account.

– If you do not process payroll in a given month, a minimum inactive charge of $16.00 will be billed to you.

– If you require a Digit Payroll Corporation binder to house your payroll records, they are available for $10.00 plus delivery.

– If you have payroll in any state other than your home state, please send us any correspondence or coupon books you receive.

– If you are on our Electronic Tax Filing Service and receive any notices regarding payroll, please send them to us within 30 days.  Failure to do so may result in a $75/hr. rate to investigate the matter.


–          Review the need for any year-end adjustments.  Speak with your accounting professional if necessary.  Communicate any adjustments to us by December 23rd.

–             Notify us as soon as possible if you had any employees who collected disability during 2011.

–             Confirm any missing or incorrect Social Security Numbers or addresses.  Notify employees when distributing W-2’s to promptly check their Social Security Numbers and notify you as soon as possible of necessary changes.

–             Distribute 2012 W-4 forms to employees in early January in case they want to make withholding changes.  Forms will be available on our website and at www.irs.gov.

      Make certain you have completed I-9 forms for every employee.  Forms are available on our website.


Below is a listing of some of our additional service offerings.  Please contact us if you would like more information.

§  Digit HR Human Resource Services

·         Human Resource Support Center powered by HRAnswerlink. 

·         Full human resource services available to clients 24×7.

·         Access to forms, checklists, handbooks, laws.

·         Live HR support available.

§  Pay-As-You-Go Workers Compensation Program

·         Pay workers comp insurance each payroll.

·         No payment of premiums up front.

·         No end of year audit needed.

§  Unemployment Management Service

·         Investigate and protest unemployment claims.

·         Manage your unemployment tax rate.

·         Administer unemployment hearings.

§  Online Payroll, Web Reports, and Email Notification Service

·         Online entry and submission of payroll.

·         Email notification of payroll run with cash requirements.

·         Web access to payroll reports/payroll stubs.

§  Pre-Tax Benefit Plan Administration

·         Save on taxes with pre-tax deductions for health insurance.

§  Tax Credit Services

·         Take advantage of little known tax incentives offered by federal and state authorities.

§  Poster Service

·         Stay in compliance with laws requiring the display of employment posters.

·         Social Security Number Verification Service

·         Protect against fraud and ensure proper posting of wages.