iSOLVED 2017 YEAR END GUIDE

We at Payroll Network (PNI) would like to take this opportunity to thank you for your business and to wish you a Happy Holiday Season and a prosperous New Year.

Please Review this year end guide carefully to ensure you understand what procedures and steps will be necessary to process your year end reports and returns. Enforcement of the deadlines in this guide is essen�al to ensure accurate year end reports and �mely filings with the various tax authori�es.

An electronic copy of this Handbook can be found at:

HTTP://WWW.PAYROLLNETWORK.COM/YEAR-END-RESOURCES/

2092 Gaither Road, Suite 200 Rockville, MD 20850

301.339.6000 301.339.6035

payrollnetwork.com

CONTENTS IT’S THAT TIME AGAIN!!! .......................................................................................................................................1

***URGENT*** THANKSGIVING WEEK PAYROLL SCHEDULE ...................................................................................... 2

*ATTENTION* FEDERAL RESERVE BANK HOLIDAY SCHEDULE ....................................................................................... 3

NOVEMBER AND DECEMBER 2017 CALENDAR ......................................................................................................... 4

JANUARY 2018 CALENDAR ....................................................................................................................................... 5

CONTACT INFORMATION ......................................................................................................................................... 6

TAX FILING SERVICE ................................................................................................................................................. 6

FINAL REPORTS FOR 2017 YEAR END........................................................................................................................ 7

YEAR END CHECKLIST................................................................................................................................................ 8

PAYROLL PROCESSING SCHEDULE FOR 2018.............................................................................................................. 9

EMPLOYEE W-2 VERIFICATION REPORT ................................................................................................................... 10

ADJUSTMENT PROCESSING..................................................................................................................................... 11

EFFECT OF YEAR END ADJUSTMENTS ON TAXABLE WAGES & TAXES ......................................................................... 11

W-2 PRELIST REPORT.............................................................................................................................................. 12

FINAL TAX LIABILITY REPORT................................................................................................................................... 12

OTHER YEAR END CONCERNS.................................................................................................................................. 12

W-2 PRE LIST REPORT SAMPLE ................................................................................................................................. 13

RECONCILING W-2 INFORMATION TO A CHECK STUB............................................................................................... 14

DOS AND DON'TS ................................................................................................................................................. 15

PREPARING FOR YEAR-END AND 2017 REPLY FORM.................................................................................................... 16

RESOURCES…………………………………………………………………………………………………………………….17

IT’S THAT TIME AGAIN

Another year end is fast approaching. In order to enable each of us to successfully navigate this year end, we are providing the following points of emphasis. Please review the following reports, making all necessary changes (name/address/social security number) prior to your last payroll processing in 2017.

1. Employee W-2 and SSN Report- This report is located in iSolved under Reporting>Client Reports>Employee W2 Verifica�on.

2. Actual W2 Form – This report can be found under Repor�ng> Year End Reports On Demand> Employee W2 Copy 1

3. 2017 Schedule- Carefully review your 2017 Pay Endings and Check Dates. On the Client Landing Page go to the bottom of the screen and click on View Report under the Processing Schedule column.

A schedule of all bank holidays and Payroll Network closings is posted on our website. Approve your 2018 schedule. Please email any changes to your 2018 schedule to: support@payrollnetwork.com or call 301-339-6000.

If 2017 was the first year in which you had a leave plan with Payroll Network, please review your policy for carryover of any unused balances into 2018 prior to your last payroll processing in 2017. Contact iSolved Support so we can update your changes or make correc�ons as necessary at support@payrollnetwork.com or call 301-339-6000. Failure to provide this informa�on may result in incorrect carry over balances or the loss of leave balances.

If you are planning o n year end bonus payrolls outside of your normal processing, you must schedule them in advance with iSolved Support. We suggest bonus payrolls be processed on Thursdays and Fridays, not with your regular scheduled payroll. The last day to process a separate bonus payroll is Friday, December 15th, 2017.

Thank you in advance for your coopera�on in this cri�cal issue.

Sincerely,

Payroll Network Client Success Team

THANKSGIVING WEEK PAYROLL SCHEDULE

Dear Valued Client:

If you are scheduled to process payroll the week of Thanksgiving Thursday, November 23rd, 2017, your payroll must be processed one day earlier than normal.

Please follow this schedule based on the date of your checks and/or direct deposits:

Checks/Direct Deposits Date: Input Must Be Received By:

Wednesday, November 22nd Monday, November 20th

Friday, November 24th Tuesday, November 21st

Monday, November 27th Wednesday, November 22nd

Tuesday, November 28th Wednesday, November 22nd

All payrolls processed on Wednesday, November 22nd, will be delivered on Monday, November 27th. If you would like your payroll delivered on Friday, November 24th, please call or email the iSolved Support Department.

Any payroll submissions on Wednesday, November 22nd, must be submited by noon to ensure �mely processing.

Our office will be closed on Thanksgiving Day and Friday, November 24th. We wish “you and yours” a blessed and Happy Thanksgiving!

Sincerely,

Payroll Network Client Success Team

*ATTENTION* FEDERAL RESERVE BANK HOLIDAY SCHEDULE

Listed below is the Federal Reserve Bank Holiday Schedule (most banks are closed- allow an EXTRA day for direct deposits).

*Marks the days Payroll Network, Inc. is CLOSED.

Please review your schedule and notify iSolved Support any changes that need to be made for 2018 by Friday, December 8th, 2017.

E-mail: support@payrollnetwork.com

Thank you in advance for your help.

11/23/2017* Thanksgiving Day (Bank Holiday)

11/24/2017* Day a�er Thanksgiving (not a bank holiday)

12/25/2017* Christmas Day (Bank Holiday)

01/01/2018* New Year’s Day (Bank Holiday)

01/15/2018 Mar�n Luther King Day (Bank Holiday)

02/19/2018 Presidents Day (Bank Holiday)

05/28/2018* Memorial Day (Bank Holiday)

07/04/2018* Independence Day (Bank Holiday)

09/03/2018* Labor Day (Bank Holiday)

10/08/2018 Columbus Day (Bank Holiday)

11/11/2018 Veterans Day (Bank Holiday)

11/22/2018* Thanksgiving Day (Bank Holiday)

11/23/2018* Day a�er Thanksgiving (not a bank holiday)

12/25/2018* Christmas Day (Bank Holiday Observed)

01/01/2019* New Year’s Day (Bank Holiday Observed)

NOVEMBER AND DECEMBER 2017 CALENDAR – IMPORTANT DATES

November 2017 Sunday Monday Tuesday Wednesday Thursday Friday Saturday

1 2 3 1 2 3 4

5 6 7 8

9 10 11 Veterans Day

Observed

12 13 14 15 16 17 18

19 20 21 22 23

24 25 Thanksgiving

Day PNI Closed

26 27 28 29 30

December 2017 Sunday Monday Tuesday Wednesday Thursday Friday Saturday

1 2

3 4 5 6

7 8 9 Verify

Calendars/C0 Legal Name/Tax

IDs

10 11 12 13 14 15

16 Last Day to

Process Bonuses

17 18 19 20 21 22 23

24 25 26 27 28 29 30 PNI Closed Last Day to

Process Payroll for 2017

31

JANUARY 2018 CALENDAR – IMPORTANT DATES

January 2018 Sunday Monday Tuesday Wednesday Thursday Friday Saturday

1 2 3 4 5 6 New Year’s Day

PNI Closed

Amended Return

Requests Due

W-2 Pre-List & W-2

Adjustments Due

7 8 9 10

11 12 13

14 15 16 17 18 19

20 Martin Luther

King, Jr. Day Federal Holiday

21 22 23 24 25 26 27

28 29 30 31 W2/1099 forms

& Quarterlies Delivered and Posted on the

Web

CONTACT INFORMATION

For your convenience, the 2017 Year End Guide is available in iSolved under Quick Links on the Client Landing page. If you have any ques�ons rela�ng to year end processing, please submit your request to your iSolved Support Team via support@payrollnetwork.com or call 301.339.6000 ext. 0.

TAX FILING SERVICE

If you are a tax filing service client, Payroll Network: • Is impounding your taxes directly from your bank account and paying payroll taxes on your

behalf. • Assumes the responsibility to deposit, reconcile, and file authorized payroll tax deposits and

returns. • Files forms 940, 941, W-2, W-3, and annual state and local returns. • Assumes the responsibility of any penalties due to our error.

If you are a tax filing service client, you: • Are responsible to forwarding all tax notifications (i.e. unemployment rate changes, tax notices,

etc.) to Payroll Network’s Tax Department promptly upon receipt. Although we file taxes on your behalf, the tax authorities will not send the notices directly to Payroll Network. Obtaining this information promptly is imperative to our ability to provide accurate and timely tax services.

Please refer to the calendars at the beginning of this guide for important deadlines. If you are not using our tax filing service, it is your responsibility to:

• Pay your taxes directly to the tax authorities. • File authorized payroll tax deposits and returns (including forms 940 and 941).

Payroll Network files W-2 and 1099 forms electronically for all clients (including those not using tax filing service) by the appropriate due dates. Please do not file any W-2 or 1099 forms that have been recorded in the Payroll System to the federal or state tax authorities.

FINAL REPORTS FOR 2017 YEAR END

W-2 and completed tax forms now available in iSolved Your W-2's, 1099's, tax returns and reports will be available under Reporting>Year End Report Archive or Year End Reports On Demand.

To view your Quarterly reports in iSolved click on the Repor�ng tab and then click on Quarterly Reports On-Demand. This will bring up a list of your available quarterly reports. Then, under the Links column click on download File to open the report.

YEAR END CHECKLIST

Here is a checklist to assist you in keeping track of what must be completed to ensure a smooth year end process.

The last day for processing 2017 checks or direct deposits is Wednesday, 12/27/2017

Checklist Item Due Date

Please locate the 2017 Year End Guide on the Client Landing page under Quick Links for forms, Frequently Asked Ques�ons and updates. Ongoing

Verify Accuracy of Company Legal Name and Tax Iden�fica�on Numbers Verify the accuracy of your company legal name and each state tax iden�fica�on number that Payroll Network has on file. The Tax IDs & Rates can be found on the Payroll Summary report under Repor�ng>Report Archive or Client Reports. Contact iSolved Support to make any corrections.

12/18/2017

Review Employee Addresses and Social Security Numbers Review the accuracy of all employee addresses and social security numbers using the Employee W-2 Preview found under Reporting>Client Reports and make updates as necessary.

No later than last scheduled 2017 payroll

Verify your Payroll Processing Schedule for 2018 Please review your Payroll Processing Schedule for 2018 and contact iSolved Support to make any corrections. 12/08/2017

Last Day to Process Bonus Payroll 12/15/2017

Third party sick pay Submit 3rd party sick pay data to iSolved Support. No later than

last scheduled 2017 payroll

Input W-2 Adjustments Input adjustments with final scheduled payroll of 2017. No later than

last scheduled 2017 payroll

Review W-2 Reconcilia�on Report Please review the W2 Reconciliation Summary to assure that all W-2 data has been properly identified. Reporting>Client Reports>W2 Reconciliation Summary. Submit all required changes to iSolved Support.

1/05/2018

Request W-2 Adjustments

If you require adjustments a�er 12/31/2017, please prepare and submit the W-2 adjustments to our iSolved Support Department. There will be an additional charge to process adjustments.

1/05/2018

Request W-2 Deferred Prin�ng

To request the deferred produc�on of your W-2s, please submit a writen request for deferral to the iSolved Support Department.

1/05/2018

PAYROLL PROCESSING SCHEDULE FOR 2016

2018 Schedule- Carefully review Pay Endings and Check Dates. To access the schedule go to the Client Landing Page, at the botom right of the screen click on View Report under Processing Schedule. A schedule of all bank holidays and Payroll Network Closings are posted on our website. Please review your 2018 company schedule and no�fy iSolved Support of any changes at support@payrollnetwork.com.

EMPLOYEE W-2 AND SSN WEB REPORT

Go to the Employee W-2 Preview report to verify employee names, addresses and social security numbers. You will also see the actual dollar amounts that will appear on the employees W2 as of the payroll run you view. You will find the report under Client Reports, choose the Report Category as All then enter W2 in the Search box and click on Filter. Click on the report on the le� side, on the right side choose the payroll run you want to use to verify the informa�on then click on Generate Report. Once you see the message that the report has generated click on Go to My Reports Queue and click on View Report.

Review and enter all changes prior to the last payroll processing in 2017.

ADJUSTMENT PROCESSING

Before you process a payroll with a 2018 pay date, you may schedule an adjustment process for any 2017 entries that were not completed. Contact the iSolved Support Department to schedule an adjustment process.

Once scheduled, adjustments can then be entered in iSolved. Your payroll informa�on will be available for download immediately a�er the adjustment process is run.

Void and Manual Checks You CANNOT enter manual checks or void checks a�er your last payroll of 2017.

If you have void or manual checks to process a�er you have processed your first payroll for 2018 you must send the informa�on to the iSolved Support Department. You will be billed $250.00 plus normal processing for these adjustment runs. Amended Return charges may also apply.

The last day for processing 2017 checks or direct deposits is We d n e s d a y , 12/27/2017

EFFECT OF YEAR END ADJUSTMENTS ON TAXABLE WAGES & TAXES

Before entering adjustments: • Determine the type of adjustment needed (e.g., fringe benefits, group term life, personal use of

company car, etc.). It is highly recommended you input these items before your last payroll of 2017. If you input these special W-2 Items before your last payroll of 2017, the system will adjust the appropriate taxable wages up to their limits.

• Input these items on the �me entry grid if you are running a regular or bonus payroll process. Otherwise, contact the iSolved Support Department. Do not enter these items as manual checks.

• If any employee Social Security tax is accrued due to these adjustments, it will create a variance and the iSolved Support Department will contact you regarding resolu�on.

• If the employee has no further pay, the system can only adjust the employer taxes and special adjustments must be made to accommodate Social Security taxes. These special adjustments must be processed by submi�ng the informa�on to our iSolved Support Department.

EMPLOYEE W-2

The Employee W-2 Preview Report represents what will be reported on your W-2 forms.

Please review this report carefully to be certain all the informa�on required on the W-2's has been properly iden�fied. If further adjustments are required, please process by the deadlines noted on the calendars (pages 4-5) and/or the checklist (page 8).

Sample Employee W-2 Preview is available on page 13.

FINAL PAYROLL SUMMARY REPORT

Pay par�cular aten�on to any state(s) which are missing tax iden�fica�on numbers. This indicates that Payroll Network does not have the state iden�fica�on number on file for this state. Failure to provide Payroll Network with the iden�fica�on number before your W-2's are requested will result in a delay of their processing.

OTHER YEAR END CONCERNS

1099 Miscellaneous Forms

If you have paid 1099 Miscellaneous income through the payroll system in 2017, Payroll Network will produce these forms. If you have addi�onal 1099 employees, enter them before you process your last payroll for 2017.

BONUS PAYROLLS

Are you planning a special year end bonus payroll run? If so: • Schedule processing on a Thursday or Friday apart from your regular payroll • Contact iSolved Support Department to schedule your separate bonus run • Inform us of any special handling of taxes and deduc�ons • Process any special pays on or before 12/15/2017

Year End Payrolls that include bonuses will have a higher than usual tax liability. Please remember that a wire may be required to fund the payroll taxes for any payroll with a federal tax liability greater than $100,000. This allows Payroll Network to make �mely tax payments with cleared funds. We will no�fy you of the amount and wiring instruc�ons when the payroll is processed.

W-2 PREVIEW REPORT SAMPLE

RECONCILING W-2 INFORMATION TO A CHECK STUB

The following is an example of common reconciling items between the employee’s final check stub and the W-2. This example provides guideline for reconciling your W-2 to your last pay stub. If you s�ll have ques�ons, please submit your ques�ons to iSolved Support at support@payrollnetwork.com

EXAMPLE

2015 W-2 Common Reconciling Items

Gross Per Check Stub $51,500.00

Less non-Taxable Reimbursements (1,500.00)

Sub-Total

50,000.00 Add non Cash Taxable Income:

Group Term Life 125.00

Pers Use Co Car 2,475.00 Employer Pd Fringes 1,000.00

3,600.00

Sub-Total

53,600.00 Deduct Pre-Tax Items:

Cafeteria Plan 4,225.00 HSA Deduction 1,775.00 Other pre-Tax Plans 500.00 (6,500.00)

*W-2 Box 3 Social Security Wages 47,100.00

*W-2 Box 5 Medicare Wages 47,100.00

401K. 403B, IRA Deductions

(10,500.00)

W-2 Box 1 Federal Taxable Income

36,600.00

NOTE: W-2 Box 3 FICA Wage Limit is $118,500.00 (excludes non-taxable earnings/ reimbursements, cafeteria plans and pre-tax deduc�ons)

Please Note: Any employee who lived in more than three states during the year will receive mul�ple W-2s. The 2017 W-2’s will contain mul�ple states on one W2 if the employee lived in 2 states throughout the year. The W-2 for their current state of residence and prior state for the year will have all of their federal, and state and/or local tax informa�on for both states. A second W-2 will only contain the state and/or local tax informa�on for more than 2 previous state(s).

DOS AND DON’TS

Topic Do Don’t

Void Checks Do void fourth quarter checks on or before your last payroll process for 2017

Do not void prior quarter checks. Send them to the Support Department.

Manual Checks Do enter them on or before your last payroll process for 2017.

Do not enter a nega�ve manual check for a prior quarter, fringe or company benefits. Send them to the iSolved Support Department.

Group Term Life (GTL)

Do enter on or before your last payroll process for 2017.

Do not enter GTL on terminated employees or use manual adjustments a�er the last 2017 payroll. Call the iSolved Support Department for instruc�ons.

Address Changes

Do make all address changes on or before your last payroll process for 2017.

Address changes made in 2018 do not update W2’s for 2017

Fringe Benefits Do report any addi�onal fringe items on or before your last payroll process for 2017.

Do not enter manual adjustments a�er the last 2017 payroll process. Send them to the iSolved Support Department.

Third Party Sick Pay

Send all 3rd Party Sick Pay to the iSolved Support Department on or before your last payroll process for 2017.

Payroll Calendar Do verify payroll processing schedule/calendar by 12/8/2017.

Verifica�on Do review the following:

• W-2 Prelist • Tax IDs and Rates Screen • Employee W-2 and SSN Web

Report

1099 Master File Informa�on

iSolved clients enter into the system before you process the last payroll of 2017.

1099 Informa�on

iSolved clients enter into the system before you process the last payroll of 2017.

Payroll Tax Informa�on

Send all payroll tax documents received from federal, state and/or local tax authori�es to the Tax Department.

Do not overlook any tax documents received. If you are unsure about sending it, send it and the Tax Department will determine its validity.

PREPARING FOR YEAR-END AND 2017 REPLY FORM

If you have NOT submited the online year end reply form, please complete this reply form and email to support@payrollnetwork.com. Company Name _______________________________ Client ID ____________ Date _______________ Completed By _________________________________ Signature _____________________________________

Verifying W-2 Informa�on

A. Please verify your Company legal name, address and Account #'s

My Company's Legal Name & Address Are correct

My Federal ID # Is correct

My State ID #'s Are correct

My Local ID #'s Are correct

W2 Mailing Address-confirm that this is the same as your company address or supply us with where you want us to send your W2’s.

________________________________

________________________________

________________________________

B. I have reviewed my Employee Informa�on including W-2 Pension Status. I understand the IRS may assess penal�es for inaccurate informa�on:

ACTION ITEM: Have you verified that the name and social security number on every employee's paycheck matches his/her Social Security card exactly? DO NOT use shortened or nick names (ex. Beth for Elizabeth).

The IRS may assess penal�es against employers whose W-2 Forms have mismatched employee names and social security numbers. The penalty for W-2's with incorrect informa�on is $50.00 (maximum $250,000).

I have keyed all necessary changes in my Payroll Network software OR

No changes are required- my employee informa�on is correct as shown.

Year End Adjustments

A. Outstanding VOID/MANUAL CHECKS

I DO NOT have any unprocessed 2017 manual or void checks.

I DO have unprocessed manual void checks. I will forward all void/manual checks to Payroll

Network, Inc. before my last scheduled payroll.

***Remember- checks issued in 2017 cannot be voided in 2018***

B. Third Party Sick Pay I WILL report Third Party Sick Pay for 2017. All third party sick pay amounts should be reported to us before your last

payroll of 2017. For those clients who are concerned about receiving �mely informa�on from their providers, please be aware that interim statements are available and can be used. Please contact your third-party provider to obtain this informa�on. Note: We will produce and file all Employee Third Party Sick Pay W2's unless you no�fy us in wri�ng that you or your third party administrator will be responsible for these forms.

I will NOT report Third Party Sick Pay for 2017.

I understand if I need to make any changes AFTER MY LAST PAYROLL in 2017, I must call iSolved Support IMMEDIATELY to request the processing of my W2s be put on HOLD. Otherwise, Payroll Network, Inc. will begin processing my 4th quarter reports. Submi�ng changes or addi�onal informa�on a�er this will result in addi�onal charges.

ACTION ITEM: To avoid tax and penal�es, please complete and return no later than:

Friday, December 15, 2017

As a reminder, we have resources for you!

www.payrollnetwork.com/year-end-resources

Year End Resources:

Download Year End Tips Here!

Alert your employees about the availability and benefits of Electronic Delivery and encourage them to “Accept” the terms:

• Eliminates the task of distribu�ng paper tax documents, and • Gives employees the ability to retrieve their tax documents electronically, any�me they choose. • Also, because there is no paper to misplace, it increases the security of employees’ sensi�ve data. • And, of course, Electronic Delivery is environmentally friendly!

Download the action plan here

Here are two emails and three posters to use to educate your employees about the benefits of iSolved Electronic Delivery:

Download Email #1 Download Email #2