As the end of the year approaches, we want to ensure you are prepared and understand different elements of payroll and the impact on your business during this season.

 

$100,000 Liability Payrolls

• Payrolls that generate $100,000 in federal tax liability must be processed at least one business day before the desired check date to allow for timely tax deposits.

  • If using the check date of 12/31/22, the payroll must be processed on or before12/28/22 to ensure timely tax payments.

 

• Federal tax deposits of $100,000+ are due the next business day following the check date.

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• The “$100,000 Next-Day Deposit Rule” applies to the cumulative liability of all payrolls dated within a tax deposit period and will be due the next business day.

 

Special Taxation on Bonus Checks

• Please have all details for specific withholding amounts, percentages, or blocking of voluntary deductions (i.e., medical insurance) ready when submitting bonus requests.

Wire Requirements

• Payrolls that exceed your company’s specific ACH limit may require a wire transfer.

• Please allow sufficient time to initiate a wire transfer when submitting larger-than-normal payrolls. This means processing payroll at least two business days before the check date.

  • When this occurs, you will receive an email with instructions on how to proceed.​

  • Be aware of your banking institution's requirements for a timely wire transfer.

• Funds must be wired to Premier Payroll to cover all EFT (Electronic Funds Transfer) transactions prior to the payroll being processed.

 

Check Date vs. Pay Period Worked

• For payroll and tax reporting purposes, the check date determines which year the wages arereflected. The pay period does not dictate where wages are reported from a reporting standpoint.

• Hours or days worked in December but paid with a check date in January 2023 will bereported on the 2023 payroll tax returns and 2023 W-2s.

• If you need specific payments to reflect in 2022, process them using a 2022 check date.

 

 

If you have any questions or would like additional information, contact your Premier Payroll Team.

Thank you!