As the pandemic hit, many programs were put in place to help aid businesses during such a difficult time. With the addition of these new programs and benefits come some changes to your standard end of year processes with Justworks.
This past summer, a new version of the 941 report was introduced and required for all quarterly filings. Luckily for you, this is already something that is handled by Justworks and even with the new updates, there is no action required on your end. Justworks will still file this on your behalf. As this is filed in aggregate with all Justworks customers, we are not able to provide this on a company level. You can learn more about this report here.
The CARES Act
The CARES Act that allows eligible small businesses to temporarily defer payment of the employer share of Social Security taxes through the end of 2020.
Participating in any of these programs will not impact your end of year with Justworks or their W-2s and your employees will still receive their required end of year tax documents.
However, we do want to remind you that in January 2021, you can expect to see Social Security Taxes resume on your payroll. Moreover, your company will be obligated to repay 50% of all deferred amounts by December 31, 2021 and the remainder by December 31, 2022. We are awaiting additional guidance from the IRS regarding those repayments.
Best Practices for End of Year
We know there can be a lot to cover as you begin to close out the year. In order to help streamline the process, we’ve put together some best practices for your employees to ensure a smooth and successful finish to the year.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.