Payroll Processing and Tax Reporting

Payroll processing and tax reporting are tasks employers must complete in a timely manner. Depending on how often you pay employees, payroll processing will be done on a weekly, biweekly, or monthly basis. Payroll tax reporting is done monthly, quarterly and annually. It is important that employee files and documents are organized and up to date for filing purposes. Bookkeeping Plus can perform these tasks professionally and accurately, so you can make time for other business needs.

Maintain employee files

Employee files are an intricate part of a company’s organizational system. A payroll file is a separate employee file we use to manage your employee’s pay and tax data. Our detailed filing management system maintains your employee’s financial data for your business. Our files contain the following information:

• W-4s & I-9s
• State withholding forms
• Pay rate information
• Garnishments or other wage deductions
• Time clock records.

Process Payroll & 941 Deposits

We complete payroll processing by calculating gross pay and calculating all required deductions. There are several deductions that must be calculated:

• Federal income tax
• Social Security and Medicare
• State withholding
• Insurance, 401k and other miscellaneous deductions

After completing payroll, we calculate the Medicare and Social Security tax amounts withheld from employee checks as well as the matching amount the company is required to pay along with the federal withholding for all employees and send these amounts to the IRS via payroll tax deposits. These payments are known as 941 deposits and the IRS requires these payments be made electronically on a monthly or semi-monthly schedule, based on the company’s prior year gross wage.

Quarterly Payroll Tax Reporting

We process state and federal quarterly payroll reports at the end of each calendar quarter. These reports consist of the federal quarterly 941 report which reconciles the monthly or semi-monthly 941 deposits, the ES903, which is the NM unemployment tax paid to the Workforce Solutions Department, the WC1, which is a report filed with NM Taxation & Revenue to pay the Worker’s Compensation tax (this is not worker’s compensation insurance). We keep records strictly organized to ensure your reports are always correct and on time.

Annual filing of W2 & 1099 forms

At the end of the year, employers must provide annual reports to employees in the form of a W-2, which shows their wages and deductions for the year. The W2’s are mailed to the employees prior to the January 31st deadline.

In addition to W2’s we will issue a 1099 to each of your outside contract workers that were paid $600 or more. This information is monitored throughout the year to ensure files are up to date at year end.

We forward these annual reports to the Internal Revenue Service and Social Security Administration on your behalf.