AAP News

E-Verify
 U.S. law requires companies to employ only individuals who may legally work in the United States – either U.S. citizens, or foreign citizens who have the necessary authorization. E-Verify is used to determine the eligibility of employees to work in the United States by verifying their social security number. Beginning January 1st, 2012, all South Carolina employers must E-Verify all new hires. Similarly, North Carolina is requiring E-Verify for their new hires with multiple applicable dates. AAP is ready and willing to make sure our clients stay compliant by becoming your designated E-Verify Agent and will perform the employment verification for you! For AAP to become your designated agent or for more information please contact us at:  1-888-871-9028.

FUTA Credit Reduction
Heading into the New Year AAP wants to make sure that all of our clients are aware of the states that will be affected by the FUTA Credit Reduction. Arizona, California, Connecticut, Florida, Georgia, Illinois, Kentucky, Minnesota, Missouri, North Carolina, New Jersey, Nevada, Ohio, Pennsylvania, Rhode Island, Virginia, Wisconsin, and the Virgin Islands will be required to pay an additional .3% which is approximately $21 for every employee earning $7,000 or more. For example, if your company had 100 employees that earned over $7000 you would owe an additional $2,100 in taxes. Indiana will be required to pay an additional .6 % which is approximately $42 for every employee earning $7,000 or more. Lastly, Michigan will be required to pay an additional .9% which is approximately $63 for every employee earning $7,000.
 The FUTA make up tax will be due on or before January 31, 2012 to avoid penalties and/or fees. The amount due will be calculated after final 2011 payrolls are processed and your 940 is generated. If you have any questions regarding the FUTA credit reduction please contact your customer service representative or our support department at: 1-888-871-9028.

Evolution Tip of the Month
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Avoid Penalties: Validate W-2 Information
 With the end of the year quickly approaching, now is the time for employers and employees to validate their personal filing information for accuracy. The IRS can assess fines of $50 per incorrect W-2 with a maximum fine of $250,000. Please ask all employees to check the spelling of their legal name, address, and social security number on their check to ensure that they are correct. 1099 contractors should validate their legal name, address, and proper Federal ID number. The aforementioned information can also be verified on the check register.
 AAP will be happy to make any changes “free-of-charge” as long as we receive the request prior to December 26th. Changes received after this date will incur reprinting and/or correction charges.

Take Advantage of the Tip Credit
If you employ tipped employees, you are entitled to a credit against income taxes. It has been reported that up to 75% of the restaurants covered by tip reporting rules don’t file their 8027 Report. As a free service, AAP can provide you with your tip credit report for use on your tax return. After determining your eligibility with your accountant, please contact our support department to request your tip credit report: support@aappayroll.com.

W-2′s: Box 12 DD Becoming Mandatory
Beginning in 2012, it will be mandatory in Box 12 DD on all W-2’s  to report the aggregate cost of an employer sponsored health care plan, not including dental and vision. Employers with less than 250 W-2’s in the prior year will be eligible for relief. Please contact your Customer Service Representative or our Support department with any questions at: 1-888-871-9028.

Employee of    the Month
November
Jennifer Smart