ERP Payroll Systems and new reporting requirements for 2015

This time of year always brings out the new upgrades, tax upgrades, last minute IRS changes in tax tables, and customer concerns about how to proceed for the end of the year. This year, there are several changes that we want to make sure payroll users know about.

W-2 Requirements for 2015

Mature man getting a headache from taxes and billsThe W-2 for 2015 has several codes that you may not have noticed in prior years, although they were there for the 2014 W-2 form. Chief among them is the Box 12 DD code, which requires reporting of the cost of Employer Provided Healthcare coverage. As of today, the IRS ACA W-2 reporting page indicates that this is not required for employers who filed fewer than 250 W-2 forms in the prior year (2014 forms given to employees in January 2015). At least many employers will dodge that bullet. The original interim guidance IR-2011-31 provided that this was the case until the IRS issued further guidance; since that guidance could come at any time, it might be a good idea to think about setting up a way to collect this cost in your payroll system.

There are also several codes that have been on the W-2 for several years that you might want to review. Particularly if your company pays into a retirement account. There are codes for Roth, 401(k), 403(b), etc. Contact your CPA or tax advisor if you think any of these might be applicable. And contact DGG for help in setting these up in Payroll.

1095 Forms for 2015

The new kid on the street is the 1095. All employers with 50 or more employees (or full-time equivalent employees) must file the 1095-C. The summary or transmittal form that goes with it is the 1094-C (like the W-3 for the W-2).

This form will either be very easy to fill out (if you offered the healthcare coverage the ACA requires, and offered it to all employees), or will require you to go through employee by employee to decide how to complete the form. Most payroll systems we have seen are making some provision for completing these forms. However, the information needed to complete the form isn’t all in most payroll systems. In particular, some systems are adding the ability to produce this form late in the year, which means that in all likelihood, you’ll have to research and enter at least some of it.

If you produce your own payroll and haven’t heard from whoever does your support, you might want to consider contacting them. Contact us if you need a push in the right direction.