Payroll Update: New Federal Withholding Tables, Tax Relief Act
Intuit has released Payroll Update 21102, which includes the federal withholding tables for 2011 and reflects the Tax Relief Act of 2010 signed by President Obama on December 17, 2010.
What do I need to do?
It’s important that you receive everything in the Payroll Update to make sure that you are in compliance with legislation that affects your payroll. Just follow these three simple steps:
1. Check to see if you have Automatic Updates turned on.
– Choose Help > Update QuickBooks.
– On the Options tab, you will see either Yes or No selected for Automatic Update.
2. If Yes is selected, you should receive all Payroll Updates automatically when they are released the next time you are connected to the internet.
You can verify that you received Payroll Update 21102 from within QuickBooks. Go to Employees > Get Payroll Updates > Update. You should see a message that says, “You are using tax table version 21102.”
3. If No is selected for Automatic Update, you need to download the update manually. Click here for instructions.
Disk delivery customers: The next disk delivery is scheduled for late January or early February 2011 and will include these updates. The IRS is instructing employers that these changes must be implemented by January 31, 2011. We strongly recommend that you download and install the payroll update manually if you have internet access.
Did you know that there is a new QuickBooks Pro Plus and Premier Plus desktop product? It is a subscription plan that keeps up with the latest tools and eliminates the need to upgrade your software. For more information go to our product page.
Speaking of 1099s, if you want to track your 1099 reporting in QuickBooks:
Be sure your 1099 tracking feature is turned on. Go to Edit, Preferences, Tax:1099, Company Preferences and answer Yes to Do you file 1099 MISC forms, then go to the box below.
For each box (typically Box 1 Rents, and Box 7 NonEmployee Compensation), choose the accounts where these rents and/or services would be booked. You can choose multiple accounts, and a new window will pop up that will allow you to check more than one account for QuickBooks to search through.
Lastly, be sure your service and rent providers are set up as vendors. When setting the vendor up, go into the Additional Information tab, and check that the vendor is eligible for a 1099. Enter the tax identification number in this screen, per the W-9 form.
Verify that your address for the vendor reflects the most current W-9 form.
Visit Us!