January 05, 2021
We turn the page to a new year and January is the busiest month of the year in the payroll world with new and existing client payrolls, filing 4th quarter payroll tax reports, generating W-2’s/1099’s and filing W-3 reconciliations for Federal, State(s) and Locals.
2020 W-2’s and 1099’s should be in the hands of those your clients employed or contracted with on or before Monday February 1st, 2021. The normal deadline has been January 31st but that day falls on a Sunday this year.
Federal and Pennsylvania W-3 reconciliations are due on or before Monday February 1st, 2021. New Jersey W-3 reconciliation is due on or before Monday February 15th, 2021. However, President’s Day holiday falls on that day and due date is Tuesday February 16th, 2021. City of Philadelphia W-3 reconciliation is due on or before Monday March 1st, 2021. Delaware W-3 reconciliation is due on or before Monday February 1st, 2021 and the Maryland W-3 reconciliation is due on or before Sunday January 31st, 2021.
Beginning of year also means changes with medical, dental and retirement deductions. Your clients should be entering in new rates, whether the deduction is a pretax or post tax benefit and limits/changes such as retirement vehicles. In Pennsylvania, the Department of Labor and Industry sends out the new experience rate for the calendar year. It is important for your client to update that so there are no issues when Quarter 1 UC2A and UC2 filings take place.
Thank you very much.
Senior Account Relationship Manager
The Payroll Factory, Inc.
18 East Lancaster Avenue