2010 Payroll Software – Form 944 eligibility and Form 944 filing requirements.

The IRS has released a new revenue procedure (IRB 2009-45), which sets forth the procedures for employers to follow to request to file Form 944, Employer’s ANNUAL Federal Tax Return (i.e., to opt in). In addition, this revenue procedure sets forth the procedures for employers who previously were notified to file Form 944 to follow to request to file Forms 941, Employer’s QUARTERLY Federal Tax Return, instead (i.e., to opt out).

Requests to File Form 944 (opt in to filing Form 944): Upon request by qualified employers, the IRS will notify employers in writing of their qualification to file Form 944. Employers may request to file Form 944 by contacting the IRS at the appropriate telephone number or mailing address, by the applicable due date. Employers must not file Form 944 unless they receive notification that they are eligible to do so (form 944 eligibility). Employers who previously received notification of their qualification to file Form 944 must continue to file Form 944 unless the IRS notifies the employer that the employer no longer qualifies to file Form 944 or the employer opts out.

Requests to File Forms 941 (opt out of filing Form 944): Employers who previously were notified to file Form 944 but want to file Forms 941 instead must call or write the IRS stating that they want to opt out of filing Form 944 before the applicable due date. The IRS will send written notification to employers that their filing requirement was changed to Forms 941. Employers who were notified of their qualification to file Form 944 but do not receive notification that their filing requirement was changed to Forms 941 must file Form 944 rather than Forms 941.

For more information about the due date to opt-in/ opt-out of filing Form 944 please visit the IRS website.

Our form 941 software prepares IRS forms 941, 940, 944, W2 and W3. To download a free payroll software demo, please go to www.realtaxtools.com .

Payroll Software Reviews : Payroll Mate Receives High Reviews from CNET.com

Payroll Software Reviews:

Our Payroll Mate payroll software received high reviews from CNET editors: "We’ve tested several payroll programs, and Payroll Mate ranks right up there as one of the best."

Below is the review:

“Payroll Mate 2009 provides tools for managing your business’s payroll. With its simple operation and great features, it’s is a great option for users in charge of a small business’ finances.
Even if you’ve never handled any company’s payroll, large or small, Payroll Mate is easy to get started with. We were able to slip right into the interface and control everything with ease. The program’s Wizard holds your hand every step of the way as it walks you through the setup and data entry stages. The Wizard is most helpful when entering a new employee’s information into the database. You can quickly handle all relevant information, such as address, salary, deductions, marital status, and more. Once you’ve completed this, Payroll Mate automatically tallies all taxes and withholdings, which saves you time and reduces errors by doing the math for you. Payroll Mate automatically translates this financial information into a paycheck that looks exactly like what you’d expect to see in a traditional paycheck. From adding new employees to cutting them a check, the whole process took less than 5 minutes, which was amazing. Payroll Mate also lets you run reports and make detailed evaluations of payroll, employees, budgets, and more. We’ve tested several payroll programs, and Payroll Mate ranks right up there as one of the best.”


To read the full review, please go to Payroll Mate CNET editors’ review .

To download a free demo of Payroll Mate please go to the payroll software download page.

California reissues 2009 payroll withholding tables

The state of California has issued new withholding tables for 2009 (2009 PIT Withholding ), the new tables are in effect for the months of November and December 2009. The tables will change again in January 2010. Employers are advised to implement the new (November & December 2009) tables, as soon as possible.

Our Payroll Mate payroll software will be updated to include the new payroll withholding tables. The updated tables are also available on  California’s Employment Development Department website, please look for:
Method B – Exact Calculation Method Nov/Dec (PDF) – with Instructions

Low Income Exemption, Estimated Deduction, Standard Deduction, Personal Exemption Credit, Annual Payroll Period, Daily / Miscellaneous Payroll Period, Quarterly Payroll Period, Semi-Annual Payroll Period, Semi-Monthly Payroll Period, Monthly Payroll Period, Weekly Payroll Period, and Biweekly Payroll Period

New York 2010 Withholding Tables

On September 9, 2009, the state of New York issued proposed New York exact calculation method withholding tables for wages paid on and after January 1, 2010. The proposed supplemental wage (such as bonuses, commissions, overtime pay, sales awards or tips) rate for New York in 2010 would be 9.77%.

You can learn more about the new proposed tables by visiting the New York Department of Taxation and Finance, and reading about “Adoptions – Personal Income Taxes”.

Our payroll software automatically calculates New York  state withholding in addition to other payroll taxes such as federal withholding tax, social security tax and Medicare. To read a full description of our payroll system, please go to the payroll software details page.

EFile Minnesota 1099 and E-File Minnesota W2

Due to a recent Minnesota law change, the electronic filing thresholds will decrease over the next few years:

(1) Tax year 2009 : Efile W-2s and/or Efile 1099s if you have more than 50 forms.
(2) Tax year 2010: File W-2s electronically and/or file 1099s electronically if you have more than 25 forms, and
(3) Tax year 2011 : E-file W-2 Forms and/or E file 1099 if you have more than 10 forms.

Your 2009 W-2s and any 1099s with Minnesota withholding are due February 28, 2010.

Refer to the new electronic filing threshold limits above to determine if you are required to submit your W-2s and/or 1099s electronically. Minnesota no longer accepts W-2s on CD-ROM, diskette, or in PDF format.

You can use our W2 Mate software to report W2s or 1099s to the state of Minnesota either by paper or through electronic filing. For W2 Forms, the software can print all copies (W2 Copy A, W2 Copy B, W2 Copy C, W2 Copy D, W2 Copy 1, W2 Copy 2) and can generate EFW2 (formerly MMREF) file to electronically  file with the state. For 1099 Forms, the software can print all copies (Copy B, Copy C, Copy 1, Copy 2) and can generate a file formatted based on IRS requirements for electronic filing. Minnesota participates in the combined federal/state filing program for reporting 1099 information, this program allows the payer or its agent to E-file 1099s with the IRS and authorizes the release of the information to the appropriate state (Minnesota in this case).

To read more about our 1099 Software or W2 Software , please go to www.realtaxtools.com .