| Frequently Asked
Questions |
|
General Service
Who is Intuit Payroll
Services?
How does payroll outsourcing work?
Who do I contact for questions?
How much can I save with Intuit Payroll Services?
How secure is Internet-based processing?
What security do your paychecks have?
Can Intuit Payroll Services work with my
401(k), Section 125, Cafeteria Plans, PTO and other benefits?
What is Employee Self Service (ESS)?
Sales and Conversion
How do I sign up
for service?
What if I enroll in the service in the middle
of the quarter?
How do I get information about my company
to Intuit Payroll Services?
How do I learn how to use the Internet service?
Once I am using the service, how do I get
help?
Payroll Processing
After I submit my
payroll for processing, how long does it take to get my checks?
What if I have employees in multiple states?
What if I need to void a check?
What is Direct Deposit?
How does Direct Deposit work?
What if my company requires general ledger
journal entry reporting?
Can Intuit Payroll Services provide my business
with customized payroll reports?
Does Intuit Payroll Services provide agency
checks?
Employer Taxes
What are payroll
taxes?
How often do I have to pay payroll taxes?
What is the "Federal Lookback Period?"
What if I don't have access to my "Federal
Lookback Period" information?
How are Employer Tax Deposits calculated
and paid?
What is the procedure used by Intuit Payroll
Services for tax filing and payment services?
Which taxes does your service file?
General Payroll
Why do I need an
Employer or Federal Identification Number?
Who is an employee?
How often must I pay my employees?
What payroll frequencies do employers typically
use?
What is the minimum wage?
What is Medicare?
What is Social Security?
What is new hire reporting?
How often do I need to report new hires
to the state to which I select to report new hires?
What is a W-2?
What are withholding allowances?
How much time do I have to issue a W-2 to
an employee who is terminated and requests a W-2?
What is a W-3?
What is a W-4?
What is a 1099?
What is a 1096?
What is a 940?
What is a 941?
Who is an independent contractor?
What is Tip Differential?
|
| |
| Who is Intuit Payroll Services?
|
|
Intuit Payroll Services processes payroll nationwide for
thousands of small-to-medium-sized businesses. Intuit is one
of the largest providers of small-business, tax preparation
and personal finance software and is best known as the maker
of QuickBooks®, Quicken®, and TurboTax®.
Intuit Payroll Services offers a full-featured outsource
payroll solution including a variety of input methods, electronic
payroll tax filings, employee pay options, and comprehensive
reporting with over 40 standard reports to aid in helping
companies control costs. Intuit Payroll Services blends the
best people and latest technology to create innovative solutions
for business owners' constantly changing needs.
|
| Top |
| |
| How does payroll outsourcing work?
|
| Payroll outsourcing is the use of a third-party
payroll provider to process a company's payroll. Intuit Payroll
Services, Costco's Payroll Processing provider, gives
Costco Members several options for submitting their payroll
data - Web, PC, Phone, or Fax Entry. When processing a payroll,
Intuit Payroll Services withdraws the appropriate funds from
the Member's designated account, automatically deposits the
appropriate pay into the employees' accounts or prepares standard
checks, deposits the taxes with the required state and federal
agencies and provides complete online and hard copy reports
of everything they do. Each quarter Intuit Payroll Services
reconciles these transactions (as required by law), and at the
end of the year they submit all necessary tax paperwork and
produce W-2s for each of your employees. |
| Top |
| |
| Who do I contact for questions?
|
| If you don't see your question answered
here in the FAQs section, call 1-888-448-3016 to speak with
an Intuit Payroll Services representative. |
| Top |
| |
| How much can I save with Intuit Payroll
Services? |
| You can save up to 30% compared to the
market average for payroll outsourcing. When comparing prices
to other providers, it is important to consider all of the additional
services offered in the Payroll Processing service
at not additional charge. Many providers charge comparable payroll
processing and per-employee fees but charge additional fees
for each of the additional services, making the overall cost
of processing your payroll higher. Costco and Intuit Payroll
Services have teamed up to bundle many services that are often
not included in other service offerings, all at a savings to
you. |
| Top |
| |
| How secure is Internet-based processing?
|
| Costco and Intuit Payroll Services take
your privacy and the safety of your transactions very seriously.
Business Payroll Processing includes the highest level of Internet
safety protocol available including substantial encryption,
a secure socket layer, multiple firewalls, confidential log-ins
and passwords and timed logouts. |
| Top |
| |
| What security do your paychecks have?
|
| Intuit Payroll Services' laser-printed
payroll checks have the following security features: color-fading
ink, micro printing (the border around the paycheck), watermarks,
serial numbers (on all paychecks) and MICR (magnetic ink). |
| Top |
| |
| Can Intuit Payroll Services work with
my 401(k), Section 125, Cafeteria Plans, PTO, and other benefits?
|
| Yes. Intuit Payroll Services supports
all pre-tax and after-tax deductions associated with 401(k),
health insurance and cafeteria plans. We can compile the information
and send a report directly to you so that you can send the appropriate
funds to your provider(s), or for a fee, we can generate checks
to the administrator for the contributions. |
| Top |
| |
| What is Employee Self-Service (ESS)?
|
|
Intuit Payroll Services' Internet payroll service provides
employees instant access to view or print their current and
previous pay information, W-2s and certain other personal
information through the use of their own secure user ID and
password (each employee's access is limited to his/her own
specific employee data). This can be a big time-saver for
an employer as it can reduce the number of employee payroll
inquiries. As the employer, you have total access to all of
your employees' pay history and certain personnel data including
a company directory, e-mail-ready paycheck stubs, birthday/anniversary
reminders and more.
|
| Top |
| |
| How do I sign up for service?
|
| Costco Members can sign up by calling
toll free 1-888-448-3016 and speaking with an Intuit Payroll
Services' representative. Members can also enroll online. Simply
click on Quick Quote and
enter some basic data about your business, click "Submit" and
a quote is generated showing the exact costs for your business.
Once you have completed your quote, click "Sign Up Now" and
follow the easy steps. After Intuit Payroll Services receives
your faxed information, they will contact you to collect information
for tax filing and work with you to outline your specific payroll
needs. Depending upon your current records, they can often have
you up and running within one payroll cycle. |
| Top |
| |
| What if I enroll in the service in the
middle of the quarter? |
| Depending upon your needs, Intuit Payroll
Services can get you started at any time. In addition to the
standard documentation, all they need are your payroll and tax
records for the current year. If you are currently using another
payroll service, or have the information in a spreadsheet format,
they can often import this information directly into their system.
|
| Top |
| |
| How do I get information about my company
to Intuit Payroll Services? |
| Once you register for the service, send
in your proof of federal and state ID numbers, and a copy of
a voided check from the account you will use to fund your payroll.
Intuit Payroll Services will contact you to complete a Payroll
Services Agreement. Then, they will send you a Conversion Packet
via overnight mail. They will work with you to gather the necessary
documents and information to set up your payroll account. |
| Top |
| |
| How do I learn how to use the Internet
service? |
| Intuit Payroll Services' implementation
and training department will work directly with you until they
are comfortable you possess the skills to submit your own payroll
successfully. They have many tools to help you learn how to
enter your payroll data including demos, built in quick reference
help, detailed on-line help, training manuals plus a training
and service staff. |
| Top |
| |
| Once I am using the service, how do I
get help? |
| You will be assigned your own Payroll
Specialist* who knows all the specifics of your account. You
can contact your specialist via e-mail or by calling your Payroll
Specialist directly! |
| *In some markets, our service model varies
and a team of specialists may be assigned to provide expert
service. |
| Top |
| |
| After I submit my payroll for processing,
how long does it take to get my checks?
|
| This depends upon how you submit your
payroll and the method of delivery you choose. Typically, if
Intuit Payroll Services prints your payroll checks and reports
for you, then they are usually delivered the next day. If you
are using the PC Entry software, you have the option to print
checks and reports on-site. |
| Top |
| |
| What if I have employees in multiple states?
|
| Intuit Payroll Services processes payroll
in all 50 states. Your first state or locality is included in
your base payroll processing fee. Each additional state or locality
thereafter is subject to an additional charge. |
| Top |
| |
| What if I need to void a check?
|
| If you need to void a check, just notify
your Payroll Specialist* so that Intuit Payroll Services can
make the proper adjustments and update your records. |
| *In some areas, our service model varies
and a team of specialists may be assigned to provide expert
service. |
| Top |
| |
| What is Direct Deposit?
|
| This is a method of paying employees using
a type of electronic funds transfer (EFT), which allows employers
to deposit employees' pay directly into their designated bank
accounts without having to handle a paycheck. It is a safe,
secure and efficient method of paying employees. |
| Top |
| |
| How does Direct Deposit work?
|
| You provide Intuit Payroll Services with
specific account numbers for both your business and your employees.
Intuit Payroll Services works with the your company's bank to
process the Direct Deposit transactions for your payroll. This
requires one business day between input and check date to process
via the Automated Clearing House (ACH) system established under
federal banking laws. |
| Top |
| |
| What if my company requires general ledger
journal entry reporting? |
| If your company requires general ledger
(G/L) reports, simply produce a detailed description of your
requirements, and Intuit Payroll Services will quote your company
project fees to develop the necessary reports. |
| Top |
| |
| Can Intuit Payroll Services provide my
business with customized payroll reports?
|
| Yes. Intuit Payroll Services can prepare
Custom Reports and Data Export Files for as little as $5.00
per report (if processed each pay period) or $10.00 for one-time
reports processed upon request. Whether you need industry-specific,
human resource and/or unique accounting reports, Intuit Payroll
Services can create the reports you need. |
| Top |
| |
| Does Intuit Payroll Services provide agency
checks? |
| Yes. Intuit Payroll Services can prepare
agency checks on your company's behalf for items such as wage
garnishments or child support payments for as little as $1.25
per check. Intuit Payroll Services also provides a detailed
agency check report. |
| Top |
| |
| What are payroll taxes?
|
| They are taxes that are imposed most commonly
by the federal, state, and local governing agencies on wages
paid to employees. Some taxes are withheld from the employee's
wages; others are paid directly by the employer. Most organizations
are required to deposit with the IRS for withheld income tax,
Social Security, Medicare and federal unemployment taxes. Most
states and some localities impose payroll taxes as well. |
| Top |
| |
| How often do I have to pay payroll taxes?
|
| The IRS regulates the rules governing
the timing of payroll tax deposits, the method to be used to
make them and the penalties for making untimely or insufficient
deposits. Generally, most employers are assigned one of two
depositor status classifications: monthly or semi-weekly. The
determination is based on the employer's total liability for
federal income, Social Security, and Medicare taxes during a
"Lookback Period" as defined by the IRS. |
| Top |
| |
| What is the "Federal Lookback Period?"
|
| The IRS and state agencies require payroll
tax deposits on a quarterly, monthly, semi-weekly basis depending
upon how much your total payroll was during a 12-month period
defined as the "Lookback Period." The dates of the Lookback
Period are determined by the time of year you are applying for
service. To learn more, see Publication 15 "Circular E, Employer's
Tax Guide" published by the IRS. |
| Top |
| |
| What if I don't have access to my "Federal
Lookback Period" Information? |
| If you are a new business and have no
"Federal Lookback Period," all you need is a copy of the IRS
response to your SS-4 (application for your EIN) as proof that
you started your business. If you completed your SS-4 some time
ago, but are paying wages for the first time, you may be required
to supply "zero" tax returns in place of "Federal Lookback Period"
information. |
| Top |
| |
| How are Employer Tax Deposits calculated
and paid? |
| Intuit Payroll Services collects the rate
information from you during the "Conversion" process. Once they
have received all of the necessary information to get you enrolled
in the tax filing service, they will calculate your tax liability
each time they run your payroll. Since they base their calculations
on the information they receive from you, you must ensure that
all of your tax rate information is current and correct. Depending
upon your deposit frequency as determined by the "Federal Lookback
Period", they electronically deposit your taxes on or before
their due date. |
| Top |
| |
| What is the procedure used by Intuit Payroll
Services for tax filing and payment services?
|
|
With Intuit Payroll Services' electronic tax payment and
filing services, TaxFree, Intuit Payroll Services takes responsibility
for handling your federal, state, and local payroll taxes.
Intuit Payroll Services prides itself on being payroll tax
experts, and its commitment to staying current with the constant
changes in tax regulation is backed by our "No Penalties"
Guarantee*.
Here is what Intuit Payroll Services will do for you:
- Deposit your payroll taxes in compliance with Electronic
Federal Tax Payment System (EFTPS) mandate
- Draft funds for your payroll tax deposits on the paycheck
date
- Provide a detailed recap of the payroll tax deposits we
have made on your behalf
- Prepare and file your federal, state and local payroll
tax returns
- Prepare and file your W-3s and W-2s
- Provide you copies of all filed payroll tax returns, including
W-2s
- Handle related governing agency inquiries and correspond
on your behalf
- New Hire reporting in compliance with federal and state
regulations
*As long as the information you provide is
accurate and on time and your account is sufficiently funded,
your payroll tax deposits and tax filings will be on time
and accurate or we'll pay the resulting payroll tax penalty.
|
| Top |
| |
| Which taxes does your service file?
|
| Intuit Payroll Services' tax filing service
makes all federal calculations and deposits, including federal
income tax withholding, Social Security, Medicare, and federal
unemployment tax. They also make all state deposits including
state income tax withholding, state unemployment insurance and
disability (in the applicable states, such as California). |
| Top |
| |
| Why do I need an Employer or Federal Identification
Number? |
| Every individual or business that pays
wages or has employees of any kind must have an identification
number. The IRS application for an EIN or FIN is Form SS-4,
Application for Employer Identification Number. |
| Top |
| |
| Who is an employee?
|
| An individual who performs services for
another individual or an organization in return for compensation.
The U.S. Department of Labor and the Internal Revenue Service
provide guidelines governing employees and non-employees. If
you are unsure if a worker is an employee, the IRS uses Form
SS-8 (Determination of Worker Status) to get a definitive ruling.
|
| Top |
| |
| How often must I pay my employees?
|
| Frequency of payment of wages to employees
is governed by each state, not by federal law. Be sure to verify
with your state's Department of Labor the current regulations.
|
| Top |
| |
| What payroll frequencies do employers
typically use? |
| Weekly - once a week, 52 times per year;
bi-weekly - every other week, 26 times a year; semi-monthly
- twice a month, 24 times a year; and monthly - once a month,
12 times a year. Each state has their own rules that govern
how often employees must be paid. |
| Top |
| |
| What is minimum wage?
|
| Currently, the federal minimum wage is
$5.15 per hour. The U.S. Department of Labor's Wage and Hour
Division enforces the federal Fair Labor Standards Act (FLSA)
that regulates minimum wage rates, overtime pay, child labor
and equal pay for employees. Most states have similar laws to
the FLSA. Federal minimum wage and state minimum wage can differ.
Generally, the wage rate that provides the most benefit to the
employee determines the employee's rate of pay. |
| Top |
| |
| What is Medicare?
|
| Medicare is a federal hospital insurance
program for individuals age 65 or older and for some disabled
persons. It is funded by a payroll tax on employee wages and
is matched by the employer. The current Medicare rate is 1.45%
of an employee's gross wages. The employer and employee each
pay this amount. |
| Top |
| |
| What is Social Security?
|
| Social Security is a component of the
Federal Insurance Contributions Act (FICA) that comprises the
Old Age, Survivors and Disability Insurance. The employee's
share is withheld from wages and is matched by the employer.
The current rate is 6.2% for the employee and 6.2% for the employer.
|
| Top |
| |
| What is new hire reporting?
|
| In 1996, the federal government enacted
the new hire reporting regulations with which employers were
required to comply beginning October 1, 1997. In 2001, all states
have laws mandating new hire reporting and procedures that comply
with the federal guidelines. The reporting requirement states
that for each newly hired employee, the employer must provide
the following to the state directory: employee name, employee
address, employee Social Security Number, employer name, employer
address and EIN. |
| Top |
| |
| How often do I need to report new hires
to the state to which I select to report new hires?
|
| In most cases, newly hired employees must
be reported to the state within 20 calendar days of hire. If
an employer reports new hires magnetically (by tape) or electronically,
it must send two transmissions per calendar month, which are
12 to 16 days apart. Exceptions exist depending on how the employer
files. States can establish their own timeframes, but they cannot
be longer than the federal guidelines. Thus, individual states
may have shorter time frames for their date of hire to report
the new hire. Employee's name, address, Social Security Number,
employer's name, employer's address and EIN must be reported
for each new hire. |
| Top |
| |
| What is a W-2? |
| A W-2 is a wage and tax statement that
an employer is required to give to an employee at the end of
the calendar year that shows paid wages and taxes that were
withheld during the calendar year. |
| Top |
| |
| What are withholding allowances?
|
|
Withholding Allowances are claimed using a W-4 form. For
each withholding allowance claimed, the employee reduces the
amount of wages subject to federal income tax withholding.
Here is a list of withholding allowances, which employees
are allowed to claim:
- One for the employee unless he or she can be claimed as
a dependent by someone else.
- One for the employee's spouse if working and claiming
an exemption for himself or herself.
- One for each dependent to be claimed on the employee's
personal tax return (other than the employee's spouse).
- An additional allowance if the employee is single with
one job (or has a second job paying less than $1,000 per
year) or married with one job and the employee's spouse
does not work (or earns less than $1,000 per year).
- An additional allowance if the employee's tax filing status
is head of household.
- An additional allowance based on the employee's itemized
deductions and income adjustments.
- An additional allowance if the employee has at least $1,500
in after-tax childcare expenses for which a tax credit will
be claimed.
- Additional allowances based on the employee's eligibility
for the child tax credit.
|
| Top |
| |
| How much time do I have to issue a W-2
to an employee who is terminated and requests a W-2?
|
| If the terminated employee requests, in
writing, his or her W-2, the employer must supply the W-2 within
the latter of 30 days of that written request or 30 days after
the final payment of wages. IRS regulations provide that employers
ceasing operations must supply employees their W-2 within the
month that the employer's final form 941 or 941-M is due, or
within the end of the month following the end of the quarter
during which they went out of business. |
| Top |
| |
| What is a W-3? |
| A W-3 has the total of the amounts reported
on the employee's W-2s. This form acts as a reconciliation of
the W-2s. |
| Top |
| |
| What is a W-4? |
| The Form W-4, Employee's Withholding Allowance
Certificate, is used to calculate the correct amount of federal
income tax to withhold from an employee's wages. An employer
must keep the W-4 on file for each employee. |
| Top |
| |
| What is a 1099? |
| This form is similar to the W-2 as it
states payments and any withholding for a non-employee that
the company paid during the year. |
| Top |
| |
| What is a 1096? |
| The 1096 serves the same purpose as the
W-3 does for an employer's W-2 forms. It summarizes the information
on all 1099s. |
| Top |
| |
| What is a 940? |
| The 940 is the employer's annual federal
unemployment (FUTA) tax return. |
| Top |
| |
| What is a 941? |
| The 941 is used to provide the IRS with
a report of each employer's total taxable wages paid and payroll
tax liability. This form is filed by the employer with the IRS
each quarter. |
| Top |
| |
| Who is an independent contractor?
|
| A non-employee contracted by a business
to perform services, however, the business has no rights to
control the details of when, how or who will ultimately perform
the work. |
| Top |
| |
| What is tip differential?
|
| If a tipped employee is paid less than
minimum wage, and the amount of tips reported does not bring
their earnings up to minimum wage, it is the employer's responsibility
to make up the difference so the employee earns no less than
minimum wage. This difference is referred to as "tip differential."
|
| Top |
