USATax Software

FULL PAYROLL PROCESSING GUIDE
FEDERAL & STATE (CALIFORNIA)

Basic Setup

Do Payroll

Pay Taxes

File Tax Forms

Tax Calendar

Where to file ...

BASIC SET UP: (get the details...)

Set up Employer's Information: Enter Employer's general information, Federal & State Tax ID's, UI rates, Workers Comp rates, Departments, Earnings Types, Pretax Deductions, Miscellaneous Deductions, Bank Account, Tax Form Signer and Preparer's information.

Set up Employee's Information: Enter employee's information, filing status, federal & state allowances, wages and deductions. (Collect data from form W-4 Employee's Withholding Allowance Certificate, I-9 Employment Eligibility Verification, use form CA DE 34 report a new hire).

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DO PAYROLL: (get the details...)

QuickPay: Create Paychecks in just a few clicks: Automatically calculates earnings, payroll taxes and deductions. On each payday, just verify wages rates, hours and other deductions of the employees on QuickPay List and just a few clicks you will get all paychecks ready to print for all or selected employees.

Print Paychecks: Save time and money with our Free MICR (Magnetic Ink Character Recognition). There is no need for preprinted checks, no check storage. Our software prints entire payroll checks (company, bank, payee and MICR encoded line) on blank check stock.

Pay Taxes: Our Payroll Summary Reports instantly calculate and guide you pay federal and state payroll taxes or make tax deposits easily.

File Tax Forms: just print, sign and mail.

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PAY TAXES: (get the details...)

Federal:

Online EFTPS - make a tax deposit using the Electronic Federal Tax Payment System (EFTPS). For more information on EFTPS, go to www.eftps.gov or call 1-800-555-4477.

State (CALIFORNIA)

CA-DE88: Use preprinted State Payroll Deposit Coupon CA-DE88 or our alternate Coupon to make a state tax deposit.
http://www.edd.ca.gov/Payroll_Taxes/Required_Filings_and_Due_Dates.htm#PayrollTaxDepositDE88

Online EFT: Or make a tax deposit using the Electronic Funds Transfer (EFT). For more information onf EFT, go to
http://www.edd.ca.gov/Payroll_Taxes/Electronic_Filing_Registration_and_Payment_Information.htm#EFT
or call the EFT Helpline 1-916-654-9130.

Monthly, Semiweekly, Quarterly Tax Deposits:

Federal: http://www.irs.gov/publications/p15/ar02.html#en_US_publink100011711

California - Employment Development Department:
http://www.edd.ca.gov/Payroll_Taxes/Required_Filings_and_Due_Dates.htm#PayrollTaxDepositDE88

Depositing Taxes

In general, you must deposit federal income tax withheld and both the employer and employee social security and Medicare taxes plus or minus any prior period adjustments to your tax liability. You must deposit by using the Electronic Federal Tax Payment Software (EFTPS).

Monthly Deposit Schedule
You are a monthly schedule depositor for a calendar year if the total taxes on line 8 of Form 941 for the 4 quarters in your lookback period were $50,000 or less. Under the monthly deposit schedule, deposit employment taxes on payments made during a month by the 15th day of the following month

Semiweekly Deposit Schedule
You are a semiweekly schedule depositor for a calendar year if the total taxes on line 8 of Form 941 during your lookback period were more than $50,000. Under the semiweekly deposit schedule, deposit employment taxes for payments made on Wednesday, Thursday, and/or Friday by the following Wednesday. Deposit taxes for payments made on Saturday, Sunday, Monday, and/or Tuesday by the following Friday.

$100,000 Next-Day Deposit Rule
If you accumulate $100,000 or more of taxes (that is, line 10 of Form 941 or line 9 of Form 944) on any day during a deposit period, you must deposit the tax by the next banking day, whether you are a monthly or semiweekly schedule depositor.

Payment with return.

Form 941 or Form 944:
You may make a payment with Form 941 or Form 944 instead of depositing, without incurring a penalty, if one of the following applies.

• You report less than a $2,500 tax liability for the quarter on line 10 of Form 941 (or for the year on line 9 of Form 944). However, if you are unsure that you will report less than $2,500, deposit under the appropriate rules so that you will not be subject to failure-to-deposit penalties.

• You are a monthly schedule depositor (defined below) and make a payment in accordance with the Accuracy of Deposits Rule discussed on page 23(Pub. 15). This payment may be $2,500 or more.

Employers who have been notified to file Form 944 can pay their fourth quarter tax liability with Form 944 if the fourth quarter tax liability is less than $2,500. Employers must have deposited any tax liability due for the first, second, and third quarters according to the deposit rules to avoid failure-to-deposit penalties for deposits during those quarters.

Form 940:
If your FUTA (Form 940) is $500 or less in a quarter, carry it over to the next quarter. If it is over $500 you must deposit your tax for the quarter on or before the last day of the month after the end of the quarter.

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FILE TAX FORMS: (get the details...)

Quarterly Report: (Federal & State):

• Form 941: Employer's Quarterly Federal Tax Return.

• File Form CA DE9: File Form DE9 Quarterly Wage and Withholding Report.

• File Form CA DE9c: File Form DE9c Quarterly Wage and Withholding Report.

Your Federal Form 941 & State (California) DE9 & DE9c is due by the last day of the month that follows the end of the quarter. (April 30, July 31, October 31, and January 31)

The Quarter Includes	Quarter Ends	Form 941 & DE9 & DE9c due on or before
1. January, February, March	03/31	04/30
2. April, May, June	06/30	07/31
3. July, August, September	09/30	10/31
4. October, November, December	12/31	01/31

Yearly Report: (Federal & State)

• Form 940: Employer's Annual Federal Unemployment (FUTA) Tax Return.

• W-2 (Copy B, C, and 2) To Employees.

• W-3 & W-2. Transmittal of Wage and Tax Statements. Send this entire page with the entire Copy A page of Form(s) W-2 to the Social Security Administration (Copy A) To SSA (Social Security Administration).

Your Federal Form 940 is due January 1st , delinquent if not postmarked by January 31st.

Form W-2 (Copy B, C, and 2) To Employees: You must furnish Form W-2 (copy B, C, and 2) to your employees on or before January 31st.

Form W-3 & W-2'S (Copy A) To SSA (Social Security Administration): File the entire Copy A page of W-2 with the entire page of W-3 to Social Security Administration (SSA) on or before February 28th.

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TAX CALENDAR

The following is a list of important dates. Also see Publication 509, Tax Calendars.

If any date shown below for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or federal holiday, use the next business day. A statewide legal holiday delays a filing due date only if the IRS office where you are required to file is located in that state. For any due date, you will meet the "file" or "furnish" requirement if the envelope containing the return or form is properly addressed, contains sufficient postage, and is postmarked by the U.S. Postal Service on or before the due date, or sent by an IRS-designated private delivery service on or before the due date. See Private Delivery Services on page 6 for more information.

By January 31

FEDERAL

Furnish Forms 1099 and W-2: Furnish each employee a completed Form W-2, Wage and Tax Statement. Furnish each other payee a completed Form 1099 (for example, Form 1099-MISC, Miscellaneous Income).

File Form 941 or Form 944: File Form 941, Employer's QUARTERLY Federal Tax Return, for the fourth quarter of the previous calendar year and deposit any undeposited income, social security, and Medicare taxes. You may pay these taxes with Form 941 if your total tax liability for the quarter is less than $2,500. File Form 944, Employer's ANNUAL Federal Tax Return, for the previous calendar year instead of Form 941 if the IRS has notified you in writing to file Form 944 and pay any undeposited income, social security, and Medicare taxes. You may pay these taxes with Form 944 if your total tax liability for the year is less than $2,500. For additional rules on when you can pay your taxes with your return, see Payment with return on page 21. If you timely deposited all taxes when due, you have 10 additional calendar days from the due date above to file the appropriate return.

File Form 940: File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. However, if you deposited all of the FUTA tax when due, you have 10 additional calendar days to file.

File Form 945: File Form 945, Annual Return of Withheld Federal Income Tax, to report any nonpayroll income tax withheld. If you deposited all taxes when due, you have 10 additional calendar days to file. See Nonpayroll Income Tax Withholding on page 5 for more information.

STATE (CALIFORNIA)

By February 15
Request a new Form W-4 from exempt employees: Ask for a new Form W-4, Employee's Withholding Allowance Certificate, from each employee who claimed exemption from income tax withholding last year.

On February 16
Exempt Forms W-4 expire: Any Form W-4 previously given to you claiming exemption from withholding has expired. Begin withholding for any employee who previously claimed exemption from withholding, but has not given you a new Form W-4 for the current year. If the employee does not give you a new Form W-4, withhold tax as if he or she is single, with zero withholding allowances. See section 9 for more information. However, if you have an earlier Form W-4 for this employee that is valid, withhold based on the earlier Form W-4.

By February 28
File paper Forms 1099 and 1096: File Copy A of all paper Forms 1099 with Form 1096, Annual Summary and Transmittal of U.S. Information Returns, with the IRS. For electronically filed returns, see By March 31 below.

File paper Forms W-2 and W-3: File Copy A of all paper Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration (SSA). For electronically filed returns, see By March 31 below.

Mail Paper Form W-2/W-3

U. S. Postal Service

Social Security Administration
Data Operations Center
Wilkes-Barre, PA 18769-0001
(for Certified Mail Use ZIP code 18769-0002)

Private Delivery Service (FedEx, UPS, etc.)

Social Security Administration
Data Operations Center
Attn: W-2 Process
1150 E. Mountain Drive
Wilkes-Barre, PA 18702-7997

File paper Form 8027: File paper Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, with the IRS. See section 6. For electronically filed returns, see By March 31 next.

By March 31
File electronic Forms 1099, 8027, and W-2: File electronic Forms 1099 and 8027 with the IRS. File electronic Forms W-2 with the SSA. For information on reporting Form W-2 information to the SSA electronically, visit the Social Security Administration's Employer W-2 Filing Instructions & Information webpage at www.socialsecurity.gov/employer. For information on filing information returns electronically with the IRS, see Publication 1220, Specifications for Filing Forms 1098, 1099, 5498, and W-2G Electronically, and Publication 1239, Specifications for Filing Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips Electronically.

By April 30, July 31, October 31, and January 31
Deposit FUTA taxes: Deposit federal unemployment (FUTA) tax due if it is more than $500.

File Form 941: File Form 941 and deposit any undeposited income, social security, and Medicare taxes. You may pay these taxes with Form 941 if your total tax liability for the quarter is less than $2,500. If you timely deposited all taxes when due, you have 10 additional calendar days from the due dates above to file the return.

STATE (CALIFORNIA)

File Form CA DE9 & DE9c: File Form DE9 & DE9c Quarterly Wage and Withholding Report.

If you paid no wages during a quarter, you are still considered an employer and required by law to sign and file the DE9 & DE9c. Just check the "No Payroll" box in Item C, then sign and mail the DE9 & DE9c. If you do not expect to pay wages within the next year, you may notify EDD by writing to us or by checking the "Out of Business/Final Report" box in Item D on the DE9 & DE9c. We will send you a letter confirming that your account has been inactivated.

Mail DE9 & DE9c to:
Employment Development Department
PO Box 826288
Sacramento CA 94230-6288

The postmark date is used to determine the timeliness of your DE9. When the due date falls on a Saturday, Sunday, or legal holiday, the next business day is considered to be the last timely date.

If the DE9 & DE9c is not submitted on time, EDD will issue a written demand for the report. If the DE9 & DE9c is not submitted within 15 days of the demand date, a penalty of $10 for each unreported employee, plus interest, will be charged unless there is good cause for the delay. A penalty of $10 for each employee, plus interest, is also charged if an employer fails to report by magnetic media when required, unless good cause exists. (For information on good cause, see our DE 231J Information Sheet: Waiver of Penalty Policy).

Before December 1
New Forms W-4: Remind employees to submit a new Form W-4 if their withholding allowances have changed or will change for the next year.

By January 31
FEDERAL

Furnish Forms 1099 and W-2: Furnish each employee a completed Form W-2, Wage and Tax Statement. Furnish each other payee a completed Form 1099 (for example, Form 1099-MISC, Miscellaneous Income).

File Form 940: File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. However, if you deposited all of the FUTA tax when due, you have 10 additional calendar days to file.

WHERE TO FILE YOUR FEDERAL & STATE PAYROLL TAXES
If you are located in CALIFORNIA

FEDERAL

"Where to File Your Taxes" (for Form 941)

IF you are located in...	Without a payment...	With a payment...

California	Department of the Treasury Internal Revenue Service Ogden, UT 84201-0005	Internal Revenue Service PO Box 37941 Hartford, CT 06176-7941

"Where to File Your Taxes" (for Form 944)

IF you are located in...	Without a payment...	With a payment...

California	Department of the Treasury Internal Revenue Service Ogden, UT 84201-0044	Internal Revenue Service P.O. Box 37944 Hartford, CT 06176-7944

"Where to File Your Taxes" (for Form 940)

IF you are located in...	Without a payment...	With a payment...

California	Department of the Treasury Internal Revenue Service Ogden, UT 84201-0046	IInternal Revenue Service P.O. Box 37940 Hartford, CT 06176-7940

"Where to File Your Taxes" (for Form 943)

IF you are located in...	Without a payment...	With a payment...

California	Department of the Treasury Internal Revenue Service Ogden, UT 84201-0008	Internal Revenue Service P.O. Box 37943 Hartford, CT 06176-7943

"Where to File Your Taxes" (for Form 945)

IF you are located in...	Without a payment...	With a payment...

California	Department of the Treasury Internal Revenue Service Ogden, UT 84201-0042	Internal Revenue Service P.O. Box 37945 Hartford, CT 06176-7945

"Where to File Your Taxes" (For Paper Form W-2/W-3)

Mail Paper W-2/W-3 to:
    U. S. Postal Service
    Social Security Administration
    Data Operations Center
    Wilkes-Barre, PA 18769-0001
    (for Certified Mail Use ZIP code 18769-0002)

Private Delivery Service (FedEx, UPS, etc.)
    Social Security Administration
    Data Operations Center
    Attn: W-2 Process
    1150 E. Mountain Drive
    Wilkes-Barre, PA 18702-7997

STATE (CALIFORNIA)

Payroll Taxes - Forms & Publications

Mail DE 88
Mail all tax payments with Payroll Tax Deposit (DE 88/DE 88ALL) coupons to:
Employment Development Department
P.O. Box 826276
Sacramento, CA 94230-6276

DE9 - Total Taxes Due (DE 88):
Total Taxes Due or Overpaid - If an amount is due, submit a Payroll Tax Deposit (DE 88) with your payment and mail to P.O. Box 826276, Sacramento, CA 94230-6276
Mail DE9 & DE9c:
Employment Development Department
P.O. Box 989071
West Sacramento, CA 95798-9071
Change of Employer Account Information

Mail DE 34
To report new employees, mail or fax information to:
Employment Development Department
PO Box 997016 MIC 23
West Sacramento CA 95799-7016
Fax: (916) 319-4400

Other Links:

Form SS-4 (FEIN)
http://www.irs.gov/pub/irs-pdf/fss4.pdf

Apply for an Employer Identification Number (EIN) Online
http://www.irs.gov/businesses/small/article/0,,id=102767,00.html

Federal & State Monthly, Semiweekly, Quarterly Tax Deposits:
Federal:
http://www.irs.gov/publications/p15/ar02.html#en_US_publink100011711

California - Employment Development Department
http://www.edd.ca.gov/Payroll_Taxes/Required_Filings_and_Due_Dates.htm#PayrollTaxDepositDE88

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QUICK PAYROLL PROCESSING GUIDE
FEDERAL & STATE (CALIFORNIA)

BASIC SET UP:

1. Enter necessary information about your company.

- Business ID: Must be entered, can be up to 10 characters and can be alphabetic and/ or numeric.

- State: Must be entered. It used for setting up default State Tax ID & Rate and all Payroll calculation.

2. Setup Department: On DEPATRMENT screen,Click Add to create a new department, input information about it then click OK.

3. Setup Bank Account: On BANK ACCOUNT screen, input information about your Account then click Next or Finish to save it.

1. Enter employee's information

2. Enter filing status, federal & state allowances...

3. Setup Wages , Deductions...

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DO PAYROLL:

1- From 1.1 Payroll QuickPay List, select a pay period

2- After review/edit employees rates or hours: Click Create Paychecks

3- Click Yes to View Pay Checks List

1- Click View/Print to Print Checks

2- Click Print. You are done! Paychecks are printed and ready to deliver.

Pay Taxes: Our Payroll Summary Reports instantly calculate and guide you pay federal and state payroll taxes or make tax deposits easily.

1. Edit Date and View/Print

2. Payroll Tax Payment Notification

File Tax Forms: just print, sign and mail.

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PAY TAXES:

Federal:

Online EFTPS - make a tax deposit using the Electronic Federal Tax Payment System (EFTPS). For more information on EFTPS, go to www.eftps.gov or call 1-800-555-4477.

State (CALIFORNIA)

Monthly, Semiweekly, Quarterly Tax Deposits:

Federal: http://www.irs.gov/publications/p15/ar02.html#en_US_publink100011711

California - Employment Development Department:
http://www.edd.ca.gov/Payroll_Taxes/Required_Filings_and_Due_Dates.htm#PayrollTaxDepositDE88

Depositing Taxes

In general, you must deposit federal income tax withheld and both the employer and employee social security and Medicare taxes plus or minus any prior period adjustments to your tax liability (minus any advance EIC payments). You must deposit by using the Electronic Federal Tax Payment Software (EFTPS).

Payment with return.

Form 941 or Form 944:
You may make a payment with Form 941 or Form 944 instead of depositing, without incurring a penalty, if one of the following applies.

• You are a monthly schedule depositor (defined below) and make a payment in accordance with the Accuracy of Deposits Rule discussed on page 23(Pub. 15). This payment may be $2,500 or more.

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FILE TAX FORMS:

Quarterly Report: (Federal & State):

• Form 941: Employer's Quarterly Federal Tax Return.

• CA-DE9: State (California) Quarterly Wage and Withholding Report

Your Federal Form 941 & State (California) DE9 is due by the last day of the month that follows the end of the quarter. (April 30, July 31, October 31, and January 31)

The Quarter Includes	Quarter Ends	Form 941 & DE9 & DE9c due on or before
1. January, February, March	03/31	04/30
2. April, May, June	06/30	07/31
3. July, August, September	09/30	10/31
4. October, November, December	12/31	01/31

Yearly Report: (Federal & State)

• Form 940: Employer's Annual Federal Unemployment (FUTA) Tax Return.

• W-2 (Copy B, C, and 2) To Employees.

Your Federal Form 940 is due January 1st , and delinquent if not postmarked by January 31st.

Form W-2 (Copy B, C, and 2) To Employees: You must furnish Form W-2 (copy B, C, and 2) to your employees on or before January 31st.

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