Content updated December 15, 2020

Year-end is a busy time of year for HR and payroll professionals: along with their “normal” everyday duties, they have to deal with added challenges of open enrollment for benefits, getting W-2s distributed on time, and ACA 1095-C reporting. Fortunately, the IRS gave us an extension for providing 1095-Cs to employees so we get some breathing room on that one at least. We’ve put together some pertinent payroll year-end information for you – all in one spot!

Some important IRS deadlines:

  • February 1, 2021:
    • W-2s to employees and the SSA
    • 1099s to vendors and the IRS
  • March 2, 2021 (extended from January 31, 2020): 1095-Cs to employees
  • March 1, 2021: 1095-C and 1094-C paper filing deadline to IRS (only if not e-filing)
  • March 31, 2021: ACA 1095-C and 1094-C E-filing deadline to IRS (required if over 250 employees)

Some important Microsoft Dynamics® GP release dates to remember:

  • Mid-November: November 19, 2020 – Microsoft Dynamics® GP 2016 and Dynamics GP (formerly known as GP 2018) year-end update released
  • Early December: December 18, 2020 – Integrity Data GP HRP Product release for compatibility with:
    • Dynamics GP 2018 Year-End
    • Dynamics GP 2018 R2
    • These products will be available for download here
  • Late December: 2020/21 Round 1 tax table update
  • Mid-January: 2021 Round 2 tax update (details not yet available)

For our Dynamics GP customers, here is important information related to recent and upcoming releases:

  • No update for Dynamics GP 2015: Time to upgrade!
  • Dynamics GP 2016, 2018
    • No W-2, W-4 or W-3 Form changes
    • COVID-19 reporting on Box 14 – W-2 instructions from Microsoft can be found here
    • Affordable Care Act changes
      • 1094-C ACA form – certification checkboxes moved
      • Reminder: Microsoft WILL NOT support ACA e-filing for 2018 reporting
    • Print W-2 on blank paper: GP 2016 R2 and Later Only

We recently did a webinar on Dynamics GP year-end activities. View the recording here.

2020 to 2021

Integrity Data ACA customers can rest assured that their ACA reporting solution is always up-to-date.

The ACA solution is now able to generate 1095-Cs for 2020. We’re ready to start on these forms when you are. Let us know if you need help getting through your ACA year-end activities, whether that’s just some additional hand-holding, or having Integrity Data perform your ACA year-end activities for you.

Lastly, payroll professionals have to deal with ensuring deduction amounts are correct for the new year; while also making sure the IRS limits are setup correctly in their payroll systems.

  • The FICA Social Security wage limit is going to $142,800. This amount will be included with the year-end tax table updates from most payroll software vendors, including Microsoft Dynamics GP and Microsoft Dynamics 365 Payroll. Be sure you don’t apply this until you have completed your last payroll of 2020 and you have created your year-end W-2 file.
  • Some important amounts for retirement limits are as follows:
    • 2021 401(k), including Roth 401(k): $6,500 on amounts over $19,500
    • 2021 SIMPLE IRA Catch-Up: $6,500 on amounts over $13,500
    • 2021 Roth IRA: $1,000 on amounts over $6,000
    • 2021 403(b): $6,500 on amounts over $58,000 (or 100% of includable compensation)
  • Be sure to review shared maximums.
  • The tax rates for imputed income of employer-paid life insurance are unchanged for the upcoming year.
  • Remember, the Tax Cuts and Jobs Act has affected the taxability of many employer-provided fringe benefits. Make sure you are properly applying these regulations.

Staying current on the ever-evolving regulations around payroll and human resources can be challenging. The Integrity Data team works hard to make this easier for you. Reach out to us with your challenges and we’ll work hard to come up with a creative solution using technology and services.