November 2020
Dear PayData Client,
Please take a moment to confirm your YTD figures for disability/3rd party sick payments. You can find these figures on your most recent payroll register. Please verify the amounts listed, sign, and return this form to us no later than December 11th, 2020.
If we do not receive this form by December 11th, we will assume that you will not have any further disability/3rd party sick payments to post for 2020 and will release your company for year-end processing.
If you have not notified us to keep your year-end open, and disability/3rd party sick payments are received after December 11th, 2020, you will be charged additional fees to reprocess your tax returns and receipt of returns may be delayed.
Many administrators give employers an option to receive W2s directly from them for the benefits issued. We strongly suggest that you decline this option as this will result in an overstatement of the employee earnings and will result in a Tax Discrepancy Notice. Contact your administrator and instruct them NOT to produce any employee W2s and NOT to file any employee W2s with the SSA or state agencies.
If you receive W2s from the disability administrator DO NOT pass them along to your employees and please notify PayData immediately. Failure to follow this advice will result in incorrect employee wages being reported and will result in costly amended returns needing to be filed.
To assist PayData’s Tax Department in resolving tax payment issues made by the administrator, please provide us with your administrator’s name and EIN number.
If you have any questions concerning this or other year-end information, please do not hesitate to call your Client Service Representative for assistance.
Sincerely,
Client Service Department