Welcome to the latest issue of the Newsletter! In this issue, you will find information on 2nd quarter reporting, IRS interest rates increase, and HSA contribution increase for 2023.
As always, if there is anything that you would like to see more of in our newsletters, please let us know.
Second quarter reports will begin to be sent via email beginning the second week of July.
The email you receive will be password protected with your company number. The reports enclosed in the email are for your permanent records. We ask that you retain them indefinitely.
Form 941 Employer's Quarterly Federal Tax Return will be filed electronically with the IRS. Form 940 Employer's F.U.T.A. Tax will be filed electronically with the IRS. If there is an amount due, your payment will be scheduled to draft August 2, 2022. You will find the amount due on the Reconciliation Report on the row labeled ER FUI.
Texas Workforce Commission Employer's Quarterly Report will be filed electronically with TWC. If there is an amount due, your payment will be scheduled to draft August 2, 2022. You will find the amount due on the Reconciliation Report on the row labeled TX-SUI/Replenishment.
International Joke Day: July 1
Please reach us at Payroll@propaytexas.com if you cannot find an answer to your question.
If your company is a semi-weekly tax payer, the total 941 tax liability (found on the Tax Report) will be due the Wednesday or Friday after your check date.
If your company is a monthly tax payer, the total 941 tax liability will be due on the 15th of the following month.
We ask that you email or fax us any IRS notices, state unemployment notices, state withholding notices, or anything that pertains to payroll.
You may email us at payroll@propaytexas.com or fax us at (806) 356-9393.
Yes. ProPay is a third-party sender with Amarillo National Bank. The agreement we are asking you to sign highlights the relationship between ProPay and our clients, and ProPay and Amarillo National. Even if you bank with another bank, we need you to sign the document and return it to us.
WASHINGTON — The Internal Revenue Service announced that interest rates will increase for the calendar quarter beginning July 1, 2022. The rates will be:
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus three percentage points.
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus three percentage points, and the overpayment rate is the federal short-term rate plus two percentage points. The rate for large corporate underpayments is the federal short-term rate plus five percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate determined during April 2022 to take effect May 1, 2022, based on daily compounding.
Please visit www.irs.gov for more information.
ProPay is giving away 4 $25 gift cards to Marble Slab Creamery and Cold Stone Creamery in honor of National Ice Cream Day.
Rules:
The four winners will be drawn on July 15th and announced on July 17th. Gift Cards can be picked up at our office the following week.
September 5, 2022
Both the Federal reserve and ProPay will be closed.
October 10, 2022
The Federal Reserve will be closed.
ProPay will be open.
November 11, 2022
The Federal Reserve will be closed. ProPay will be open.
November 24 & 25, 2022
ProPay will be closed for both Thanksgiving and Black Friday.
The Internal Revenue Service has raised the annual contribution limit to a health savings account to $3,850 for an individual and $7,750 for a family for the 2023 calendar year. The current limit is $3,650 for an individual and $7,300 for a family.
HSAs are available only to people with a high deductible health plan, which the IRS defines for 2023 as a plan with an annual deductible that is not less than $1,500 for self-only coverage or $3,000 for family coverage.
The IRS also says annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) for a high deductible health plan cannot exceed $7,500 for single coverage or $15,000 for family coverage.
The Board of Trustees of the Social Security Trust Fund reports each year on the financial condition of the social security program. The 2022 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds, issued on June 2, includes both short- and long-term projections about the social security system.
Using the “intermediate” projections, the board projects the social security wage base will be $155,100 in 2023 (up from $147,000 this year) and will increase to $218,400 by 2031. The formal announcement of the 2023 wage base will not come until mid-October.
The projections, which are only an indication of the expected trend, are based on social security program provisions in current law and do not take into account any changes in these provisions that might be made in the future.
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