2021-2022          Year-End Payroll Guide

November

Alert If you made changes to your account due to COVID-19, it's important that all the below information is accurate and up-to-date to help avoid any filing disruptions or delivery delays.

Using the Quarterly Tax Verification report in the RUN Powered by ADP® (RUN) or Payroll Plus® platform, verify the below information for the company. You can access this report by typing "Quarterly Tax Verification" into the search bar and selecting the report from the dropdown menu.

  • Tax IDs
  • Federal, state, and local (if applicable) tax identification numbers
  • State unemployment rates*

Type "Company Details" into the search bar and select the "Company Details" page to verify the following information:

  • Legal name
  • Legal address (click the Edit button to make updates)

*You can upload your company's state unemployment rates right in the RUN or Payroll Plus platform: 

RUN Powered by ADP® (Left Navigation) RUN Powered by ADP® (Top Navigation), Wholesale Firms and Payroll Plus®
  • To update your state unemployment rates, select Taxes > Tax Home > click Tax Notice (IRS/Tax Agency Letters) icon > Upload a Notice > Select the type of notice > Choose SUI Rate
  • To update your state unemployment rates, go to Taxes > SUI Rate Changes and follow the instructions

If you need to update your company's legal name and/or FEIN, please contact your ADP® Service Team using one of the below methods:

  • Send a message from your Apple® or Android™ device. To start a message, open the RUN Mobile App and click Contact Us > Send Message (Apple) OR the Live Chat button on any page (Android).
  • Log into the RUN platform to submit a Service Request by clicking the ticket icon at the top of any page, selecting the appropriate topic and filling out the form OR Chat with us by clicking the chat icon at the bottom of any page.

NEED MORE HELP? A step-by-step Guided Walk Through is available in the RUN platform to assist you with verifying company information. Go to the W-2 Tracker on the RUN homepage and click the More Info or Go to Tracker button. Then select the Walk me through year end button and click Validate Company/Employee Information to begin the Guided Walk Through. 

Alert If you made changes to your account due to COVID-19, it's important that all the below information is accurate and up-to-date to help avoid any filing disruptions or delivery delays.

W-2s will be sent to the delivery address associated with your account, which may be different from your business's legal address or payroll delivery address.

To verify your W-2 delivery address in the RUN Powered by ADP® (RUN) or Payroll Plus® platform: 

  1. Type "Company Details" into the search bar and select the Company Details page from the dropdown. 
  2. View your W-2 delivery address. If you need to make any changes, click Edit
  3. Using the dropdown box, select Legal if your W-2 delivery address is the same as your legal address. To enter a different address, select Other and enter your new W-2 delivery address. 
  4. Click Save. 

Please note: W-2s cannot be delivered to a P.O. Box. The Employer Reference Copy will also no longer be included in your W-2 package. You can access this online in the RUN platform by going to the Quarter & Year-End section under Help & Support.

If you do not have online access to this information, please contact your ADP® Service Team using one of the below methods:

  • Send a message from your Apple® or Android™ device. Open the RUN Mobile App and click Contact Us > Send Message (Apple) OR the Live Chat button on any page (Android).
  • Log into the RUN platform to submit a Service Request by clicking the ticket icon at the top of any page, selecting the appropriate topic and filling out the form OR Chat with us by clicking the chat icon at the bottom of any page. 

Tired of waiting for your W-2 package delivery? Register for Paperless W-2 Tax Statements TODAY, so you can easily and securely download your W-2s in the RUN Powered by ADP® (RUN) platform - no waiting for packages required. Going paperless helps minimize the risk of confidential information being compromised, plus you and your employees can securely access this information anytime, anywhere.

You can sign up to receive paperless 2021 W-2 tax statements any time before December 31, 2021. Simply log into the RUN platform, go to the home page banner, click the Leaf icon, then the Sign Me Up link. To learn more about Paperless W-2 Tax Statements, please click here.

Alert If you made changes to your account due to COVID-19, it's important that all the below information is accurate and up-to-date to help avoid any filing disruptions or delivery delays.

Make sure everything is up to date and correct for each of your employees and contractors. Did anyone move, get married, divorced or have children?

For employees, double-check:

  • Employee name (is it spelled correctly?)
  • Social Security Number (SSN)
  • Employee address (is it accurate?)
  • Lived-in jurisdiction
  • Worked-in jurisdiction
  • Paid time off information
  • Status (active, terminated, LOA)
  • Filing status (exempt or non-exempt)
  • Number of exemptions
  • Year-to-date wages
  • Year-to-date taxes
  • Pre-tax year-to-date amounts (such as 401k and Medical 125)

Helpful Hint: When an incorrect SSN is filed, the Social Security Administration (SSA) charges a fee to correct the wages posted incorrectly to the wrong individual. To help avoid this issue, the SSA provides a free verification tool on their website.

You can verify which of your employees is set up with an invalid SSN within the RUN Powered by ADP® (RUN) or Payroll Plus® platform:

  1. Review the following reports: W-2 Preview, Employee Summary and Wage and Tax Register. You can access these reports by typing the report name into the search bar and selecting the report from the dropdown. 

    Note: Use the Show Social Security Numbers toggle at the top of the W-2 Preview and the Wage and Tax Register reports to unmask SSNs. Select Yes from the dropdown and click Refresh. 

  2. Any employees with a SSN of all 0's will need to be corrected. You will see a To-Do task in the RUN platform if you have employees with 0000s as SSNs. You can update your employee's SSN by clicking the To-Do task and entering their correct SSN in the slider.

You can also verify that your employees' names and SSNs match Social Security's records using the free verification service that the SSA provides on their website.


For contractors, double-check:

  • Name
  • Taxpayer's Identification number (TIN)
  • Address
  • State work locations and, if applicable, local work locations
  • Earnings totals for each jurisdiction

You can verify which of your contractors are currently set up with an invalid SSN within the RUN or Payroll Plus platform:

  1. Type "Employee Summary" into the search bar and select the report from the dropdown. 
  2. Change the status to "All" and click Refresh. 
  3. View the Employee Information. If any contractor is listed with '0000' as the last four digits of their SSN, you will need to correct the contractor's SSN on the Employment Info page. 

If you have to change non-payroll data, such as an address, make the changes on the Employee Info page, on the appropriate Employee's Tax page, or on the contractor's 1099 Info page.

IMPORTANT REMINDERS:

  • If you make corrections to wages, taxes, or jurisdictions, you must run an Off-Cycle Payroll to process the corrections.
  • Updating an employee's or contractor's SSN or making wage changes may require an amendment. 
  • SSNs and TINs will be truncated on copies of Forms W-2, 1099-MISC and 1099-NEC. This includes copies that are provided to employees to report third party sick pay and group-term life insurance. It is important that your employees' and/or contractors' SSNs/TINs are accurate and up-to-date in the RUN/Payroll Plus platform, as they will not have visibility to their full SSNs/TINs once W-2s, 1099-MISCs and 1099-NECs are printed and distributed.

NEED MORE HELP? A step-by-step Guided Walk Through is available in the RUN platform to assist you with verifying employee information. Go to the W-2 Tracker on the RUN homepage and click the More Info or Go to Tracker button. Then select the Walk me through year end button and click Validate Company/Employee Information to begin the Guided Walk Through.

Thanksgiving Day is Thursday, November 25. If your check date falls on this date, please adjust it to avoid delaying your employees' direct deposits and delivery of your payroll package.

Heads up! There will be no payroll deliveries on Thanksgiving Day. Payrolls processed on Wednesday, 11/24 will be delivered Friday, 11/26.

Helpful Hint: You can now receive payroll text and calendar reminders 2 days before you're scheduled to process payroll.  Log into the RUN Powered by ADP®/Payroll Plus® platform, click your name in the top, right-hand corner and select Settings to begin setup today.

Before the last scheduled payroll of the quarter, make sure you update any employee totals that you want to include in the quarter balances. You can update totals for any of the following items:

  • Manual checks*
  • Voided checks
  • Third party sick payments*
  • Group term life insurance
  • Dependent care benefits
  • Moving expenses
  • 401(k)* and cafeteria plans
  • Retirement plans
  • Paid time off
  • Taxable fringe benefits
  • Any other necessary adjustments to employee wage and tax amounts

In the fourth quarter, before December 31, you must update missing totals for your employees and run any bonus payrolls. If you have to run an Off-Cycle Payroll (to process manual checks, voided checks, or third party sick payments) after the last day of the quarter, government agencies may charge you with penalties and interest based on their deposit and filing deadlines for taxes. Tax Filing Clients: Amendment fees may apply.

View your employees' year-to-date earnings and deductions in the RUN Powered by ADP® (RUN) or Payroll Plus® platform by typing "Employee Summary" into the search bar and selecting the report from the dropdown. 

You can add manual or void checks to correct your employee's year-to-date wages by typing "Void Checks" or "Calculate Checks" into the search bar and selecting the page from the dropdown. For other changes, please contact your ADP® Service Team using one of the below methods:

  • Send a message from your Apple® or Android™ device. Open the RUN Mobile App and click Contact Us > Send Message (Apple) OR the Live Chat button on any page (Android).
  • Log into the RUN platform to submit a Service Request by clicking the ticket icon at the top of any page, selecting the appropriate topic and filling out the form OR Chat with us by clicking the chat icon at the bottom of any page.

*NEED MORE HELP? Step-by-step Guided Walk Throughs are available in the RUN platform to assist you with recording manual checks using our Calculate Checks tool; reporting third party sick pay; and maxing out retirement. Go to the W-2 Tracker on the RUN homepage and click the More Info or Go to Tracker button. Then select Calculate Checks, Enter Third Party Sick Pay OR Max Out Retirement to begin the Guided Walk Through.

Federal legislation requires the reporting of both taxable and non-taxable sick payments made to employees from a third party. Taxes withheld on those payments must also be reported. Sick pay should be included on either the employees' W-2s or on a separate form provided by the third party. If third party sick pay is not reported by the third party, it must be included on your employees' W-2s.

If any of your employees received temporary disability payments in 2021 from a third party, such as an insurance company or state agency, the total amount of these payments must be submitted to ADP® by December 31, 2021.

Most carriers provide third party sick pay statements throughout the year; please use those statements to report the information no later than December 31, 2021.

To report third party sick pay within the RUN Powered by ADP® (RUN) or Payroll Plus® platform:

  1. Type "Third Party Sick Pay" into the search bar and select the page from the dropdown. 
  2. Select the employee and key-in the required information. 

Helpful tips when reporting:

  • Be sure to review your employee’s third party sick pay YTD (year-to-date) amounts on file to check for any previous dollars entered. Then verify the amounts are truly YTD amounts. This will help ensure the proper third party sick pay amounts are entered.
  • If you realize you need to report additional items after you have already processed your last payroll for the year, you will need to run an Off-Cycle Payroll and date it: 12/31/YY (“YY” being the current tax year) or enter the same date that is on the third party sick pay statement.
  • You will need to process an Off-Cycle Payroll to include the third party sick pay reporting, otherwise it will remain in pending items.

NEED MORE HELP? A step-by-step Guided Walk Through is available in the RUN platform to assist you through the process of reporting third party sick pay. Go to the W-2 Tracker on the RUN homepage and click the More Info or Go to Tracker button. Then select the Walk me through year end button and click Enter Third Party Sick Pay to begin the Guided Walk Through.

If you offer Group Term Life Insurance to your employees, the Internal Revenue Service (IRS) requires you to calculate and report the cost of coverage over $50,000. This cost is fully taxable and must be reported as additional income for any employee who receives this benefit. The amount will be displayed on your applicable employees’ W-2s in Box 12 (Code C).

You can report Group Term Life Insurance in the RUN Powered by ADP® (RUN) or Payroll Plus® platform, but you must first calculate the taxable portion of coverage that exceeds $50,000. To determine this amount, please review Publication 15-B, The Employer’s Tax Guide to Fringe Benefits (Page 13), as prepared by the IRS, or speak with your company’s accountant.

Once you’ve determined your taxable portion of coverage, you can begin reporting Group Term Life Insurance in the RUN/Payroll Plus platform for your active and terminated* employees.

To Activate Group Term Life:

  1. Type "Company Earnings Deductions" into the search bar and select the page from the dropdown
  2. Click Add Earning 
  3. In the Category field, select Fringe Benefits 
  4. In the Earning field, select Group Term Life Insurance 
  5. Click Save 

You can either report Group Term Life Insurance costs for your employees per payroll OR in lump sum via an Off-Cycle Payroll.

Reporting per payroll:

RUN Powered by ADP® (Left Navigation) RUN Powered by ADP® (Top Navigation), Wholesale Firms and Payroll Plus®
  1. Go to People, select Directory and click on the employee's name
  2. From the left menu, click Earnings Deductions
  3. Click Add Earning 
  4. Under Earning, select Group Term Life Insurance from the dropdown
  5. In the Amount field, enter the amount to be recorded and taxed for each payroll
  6. Click Save
  1. Go to the Employees tab, select Directory and click on the employee’s name
  2. From the left menu, click Earnings Deductions
  3. On the Group Term Life Insurance line, click Edit
  4. In the Amount field, enter the amount to be recorded and taxed for each payroll
  5. Click Save

Reporting in lump sum:

  • Enter the Group Term Life Insurance amount in the Group Term Life Insurance Earnings field on the Payroll Entry screen during your next payroll. You can also run an Off-Cycle Payroll to capture the earning

Note: Any uncollected Social Security and Medicare will be calculated for the employee and display on the W-2 in Box 12 with codes M and N respectively.

Reporting for Terminated Employees:

*In order to accurately report Group Term Life Insurance costs for your terminated employees, you will need to rehire them in the RUN/Payroll Plus platform, report the costs, then terminate them again. Please follow the below steps:

RUN Powered by ADP® (Left Navigation) RUN Powered by ADP® (Top Navigation), Wholesale Firms and Payroll Plus®
  1. Go to People > Directory
  2. In the Filter field, select Terminated, then click on the employee's name
  3. From the left menu, select Employment Info – Make note of the termination date, last day worked and termination reason, as you will need this information to terminate the employee again once complete.
  4. Click Rehire, then click OK on the pop-up message
  5. Enter the Group Term Life Insurance amount in the Group Term Life Insurance Earnings on the Payroll Entry screen during the next payroll. You can also run an Off-Cycle Payroll to capture the earning.
  6. Once the payroll or Off-Cycle Payroll is processed, go to People, select Directory and click on the employee’s name
  7. From the left menu, select Terminate Employee
  8. Enter the termination date, last day worked and termination reason
  9. Click Terminate Employee, then click OK on the pop-up message
  1. Go to the Employees tab > Directory
  2. In the Status field, select Inactive, then click on the employee’s name
  3. From the left menu, select Employment Info – Make note of the termination date, last day worked and termination reason, as you will need this information to terminate the employee again once complete.
  4. Click Rehire, then click OK on the pop-up message
  5. Enter the Group Term Life Insurance amount in the Group Term Life Insurance Earnings on the Payroll Entry screen during the next payroll. You can also run an Off-Cycle Payroll to capture the earning.
  6. Once the payroll or Off-Cycle Payroll is processed, go to the Employees tab, select Directory and click on the employee’s name
  7. From the left menu, select Terminate Employee
  8. Enter the termination date, last day worked and termination reason
  9. Click Terminate Employee, then click OK on the pop-up message

Note: Any uncollected Social Security and Medicare will be calculated for the employee and display on the W-2 in Box 12 with codes M and N respectively.

You can find additional information about Group-Term Life Insurance by visiting the Internal Revenue Service’s (IRS) website. You can also refer to Publication 15-B, The Employer’s Tax Guide to Fringe Benefits (Page 13), as prepared by the IRS.

A fringe benefit is a form of compensation for the performance of services. For example, you provide an employee with a fringe benefit when you allow the employee to use a business vehicle to commute to and from work.

Any fringe benefit your company provides is taxable and must be included in the employee's pay unless the law specifically excludes it. The benefit is subject to taxes and must be reported on the employee's W-2. Click here for a list of fringe benefit earnings and where they appear on your employees' W-2s. 

You can add a Fringe Benefit in the RUN Powered by ADP® (RUN) or Payroll Plus® platform:

  1. Type "Company Earnings Deductions" into the search bar and select the page from the dropdown
  2. Click Add Earning
  3. In the Category field, select Fringe Benefits 
  4. In the Earning field, select the fringe benefit that you want to add. Click here for a list of fringe benefits.
  5. Click Save and go back to the Earnings Deductions Info page. The fringe benefit is included in the Earnings list and is displayed as active. 

Helpful Hint: Services like company cars and gym memberships are taxable. Learn more about these benefits and how they are reported. You can also refer to Publication 15-B, The Employer's Tax Guide to Fringe Benefits, as prepared by the IRS.

NEED MORE HELP? A step-by-step Guided Walk Through is available in the RUN Powered by ADP® (RUN) platform to assist you with reporting S Corp earnings. Go to the W-2 Tracker on the RUN homepage and click the More Info or Go to Tracker button. Then select the Walk me through year end button and click Report S Corp Earnings to begin the Guided Walk Through. 

All Vermont employers that are required to withhold income tax must report the total cost of employer-sponsored health care coverage.

The total cost paid by the employer and employee should be reported on the State Copy of the W-2 form in Box 12.

Unlike the federal mandate, employers with 250 or less employees are also required to report the total cost of employer-sponsored health care coverage. All other employers can review the Internal Revenue Service's website to determine if you're subject to reporting cost of healthcare coverage.

  1. Type "Company Earnings Deductions" into the search bar and select the page from the dropdown
  2. Click Add Earning
  3. In the Category field, select Fringe Benefits 
  4. In the Earning field, select the fringe benefit ER - Sponsored Healthcare
  5. Click Save and go back to the Earnings Deductions Info page. The fringe benefit is included in the Earnings list and is displayed as active. 
  6. Enter the Healthcare amounts on each applicable employee in the appropriate memo earning(s) prior to the last payroll of the year. 

 

The Affordable Care Act (ACA) requires certain employers to report health coverage information to their employees and the IRS annually.

Your resources:

Note: Please check with your respective states for individual reporting requirements.

Good news! There is no Federal Unemployment Tax Act (FUTA) credit reduction for 2021. 

Household employees are those who work in and around your private residence, such as housekeepers, nannies, and gardeners. Because tax filing due dates are inconsistent with typical quarter-end cutoff dates, there are limitations to what ADP® can and cannot do to help you file.

ADP responsibilities:

  • Deposit and file state and local taxes for a household account.
  • ADP will not deposit or file federal taxes for a household account.
  • ADP will impound federal taxes with each payroll.
  • Prior to the deadline for depositing and filing estimated tax payments, the impounded money will be refunded to you a few days prior to when deposits are due each quarter.
  • The IRS requires all estimated tax payments for household accounts be made by April 18 (April 19 for Maine and Massachusetts) (Q1), June 15 (Q2), and September 15 (Q3) of the current year. All remaining taxes are due on January 15 of the following year.

What you need to do:

  • You must deposit the federal taxes for the household account on Form 1040ES.
  • You must file federal taxes using a 1040 Schedule H.
  • CT Employers: You must file the CT Form 941 HHE for the household account.

What to expect:

  • ADP will send you a Statement of Deposit (SOD) with filing instructions, plus a credit for the total amount of federal taxes for the quarter. Liabilities on the SOD are summarized based on the cutoff for Household filings.
  • You will receive this information seven days prior to the due date.
  • You will receive a Form 941 each quarter from ADP. You may keep this form for your records, however, you will need to file your own taxes using a 1040 Schedule H.
  • You may be required to make the estimates or you may pay the entire amount when filing your 1040 (Schedule H). Please consult your Tax Professional to make this determination.

Although you can process a bonus payroll at any time during the year, many are processed at the end of the year.

There are two types of bonus earnings available in the RUN Powered by ADP®/Payroll Plus® platform: Bonus and Supplemental Bonus. It’s important to use the appropriate earning because each one is taxed differently.

  • Bonus earning: the bonus payroll is taxed at the regular rate, the same as a normal payroll.
  • Supplemental Bonus earning: the bonus payroll is taxed at the supplemental wage rate for federal income tax. For 2021, the federal rate is a flat 22% up to $1 million and 37% for amounts exceeding $1 million.

To be sure that your W-2 amounts are correct, process your bonus payrolls before the end of the year.

If you want to surprise your employees with the bonus, consider processing an Off-Cycle Payroll after you run your regular payroll. That way, the bonus amount won't be included in the year-to-date total.

From the homepage of the RUN/Payroll Plus platform, click the Off-Cycle Payroll button and select Bonus Payroll to easily customize the settings of your bonus payroll. Just select the bonus earning type, your preferences for pay method*, and voluntary deductions. The RUN/Payroll Plus platform will then configure your bonus payroll and even setup the new bonus earning on the company level, if needed.

*If you would like to hand your employees a physical check for their bonus, make sure you select "By live check" as your payment method.

If your federal tax liabilities for the bonus payroll are over $100,000.00, the taxes must be deposited the business day after the check date. As ADP® files your taxes, you should process these payrolls at least 48 hours before the check date, to allow ADP enough time to debit and deposit the tax amounts timely.

Large Bonus Payrolls: In addition to federal regulations, ADP also applies certain restrictions to large bonus payrolls that may require a wire transfer prior to the check date. If these restrictions apply to your bonus payroll, ADP will provide you with the necessary wire instructions by the next business day after the bonus payroll has been processed.

Note: Your account will be placed on hold if you attempt to process a third payroll within a four-hour span AND have completed a direct deposit change within the last 24 hours. Please keep this in mind as you're processing your payrolls!

Helpful Hint: Learn more about how to process a bonus payroll here.

Help alleviate some of your year-end stress with our paperless W-2 tax statement option*, available today in the RUN Powered by ADP® (RUN) platform.

Benefits to you:

  • Reduce risk. Help minimize the chances of confidential information being compromised. W-2s are stored securely in the RUN platform.
  • Easy access to your W-2 tax statement in the RUN platform. Your employees can access via MyADP – Encourage them to register now at my.adp.com and consent to going paperless!
    • If you activate paperless W-2s, you'll be responsible for printing and providing W-2s for those employees who do not consent to receiving paperless tax statements.
  • Always available. Access to W-2s at any time, without having to wait for a package delivery.
  • Save! No delivery = no delivery fee! We'll remove the delivery fee on your W-2 invoice if you select this option.

Benefits to your employees:

  • Secure. Your employees can securely view and/or download their W-2s through MyADP.
  • Convenient. Employees can easily access their W-2s at any time. Up to three years of their W-2 tax forms will be stored in MyADP.
    • Terminated employees, who are registered on MyADP, can access, view and download their pay and tax statements. They also have the option to select and receive paperless W-2 tax statements.

If you go paperless:

  • You will not receive paper copies of W-2s in your year-end package delivery.
  • At the employer level, your employees must consent to receiving paperless W-2s. Employees can consent in MyADP.
  • You will be responsible for printing and providing W-2s to employees who do not consent.

Your employees can still sign up to be paperless even if you choose not to go paperless at the employer level. They can log into my.adp.com and go to Pay tab > Go Paperless > Receive Paperless Tax Statements. You will not receive their W-2s in your package.

How to sign up: From the Home Page banner in the RUN platform, click the Leaf icon, then the Sign Me Up link.

This paperless option will be available for your 2021 W-2 tax statements until December 31, 2021. If you activate this option after 12/31/21, your 2022 W-2 tax statements will be paperless.

*Note: Paperless 1099s will not be available for this year-end.

The Internal Revenue Service (IRS) introduced a new form for contractors in 2020 called the Form 1099-NEC, which should be used to report non-employee compensation. These amounts were previously reported in Box 7 of the Form 1099-MISC.

What you need to know

  • You will no longer report non-employee compensation on the 1099-MISC. You must use the new Form 1099-NEC to report this information.
  • The new Form 1099-NEC will be included in your year-end package.
  • The earning name in the RUN Powered by ADP® (RUN)/Payroll Plus® platform has been updated from 1099 Misc to 1099 Compensation to accommodate this change.
  • The IRS has rearranged the box numbers for reporting certain incomes on the Form 1099-MISC. Please keep this in mind as you fill out this form.
  • New for 2021: Copy A will now include three forms per sheet, as opposed to two forms per sheet. 

 You can access the new Form 1099-NEC on the IRS website or download a copy in the Help & Support section of the RUN/Payroll Plus platform. 

To help protect employees from identity theft, the Internal Revenue Service (IRS) now allows Social Security Numbers (SSNs) to be truncated on copies of the Form W-2. The IRS also allows truncation of Taxpayer Identification Numbers (TINs) on copies of Forms 1099-MISC and 1099-NEC. 

ADP® will truncate SSNs and TINs on the Employee and Employer copies of the Form W-2, as well as the Payee and Payer Reference copies of Forms 1099-MISC and 1099-NEC. This includes copies that are provided to employees to report third party sick pay and group-term life insurance.

SSNs and TINs, however, will not be truncated on the employer-filing copies of Forms W-2, 1099-MISC or 1099-NEC.

The leading digits of truncated SSNs/TINs will be replaced with either an asterisk (*) or an X. For example, a truncated SSN/TIN would appear as either ***-**-1234 or XXX-XX-1234.

Important! Since SSNs and TINs will be truncated on copies of Forms W-2, 1099-MISC and 1099-NEC, it's important that your employees' and/or contractors' SSNs and TINs are accurate and up-to-date in the RUN Powered by ADP®/Payroll Plus® platform. They will not have full visibility of their SSN/TIN once their tax forms are printed and distributed. 

You can verify that your employees' names and SSNs match the Social Security Administration's records using the free verification service that the SSA provides on their website.

Please Note: To further protect your data from identity theft, ADP has also removed the employee tax withholding information found on the Form W-4 (such as marital status and exemptions) from the 2021 Forms W-2 Earning Summary, as this information is not required. 


OTHER FORM W-2 CHANGES: 

Alert The IRS has issued guidance on reporting qualified sick leave and qualified family leave wages paid pursuant to the Families First Coronavirus Response Act (FFCRA).

The following codes for qualified sick leave wages and qualified family leave wages paid to employees will display on the 2021 Form W-2 in Box 14: 

  • Earnings reported under FF Employee Pay will display as code FFSELF 
  • Earnings reported under FF Fam Care Pay will display as code FFOTHR 
  • Earnings reported under FF FMLA Expansion will display as code FFFMLA 

Please note: Employee Retention Credit (ERTC) earnings under the CARES Act are not included on the W-2. 

You can review the forms ADP® files on your behalf in the RUN Powered by ADP® or Payroll Plus® platform:

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  • Go to Taxes > Tax Home > Quarterly Taxes section to view your filed copies.
  • Go to Reports > Tax Reports > Quarterly Tax Verification

 

You can review the W-2 Preview report in the RUN Powered by ADP® (RUN) or Payroll Plus® platform to help ensure your W-2s contain the correct information once they are printed. Just type "W-2 Preview" into the search bar and select the report from the dropdown to begin reviewing.

If you see any incorrect information, please contact your ADP® Service Team using one of these methods so we can help correct the issue: 

  • Send a message from your Apple® or Android™ device. Open the RUN Mobile App and click Contact Us > Send Message (Apple) or the Live Chat button on any page (Android). 
  • Log into the RUN platform to submit a Service Request by clicking the ticket icon at the top of any page, selecting the appropriate topic and filling out the form OR Chat with us by clicking the chat icon at the bottom of any page. 

You can easily track Year-End tasks AND your Year-End package delivery right in the RUN Powered by ADP® (RUN) platform using our W-2 Tracker.

This interactive tracking system will guide you through important To-Do items that need to be completed prior to running your last payroll of the year. Completing these tasks will help ensure W-2s and 1099s are accurate for you and your employees BEFORE they are printed.

You can view and complete any outstanding tasks using the W-2 Tracker by clicking the More Info or Go to Tracker button that's available on the RUN homepage. Here’s what you can do right from the W-2 Tracker:

  • Verify and update your W-2 delivery address
  • Update invalid Social Security Numbers (SSNs) and Company Tax IDs
  • eSign missing Reporting Agent Authorization (RAA) or Power of Attorney (POA) forms
  • Verify employee information, including addresses, SSNs and taxability  
  • View the date of your last scheduled payroll of the year
  • Access these helpful Year-End tools: Calculate Checks, Third Party Sick Pay, Off-Cycle Payroll and Void Checks
  • Download copies of W-2s, 1099s, W-3s and 1096s once they’re available
  • View W-2 invoice when available

The W-2 Tracker also allows you to track your Year-End package* through the following delivery stages: Getting Prepared → Processing → Available Online → On the Truck → Delivered. This means you’ll have 24x7 access to the status of your delivery – without having to call the Service Center for an update!

Need help while completing tasks? Click the Contact us with any issues button right on the W-2 Tracker to easily start Chatting with us or to create a Service Request. 

*If you consented to receive Paperless W-2 Tax Statements, you will not receive paper copies of your W-2s in your year-end package. You can access W-2s in the RUN platform and employees can access theirs in MyADP. This means you will only see the following delivery stages on the W-2 Tracker: Getting Prepared → Processing → Available Online.

December

Before last payroll of the year

Alert If you made changes to your account due to COVID-19, it's important that all the below information is accurate and up-to-date to help avoid any filing disruptions or delivery delays.

Make sure everything is up to date and correct for each of your employees and contractors. Did anyone move, get married, divorced, or have children?

For employees, double-check:

  • Employee name (is it spelled correctly?)
  • Social Security Number (SSN)
  • Employee address (is it accurate?)
  • Lived-in jurisdiction
  • Worked-in jurisdiction
  • Paid time off information
  • Status (active, terminated, LOA)
  • Filing status (exempt or non-exempt)
  • Number of exemptions
  • Year-to-date wages
  • Year-to-date taxes
  • Pre-tax year-to-date amounts (such as 401k and Medical 125)

You can verify which of your employees is currently set up with an invalid SSN* within the RUN Powered by ADP® (RUN) or Payroll Plus® platform:

  1. Review the following reports to verify information: W-2 Preview and Employee Summary. You can access these reports by typing the report name into the search bar and selecting the report from the dropdown. 
  2. Any employees with a SSN of all 0's will need to be corrected with the ADP® Service Team. 

*You and ADP® can unmask an employee's SSN in their Employee Profile under the Employment Info section by clicking the padlock icon and following the security prompts. You can also verify that your employees' names and SSNs match Social Security's records using the free verification service that the SSA provides on their website.


For contractors, double-check:

  • Name
  • SSN or Taxpayer's Identification Number (TIN)
  • Address
  • State work locations and, if applicable, local work locations
  • Earnings totals for each jurisdiction

You can verify which of your contractors are currently set up with an invalid SSN within the RUN or Payroll Plus platform:

  1. Type "Employee Summary" into the search bar and select the report from the dropdown. 
  2. Change status to "All" and click Refresh
  3. View the Employee Information. If any contractor is listed with '0000' as the last four digits of their SSN, you will need to correct the contractor's SSN. 

If you have to change non-payroll data, such as an address, make the changes on the Employee Info page, on the appropriate Employee's Tax page, or on the contractor's 1099 Info page.

IMPORTANT REMINDERS:

  • If you make corrections to wages, taxes, or jurisdictions, you must run an Off-Cycle Payroll to process the corrections.
  • Updating an employee's or contractor's SSN or making wage changes may require an amendment.
  • SSNs and TINs will be truncated on copies of Forms W-2, 1099-MISC and 1099-NEC. This includes copies that are provided to employees to report third party sick pay and group-term life insurance. It is important that your employees' and/or contractors' SSNs/TINs are accurate and up-to-date in the RUN/Payroll Plus platform, as they will not have visibility to their full SSNs/TINs once W-2s, 1099-MISCs and 1099-NECs are printed and distributed. 

NEED MORE HELP? 

  • Watch a quick tutorial in Help & Support to learn how to add a new employee to your payroll. Also, the I-9 (Employee Verification) form is available in the Help & Support section of the RUN platform under Forms & Tools, then Tax & Payroll Forms.
  • A step-by-step Guided Walk Through is available in the RUN platform to assist you with verifying employee information. Go to the W-2 Tracker on the RUN homepage and click the More Info or Go to Tracker button. Then select the Walk me through year end button and click Validate Company/Employee Information to begin the Guided Walk Through.

Before the last scheduled payroll of the quarter, make sure you update any employee totals that you want to include in the quarter balances. You can update totals for any of the following items:

  • Manual checks*
  • Voided checks
  • Third party sick payments*
  • Group term life insurance
  • Dependent care benefits
  • Moving expenses
  • 401(k)* and cafeteria plans
  • Retirement plans
  • Paid time off
  • Taxable fringe benefits
  • Any other necessary adjustments to employee wage and tax amounts

In the fourth quarter, before December 31, you must update missing totals for your employees and run any bonus payrolls. If you have to run an Off-Cycle Payroll (to process manual checks, voided checks, or third party sick payments) after the last day of the quarter, government agencies may charge you with penalties and interest based on their deposit and filing deadlines for taxes. Tax Filing Clients: Amendment fees may apply.

View your employees' 2021 earnings and deductions in the RUN Powered by ADP® (RUN) or Payroll Plus® platform by typing "Employee Summary" into the search bar and selecting the report from the dropdown.

You can add manual or void checks to correct your employee's year-to-date wages by typing "Void Checks" or "Calculate Checks" into the search bar and selecting the page from the dropdown. For other changes, please contact your ADP® Service Team by using one of the below methods:

  • Send a message from your Apple® or Android™ device. Open the RUN Mobile App and click Contact Us > Send Message (Apple) OR the Live Chat button on any page (Android).
  • Log into the RUN platform to submit a Service Request by clicking the ticket icon at the top of any page, selecting the appropriate topic and filling out the form OR Chat with us by clicking the chat icon at the bottom of any page.

NEED MORE HELP? Step-by-step Guided Walk Throughs are available in the RUN platform to assist you with recording manual checks using our Calculate Checks tool; reporting third party sick pay; and maxing out retirement. Go to the W-2 Tracker on the RUN homepage and click the More Info or Go to Tracker button. Then select the Walk me through year end button and click Calculate Checks, Enter Third Party Sick Pay OR Max Out Retirement to begin the Guided Walk Through.

Employers who provide Group Term Life Insurance to their employees must calculate and report the cost of coverage over $50,000, as required by the Internal Revenue Service (IRS). This cost is fully taxable and must be reported as additional income for any employee who receives this benefit. The amount will be displayed on your applicable employees’ W-2s in Box 12 (Code C).

To help ensure W-2s are accurate for your employees, you should report Group Term Life Insurance in the RUN Powered by ADP® (RUN)/Payroll Plus® platform PRIOR to running your final payroll of the year.

Before you report costs in the payroll platform, you must first calculate the taxable portion of coverage that exceeds $50,000. To determine this amount, please review Publication 15-B, The Employer’s Tax Guide to Fringe Benefits (Page 13), as prepared by the IRS, or speak with your company’s accountant.

Once you’ve determined your taxable portion of coverage, you can begin reporting Group Term Life Insurance in the RUN/Payroll Plus platform for your active and terminated* employees.

To Activate Group Term Life:

  1. Type "Company Earnings Deductions" into the search bar and select the page from the dropdown
  2. Click Add Earning 
  3. In the Category field, select Fringe Benefits 
  4. In the Earning field, select Group Term Life Insurance 
  5. Click Save 

You can either report Group Term Life Insurance costs for your employees per payroll OR in lump sum via an Off-Cycle Payroll.

Reporting per payroll:

RUN Powered by ADP® (Left Navigation) RUN Powered by ADP® (Top Navigation), Wholesale Firms and Payroll Plus®
  1. Go to People, select Directory and click on the employee's name
  2. From the left menu, select Earnings Deductions
  3. Click Add Earning 
  4. Under Earning, select Group Term Life Insurance from the dropdown
  5. In the Amount field, enter the amount to be recorded and taxed for each payroll
  6. Click Save
  1. Go to the Employees tab, select Directory and click on the employee’s name
  2. From the left menu, click Earnings Deductions
  3. On the Group Term Life Insurance line, click Edit
  4. In the Amount field, enter the amount to be recorded and taxed for each payroll
  5. Click Save


Reporting in lump sum:

  • Enter the Group Term Life Insurance amount in the Group Term Life Insurance Earnings field on the Payroll Entry screen during your next payroll. You can also run an Off-Cycle Payroll to capture the earning

Note: Any uncollected Social Security and Medicare will be calculated for the employee and display on the W-2 in Box 12 with codes M and N respectively.

Reporting for Terminated Employees:

*In order to accurately report Group Term Life Insurance costs for your terminated employees, you will need to rehire them in the RUN/Payroll Plus platform, report the costs, then terminate them again. Please follow the below steps:

RUN Powered by ADP® (Left Navigation) RUN Powered by ADP® (Top Navigation), Wholesale Firms and Payroll Plus®
  1. Go to People > Directory 
  2. In the Filter field, select Terminated, then click on the employee's name
  3. From the left menu, select Employment Info – Make note of the termination date, last day worked and termination reason, as you will need this information to terminate the employee again once complete.
  4. Click Rehire, then click OK on the pop-up message
  5. Enter the Group Term Life Insurance amount in the Group Term Life Insurance Earnings on the Payroll Entry screen during the next payroll. You can also run an Off-Cycle Payroll to capture the earning.
  6. Once the payroll or Off-Cycle Payroll is processed, go to People, select Directory and click on the employee’s name
  7. From the left menu, select Terminate Employee
  8. Enter the termination date, last day worked and termination reason
  9. Click Terminate Employee, then click OK on the pop-up message
  1. Go to the Employees tab > Directory
  2. In the Status field, select Inactive, then click on the employee’s name
  3. From the left menu, select Employment Info – Make note of the termination date, last day worked and termination reason, as you will need this information to terminate the employee again once complete.
  4. Click Rehire, then click OK on the pop-up message
  5. Enter the Group Term Life Insurance amount in the Group Term Life Insurance Earnings on the Payroll Entry screen during the next payroll. You can also run an Off-Cycle Payroll to capture the earning.
  6. Once the payroll or Off-Cycle Payroll is processed, go to the Employees tab, select Directory and click on the employee’s name
  7. From the left menu, select Terminate Employee
  8. Enter the termination date, last day worked and termination reason
  9. Click Terminate Employee, then click OK on the pop-up message

 

Note: Any uncollected Social Security and Medicare will be calculated for the employee and display on the W-2 in Box 12 with codes M and N respectively.

You can find additional information about Group-Term Life Insurance by visiting the Internal Revenue Service’s (IRS) website. You can also refer to Publication 15-B, The Employer’s Tax Guide to Fringe Benefits (Page 13), as prepared by the IRS.

If any of your employees received temporary disability payments in 2021 from a third party, such as an insurance company or state agency, the total amount of these payments must be submitted to ADP® no later than December 31, 2021.

Sick pay should be included on either the employees' W-2s or on a separate form provided by the third party. If third party sick pay is not reported by the third party, it must be included on your employees' W-2s. It is important that you obtain this information from the appropriate third party provider as soon as possible. These entries must be processed on or before your last payroll of the year to ensure that your Form 941 and W-2 reports are accurate.

Most carriers provide third party sick pay statements throughout the year; please use those statements to report the information no later than December 31, 2021. Please be aware if reported after this date, penalties for taxes due may be assessed and amendments may be necessary, as well as new W-2s needed.

To report third party sick pay within the RUN Powered by ADP®  (RUN) or Payroll Plus® platform: 

  1. Type "Third Party Sick Pay" into the search bar and select the page from the dropdown.
  2. Select the employee and key-in the required information.

Helpful tips when reporting:

  • Be sure to review your employee’s third party sick pay YTD (year-to-date) amounts on file to check for any previous dollars entered. Then verify the amounts are truly YTD amounts. This will help ensure the proper third party sick pay amounts are entered.
  • If you realize you need to report additional items after you have already processed your last payroll for the year, you will need to run an Off-Cycle Payroll and date it: 12/31/YY (“YY” being the current tax year) or enter the same date that is on the third party sick pay statement.
  • You will need to process an Off-Cycle Payroll to include the third party sick pay reporting, otherwise it will remain in pending items.

NEED MORE HELP? A step-by-step Guided Walk Through is available in the RUN platform to assist you through the process of reporting third party sick pay. Go to the W-2 Tracker on the RUN homepage and click the More Info or Go to Tracker button. Then select the Walk me through year end button and click Enter Third Party Sick Pay to begin the Guided Walk Through.

Alert If your business was impacted by COVID-19 and you need to record any Families First Coronavirus Response Act (FFCRA) or Coronavirus Aid, Relief, and Economic Security (CARES) Act earnings, you must do so before December 31, 2021.

Alert If your payroll processing was disrupted by COVID-19, and you issued manual checks and/or voided checks, please check that your payroll information is up-to-date in the RUN Powered by ADP® (RUN) or Payroll Plus® platform before December 31, 2021. This will help ensure accurate and timely tax filings.

This may include manual checks and voided checks.

Reminder! Please process Off-Cycle Payrolls after manual checks are created and/or checks are voided. Not processing Off-Cycle Payrolls to incorporate your pending manuals and/or voids may cause amendments, penalties or interest to be charged by the agencies.

NEED MORE HELP? A step-by-step Guided Walk Through is available in the RUN platform to assist you with using the Calculate Checks tool — a feature that can help you forecast employee paychecks, make a payroll adjustment or record a handwritten manual check! Go to the W-2 Tracker on the RUN homepage and click the More Info or Go to Tracker button. Then select the Walk me through year end button and click Calculate Checks to begin the Guided Walk Through. 

A fringe benefit is a form of compensation for the performance of services. For example, you provide an employee with a fringe benefit when you allow the employee to use a business vehicle to commute to and from work.

Any fringe benefit your company provides is taxable and must be included in the employee's pay unless the law specifically excludes it. The benefit is subject to taxes and must be reported on the employee's W-2. Click here for a list of fringe benefit earnings and where they appear on your employees' W-2s.

You can add Fringe Benefits in the RUN Powered by ADP® (RUN) or Payroll Plus® platform:

  1. Type "Company Earnings Deductions" into the search bar and select the page from the dropdown. 
  2. Click Add Earning 
  3. In the Category field, select Fringe Benefits
  4. In the Earning field, select the fringe benefit that you want to add. Click here for a list of fringe benefits.
  5. Click Save and go back to the Earnings Deductions Info page. The fringe benefit is included in the Earnings list and is displayed as active.

Helpful Hint: Services like company cars and gym memberships are taxable. Learn more about these benefits and how they are reported. You can also refer to Publication 15-B, The Employer's Tax Guide to Fringe Benefits, as prepared by the IRS.

NEED MORE HELP? A step-by-step Guided Walk Through is available in the RUN Powered by ADP® (RUN) platform to assist you with reporting S Corp earnings. Go to the W-2 Tracker on the RUN homepage and click the More Info or Go to Tracker button. Then select the Walk me through year end button and click Report S Corp Earnings to begin the Guided Walk Through.

All Vermont employers that are required to withhold income tax must report the total cost of employer-sponsored health care coverage.

The total cost paid by the employer and employee should be reported on the State Copy of the W-2 form in Box 12.

Unlike the federal mandate, employers with 250 or less employees are also required to report the total cost of employer-sponsored health care coverage. All other employers can review the Internal Revenue Service's website to determine if you're subject to reporting cost of healthcare coverage.

  1. Type "Company Earnings Deductions" into the search bar and select the page from the dropdown.
  2. Click Add Earning.
  3. In the Category field, select the fringe benefit ER - Sponsored Healthcare.
  4. Click Save and go back to the Earnings Deductions Info page. The fringe benefit is included in the Earnings list and is displayed as active. 
  5. Enter the Healthcare amounts on each applicable employee in the appropriate memo earning(s) prior to the last payroll of the year.

Christmas Day is Saturday, December 25 and New Year's Day is Saturday, January 1. If your check dates fall on either of these dates, please adjust them to avoid delaying your employees' direct deposits and delivery of your payroll package.

Heads up! Payrolls processed on Thursday, 12/23 will be delivered on Friday, 12/24. Payrolls processed on Thursday, 12/30 will be delivered on Friday, 12/31. If your business is closed on either day, don't worry - we will reattempt delivery the following business day! 

Helpful Hint: You can now receive payroll text and calendar reminders 2 days before you're scheduled to process payroll. Log into the RUN Powered by ADP®/Payroll Plus® platform, click your name in the top, right-hand corner and select Settings to begin setup today.

A number of states have changed their labor laws. Updated compliance posters are expected to be delivered early next year. You can see what’s new in your state here.

Before December 31, 2021

If you haven't processed payrolls regularly due to COVID-19 impacts, but your account is still active with ADP®, you can resume processing payrolls at any time BEFORE December 31, 2021.

IMPORTANT! Please verify your payroll check date BEFORE you process any payrolls. To view your payroll check date:

  1. Log into the RUN Powered by ADP® (RUN) or Payroll Plus® platform
  2. Type "Pay Frequency" into the search bar and select the Pay Frequency in Company page from the dropdown.

You can make any needed edits to your payroll check date by clicking Edit.

If you need help, please contact your ADP Service Team using one of the below methods:

  • Send a message from your Apple® or Android™ device. Open the RUN Mobile App and click Contact Us > Send Message (Apple) OR the Live Chat button on any page (Android).
  • Log into the RUN platform to submit a Service Request by clicking the ticket icon at the top of any page, selecting the appropriate topic and filling out the form OR Chat with us by clicking the chat icon at the bottom of any page.
Alert If you made changes to your account due to COVID-19, it's important that all the below information is accurate and up-to-date to help avoid any filing disruptions or delivery delays.

Using the Quarterly Tax Verification report in the RUN Powered by ADP® (RUN)/Payroll Plus® platform, verify the below information for the company. You can access this report by typing "Quarterly Tax Verification" into the search bar and selecting the report from the dropdown menu. 

  • Tax IDs
  • Federal, state, and local (if applicable) tax identification numbers
  • State unemployment rates*

Type "Company Details" into the search bar and select the page from the dropdown to verify the following information: 

  • Legal name
  • Legal address (click the Edit button to make updates)

*You can update your company's state unemployment rates right in the RUN or Payroll Plus platform: 

RUN Powered by ADP® (Left Navigation) RUN Powered by ADP® (Top Navigation), Wholesale Firms and Payroll Plus®
  • To update your state unemployment rates, go to Taxes > Tax Home > Federal, State and Local Tax > Select State > Upload
  • To update your state unemployment rates, go to Taxes > SUI Rate Changes and follow the instructions

If you need to update your company's legal name and/or FEIN, please contact your ADP® Service Team by using one of the below methods:

  • Send a message from your Apple® or Android™ device. Open the RUN Mobile App and click Contact Us > Send Message (Apple) OR the Live Chat button on any page (Android). 
  • Log into the RUN platform to submit a Service Request by clicking the ticket icon at the top of any page, selecting the appropriate topic and filling out the form OR Chat with us by clicking the chat icon at the bottom of any page.

NEED MORE HELP? A step-by-step Guided Walk Through is available in the RUN platform to assist you with verifying company information. Go to the W-2 Tracker on the RUN homepage and click the More Info or Go to Tracker button. Then select the Walk me through year end button and click Validate Company/Employee Information to begin the Guided Walk Through.

Alert If you made changes to your account due to COVID-19, it's important that all the below information is accurate and up-to-date to help avoid any filing disruptions or delivery delays.

W-2s will be shipped to the delivery address associated with your account, which may be different from your business's legal address or payroll delivery address.

How to verify your W-2 delivery address within the RUN Powered by ADP® (RUN)/Payroll Plus® platform:

  1. Type "Company Details" into the search bar and select the page from the dropdown. 
  2. View your W-2 delivery address. If you need to make any changes, click Edit. 
  3. Using the dropdown box, select Legal if your W-2 delivery address is the same as your legal address. To enter a different address, select Other and enter your new W-2 delivery address information. 
  4. Click Save.

Please note: W-2s cannot be delivered to a P.O. Box. The Employer Reference Copy will also no longer be included in your W-2 package. You can access this online in the RUN platform by going to the Quarter & Year-End section under Help & Support.

If you do not have online access to this information, please contact your ADP® Service Team by using one of the below methods:

  • Send a message from your Apple® or Android™ device. Open the RUN Mobile App click Contact Us > Send Message (Apple) OR the Live Chat button on any page (Android).
  • Log into the RUN platform to submit a Service Request by clicking the ticket icon at the top of any page, selecting the appropriate topic and filling out the form OR Chat with us by clicking the chat icon at the bottom of any page.

Tired of waiting for your W-2 package delivery? Register for Paperless W-2 Tax Statements TODAY, so you can easily and securely download your W-2s in the RUN Powered by ADP® (RUN) platform - no waiting for packages required. Going paperless helps minimize the risk of confidential information being compromised, plus you and your employees can securely access this information anytime, anywhere.

You can sign up to receive paperless 2021 W-2 tax statements any time before December 31, 2021. Simply log into the RUN platform, go to the home page banner, click the Leaf icon, then the Sign Me Up link. To learn more about Paperless W-2 Tax Statements, please click here.

Based on the information we have for your company, the RUN Powered by ADP (RUN)/Payroll Plus platform can help you determine if you have any Affordable Care Act (ACA) reporting requirements - just click on the ACA banner on the homepage.

Note: Please check with your respective states for individual reporting requirements.

Some jurisdictions require that you provide an EITC notification to each of your employees with their annual tax forms. If your business is located in one of these jurisdictions, click the link to access and print the applicable notification.

Additional information on the Earned Income Tax Credit can be found on your jurisdiction’s website.

*Maryland requires employers to provide the notification to employees by December 31.

Although you can process a bonus payroll at any time during the year, many are processed at the end of the year.

There are two types of bonus earnings available in the RUN Powered by ADP® (RUN) or Payroll Plus® platform: Bonus and Supplemental Bonus. It’s important to use the appropriate earning because each one is taxed differently.

  • Bonus earning: the bonus payroll is taxed at the regular rate, the same as a normal payroll.
  • Supplemental Bonus earning: the bonus payroll is taxed at the supplemental wage rate for federal income tax. For 2021, the federal rate is a flat 22% up to $1 million and 37% for amounts exceeding $1 million.

To be sure that your W-2 amounts are correct, process your bonus payrolls before the end of the year.

If you want to surprise your employees with the bonus, consider processing an Off-Cycle Payroll after you run your regular payroll. That way, the bonus amount won't be included in the year-to-date total.

From the homepage of the RUN/Payroll Plus platform, click the Off-Cycle Payroll button and select Bonus Payroll to easily customize the settings of your bonus payroll. Just select the bonus earning type, your preferences for pay method*, and voluntary deductions. The RUN/Payroll Plus platform will then configure your bonus payroll and even setup the new bonus earning on the company level, if needed.

*If you would like to hand your employees a physical check for their bonus, make sure you select "By live check" as your payment method.

If your federal tax liabilities for the bonus payroll are over $100,000.00, the taxes must be deposited the business day after the check date. As ADP® files your taxes, you should process these payrolls at least 48 hours before the check date, to allow ADP enough time to debit and deposit the tax amounts timely.

Large Bonus Payrolls: In addition to federal regulations, ADP also applies certain restrictions to large bonus payrolls that may require a wire transfer prior to the check date. If these restrictions apply to your bonus payroll, ADP will provide you with the necessary wire instructions by the next business day after the bonus payroll has been processed.

Note: Your account will be placed on hold if you attempt to process a third payroll within a four-hour span AND have completed a direct deposit change within the last 24 hours. Please keep this in mind as you're processing your payrolls!

Helpful Hint: Learn more about how to process a bonus payroll here.

Run your last scheduled payrolls for the year, including bonus payrolls and Off-Cycle Payrolls necessary to account for any outstanding manual checks, voided checks, third party sick payments, or adjustments.

The last day you can submit final 2021 payrolls with a check date in December is 12/31. Payrolls submitted after 12/31 may incur penalty and interest charges.

If you have to run another payroll before the end of the year, you will have to review your company, employee, and contractor totals again.

Important: If an employee receives payment in the next year for days worked in the current year, earnings and deductions are reflected in the new year. Payroll taxes are based upon the date wages are paid, not the date wages are earned.

Please review the W-2 Preview report to verify the following information: spelling of employees' names, social security numbers, addresses, and wages.

You can view your tax forms by logging into the RUN Powered by ADP® (RUN) or Payroll Plus® platform:

RUN Powered by ADP® (Left Navigation) RUN Powered by ADP® (Top Navigation), Wholesale Firms and Payroll Plus®
  • Go to Taxes > Tax Home > Quarterly Taxes section to view your filed copies.
  • Go to Taxes tab > Review Tax Documents


Please note: 4Q tax forms will be available once they are filed.

NEED MORE HELP? A step-by-step Guided Walk Through is available in the RUN platform to assist you with downloading Quarterly Reports. Go to the W-2 Tracker on the RUN homepage and click the More Info or Go to Tracker button. Then select the Walk me through year end button and click Download Quarterly Reports to begin the Guided Walk Through.

If you have a retirement plan through an administrator other than ADP® and any of your employees are set up with a retirement plan catch-up deduction, both the regular and catch-up deductions will automatically come out of the first payroll of 2022 unless you request a change. Be sure to report any changes with your first payroll of 2022.

  1. Starting Point: People > Directory or Employees > Directory
  2. Click on the employee and select Earnings and Deductions.
  3. Scroll to the bottom of the page, where the deductions are listed.
  4. Click Edit for the catch-up deduction you want to stop.
  5. Click Stop Deduction.

January

Before your first payroll of 2022

You and employees (with MyADP) will be able to view your W-2s and 1099s on or around January 3, 2022. Please review online or via Employee Self Service prior to receiving the package with the physical forms. Ensuring information is accurate before January 14 will help you avoid amendment and reprint fees if forms need to be re-printed.

Reminder! SSNs and TINs will be truncated on copies of Forms W-2, 1099-MISC and 1099-NEC. This includes copies that are provided to employees to report third party sick pay and group-term life insurance. It is important that your employees' and/or contractors' SSNs/TINs are accurate and up-to-date before January 14, 2022, as they will not have visibility to their full SSNs/TINs once W-2s, 1099-MISCs and 1099-NECs are printed and distributed.

Note: W-2s will be available online in the RUN Powered by ADP® Payroll for Partners and Payroll Plus® platforms shortly after January 13, 2022.

Helpful Hint: Our W-2 Tracker, accessible on the the RUN Powered by ADP® homepage, will show you when your W-2s are available online! You can use the W-2 Tracker to also track when your package is On the Truck and Delivered. Make sure you distribute W-2s and/or 1099s to your employees/contractors by January 31, 2022. 

There have been a few important updates regarding the Form W-2 in 2021 - please read the below information and complete any actions as required: 

Changes to Box 10 Instructions for Employees 

On November 23, 2021, the IRS updated the Box 10 Instructions for Employees verbiage on the 2021 Form W-2, because the exclusion amount for employer-provided dependent care increased from $5,000 to $10,500 ($5,250 for married filing separately) for any taxable year beginning after December 31, 2020 and before January 1, 2022 under the American Rescue Plan Act. Here's what changed: 

From: "This amount includes the total dependent care benefits that your employer paid to you or incurred on your behalf (including amounts from a section 125 (cafeteria) plan). Any amount over $5,000 is also included in box 1. Complete Form 2441, Child and Dependent Care Expenses, to figure any taxable and nontaxable amounts."
To:  "This amount includes the total dependent care benefits that your employer paid to you or incurred on your behalf (including amounts from a section 125 (cafeteria) plan). Any amount over your employer's plan limit is also included in box 1. See Form 2441."

Per IRS guidance, you must notify each employee receiving a hardcopy Form W-2 about this update, as the 2021 Form W-2 paper stock was printed prior to the IRS implementing this change. For your convenience, ADP created this document explaining the changes, which you can share with your employees. Digital versions of the 2021 Form W-2 will display the updated verbiage.

For more information, view the revised 2021 IRS general instructions for Forms W-2 here.

Copy D is now digital-only

ADP is taking steps to go paperless and this includes your Employer W-2 Reference Copy (Copy D). Moving forward, Copy D will not be printed or included in your Year-End package delivery. You can easily access a digital copy of your employee's W-2 in the RUN Powered by ADP® (RUN) platform by going to Reports > Taxes > W2s 1099s. 

If you elected to have your PTO Balances cleared* at the end of the year, please note PTO balances are not cleared from the RUN Powered by ADP® platform on the first day of the new year. They are cleared when the first payroll, with a check date in the new year, is processed. 

To ensure balances are cleared automatically, the Clear Hours box must be checked before processing the first payroll following the Plan Reset Date. The Plan Reset Date is set on the Company level and can be overridden on the Employee level. 

If you want to clear the Carry Over amount after the start of the Plan Reset Date, navigate to Employees > Paid Time Off for the employee. Make any needed adjustments to the employee's Carry Over amounts. 

*Be sure to check any applicable paid sick leave law retention requirements, prior to clearing any employee paid sick leave information. 

The first payroll of the year is the perfect time to review and update your employee deductions, such as:

  • Medical
  • Dental
  • Life Insurance
  • Retirement deductions such as 401(k)*
  • Other voluntary deductions

*You should plan to change retirement deductions based on the new limits for 2022. Limits generally change from year to year. Make sure you become familiar with the new limits and update your employee's deductions, if necessary. You can review the new limits in the Earnings and Deductions Quick Reference guide in the RUN Powered by ADP® platform (Help & Support > Payroll & HR > Reference Guides).

Your state may have updated its W-4 form. Make sure that you’re using the correct form by checking the Internal Revenue Service (IRS) website here: https://www.irs.gov/tax-professionals/government-sites

You can also access state forms in the RUN Powered by ADP® (RUN) or Payroll Plus® platform by typing "HR411" in the search bar and selecting the HR411 in Human Resources option from the dropdown. Then, click the View state and federal forms button under the Forms and Documents section. 

If you have a retirement plan through an administrator other than ADP® and any of your employees are set up with a retirement plan catch-up deductions, both the regular and catch-up deductions will automatically come out of the first payroll of 2022 unless you request a change. Be sure to report any changes with your first payroll of 2022.

  1. Starting Point: People > Directory or Employees > Directory
  2. Click on the employee and select Earnings and Deductions.
  3. Scroll to the bottom of the page, where the deductions are listed.
  4. Click Edit for the catch-up deduction you want to stop.
  5. Click Stop Deduction.

The Affordable Care Act (ACA) requires certain employers to report health coverage information to their employees and the IRS annually.

Your resources:

Note: Please check with your respective states for individual reporting requirements.

If any changes apply to your business, be sure to update the information in the system.

Jan. 1, 2022 minimum wage increases:

Timing: This chart covers January 1, 2022 minimum wage increases for all applicable states and some larger U.S. cities. Some states increase their minimum wage rates mid-year or on a different cycle. The information below applies to January 1, 2022 increases only (Note: New York increases their minimum wage on December 31).

Pending Updates: Several jurisdictions adjust their minimum wage rates annually for inflation, some of which haven't yet announced whether and to what extent the minimum wage will increase for January 2022. This is not an exhaustive list. There may be additional jurisdictions that have scheduled increases for January 1. Check your state and local laws to confirm compliance.

Multiple Rates: If an employee is subject to more than one minimum wage requirement (such as federal, state, and local), you should generally comply with the rate most generous to the employee. Additionally, if your business is located in one state, but you have employees (such as remote workers) working in another jurisdiction, the minimum wage in the location where the employee performs work generally applies.

Note: After this map was published, the Colorado increase ($12.56 per hour) became final.

Local minimum wage increases:

Several cities are also increasing their minimum wage effective January 1, 2022. Some of these include:

Jurisdiction Minimum wage rate January 1, 2022
Flagstaff, AZ $15.50
Belmont, CA $16.20
Burlingame, CA $15.60
Cupertino, CA $16.40
Daly City, CA $15.53
El Cerrito, CA $16.37
Half Moon Bay, CA $15.56
Hayward, CA $14.52 (25 or fewer employees)
$15.56 (26 or more employees)
Los Altos, CA $16.40
Menlo Park, CA $15.75
Mountain View, CA $17.10
Novato, CA $15 (1-25 employees)
$15.53 (26-99 employees)
$15.77 (100 or more employees)
Oakland, CA $15.06
Palo Alto, CA $16.45
East Palo Alto, CA $15.60
Petaluma, CA $15.85
Redwood City, CA $16.20
Richmond, CA $15.54
Note: Under city law, employers that contribute at least a certain amount towards an employee medical benefits plan may be able to take a limited credit toward the minimum wage. Remember, employers must also comply with the state minimum wage. If the state minimum wage is higher than the applicable city rate with the credit, employers must pay at least the state minimum wage.
San Carlos, CA $15.77
San Diego, CA $15
San Jose, CA $16.20
San Mateo, CA $16.20
Santa Clara, CA $16.40
Santa Rosa, CA $15.85
Sonoma, CA $15 (25 employees or less)
$16 (26 employees or more)
South San Francisco, CA $15.80
Sunnyvale, CA $17.10
West Hollywood, CA $15.00 (49 or fewer employees)
$15.50 (50 or more employees)
Denver, CO $15.87
Portland and Rockland, ME $13

Note: In Portland, from January 1, 2022 through January 13, 2022, employees will need to be paid at least $19.50 per hour due to hazard pay requirements.
Albuquerque, NM $11.50
$10.50 (if not covered by state minimum wage and employer provides healthcare and/or childcare benefits of at least $2,500 per employee per year)
Las Cruces, NM $11.50
SeaTac, WA $17.53
Seattle, WA $17.27
$15.75 (if employer has 1-500 employees and provides $1.52/hour in medical benefits/tips)

Click here to get complete 2022 Payroll Wage/Tax Information by State. If any changes apply to your business, be sure to update the information in the RUN Powered by ADP®/Payroll Plus® platform.

If you receive a new state unemployment insurance (SUI) rate notice for 2022, please upload the notice in the RUN / Payroll Plus platform by following the below steps:

RUN Powered by ADP®  (Left Navigation) RUN Powered by ADP®  (Top Navigation), Wholesale Firms and Payroll Plus®
  • Go to Taxes > Tax Home > Federal, State and Local Tax > Select State > SUI > Upload
  • Go to Taxes tab > SUI Rate Changes 


You will receive an email confirmation once the rate has been updated.

Georgia Employers: The Georgia Department of Labor (GDOL) announced that they are no longer mailing their Annual UI Tax Rate Notices to employers. You will need to log into the GDOL Employer Portal https://dol.georgia.gov/ to retrieve your rate change notice.

Second week of January

Martin Luther King, Jr. Day is Monday, January 17. If your check date falls on this date, please adjust it to avoid delaying your employees' direct deposits.

Helpful Hint: You can now receive payroll text and calendar reminders 2 days before you're scheduled to process payroll. Log into the RUN Powered by ADP®/Payroll Plus® platform, click your name in the top, right-hand corner and select Settings to begin setup today.

Your year-end package is scheduled to be delivered during the second week of January via UPS®. You will receive an email message from UPS® with a tracking number and an estimated delivery date. When you receive your package, please review the details of all enclosed forms. If you need to make corrections to Social Security Numbers (SSNs) or make wage corrections, you can do so in the RUN Powered by ADP® (RUN) or Payroll Plus® platform: 

  • SSN Changes: Go to the Employee Directory > Employment Info > Update the SSN in the Social Security Number field 
  • Wage Corrections: Type "Void Checks" or "Calculate Checks" into the search bar and select the page from the dropdown.

Notify us immediately if you have any other required adjustments. W-2 reprint fees may be applied.


You can also track the status of your W-2 and 1099 packages using our W-2 Tracker. Just log into the RUN platform to view your package's status right on the RUN homepage: 

  • Getting Prepared
  • Processing
  • Available Online
  • On the Truck
  • Delivered

If you require a reprint for your W-2s, the W-2 Tracker will automatically update to display the status of your corrected package(s). You can view the tracking information for your W-2 package(s) by clicking the Delivery Tracking button on the On the Truck and/or Delivered pages. If you have multiple packages processing, the W-2 Tracker's status will remain as On the Truck until all W-2 packages are delivered.

Learn more about what to expect in your W-2 package or your 1099 package. Please keep in mind that the Employer Reference Copy will no longer be included in your W-2 package. You can access this online in the RUN platform by going to the Quarter & Year-End section under Help & Support.

IMPORTANT PAPERLESS INFORMATION! If you or your employee(s) consented to receive paperless tax statements, you will not receive paper copies of W-2s in your year-end package. You can access W-2s in the RUN platform, and employees can access theirs in MyADP. You will also only see the following delivery stages on the W-2 Tracker: Getting Prepared → Processing → Available Online.

If you're a paperless W-2 client, you're responsible for printing and providing W-2s to employees who did not consent to receiving paperless tax statements. To see which employees consented, log into the RUN platform and go to People > Directory (Left Navigation) or Employees > Directory (Top Navigation).

In addition to receiving standard paper copies*, your employees can download their W-2s or 1099s online using MyADP at my.adp.com. Employees can register for access at any time.

*If your employee(s) consented to receive paperless W-2s, a paper copy of their W-2 will NOT be included in your year-end package delivery. To see who consented, log into the RUN Powered by ADP® platform and go to People > Directory (Left Navigation) or Employees > Directory (Top Navigation). 

End of January 2022

You can review the forms ADP® files on your behalf in the RUN Powered by ADP® (RUN) or Payroll Plus® platform:  

RUN Powered by ADP® (Left Navigation) RUN Powered by ADP® (Top Navigation), Wholesale Firms and Payroll Plus®
  • Go to Taxes > Tax Home > Quarterly Taxes 
  • Go to Reports > Tax Reports > Quarterly Tax Verification

Please note: 4Q tax forms will be available once they are filed.

NEED MORE HELP? A step-by-step Guided Walk Through is available in the RUN platform to assist you with downloading Quarterly Reports. Go to the W-2 Tracker on the RUN homepage and click the More Info or Go to Tracker button. Then select the Walk me through year end button and click Download Quarterly Reports to begin the Guided Walk Through.

ADP® does not file your 1099-MISCs or 1099-NECs. If you have 1099-MISCs or 1099-NECs, you are responsible for filing them and a 1096 with the appropriate agencies by their required due date. Form 1096 will include totals for both the 1099-MISC and 1099-NEC.

Form 1099-MISC is the miscellaneous income form that employers must file for non-employees who are paid compensation of $600.00 or more (including rents, royalties, prizes, awards, etc.) during the year.

Form 1099-NEC is the new form introduced by the IRS in 2020 to report non-employee compensation. These amounts were previously reported in Box 7 of the Form 1099-MISC. It is important to fill this out for each of your contractors with non-employee compensation.

You can view and print your contractor(s) 1099s in the RUN Powered by ADP® (RUN) platform from the W-2s and 1099s option in the Taxes section under Reports.

You will receive the following forms in your year end package:

  • 1099-MISC:
    • 1099-M Copy A - Copy of the 1099-M that you send to the IRS for each contractor who receives a 1099-MISC.
    • 1099-M Copy B - Copy of the 1099-MISC that you give directly to your contractor. The contractor includes the 1099-MISC information on personal federal, state and, if applicable, local income tax returns.
    • 1099-M Copy C - Copy of the 1099-MISC that you send to the applicable state and, if applicable, local taxing agency for each contractor who receives a 1099-MISC.

Note: You will only receive copies of Forms 1099-MISC if you recorded 1099-Rent in the RUN platform. 

  • 1099-NEC:
    • 1099-NEC Copy A - Copy of the 1099-NEC that you send to the IRS for each contractor who receives a 1099-NEC.
    • 1099-NEC Copy B - Copy of the 1099-NEC that you give directly to your contractor. The contractor includes the 1099-NEC information on personal, federal, state and, if applicable, local income tax returns.
    • 1099-NEC Copy C - Copy of the 1099-NEC that you send to the applicable state and, if applicable, local taxing agency for each contractor who receives a 1099-NEC.
  • Federal 1096: The 1099 Transmittal Form, which is a summary of the information contained in the 1099-MISC and 1099-NEC forms. You send one copy to the IRS along with a copy of each of your 1099-MISC and 1099-NEC forms.

Please note: 1099-MISCs and 1099-NECs must be in your contractor(s) hands by January 31, 2022. Filing of these forms, plus the W3 and 1096 are due 1/31/22.

January 31, 2022

January 31, 2022 is the deadline to distribute W-2s to your employees or 1099s to your contractors.

Check your envelope size. The price to mail a 1 oz, first-class letter (standard size) is 58 cents. If it weighs more than 1 oz, additional postage will be required. We've also added a QR code to your employees' W-2 envelopes, so they can easily download and start taking advantage of MyADP - our free, self-service feature! 

If your company has activated the Paperless W-2 feature, but you have employees who did not consent to receive paperless tax statements, you are required to download and distribute a paper copy of the W-2 to the employee. You can access an official copy of the employee's W-2 and instructions in the RUN Powered by ADP® (RUN) platform by clicking the "leaf" icon in the top-right corner on the homepage. Once the W-2 is printed, you can use any standard size envelope to deliver the W-2 to the employee. 

Stop worrying about stamps - learn about the benefits our Paperless W-2 Tax Statements or Paperless Payroll solutions offers you and your employees.

Helpful Hint: ADP® offers your employees the ability to import their Form W-2 information directly into certain tax preparation software at no extra cost. This helps make tax preparation easier and more accurate. Tell your employees to look for the pop-up in MyADP at my.adp.com for more detailed information on this offering. 

Some jurisdictions require that you provide an EITC notification to each of your employees with their annual tax forms. If your business is located in one of these jurisdictions, click the link to access and print the applicable notification.

Additional information on the Earned Income Tax Credit can be found on your jurisdiction’s website.

Employer Resources

Year-End Checklist: This printable checklist helps you keep track of important year-end tasks.

Fringe Benefits Details: Understand the types and where they're reported on W-2s.

Processing an Off-Cycle Payroll: Learn how to run a bonus payroll.

W-2 Package Information: Find out what's included.

1099 Package Information: Find out what's included.

2021-2022 Payroll Calendar: Keep track of bank holidays and other important dates.

Paperless Payroll: Stop worrying about delivery delays. Start receiving payroll reports and pay statements online.

MyADP: Save time and empower your employees with online access to their payroll information.

Spark Powered by ADP® Blog: Helping ignite the power of your people.

Accountant ConnectSM: A one-stop shop for your accountant and an easy way to stay connected!

Contact Us: Find out how to quickly connect with us if you need assistance.