Payroll Software

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It just is.

Run payroll anytime, anywhere with our online payroll software designed for American small business owners. Patriot PAY™ is fast, accurate, easy payroll software, offered at straightforward prices that fit every budget. Choose a payroll software provider that meets your needs, 100% month-by-month, starting at only $10.

Q. Are some states requiring paid sick leave?   7/6/11
A. Yes. Connecticut is the first state to require paid sick leave for employees on the payroll of some businesses. San Francisco and the District of Columbia also mandate sick leave, and bills have been introduced in 20 other states. For more on this development, read “Payroll Question of the Day: A Mandate for Paid Sick Leave?”

Q. Are there any plans to help business owners with the high cost of fuel?   6/23/11
A. Whether you’re filling your own tank or reimburse your employees when you prepare payroll, you know that gas prices hurt your profits. Good news: the IRS also recognizes how the high gas prices are affecting business owners. Read more in “Gas Prices Got You Down? IRS Ups Mileage Rates for Rest of 2011.”

Q. Can you tell me about the latest developments with child support collection efforts?    6/22/11
A. Iowa joined a growing number of states that require businesses to use electronic funds transfers (EFT) for remitting child support garnishments from their employee payroll. For more on this trend, read “Payroll News: Iowa Latest State to Require EFTs for Child Support.”

Q. I heard Texas is doing well. What’s their story?   6/20/11
A. Texas does everything in a big way, and recently they’ve been adding payroll jobs left and right, accounting for a big portion of recent job growth. Read “Texas Employers Add Big to Their Payroll” for more information.

Q. As an employer, I’m troubled by the applicants who seem unprepared who apply for job postings at my workplace. What is going on, and what can be done?   6/7/11
A. It’s no secret that some younger American workers are woefully unprepared for a life of work, particularly when compared to other countries. Some businesses and organizations are starting to take action with initiatives to raise the bar. For more information on these efforts, read “Payroll News: Employers Call for More Competitive Workforce.”

Q. I’m considering a move to paperless payroll to end my paperwork hassles. Can you tell me more?   6/2/11
A. Moving to paperless payroll can be a smart move if you’re trying to end the blizzard of paperwork that comes with owning a business. Read the article “Paperless Payroll: Pros and Cons” for more information.

Q. Can you tell me how I can get a tax credit for the health care I provide for the employees on my payroll?   5/31/11
A. A Small Business Health Care Tax Credit became available for employers with the 2010 Patient Protection Affordable Care Act. For specifics, read the article “Do You Qualify for Health Care Tax Credit? IRS Worksheet Tells All.”

Q. Can you give me an update on health savings accounts for 2012?   5/25/11
A. The IRS has increased the maximum contribution to health savings accounts for 2012. For the updated limits, read “ Payroll Alert: HSA Contribution Limits Higher for 2012.”

Q. I’m thinking of adding a new employee to my payroll. Are there any new developments in the human resources world?   5/23/11
A. There’s growing concern that employers may be discriminating against people who are unemployed. Employers who advertise “unemployed applicants need not apply” may be asking for trouble. To find out more, read the article “Payroll News: Employers Discriminating Against the Unemployed?”

Q. I just added some new employees to my payroll. What’s the latest news regarding the I-9?   4/29/11
A. The U.S. government is cracking down on illegal aliens in the U.S. and auditing employers suspected of hiring illegal labor. Make sure you see proper documentation and receive Employment Eligibility (I-9) paperwork for everyone on your payroll. For more information, read “Your Papers Please? Payroll Update on Form I-9.”

Q. I’m in charge of payroll for my company, and I just received a DECOR Notice from Social Security regarding one of my employees. Can you give me more information?   4/26/11
A. Social Security has started to send out DECOR notices for the 2010 tax year if there’s a discrepancy with an employee’s W-2. To learn more, read “What’s a DECOR Notice? Another Payroll Mystery Solved.”

Q. I’m worried about the rules changing for 1099 reporting. Can you give me an update?   4/15/11
A. Relax-- President Obama repealed those onerous 1099 rules that were going to go into effect. The changes would have meant much more paperwork for payroll managers and small business owners. For more information on this development, read the training article “President Obama Repeals 1099 Reporting Rules.”

Q. Can you suggest some tips to make tax season go a little smoother this year?   4/14/11
A. Even if you couldn’t make any big equipment purchases or add more people to your payroll last year, you still may be able to find those hidden deductions that will save you a few dollars at tax time. Here are some Last-Minute Tax Filing Tips for Procrastinators to help you meet the deadline and prepare for next year.

Q. I don’t know what this “Code CC” means on the 2010 W-2. Can you explain please?   3/2/11
A. Code CC in Box 12 of the 2010 W-2 is required information the IRS wants in regard to HIRE Act. If you added to your payroll in 2010 by hiring a qualified employee and you’re planning to claim the Social Security payroll tax exemption through the HIRE Act, you need to report wage information in this space on the W-2. For more information on the W-2 reporting of this information, read the training article “Payroll Mystery Solved: Code CC in Box 12 of the W-2.”

Q. I just added an employee to my payroll who may qualify me to receive the Work Opportunity Tax Credit (WOTC). Can you get me up to speed?   2/25/11
A. The Work Opportunity Tax Credit was due to expire, but the credit has been extended for 2011 to encourage employers to hire from groups that are difficult to employ. If you plan on taking this credit, note that the specific qualifying groups have changed from previous years. You have to fill out specific forms and follow a strict 28-day timeline. For more information, read the training article “Payroll Professionals: Work Opportunity Tax Credit Stays for 2011.”

Q. Where can I find the federal payroll tax withholding tables?   2/23/11
A. Employers can find the tax tables and many other valuable payroll resources in the 2011 Circular E Employer’s Tax Guide, the free payroll tax withholding guide distributed to all employers. For more information and a link to the online version of the guide, read the original training article "2011 Circular E Answers Your Payroll Questions."

Q. Why is the IRS delaying some tax returns such as the 941 payroll tax return?   2/21/11
A. As of Feb. 14, the IRS started accepting 1040s that had been delayed, but they are still making changes to the Form 941 payroll tax return and other business tax forms as a result of the HIRE Act. Employers can’t file Form 941 for their first quarter 2011 payroll taxes until the IRS announces that the updated form is available to employers. For more information and a list of forms affected by this delay, read the training article “IRS Now Accepts 1040s; Payroll, Other Tax Forms Delayed.”

Q. Are you taking advantage of possible benefits from the HIRE Act?    2/17/11
A. If you added to your employee payroll in 2010, don’t miss out on two tax benefits for qualified employers through the HIRE Act. Although you may need to dig through your payroll files for information, it may be well worth your time to see if your business qualifies for tax savings. The Act offered qualified employers a payroll tax exemption for 2010 for meeting specific guidelines and a HIRE retention credit for retaining an employee for 12 months. For definitions of terms, applicable dates, and instructions, read the original training article “Adding Employees to Payroll Offers Tax Benefits to Businesses.”

Q. Why does my employee payroll seem different this year?   2/16/11
A. Your employees may be questioning why their paycheck amounts have changed from 2010. Recent tax changes are putting a little more money in the pockets of most wage-earners, but the expiration of a tax credit and new payroll tax withholding tables are slightly offsetting the effect of the tax changes. Your employees may have noticed the ending of the “advance” feature of the Earned Income Tax Credit program, which may affect their pay. If you’d like to know more, read the training article “A Recap of Recent Tax Changes Affecting Payroll.”

Q. I’d like to offer an internship to a student from the local college. Are there any rules I need to know about that?   12/3/10
A. If you’re thinking of offering an unpaid internship to a student instead of adding them to your payroll, be careful. The U.S. Dept. of Labor is concerned about the growing practice of companies offering lengthy unpaid internships that aren’t relevant to the student’s education. If you want to offer unpaid internships, you must first determine whether your interns are trainees or technically employees you should add to your payroll. The Dept. of Labor has established a six-part test for companies who offer unpaid internships. To find out more, read the training article “Internships: To Pay or Not to Pay?”

Q. I’m confused about when I have to start including the cost of my employees’ health insurance on their W-2s. Can you clear this up for me?    10/14/10
A. For 2011, employers are getting a break on reporting the cost of their employees’ health insurance on their employee W-2s. The IRS recognizes that employers need more time to prepare their payroll systems for this change. The IRS also emphasizes that the employee’s health benefits will not be taxed; this reporting requirement is for information purposes only. For more information on the Affordable Care Act and how it will affect your payroll, read the training article “W-2 Health Cost Reporting Delayed One Year.”

Q. How do I know what the rules are for payroll?   10/13/10
It’s important to know what the rules are so you don’t break them. The Dept. of Labor has given employees a new tool for turning in their employers for suspected payroll violations. The “We Can Help” program now gives employees a confidential phone line to root out employers who violate wage and overtime laws. Read the training article “The DOL Can ‘Help’ Employees Report Payroll Violations” to make sure your payroll methods are in compliance with the law. The article gives an overview of payroll record-keeping requirements and links to minimum wage laws and payroll requirements for every state.

Q. What has happened to the W-5 form for 2011?   9/20/10
If anyone on your payroll is asking about the W-5, you can tell them the form no longer exists. According to the Internal Revenue Service, Form W-5 is now obsolete, due to the elimination of the “advance” part of the Earned Income Tax Credit program. For more information on the current status of EITC, read the original training article “No More Advance Earned Income Credit in 2011.”

Q. Does my business qualify for an income tax break under the Health Care Reform Act?   4/2/10
A. If you’re a small business owner providing health care for employees on your payroll, you may qualify for an income tax credit under the Health Care Reform Act of 2010. Qualifying businesses may receive the Credit for Small Business Employee Health Coverage Expenses if they meet certain criteria, including having fewer than 25 full-time equivalent (FTE) employees on their payroll; paying average wages of less than $50,000; and paying health premiums in a qualifying arrangement of not less than 50% of the premium costs. For more details and other rules, read the training article “IRS Explains the New Health Care Credit for Small Businesses.”

Q. What are some of the tax scams that taxpayers should avoid?   3/16/10
A. The IRS has published a list called the “Dirty Dozen” -- tax scams that all taxpayers should try to avoid at all cost, including phishing, hiding offshore accounts, filing false or misleading paperwork, as well as a scheme involving nontaxable Social Security benefits and exaggerated payroll withholding. For more details, read the training article "IRS’s 2010 Dirty Dozen.”

Q. Where can I find W-2s for employees on my payroll?   2/19/10
A. The IRS website is a great tool to answer your tax questions and offers great payroll resources for business owners, including sample copies of the W-2 you can download. But these copies are for information only -- if you actually file these downloaded W-2 forms with the Social Security Administration, you may risk possible fines. For more information on penalties and where to find the right forms to file, read the training article “Caution: Do Not File Downloaded IRS Forms with the SSA!”

Q. I have an employee on my payroll asking about the Earned Income Tax Credit, and I don’t know much about it. Where can I direct him for answers?    2/12/10
The Internal Revenue Service provides a tool on their website to help taxpayers find out if they’re eligible to receive the Earned Income Tax Credit, depending on their income, filing status, and other factors. For more information, read the training article “IRS Earned Income Tax Credit (EITC) Assistant Available Online.”

Q. I never received Form 941 in the mail. What’s going on?   7/8/11
A. Starting in 2011, the IRS stopped automatically sending out Form 941, the form employers use to report federal payroll tax deposits. For more information, read “Payroll Mystery Solved: Where in the World is Form 941?”

Q. Something has changed with my Federal Unemployment payroll tax rate, and I can’t figure it out. Can you explain?   6/30/11
A. As if payroll taxes aren’t confusing enough! The FUTA Surtax -- a special 0.2% rate that had been in effect since 1976 -- was allowed to expire on June 30, 2011. To find out more, read “FUTA Surtax Set to Expire, Adding Confusion for Payroll Managers.”

Q. Can you tell me what I have to keep and how long I have to keep it in terms of payroll and employment records?   6/15/11
A. The Internal Revenue Service has set clear guidelines for employers about payroll, payroll tax, and employment recordkeeping. For an overview, read “Payroll Tax Recordkeeping: IRS Requirements.”

Q. Employees got a payroll tax break this year. How about a payroll tax break for employers?   6/10/11
A. The White House has been discussing plans to offer employers a break on payroll taxes to help with the bumpy economy. For more information, read “Could a Payroll Tax Break Be in the Future for Employers?”

Q. I just discovered an error on my payroll taxes. What should I do?   5/19/11
A. The IRS provides a special form for correcting errors on your quarterly payroll tax reports. The agency has recently made some changes to the form. For updated information, read “ Use Form 941-X to Correct Payroll Tax Errors>.”

Q. Can you tell me more about adding seasonal employees to my payroll?    5/13/11
A. Good news -- as a seasonal business owner, you may only have to deal with payroll taxes during your months of operation, but you do have to notify the IRS properly. For more information and a link to Form 941, read the training article “Advantages of Running Payroll as a Seasonal Employer.”

Q. Now that I’m done paying my taxes, can I see where my hard-earned payroll taxes go?   4/19/11
A. You’re in luck -- the government has created a great tool -- a tax receipt -- to show taxpayers where their tax money goes to work in our nation. You can plug in figures from your own income tax return or use their illustration to learn about the funding of the federal tax budget. To find out more, read the training article “Find Out Where Your Federal Payroll Tax Dollars Are Going.”

Q. Why did I receive a notice from the IRS regarding the HIRE Act?   2/28/11
A. The HIRE Act offered a hiring incentive to certain employers, who could forgo paying the 6.2% Social Security payroll tax if they hired within a specific period. Through a computer glitch, the IRS sent out some erroneous letters to employers who added to their payroll through the HIRE Act. The letters warned employers of possible penalties for failure to deposit their payroll taxes in the first quarter. The IRS has since corrected their error. For more information, read the original training article “IRS Corrects Error Regarding HIRE Act, Payroll Tax Deposits.”

Q. How can I keep track of when my payroll taxes are due?   2/22/11
A. Employers, take advantage of the handy calendar the IRS produces each year for small business owners. The calendar will help you keep track of important dates so you don’t miss a payroll tax deadline, and it can answer your questions about business and payroll issues. For more information and an IRS link to the website, read the article “IRS Small Business Tax Calendar Helps With Payroll.”

Q. What is the tax filing deadline for 2011?   2/9/11
A. The IRS has moved the deadline for filing the annual 1040 to Monday, April 18, giving taxpayers a few more days to gather their information together. Business owners will also be glad to know that their deadline for payroll tax deposits and other business taxes normally due on April 15 has been extended until April 18. The extended deadline is due to a holiday celebrated in the District of Columbia that affects all federal business, and is only for 2011. For more information on the 2011 tax deadline and details on filing extensions, read the full article “Deadline for Personal and Payroll Taxes Extended.”

Q. Has your employee’s W-4 exemption from taxes expired?   2/8/11
A. The IRS allows certain taxpayers to claim exemption from federal withholding, but they must meet several conditions. W-4 forms are only good for one year, and the old forms expired on Feb. 16, 2011. If anyone on your payroll was receiving the exemption but failed to fill out new forms on time, you should revert back to the latest valid W-4 that had withholding until they give you a new one. For more instructions about the W-4, read the original article “W-4 Exemption Deadline Can Affect Your Payroll.”

Q. Can you tell me what’s happened with the Advance Earned Income Tax Credit Program?   1/13/11
A. The federal government has changed the Earned Income Tax Credit program, a federal program to help the working poor, and these changes have affected weekly payroll for some taxpayers. For 2011, the government eliminated the “advance” feature of the program that allowed taxpayers to receive their earned income credit spread out through the year in their paychecks. While taxpayers can still take the credit as a lump sum on their annual tax return, this change has caused some confusion for taxpayers and business owners running payroll. For more information on the EITC including government links, read the full article “A Quick Update for Employers on the Earned Income Tax Credit.”

Q. How do I make federal payroll tax deposits through EFTPS?   12/13/10
A. As of Jan. 1, 2011, American employers had to abandon their coupon books for federal payroll tax deposits and instead start using the Electronic Federal Tax Payment System (EFTPS). EFTPS can transfer payroll tax funds from employer’s bank accounts to the Treasury either online or by phone. Employers must activate their enrollment to start making payroll tax deposits via EFTPS. For more information, read the original article " Changes Ahead for Employers Making Federal Payroll Tax Deposits."

Q. I have all kinds of questions about the HIRE Act. Where can I find answers?   8/13/10
A. You’re not alone. The HIRE Act has resulted in many questions from payroll professionals, small business owners, and employees. In response, the IRS created Q & As that dealt with the payroll tax exemption, as well as the retention credit available to qualified employers who added to their payroll and retained the workers. For more information, read the training article “IRS Issues More HIRE Act FAQs.”

Q. I’m sitting down to do my taxes, and I need some background on the HIRE Act and how it can affect my payroll. Can you help?   3/24/10
A. President Obama signed the HIRE Act into law in March of 2010. The intent of the HIRE Act is to motivate employers to add to their payroll, particularly hiring employees who had been previously unemployed. There are several components of the HIRE Act; for more background info, read the training article "President Obama Signed into Law the HIRE Act" and related articles on this issue.

Q. Where can I find federal statistics on payroll tax collections such as Form 940?   3/18/10
A. The IRS can answer your statistical questions about unemployment and other payroll-related issues you need through the Data Book. The IRS Data Book, which is always introduced in the spring for the previous year, provides a wealth of information for taxpayers and a look at what the IRS is doing. The Data Book is available for order as a hard-copy, or you can find the most current info online. To learn more, read the article “IRS 2009 Data Book Released.”

Q. What about my older employees on my payroll -- do I have to withhold Social Security from their pay?   2/15/10
A. The short answer is yes. According to the Internal Revenue Service, even if you have an older employee on your payroll who is collecting Social Security, you still have to continue to deduct Social Security and Medicare taxes from their pay. For more information on this subject and links to the IRS rule, read the training article “Is Social Security Income Tax Withheld from Older Employee’s Pay?”

An employee on my payroll just asked me for yet another copy of his W-2. Can I charge him for it?   2/8/10
Actually, the IRS does permit you to charge your employees a fee for reissuing a W-2 statement. To find out more on how to reissue a W-2 for anyone on your payroll, read the training article “Instructions for When an Employee Asks for a New Copy of Their W-2.”

Q. Where can I find answers to some of the confusing payroll terms?
A. Whether you’re looking for a definition for courtesy withholding or you’re wondering what the acronym NACHA means, you can learn payroll terminology with Patriot Software’s Payroll Glossary.

Q. Help! I can’t find my PIN number to make my federal payroll tax deposit. What do I do?   6/18/11
A. If you lost your pin number, you can still make your payroll tax deposit in a timely manner -- by phone. For more information, read “I Lost My Pin for EFTPS Payroll Tax Deposits and Lived to Tell About It.”

Q. Are there any ways I can help my employees keep track of their hours worked for payroll?   6/17/11
A. The Dept. of Labor has created an smartphone app for employees to keep track of payroll hours -- perfect for employees who work off-site. Read “Payroll: The Dept. of Labor Has an App for That!” for more information.

Q. What can I do to prepare my business for a natural disaster?   6/8/11
A. Just as you should be prepared for emergencies at home, you should similarly prepare your business for a natural disaster, including making sure your payroll records and other business paperwork is in order. Read “Is Your Business Prepared for a Natural Disaster?” for important information.

Q. I need to understand more about the definition of an employee. Can you help?    5/27/11
A. The IRS has established guidelines to help employers understand who should be a bona fide employee on their payroll and who qualifies as an independent subcontractor. For more information, read the training article “Employees and Independent Contractors: What’s the Difference?”

Q. Can I allow the teenage daughter of one of my employees come to work this summer?    5/6/11
A. Maybe. The Dept. of Labor established very specific rules about teen workers in the Fair Labor Standards Act (FLSA). To make sure you’re in compliance, read “Brush Up on FLSA Rules Before Adding Teens to Payroll.”

Q. I’m looking for ways to really motivate the staff members on our payroll. Can you give any suggestions?   4/28/11
A. You’re right to be concerned about motivating your employees. To learn more about fostering a productive work environment, read “Best Ways to Engage Employees on Your Payroll.”

Q. I’m interested in trying out my payroll with a cloud provider. What do I need to know?   4/25/11
A. Moving to a cloud-based system may make good sense for your company, and many businesses are making similar moves. But before you dive in, it pays to be as well informed as possible. For more information, read “Switching Payroll, Other Systems to the Cloud? Points to Consider.”

Q. How do I make a new W-2 for an employee on my payroll?   2/8/11
A. Whether your employee misplaced the W-2 or ruined it, you can still replace it. So as not to confuse the IRS with possible duplicates, it’s important that you write the words “REISSUED STATEMENT” across a W-2 you reissue for anyone on your payroll. To find out more, read the training article “How to Reissue a W-2 for Employees on Your Payroll.”

Q. How can an employee claim exemption from federal payroll tax withholding?   2/8/11
A. If your employee didn’t have any payroll tax liability last year and they’re not expecting to pay taxes this year, they need to fill out a new W-4 and give it to you. You will enter the new data in your payroll software or other payroll program. Note that the W-4 form expires each year on February 15. Your employee will need to give you a new W-4 each year in order to claim exemption from federal payroll tax. For more information, read the training article “W-4 Exemption Can Affect Your Payroll.”

Q. How do I correct a wrong employee address on a W-2?   2/8/11
A. If you’ve already distributed W-2s to everyone on your payroll and your employee discovers an error, don’t worry. While you do have to correct the information, there are several easy fixes, including making a new W-2 and writing “REISSUED STATEMENT” on it. The most important point to remember -- don’t send the corrected copy to the Social Security Administration -- they may get confused and think it’s a duplicate. For more info, read the training article “Correcting W-2s for Employees on Your Payroll.”

Q. Why is payroll so complicated?   1/10/11
A. Payroll -- what you pay your employees -- isn’t as straightforward as it used to be. Gone are the days when you could easily handle payroll in your books. These days, changing federal tax codes, state laws, and local taxes make it more difficult for small business owners to easily run payroll. To learn more about running payroll, read the training article “What is Payroll?”

Q. How do I time the transition to a new payroll provider?   12/8/10
A. If you’re planning to leave your current payroll provider, it’s wise to plan your transition so that it results in the least amount of work for you. Depending on the time of year you make the switch, you may have to enter historical payroll data in the new payroll software program to get up-to-date. The best time to make the transition to a new payroll provider is at the start of a new year or a new quarter. For more information, read the full article “When’s the Best Time to Switch Your Payroll Provider?”

Q. I have a new business. How do I learn to do payroll?   12/02/10
A. If you’re a new business owner and you’re planning to hire employees, you definitely will have to learn how to do payroll somehow. While there’s no crash course on the best payroll and bookkeeping practices, you don’t have to stumble around in the dark. Luckily there are some great resources out there to help you get up to speed on how to run payroll. For more info, read the training article “6 Great Ways to Learn Payroll.”

I just opened a business, and I hope to add a few employees to my payroll this year. How can I decide which payroll processing method will be best for my company?   11/29/10
As a new small business owner, you have plenty of decisions to make. Deciding which payroll method will fit your needs is probably near the top of your to-do list. Luckily, you have plenty of options, including using an outside accountant, choosing payroll software or doing your payroll by hand. To help you make the best decision, read the training article “Making Sense of Business Payroll Options.”

Q. Can you explain what “per diem” means?   9/13/10
A. Use the IRS per diem (“per day”) amount to repay your employees for business-related travel expenses as a nontaxable payroll reimbursement. If the per diem amount exceeds the IRS maximum per diem allowance, your employee’s travel may be subject to payroll tax. You can opt to use the IRS high-low per diem amounts, depending on the area of the country your employee travels. For information on reimbursing per diem travel expenses through your payroll, read the training article “Do You Pay Employees Per Diem?”

Q. Do I have to file my W-2/W-3s electronically with the Social Security Administration?   2/16/10
A. If you’re issuing more than 250 W-2 forms to employees on your payroll, the SSA requires you to electronically file Copy A of the W-2/W-3. Read the original training article “Who must File W2/W3 electronically with the SSA?” for a link to the SSA and specific instructions on handling W-2/W-3.

Q. What happens when a W-2 for an employee on your payroll is returned in the mail, and you don’t have the employee’s correct address?   2/15/10
A. According to the IRS, employers need to make a reasonable effort to reach employees on their payroll using the last known address. Employers are also required to keep a copy of the employee’s W-2s for their payroll records. For more information, read the full article “What to Do If Your Employee’s W-2 Form Comes Back Undeliverable?”