What is the difference between Common Paymaster and Common Pay Agent?
Common Paymaster refers to IRS rules that allow related corporations that employ the same individual to be considered a single employer for the purposes of calculating social security and FUTA tax.

Common Pay Agent rules allow employers with multiple federal employer identification numbers (FEINs) to consolidate tax returns and tax payments under one FEIN. The purpose of the Common Pay Agent program is to simplify employer tax reporting by providing for the consolidation of filings (i.e., form 941).

How do I qualify for the Common Pay Agent or Common Paymaster status?
Common Pay Agents must file one IRS form 2678, Employer Appointment of Agent, for each participating FEIN, which notifies the IRS of their intent to report employment taxes for multiple FEINs under one FEIN. Forms 2678 are subject to IRS approval.

Do the states accept the Common Paymaster or Common Pay Agent status?
Many SUI Agencies do not recognize this practice, in which case each corporation would be liable for reporting wages separately and paying SUI contributions on 100% of each employee's subject wages (up to the taxable limit).

If my company purchases a part or all of another company, can those employees receive one W-2?
The IRS has ruled that if a statutory merger or consolidation occurs during the calendar year, the continuing corporation is the same employer and taxpayer as the former corporation. The resultant corporation should furnish one Form W-2, Wage and Tax Statement, to each employee, showing as a total the wages paid in the year of the merger by one or both corporation. The resultant corporation should file a single Form W-3, Transmittal of Wage and Tax Statements, and the amount of income tax withheld by each corporation need not be separately identified.

What are the requirements for depositing for Third Party Sick Pay?
Third Party Sick Pay (3PSP) is a long-term disability insurance benefit that provides employees with partial or full wage benefit payment while on long-term medical leave. The payments are made to an employee through an insurance company, union plan or a state temporary disability plan instead of through their employer.

The 3PSP monies are taxable for FIT, Social Security, Medicare and FUTA. State and local taxability vary by jurisdiction.

Who issues the W-2s for Third Party Sick Pay employees?
Where liability for the employer's share of social security and Medicare taxes has been transferred by the third party to the employer, the third party does not furnish Forms W-2 to the recipients of sick pay. When the employer is given the sick-pay statement by the third party, the employer is responsible for including the sick pay on Forms W-2 furnished to the employees. The employer may include the sick pay in the Form W-2 that includes the employee's other wages or it may give the employee a separate Form W-2 that shows only the sick pay. An employer that receives a sick-pay statement from a third party is required to file Forms W-2 with respect to the sick pay by January 31 of the year following the year in which the sick pay was paid.

Where a third party does not follow the requirements for transferring liability for the FICA employer taxes to the employer for whom services are normally rendered, the third party must give each employee to whom it paid sick pay a Form W-2 by January 31 of the following year. The employer must also issue a Form W-2 to each employee and send copies to the SSA. The employee's Form W-2 from the employer will reflect the wages paid and taxes withheld by the employer, while the Form W-2 from the third party will reflect the sick-pay payments and taxes withheld by the third party.

What causes a FUTA Tentative Credit and what is its impact to my company?
A FUTA Tentative Credit is when the SUI wages are less than the FUTA wages. This would result in a charge for additional FUTA monies. However, there are some situations that are valid such as Washington State Government Employees.

My company is an employee leasing organization. Does each state permit my company to use our organization's federal and state employer identification numbers or are we required to use the employer's identification numbers?
Some states require the leased employees to be filed under the identification numbers of company they are working for; others allow the leasing companies IDs to be utilized. It depends by each state. Verification from the state should be obtained prior to making deposit or filings. Please consult your legal consul to determine how your organization is impacted by the state tax laws.

My account was debited twice for the same amount. I notified my CSR and requested a refund. How long will it take for my refund to be received?
Refund requests received in The Tax/Financial Services Center before 10:30am (PST) are processed the same day, allowing clients to receive their funds the following business day.

I have submitted a rate change after I have passed the last payroll, lowering the rate for the quarter, when will I see the recalculation?
The receiving Region TSC must notify Tax/Financial Services Center to update the override rate and do a tax activity so the recalculation can occur.

How do I amend an annual reconciliation for a period in which I cannot go back into my system to produce the W2's. Can ADP reproduce the W2's?
If we receive all of the necessary information regarding the corrections, the Tax/Financial Services Center will reproduce the W2's in question.

The tax agency has indicated they did not receive a copy of the tax return and check for the period in question. Can you recreate the return, get a copy of the check, and fax it to the agency?
Yes, the Tax/Financial Services Center can contact the agent and will order the check from Central Files, recreate the return and fax it to them. In most cases, the return we recreate and the copy of the check will usually resolve the account.

I believe a tracer response is invalid. Will the Tax/Financial Services Center review the original response and resubmit a more detailed response to resolve the tracer?
The Tax/Financial Services Center will gladly review and revise the inquiry response to include additional information provided by the Region or Client.

I received my Tax Verification Letter and have decided to file my tax returns for the quarter which just ended. How can this request be accomplished?
This request can be accomplished by submitting a letter to the local Client Service Representative requesting ADP to relinquish filing responsibility back to the client. The CSR working with the tax service representative will submit a request to downgrade tax filing responsibility to the Tax/Financial Services Center. As a result, the Tax/Financial Services Center will not file the tax returns and the client will be responsible for filing all tax returns and any pending deposits.

My company did not submit a FUTA deposit believing that ADP was responsible. What do I need to supply to The Tax/Financial Services Center to make the deposit?
Contact your local client service representative to request that ADP charge your account and submit the FUTA deposit.