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Other Tax Responsibilities

Respond to Unemployment Claim Forms

Policy: 

When an employee files for unemployment compensation from the State Department of Labor, the State Department of Labor sends an Unemployment Insurance Request for Information form to the employer at F/EA’s address. The form requests information to be verified or completed and returned to the State Department of Labor by the due date listed. The due date is usually within 12 days of the form’s mailing date. 

The F/EA <<Staff Title>> reviews the form, collects requested information, verifies listed information, copies and returns the form to the State Department of Labor by the due date. The <<Staff Title>> contacts the participant or representative to collect any information requested on the notification form that F/EA does not have.
 
Due to tight deadlines required by the Unemployment Insurance Request for Information form, F/EA staff process forms daily.
Procedure: 

 

  1. All Unemployment Insurance Request for Information forms are date stamped upon receipt
  2. <<Staff Title>> (or assigned staff) collects  Unemployment Insurance Request for Information forms from <<Insert location where forms are stored as they are received>>
  3. Staff logs in to Payroll System
    • Enter username and password
  4. First verify that the workers listed in section 2 of the Unemployment Insurance Request for Information is actually working for the participant
    • Search for the employer listed on the form by last name in Payroll System
    • After identifying the employer, write the participant’s company number on the Request for Information form
  5. See if the participant has submitted a Termination Form for any workers
    • If so, identify the Termination Form for the workers listed on the Unemployment Insurance Request form
    • Review the Termination Form for the workers to collect information for the Unemployment Insurance Request Form
    • Fill in the appropriate reason for the reason that the workers is no longer working for the participant
    • If there is not a Termination Form or the information is not provided on the Termination Form, go to the next step
    • Call the participant or representative and ask the participant or representative why the workers is no longer working for the participant and what the workers’s last date of work was
    • Record the information the Termination information in the Payroll System
    • Complete the Request for Information form with the information collected from the participant or representative
    • If the participant or representative cannot be reached, complete the section on why the workers was terminated with “quit”
  1. If a Termination Form has not been entered into Payroll System, the participant did not notify F/EA upon terminating the workers
    • This is common
  2. Verify that the workers works for the participant and the dates the workers worked for the participant by going to the Payroll System
  • All timesheets for the participant will be listed with the workers’s name

  8.  Find the workers listed in Section 2 of Request for Information form and their first start date

  9.  Enter the first start date in the appropriate section on the form

 10. Find that workers’s last end date worked

 11. Enter the last end date in the appropriate section on the form

 12. Verify the workers’s wages for the appropriate section of the Request for Information form

  • <<Enter process to run a report from the Payroll System to get this data as necessary>>
  • Verify that the wage amounts for the workers match those listed on the Request for Information report
  • Perform this process for each quarter
  • If any corrections are required, enter the correct amount on the Request for Information report
  • Scan the completed report to the participant’s file
  • The report is saved for a minimum of 7 years per File Retention Policy

 13. Fax the completed report to the fax number listed on the form

 14. Within a few weeks, F/EA will get a letter stating that the workers has or has not been granted Unemployment Compensation

 15. <<Staff Title>> or assigned staff sends a copy of the letter to the participant

 16. Scan a copy of the letter to the participant’s file on the X drive

Internal Controls: 

The internal controls used by F/EA to monitor this process establish responsibility, segregate duties, document procedures and ensure independent internal verification.

  1. All State Deparment of Labor Unemployment Insurance Request for Information forms are date stamped upon receipt
  2. The <<Staff Title>>, who is not responsible for payroll duties nor for communicating with consumers, representatives or workers as part of normal duties, is responsible for collecting and verifying information for the Unemployment Insurance Request for Information
  3. The <<Staff Title>> verifies all information requested by Request for Information form in F/EA payroll systems
  4. All systems are password protected
    • Only staff with responsibility for certain payroll responsibilities have password access to systems
  5. The Determination of Unemployment Compensation letter is scanned and saved for a minimum of 7 years per the File Retention Policy.

Respond to Social Security Request for Information Forms

Policy: 

Periodically, Social Security Administration Field Offices will request wage information about workers who work for consumers. These requests are mailed to the participant’s attention at the F/EA address. F/EA is responsible for completing all information and returning completed forms to the Social Security Administration Field Office in the postage paid envelope. 

The F/EA <<Staff Title>> reviews the form, collects requested information, copies and returns the form in the postage paid enveloped addressed to the applicable Social Security Administration Field Office. The F/EA <<Staff Title>> contacts the participant or representative to collect any information requested on the notification form that F/EA does not have.
Procedure: 

 

  1. All Social Security Information Request forms are date stamped upon receipt
  2. <<Staff Title>> (or assigned staff) collects Social Security Information Request forms
  3. Staff logs in to Payroll System
  4. Enter username and password
  5. First verify that the workers listed actually worked for the employer listed
  6. Search for the employer listed on the form by last name in Payroll System
  7. After identifying the participant, write the participant’s ID number on the form
  8. Click on Cust. Service tab for the participant in Payroll System
  9. Review the files to see if any Termination Forms have been submitted for the participant
  10. If a “T” is entered on a note on the Cust. Service tab, the participant has submitted termination information for a workers, including the last date of work and the reason the workers is no longer working
  11. Review any notes with a “T”
  12. See if the note is for the workers listed on the form
  13.  If so, complete “Is the individual named above still employed…” with “Yes”
  14. Enter the last date worked in Section 1 of the form for “Last Date Worked”
  15. Enter the pay date for the corresponding work date for “Last Date Paid”
  16. If there is not a note with a “T” on the Cust. Service tab notes, call the participant or representative to inquire if the workers is still working for the participant
  17. If the workers is no longer working for the participant, record the information, coded with a capital “T” in the Customer Service notes tab
  18. Complete section 1 of the Request for Information form with the information collected from the participant or representative
  19. If the participant or representative cannot be reached, complete “Is the individual named above still employed…” with “No” and leave the “Last Date Worked” and “Last Date Paid” sections blank
  20. If “No” was checked in “Is the individual named above still employed…”, complete the rest of Section 1 of the form
  21. In “Current Rate of Pay”, enter the current workers Program day rate per hour
  22. Verify that the workers works for the participant and the dates the workers worked for the participant by reviewing timesheets
  23. Select “Search”
  24. Sort timesheet results by start date
  25. All timesheets for the participant will be listed with the workers’s name
  26. Find the workers listed on form and their last end date
  27. Enter the last end date after “Date Last Paid” on form
  28. After “How often paid” on form, write “biweekly”
  29. After “Rate of overtime pay” write current participant direction program overtime rate
  30. After “Average overtime pay per pay period” enter “0” <<unless overtime is permitted in the program, in which case enter the average overtime pay per pay period>>
  31. Leave “Please describe any changes you expect in any of the information shown above:” blank
  32. In Section 2, “Prior Wages”, collect the wages paid to the workers in each month
  33. <<Enter process to get this information>>
  34. After completing Section 2, add any additional information about the workers’s employment in Section 3: Additional Information
  35. <<Staff Title>> signs, dates and writes his/her title in Section 4
  36. <<Staff Title>> completes “Employer Name”, “Telephone” and “Fax” with contact information for the participant or representative
  37. The <<Staff Title>> scans the completed report and files it the participant file on <<File Path>>
  38. The <<Staff Title>> mails the completed report in the postage paid and addressed envelope provided with the form
Internal Controls: 

The internal controls used by F/EA to monitor this process establish responsibility, segregate duties, document procedures and ensure independent internal verification.

  1. The <<Staff Title>>, who is not responsible for payroll duties as part of normal duties, is responsible for collecting and verifying information for the Social Security Income Information Request Form
  2. The <<Staff Title>> verifies all information requested by Social Security Income Information Request Form in F/EA payroll systems
  3. All systems are password protected
    • Only staff with responsibility for certain payroll responsibilities have password access to systems
  4. The employer’s contact information is provided on the form.
    • The Social Security Administration verifies information with the employer as required

Process Garnishments, Levies and Holds for Workers

Policy: 

As garnishments, levies and holds are received by F/EA on behalf of participant employers, F/EA Payroll Department staff review the garnishment to ensure that the employer and workers are active in the program.

After verifying that the employer and workers on the garnishment are active in the program, Payroll Department staff copy applicable documents, maintain originals in a locked file drawer at F/EA and submit garnishment documents to reporting agent.
 
F/EA deducts garnishment amounts from applicable workers per garnishment instructions and state and federal garnishment laws. After deducting garnishment amounts from workers pay, F/EA creates checks payable to the garnishing agency. 
 
F/EA sends checks payable to garnishing agencies Payroll Department. Payroll Department reconciles checks to Payment Check Listing, completes garnishment vouchers, prints garnishment check pay stub and mails check and vouchers to garnishing agency per garnishment instructions.
 
All garnishment, levy and holds checks are mailed to the garnishing agency within one business day of the pay date on which the garnishment is processed.
Procedure: 

 

  1. When garnishment, levy or hold notices (hereafter referred to generally as “garnishments”) are received via mail, the notices are immediately date stamped and delivered to the Payroll Department
  2. <<Staff Title>> reviews each garnishment and confirms all information
  3. <<Staff Title>> first checks to see if the workers listed on the garnishment is still working for the participant
  4. Log in to Payroll System
  5. Enter user name and password
  6. Search for employer by last name listed for employer on garnishment, levy or hold
  7. After identifying participant in Payroll System, write participant number on garnishment form
  8. Check to see if the workers listed on the garnishment has been terminated
  9. If the workers has been terminated:
  10. Review the termination reason and date
  11. If the workers listed on the garnishment has been terminated, complete the garnishment request with a statement that the workers has been terminated and the date of termination
  12. Copy the garnishment
  13. Store a copy of the garnishment in the <<insert where completed garnishments are stored>>
  14. Mail the original garnishment to the garnishing agency with the statement that the workers has been terminated
  15. If the workers listed on the garnishment form has not been terminated, make a copy of the garnishment form
  16. Place the original garnishment in the locked <<insert where garnishments are stored>>
  17. Provide the copy of the garnishment to <<Staff Title>>
  18. <<Staff Title>> sets up deductions for workers per garnishment instructions and garnishment regulations in Payroll System
  • The garnishment notice states the amount to deduct from the workers’s pay and for how long

 19.  <<Insert Process to enter garnishment info into the Payroll System>>

 20.  Each time the workers in question is paid, the system makes a deduction per the garnishment set-up

 21.  Each day that payroll is processed, garnishment checks are cut for all deducted amounts

 22.  Each garnishment check is made payable to the agency as stated on the garnishment form

 23.  <<Staff Title>> reviews all printed garnishment checks to ensure all checks were received as appropriate

 24.  <<Insert process for <<Staff Title>> to ensure all garnishment checks were cut>>

 25.  <<Staff Title>> verifies that the name and amount on each garnishment check is correct

 26.  After verifying checks, <<Staff Title>> provides checks to <<Staff Title>>

 27.  <<Staff Title>> obtains the garnishment voucher for each check from the locked <<location>> file drawer

 28.  Copy voucher

 29.  <<Staff Title>> copies check to save with copy of voucher

 30.  <<Staff Title>> completes voucher with check information

 31.  <<Staff Title>> copies completed voucher and printed pay stub

 32.  Copy of voucher and pay stub are stored in workers folder in locked <<location>> file drawer

 33.  <<Staff Title>> mails completed voucher and original check to address on voucher

 34.  When a garnishment has been completely paid and no further payments are required, scan entire workers garnishment file and save to participant folder

 35.  Checks and vouchers are stored for a minimum of 7 years per File Retention Policy

Internal Controls: 

The internal controls used by F/EA to monitor this process establish responsibility, segregate duties, document procedures and ensure independent internal verification.

  1. Lead <<Staff Title>> reviews information on garnishment and compares it to information in payroll systems to ensure workers is working for participant
  2. Original garnishment is saved in locked F/EA  file drawer for a minimum of 7 years per File Retention Policy
  3. <<Staff Title>> verifies garnishment checks to verify accuracy of garnishment check
  4. <<Staff Title>> copies completed voucher and places voucher copy and pay stub in workers’s file folder in locked “Child Support and Levy” file drawer

Garnishment checks and vouchers are scanned and stored to a participant's scan file for a minimum of 7 yeras per File Retention Policy.

Stay Up to Date with Forms, Rules and Regulations

Policy: 

The <<Staff Title>> (or assigned staff member) checks each tax and other agencies for updated employee, employer and independent contract and forms at least monthly. New versions of the forms are integrated into the Employee Hire, Independent Contractor and Employer Start-Up packages and updated packages are distributed to Counselors and consumers as applicable.  Records are maintained showing that new forms were checked for; the record is saved in a control document and reviewed by <<Staff Title>>.

The <<Staff Title>> reviews and updates all tax forms, instructions and manuals related to Vendor Fiscal/Employer Agent services, household employers and domestic service workers.  The <<Staff Title>> seeks information on preparing, filing and depositing taxes on behalf of individual household employers at all relevant tax websites.

The <<F/EA Project Manager>> maintains contact with Program Administrator. The <<Staff Title>> is notified of any Program form, rule or regulations changes.  <<F/EA Project Manager>> is responsible to ensure that any new program form, rule or regulation changes are appropriately integrated into F/EA's policies, procedures and communication.
 
Each month, by the tenth day of the month, <<Staff Title>> reviews applicable tax agency websites for new employer reporting or other requirements. Policies and Procedures are adjusted per new regulatory requirements.
 
When new forms, rules or regulations are identified that will impact consumers, workers, independent contractors or Counselors, <<Staff Title>> integrates guidance about new policies and procedures into quarterly training conducted for Counselors. As applicable, Counselors, consumers and workers are notified in writing of changes to policies and procedures.
 
Policy and Procedure documents are updated per new forms, rules and regulations.
Procedure: 

 

  1. At least monthly, the <<Staff Title>> (or assigned staff member) goes to the website for the agency that produces each tax form in the workers hire, independent contractor and employer start-up packages.
  2. <<Staff Title>> (or assigned staff member) opens control document called Form_Verify saved here: <<File Path>>
  3. <<Staff Title>> obtains a copy of the current workers hire package, independent contractor package and employer start-up package from the Forms Control Binder. 
  • This is the current version of this package sent to consumers and the counselors.
Worker Hire Package
 
  1. IRS Form W-4
  2. Go to: http:// www.irs.gov/pub/irs-pdf/fw4.pdf
  3. Print a blank IRS Form W-4
  4. Compare the review date noted on the bottom right corner of the form printed from the website to the date printed on the form in the package.
  5. If date is different, replace the IRS Form W-4 in the package with the form printed from the website.
  • If the date is the same no change is required.
  • Enter date in Form_Verify control document that F/EA staff verified if there are any updates to the form
  • Enter comments in Form_Verify describing any changes to the form or “No change”
  1. USCIS Form I-9
  2. Go to: http:// www.uscis.gov/files/form/i-9.pdf
  3. Print a blank Form I-9
  4. Compare the review date noted on the top right corner of the form printed from the website to the date printed on the form in the package.
  5. If date is different, replace the Form I-9 in the package with the form printed from the website.
  6. If the date is the same no change is required.
  7. Enter date in Form_Verify control document that F/EA staff verified if there are any updates to the form
  8. Enter comments in Form_Verify describing any changes to the form or “No change”
  9. State Form W-4
  10. Go to http://
  11. Print a blank Form W-4
  12. Compare the review date noted on the top right corner of the form printed from the website to the date printed on the form in the package.
  13. If date is different, replace the Form W-4 in the package with the form printed from the website.
  • If the date is the same no change is required.
  • Enter date in Form_Verify control document that F/EA staff verified if there are any updates to the form
  • Enter comments in Form_Verify describing any changes to the form or “No change”

 19.  IRS Form W-5

 20.  Go to: http:// www.irs.gov/pub/irs-pdf/fw5.pdf

 21.  Print a blank Form IRS W-5

 22.  Compare the review date noted on the top left corner page 2 of the form printed from the website to the date printed on page 2 of the form in the package.

 23.  If date is different, replace the Form IRS W-5 in the package with the form printed from the website

  • If the date is the same no change is required
  • Enter date in Form_Verify control document that F/EA staff verified if there are any updates to the form
  • Enter comments in Form_Verify describing any changes to the form or “No change”

 24.  All forms in the Employee Hire Package have now been updated as applicable per tax agency websites

 25.  Print Form_Verify control document

 26.  Provide updated Employee Hire Package and completed Form_Verify control document to <<Staff Title>>

 27.  <<Staff Title>> reviews updated Employee Hire Package and Form_Verify control document for accuracy

 28.  If documents are deemed as accurate, <<Staff Title>> signs and dates Form_Verify control document

 29.  Make a copy of the updated Employee Hire package. 

 30.  File copy in the Forms control Forms Binder. 

 31.  Ensure updated Employee Hire Package is distributed to applicable websites, counselors, consumers and workers as needed.

 
F/EA Start-Up Package
  1. IRS Form SS-4
  2. Go to: http:// www.irs.gov/pub/irs-pdf/fss4.pdf
  3. Print a blank IRS Form SS-4.
  4. Compare the review date noted on the top left corner of the form printed from the website to the date printed on the form in the package
  5. If date is different, replace the IRS Form SS-4 in the package with the form printed from the website
  • If the date is the same no change is required
  • Enter date in Form_Verify control document that F/EA staff verified if there are any updates to the form
  • Enter comments in Updated_Form_Verify describing any changes to the form or “No change”

   6.  IRS Form 2678

   7.  Go to: http:// www.irs.gov/pub/irs-pdf/f2678.pdf 

   8.  Print a blank IRS Form 2678

   9.  Compare the review date noted on the top left corner of the form printed from the website to the date printed on the form in the package.

 10.  If date is different, replace the IRS Form 2678 in the package with the form printed from the website.

 11.  If the date is the same no change is required.

 12.  Enter date in Form_Verify control document that F/EA  staff verified if there are any updates to the form

 13.  Enter comments in Form_Verify describing any changes to the form or “No change”

 14.  IRS Form 8821

 15.  Go to: http:// www.irs.gov/pub/irs-pdf/f8821.pdf

 16. Print a blank IRS Form 8821

 17. Compare the review date noted on the top left corner of the form printed from the website to the date printed on the form in the package.

 18. If date is different, replace the IRS Form 8821 in the package with the form printed from the website.

  • If the date is the same no change is required.
  • Enter date in Form_Verify control document that F/EA staff verified if there are any updates to the form
  • Enter comments in Form_Verify describing any changes to the form or “No change”

 19.  State Department of Labor, Employer Status Report

 20.  Go to: http://

 21.  Print a blank Employer Status Report Form

 22.  Compare the review date noted on the bottom left corner of the form printed from the website to the date printed on the form in the package

 23.  If date is different, replace the Employer Status Report Form in the package with the form printed from the website.

  • If the date is the same no change is required.
  • Enter date in Form_Verify control document that F/EA staff verified if there are any updates to the form
  • Enter comments in Form_Verify describing any changes to the form or “No change"

 24.  State Department of Revenue Application for Registration

 25.  Go to: http://

 26.  Print a blank Employer Status Report Form

 27.  Compare the review date noted on the bottom left corner of the form printed from the website to the date printed on the form in the package

 28.  If date is different, replace the Employer Status Report Form in the package with the form printed from the website.

  • If the date is the same no change is required.
  • Enter date in Form_Verify control document that F/EA staff verified if there are any updates to the form
  • Enter comments in Form_Verify describing any changes to the form or “No change”

<<Insert process to check all forms in Employer Start-Up Package for program and state>>

  1. Make a copy of the updated Employee Hire package. 
  2. File copy in the Forms control Forms Binder. 
  3. Ensure updated Employee Hire Package is distributed to applicable websites, counselors, consumers and workers as needed.

<<Insert Process to check forms in Independent Contractor Package>>

 
Review Tax Agency Websites for Updated Payroll Rules and Regulations
  1. On a quarterly basis, <<Staff Title>> reviews applicable tax agency websites for updates to reporting rules and regulations that impact Household employers or payroll agents
  2. <<Staff Title>> reviews the following websites quarterly:
  3. Quarterly, the <<Staff Title>> reviews the IRS and Social Security Administration’s newsletter for small businesses: The SSA/IRS Reporter
  4. Quarterly, the <<Staff Title>> reviews the applicable website to review the state's New Hire Reporting rules and to ensure the F/EA is up to date with all rules.
  5. Quarterly, the <<Staff Title>> reviews the applicable website to review the state's Workers' Compensation rules and to ensure the F/EA is up to date with all rules.
  6. After reviewing each website, the <<Staff Title>> updates a record describing any changes to the form or tax, or the <<Staff Title>> denotes "no change."
    • <<Staff Title>> reports any updates to <<Staff Title>> and <<Staff Title>>
  7. Print the form control document
    • Provide updated F/EA Start Up Package and completed control document to <<Staff Title>>
  8. <<Staff Title>> reviews updated F/EA Start Up Package and Form_Verify control document for accuracy
    • <<Staff Title>> works with applicable F/EA departments to implement any required changes
Internal Controls: 

The internal controls used by F/EA to monitor this process establish responsibility, segregate duties, document procedures and ensure independent internal verification.

  1. <<Staff Title>> reviews forms for updates on tax agency websites quarterly.
  2. <<Staff Title>> reviews tax agency websites for updates to other rules and regulations.
  3. Updates are recorded in a control document.
  4. <<Staff Title>> reviews control document to ensure updates were checked for and forms updated timely and accurately.
  5. Customer Service Unit distributes updated forms to Counselors
  6. <<Staff Title>> trains Counselors on changes to forms, rules and regulations on a quarterly basis

Process and Respond to Tax Notices

Policy: 

F/EA processes, records and responds to notices from Federal, State and Local tax agencies that are received on behalf of employers. All notices are date stamped immediately upon receipt. 

Notices that may be received by F/EA on behalf of a participant include notices from State Department of Revenue (DOR), State Department of Labor (DOL) or the Internal Revenue Service notifying the participant of: a missing employer tax return, a missing employer tax payment, an insufficient employer tax payment, a tax payment in excess of tax due, a penalty for a late return or payment, or an incorrectly file tax return.
 
Each notice is researched on behalf of the employer. Often, the tax notice is issued in error.   Documentation supporting that the notice was issued in error must be collected and submitted to the tax agency to resolve the notice. The notice is logged in <<where is data stored>> and the data is used for reporting purposes as applicable.
 
If payments are required to resolve notices, requests for payment are submitted to the Payroll Department.  Payment is submitted to the agency that issued the notice with a copy of the notice. Copies of checks cut as payment to resolve notices are stored with notices. 
 
If payment is required to resolve a penalty assessed as a result of F/EA’s negligence, F/EA pays the penalty on behalf of employer from the F/EA's bank account that is not connected with program funds.
 
All notices and corresponding resolution information are scanned into the file. Scanned documents are stored for a minimum of 7 years per File Retention Policy.
Procedure: 

 

  1. Immediately upon receipt, tax notice is date stamped with the date the notice is received by F/EA
  2. Notices are delivered to <<Staff Title>>
  3.  <<Staff Title>> reviews notices within 1 business day and prioritizes notices with the nearest due date
  4. Within 5 days of receipt, <<Staff Title>> processes all received notices
  5. <<Staff Title>> finds participant no. for employer listed on notice
    1. <<Staff Title>> logs into Payroll System
  1. <<Staff Title>> obtains last check date for participant
  2. Write the last Payroll Check Date on the front of notice
  3. Run the report for the period listed on the notice
  4. Research if participant is no longer in the program
  5. <<Insert process to do this>>
  6. Search Customer Service and Payroll System to identify if notice was already processed and if a payment submitted (if applicable).
  7. Go to the <<File Path>>
  8. Open respective folder for notices (IRS, DOL, DOR)
  9. Open spreadsheet containing this notices
  10. Search for participant and notice and see if it was already processed.
  11. If already processed, confirm with respective agency to make sure the notice was sent in error, and/or disregard notice.
  12. If not processed yet, process notice.
  13. <<Insert process to research and respond to notices of each type>>
  14. Record notice information
  15. Open spreadsheet called <<>>saved at: <<File Path>>
  16. Record the following information from the notice:
  • Date notice received
  • Consumer number
  • Consumer name
  • Issue (on notice)
  • Period Due
  • Check date
  • Check number
  • Resolution
  • Amount of payment (if any)

 22.  Payroll Department issues checks and/or returns to applicable tax agency with copies of notices

 23.  Copies of checks and/or returns are submitted to <<Staff Title>>

 24.  Copies of checks and/or returns are attached to notices

 25.  Notices, checks and/or returns are scanned to participant scan file and saved for a minimum of 7 years per File Retention Policy

 26.  Any notices received for consumers who did not have payroll during the period on the notice:

 27.  Must have zero returns (as applicable per notice) completed by <<Staff Title>> or

 28.  Must have account numbers terminated (See chapter on Retiring and Revoking Account Numbers and Authorization)

 29.  If it is determined that the participant transferred to another F/EA, additional research is required

  • The F/EA to which the participant transferred is contacted as necessary
  • Notices and returns (as applicable) are scanned to participant scan file and saved for a minimum of 7 years per File Retention Policy

 

Internal Controls: 

The internal controls used by F/EA to monitor this process establish responsibility, segregate duties, document procedures and ensure independent internal verification.

  1. All notices are date stamped immediately upon receipt.
  2. <<Staff Title>> reviews notices within a single business day and prioritizes those with the nearest due dates.
  3. Each notice is researched individually.
  4. All notice information is recorded in a spreadsheet for reporting and documentation purposes.
  5. All notices and corresponding resolution documents (payments, returns, applicable research) are scanned to the participant’s scan file and stored for a minimum of 7 years.

Renew Tax Forms

Policy: 

Certain employer tax forms expire and must be renewed periodically.

F/EA renews IRS Form 8821, Tax Information Authorization, every 3 years.

F/EA renews any state Forms Power of Attorney as required by state rules.

Procedure: 

Renew IRS Form 8821

  1. When employers complete the employer start up package, they complete IRS Form 8821 (see Employer Start Up Packages).
  2. Form 8821 is completed then with an expiration date three years from when the Form is signed.
  3. F/EA records when Form 8821 expires when the original Form 8821 is completed.
  4. Annually prior to December 31, F/EA reviews expiration dates for all Forms 8821 and identifies those employers with Form 8821 that are expiring in the current calendar year.
  5. F/EA pre-populates IRS Forms 8821 for those employers.
  6. F/EA mails the pre-populated Forms 8821 with a letter explaining that the Form is expiring and must be signed by the employer and returned to the F/EA.
  7. F/EA tracks when Forms are sent and tracks that Forms are returned to the F/EA.
  8. F/EA tracks the expiration date of newly received Forms.
  9. Completed, renewed Forms 8821 are submitted to the IRS.
  10. F/EA follows up with any employers that do not return completed Forms 8821 to the F/EA.

Renew IRS Form 2848 <<include a procedure for this if you use Form 2848>>

  1. When employers complete the employer start up package, they complete IRS Form 2848 (see Employer Start Up Packages).
  2. Form 2848 is completed then with an expiration date one year from when the Form is signed.
  3. F/EA records when Form 2848 expires when the original Form 2848 is completed.
  4. Annually prior to December 31, F/EA reviews expiration dates for all Forms 2848 and identifies those employers with Form 2848 that are expiring in the current calendar year.
  5. F/EA pre-populates IRS Forms 2848 for those employers.
  6. F/EA mails the pre-populated Forms 2848 with a letter explaining that the Form is expiring and must be signed by the employer and returned to the F/EA.
  7. F/EA tracks when Forms are sent and tracks that Forms are returned to the F/EA.
  8. F/EA tracks the expiration date of newly received Forms.
  9. Completed, renewed Forms 2848 are submitted to the IRS.
  10. F/EA follows up with any employers that do not return completed Forms 2848 to the F/EA.

Renew State Forms <<include a procedure for this if you use state forms that expire>>

  1. When employers complete the employer start up package, they complete <<State Form>> (see Employer Start Up Packages).
  2. <<State Form>> is completed then with an expiration date one year from when the Form is signed.
  3. F/EA records when <<State Form>> expires when the original <<State Form>> is completed.
  4. Annually prior to December 31, F/EA reviews expiration dates for all <<State Form>> and identifies those employers with <<State Form>> that are expiring in the current calendar year.
  5. F/EA pre-populates <<State Forms>> for those employers.
  6. F/EA mails the pre-populated <<State Form>> with a letter explaining that the Form is expiring and must be signed by the employer and returned to the F/EA.
  7. F/EA tracks when Forms are sent and tracks that Forms are returned to the F/EA.
  8. F/EA tracks the expiration date of newly received Forms.
  9. Completed, renewed <<State Forms>> are submitted to the state.
  10. F/EA follows up with any employers that do not return completed <<State Forms>> to the F/EA.

 

Internal Controls: 
  1. <<Insert internal controls for tracking when a Form expires.>>
  2. <<Insert internal controls for identifying those forms that are expiring this calendar year.>>
  3. <<Insert internal controls for tracking that a form that must be renewed is received back from the employer.>>
  4. <<Insert internal controls for tracking that a renewal form is submitted to the IRS, or applicable state tax agency.>>