If you haven’t already, you will be receiving a letter from the Wisconsin Department of Workforce Development stating what your state unemployment insurance rate is for 2021. This rate changes annually for most businesses and needs to be updated in your payroll system. I have included an image example of what to watch for.
Failure to update your unemployment tax rate as of January 1 results in over/underpayments to the Wisconsin Department of Workforce Development and inaccurate returns. We recommend updating the rate after you run your last payroll in December to ensure it is in place for the first payroll in 2021. Updating it too soon will result in errors to your Quarter 4 reporting.
In addition, it is unlikely, but your federal and state filing frequencies may have changed. If the taxing authorities have changed your frequency, you will receive a written notification of the change. If you see anything like this, please forward to the person responsible for running your payroll or filing your tax returns (not income tax returns). This individual certainly will appreciate it!
For assistance with small business payroll or other bookkeeping services, contact us today.