You asked and we listened! We're working hard to deliver some of the most commonly requested features for our QuickBooks Online Payroll customers.

Many of features we're currently working on will help you prepare for year-end. As features are released, we'll notify you by email and with an inbox message on the To Do Items list.

You can also check our QuickBooks Online Payroll: New and Updated Features list for updates.

When you run payroll and prepare taxes in 2011, you may notice quite a few changes to federal and state rates and regulations.

For example, effective January 1, 2011:

• (Affects most, but not all businesses.) The IRS will eliminate the paper coupon/paper check option and require you to submit electronic payments for all federal tax payments. This means that you won't use Form 8109 or Form 8109-B to send your payment to the agency. You can, however, enroll in Electronic Services and file your payments directly from QuickBooks Online Payroll. Alternatively, you can make your tax payments directly on the EFTPS website.
• AEIC (Advanced Earned Income Credit) will be eliminated so employers will no longer need to report advance payments of earned income credit. This results in a number changes to payroll forms where AEIC is currently reported.
  
  Employees who qualified for and received AEIC payments will need to claim this credit on their personal income tax returns.
• On December 17, 2010, President Obama signed into law the Tax Relief Act of 2010 (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010). It includes multiple items that will affect your payroll in 2011, such as a one-year, 2 percent reduction in the employee portion of Social Security tax, a two-year extension of all of the Bush tax rates currently in effect, and the expiration of the HIRE Act tax exemption.

Don't worry though, you can rely on QuickBooks Online Payroll to prepare the most current forms and stay compliant with the IRS and supported state regulations.

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There are several reports you can run in QuickBooks Online Payroll to get the information you need for your year-end tasks.

For example, if you are preparing your employees' W-2s manually, you can get most of the information you need with the following reports:

• The Employee Details report lets you verify employees' names, addresses, SSNs, and payroll tax and deduction setup.
• The Payroll Details report (summary by employee) shows totals for each pay item.
• The Payroll Tax & Wage Summary report shows you the taxable wages for each employee.

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Invalid or missing employee information, such as social security numbers (SSNs), is a common reason for rejected W-2 filings and could affect the paychecks you create in 2011. Be sure to review names, addresses, and SSNs for each employee (active, inactive, and terminated) who was paid during 2010. Tell me how

Have questions? Check our FAQs.

Confirm that all compensation and benefit types are correct and that the withholding for each is correct. Tell me more

Some employers restart the sick and vacation accrual at the beginning of the year, so the end of the year is a good time to review your employees' sick and vacation accrued balances and settings. Tell me how

If your employees are subject to local taxes, you need to review them before the end of the year. If they were set up as deductions in the new version of QuickBooks Online Payroll, contact Customer Support before you prepare your employees' W-2s so that they are reported properly on the employees' W-2 form. Tell me how

Invalid or missing company information can prevent you from filing important payroll tax forms. For example, if your EIN or your company address is incorrect or missing information, you must correct it before you prepare and submit your payroll tax forms. Tell me how

Make sure that you've recorded all payments to active, inactive, and terminated employees, including any handwritten and termination paychecks. Tell me more

Security limits help protect you from fraudulent Automated Clearing House (ACH) activities by capping the amount you can send by Direct Deposit. If you expect that your year-end payroll or bonus payroll run will be more than the current limit, you can request an increase.

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When you run a payroll that includes direct deposit paychecks, you need to be aware of the submission dates — especially around the holidays and year end. To avoid penalties and fees incurred by the agency and the payroll service, you need to make sure that wages dated for 2011 are received in 2011 and wages dated for 2010 are received in 2010.

If you give your employees year-end bonuses, you need to choose how you want to pay the bonus (with a bonus pay item on employee paychecks or with a bonus run) and then determine how the bonus it taxed. Tell me more

You must distribute W-2 forms to your employees by January 31.

You can print W-2s on either plain or blank, 3-part perforated paper — both are acceptable to the agency. You can purchase W-2 Kits (Laser W-2 Blank Perforated Paper and Envelope Kit) from the Intuit Marketplace website (www.intuitmarket.com/C43622) or by calling 800-548-0289. Tell me more

To ensure posting compliance with recent Labor Law State changes visit Compliance Web Site or call 1-800-713-9201.

Note that on January 1, 2011, minimum wage will increase in Arizona, Colorado, Florida, Ohio, Oregon and Vermont. This change requires mandatory replacement of state posters by all employers.

QuickBooks Online Payroll allows you to electronically file W-2s with the agency at no additional charge, even if you're not going to electronically file any other tax forms with us. On January 1, 2011, links will appear on your QuickBooks Online Payroll To Do list that enable you to file W-2s electronically with the agency and prepare and print W-2s for your employees. Tell me how

When you create your 940 form, we evaluate any SUI payments you've made throughout the year to determine whether you qualify for the discounted FUTA rate, so you need to record all of your SUI payments before you file Form 940. Tell me more

Some states require that you file wage and tax statements with the state agency. In QuickBooks Online Payroll, your state wage and tax information is submitted when you electronically file your annual state payroll tax forms. Tell me more

State agencies typically send out SUI rate change notices at the end of the year. If you do receive a notice of a SUI rate change, make sure that you enter your new rate in your QuickBooks Online Payroll account, effective January 1. Tell me how

Many employers receive notice of a tax rate or deposit schedule changes, effective January 1. If you do receive a notice of a new deposit schedule or filer type (941 or 944), make sure that you enter the information in your QuickBooks Online Payroll account effective January 1 to ensure that your tax deposits are not late. Tell me how

Though you can update your employees' withholding and filing status at any time, the end of the tax year is a good time for your employees to review their withholding and make any necessary changes. Tell me how