Handling notices from the IRS or state agencies regarding your company’s withholding and unemployment tax accounts can often be managed through your Niural account. Here are some actions you can take:
- Updating Unemployment Tax Rate:
Make adjustments to your unemployment tax rate directly within Niural.
- Head to the Company Details section
- Click on Tax Setup
- Click on Edit on the State tax setup
- Update your unemployment tax rate
- Click on Save
- Modifying Federal Deposit Schedule:
If there's a need to change your federal deposit schedule, you can do so within Niural.
- Head to the Company Details section
- Click on Tax Setup
- Click on Edit on the State tax setup
- Update your Federal Deposit Schedule
- Click on Save
- Adjusting State Deposit Schedule:
Similarly, update your state deposit schedule through Niural.
- Head to the Company Details section
- Click on Tax Setup
- Click on Edit on the State tax setup
- Update your Federal Deposit Schedule
- Click on Save
Notices from these agencies aren't directly sent to Niural. Therefore, promptly reviewing and taking action upon receiving any agency notices is essential. You can maintain compliance and accurate tax filings by managing and updating settings within your Niural account.
Notices that should be reported to Niural
Here's a breakdown of steps to handle notices and identify their origin:
1. Determine Agency Source:
Check the notice header to identify whether it's from the IRS or a state agency. The agency name is typically listed at the top of the notice.
2. Verify Niural-Supported Agency:
Confirm if the tax agency is supported by Niural. Refer to Niural's list of supported agencies for verification.
3. Resolution Within Niural:
If the agency is supported by Niural, the resolution can be managed within the platform. However, if the agency isn't supported, handling the notice's resolution should be done outside of Niural.
4. Check Reporting Period with Niural:
Confirm Niural's involvement as your reporting agent during the specified tax period mentioned in the notice. Niural's authorization to file and pay on your behalf starts from the quarter when your first official check date with Niural occurs.
5. Contact Previous/Next Provider if Needed:
If the tax period falls before your initial check date with Niural or after your suspension/cancellation date, reach out to your previous or subsequent payroll provider for assistance specific to that time period.
Note: The "check date" refers to a distinct date separate from the pay period or the payroll processing date. Understanding these timelines is crucial for accurate assessment and resolution of notices.
6. Make sure to cross-reference the information listed on the notice with the details in your Niural account. Check for accuracy in various sections such as:
- Company Address
- Deposit Schedule
- Tax Rate
- Account ID/FEIN
- Company Name
7. If any discrepancies are found in your account information, it's essential that you update your information in Niural.
8. Next, understand the nature of the notice—whether it involves a rate change, deposit schedule modification, or penalties for lateness or missing payments. If the notice indicates an upcoming change to your deposit schedule or unemployment tax rate, you can make these changes within Niural on your own.
9. Should you encounter difficulties resolving the notice within Niural or remain uncertain about its nature, or if there's a missing payment or outstanding balance indicated, reach out to our tax specialists through https://help.niural.com/hc/en-us/requests/new.
Include the following information in your ticket,
- Which agency is the notice from?
If you are unsure of the agency, write “Unsure”.
-
What is the notice about?
Include the type of notice while reaching out to us.
- Missing or late payment
- Missing or late filing
- Credit listed or refund check
- Form filing schedule update
- Tax rate update
- E-filing or e-payment request
- CARES Act deferred taxes
- Not listed
- Which time period does the notice apply to?
Include the year of the notice and timeframe (,Q1, Q2, Q3, Q4).
- Upload the notice to the attachments section.
Niural's tax specialists will assist in researching the issue and determining the necessary steps to resolve it effectively. This ensures proper handling and resolution of the notice in compliance with tax regulations.
Common IRS Notices
Deposit schedule change
When the IRS alters your deposit schedule for Federal Income Tax, they'll notify you via a notice. It's important to note the effective date of this new schedule as timely tax deposits are necessary to prevent penalties and interest.
Refund
If your company has overpaid taxes, resulting in a credit owed to you, the following steps can help manage this situation:
IRS Notice Confirmation: Upon receiving a notice indicating an overpayment and a credit owed to your company, review it carefully for details.
IRS Inquiry: If unsure about the reason for the credit, consider reaching out to the IRS directly for additional information or clarification regarding the overpayment.
Reach out to Niural: Reach out to our support team with more information on the notice.
Refund Caution: Before requesting or cashing a refund check, ensure clarity regarding the overpayment to prevent any unintended actions. Accepting an overpayment refund in error could potentially lead to liabilities for penalties and interest if the refund needs to be repaid to the agency.
Amount Due
When you receive a notice indicating an amount due, here are steps you can take:
Contact the IRS: Reach out to the IRS for further details or to request additional information. You can also inquire about options like extensions or holding the account temporarily while waiting for assistance from Niural.
Reach out to Niural: Reach out to our support team with more information on the notice.
Handling Unemployment rate notices
Handling notices regarding changes in unemployment rates involves specific steps. Here’s a guide tailored to different state notices and how to update your Niural account accordingly:
1. California: Enter the UI Contribution Rate specified in the notice. Niural automatically adjusts ETT and SDI rates.
2. Colorado: Update with the Combined Rate mentioned in the notice.
3. Florida: Enter the Tax rate as a percentage (convert from decimal form) from Box 7 of the RT-20 notice.
4. Maryland: Input the Contribution Rate from the DLLR/DUI 61 notice.
5. Minnesota: Add the Tax Rate for New Employers and Base Rate to determine the Total UI Tax Rate.
6. New Jersey: For the Final Unemployment Experience Rate, use the percentage indicated as the Experience Rate in Niural. Enter the Final Disability Rate separately.
7. New York: Input the U.I Rate mentioned in the IA 97 notice; Niural calculates the re-employment service fund rate automatically.
8. North Carolina: Use the Tax Rate for the specified year mentioned in the NCUI 104 notice.
9. Pennsylvania: Enter the Total Contribution rate (convert from decimal form to percentage) listed in the C-657 notice.
10. Texas: Update with the Effective Tax Rate as specified in the C22U95(051012) notice.
11. Utah: Input the rate from BOX J in the DWS-UI Form 45 notice (convert from decimal form to percentage).
These specific instructions ensure accurate updates to your Niural account based on the state-specific notices you receive. If you encounter any complexities or need further assistance, Niural's support can help after following the initial steps outlined.
Handling Tax Deposit schedule notices
Notice regarding State or Local Withholding Tax Deposit Schedule
This notice serves to communicate a modification in your withholding tax deposit schedule along with its effective date, typically mentioned at the top of the notice.
For instance, the notice might indicate, "We've determined your new deposit schedule for the upcoming tax year."
- Issuing Agency:
This notice originates from the state or local tax agency responsible for collecting withholding income tax.
- Required Action:
Determine the revised withholding tax deposit frequency (e.g., semi-weekly, monthly, quarterly) and update this information within your Niural account.
Here are the steps to update your state or local tax deposit schedule in Niural:
1. Navigate to the Company Details section and select Tax Setup.
2. Click on Edit under the applicable state tax setup section.
3. Choose Edit next to “Deposit Schedule / Company Filing Status” under State Tax Setup.
Note: Changing from a less frequent to a more frequent tax deposit frequency (e.g., monthly to semi-weekly) after the effective date on the notice might incur penalties or interest for late payments directly to the agency.
4. Save your changes.
IRS Withholding Tax Deposit Schedule Notices:
Niural typically defaults to the faster semi-weekly schedule to prevent late payments, penalties, and tax delinquency notices. If you've requested monthly payments specifically, no action is necessary unless the IRS changes your schedule to semi-weekly. In that case:
If Niural was asked to deposit using the monthly schedule and the IRS changes it to semi-weekly, immediate action is necessary to prevent penalties and interest for late tax deposits. Contact us via the Support section of your account to address this change. Otherwise, any resulting penalties or interest will be the employer's responsibility to cover.
Handling notices related to agency filing and payment errors
Notices occasionally arise due to errors in filing or payments. If Niural has alerted you about unsuccessful attempts to file or make payments on your behalf, several factors might have caused this issue.
Regrettably, tax agencies often do not specify the exact reason(s) for the failed attempts. To resolve this, you'll need to directly contact the tax agency for further guidance. The contact details for your state agency can be found here.
Common reasons for failed filings or payment errors
Here are some common causes for failed filings or payment errors that you can discuss with the agency:
- Ensure the account is "active":
If your state account is inactive due to no ongoing payroll processing, take one of these actions:
- Close your account with the agency.
- Establish state-wide exemptions with Niural to avoid filings to an inactive account temporarily. Notify us via the Help section when hiring new employees in that state.
- Review the "effective date" on the account:
- Confirm that this date aligns with the first quarter's check date processed in Niural for that specific state.
- Verify account details in Niural:
- Check and update account numbers, company names, filing/mailing addresses, and FEINs in Niural to match agency records.
- Third Party Authorization (TPA) or Power of Attorney (PoA):
- Ensure Niural has the necessary TPA/PoA, effective on or before the concerned quarter's start date.
- Remove previous service providers:
- If a past provider is still listed as the reporting agent, this might obstruct Niural's filing attempts. Coordinate with the agency or prior provider to eliminate their access.
By addressing these potential issues and aligning Niural's records with agency requirements, you can resolve filing and payment discrepancies effectively.
Additional Information
1. Inactive Accounts:
An account might become inactive if no returns are filed, zero returns are consecutively filed, or it's in a future status, inactive until a specified date. Reactivation procedures vary by state, so discuss this with the agency.
2. Incorrect Effective Date:
The effective date should align with or precede the first date of the quarter for which Niural attempted filing and payment on your behalf.
3. Invalid Account Number:
The account number in Niural might not match the one issued by the state agency. Contact the agency to verify your account number and type. Update it in Niural if necessary, considering potential tax implications.
4. Mismatched Company Details:
Verify the company name and address with the agency and ensure they match Niural's records. Check Niural's Company Details to review entered information.
5. Mismatched FEIN:
Ensure the FEIN in Niural matches the one associated with your account per agency records. Review Niural's Tax Setup section and update the FEIN if needed, considering tax implications.
6. Incorrect TPA/PoA Effective Date:
Confirm with the agency that Niural's TPA has an effective date starting from the first day of the concerned quarter. Ensure Niural is authorized for filing and payment.
7. Previous Service Provider Listing:
If a past provider remains the reporting agent, it might hinder Niural's filing attempts. Work with the agency or prior provider to remove their access from the account.