2024 Payroll and 1099 Information

By Will Morgan

December 28, 2023

Our Client Accounting Services team is pleased to offer crucial details to help you navigate the upcoming tax year. This 2024 Payroll Summary is a handy reference guide for payroll tax withholdings, deposit schedules, and more.

Take note of these important deadlines below.

Important Year-End 2023 Deadlines:
Last day to submit payroll and W-2 information to GC to ensure timely filing and avoid rush fees.1/24/2024
Last day to submit 1099 spreadsheet to GC to ensure timely filing and avoid rush fees.1/24/2024
Deadline to file all 4th quarter payroll reports and submit payroll tax payments.1/31/2024
Deadline to file W-2s to government agencies and furnish copy to employees.1/31/2024
Deadline to file 1099s to government agencies and furnish copy to recipients.1/31/2024

What’s New With 2023 Year-End?

1099s: Our revised 1099 worksheet for gathering and submitting vendor filing information can be downloaded here. Please complete the 1099 worksheet with all required information for 2023 and use this link to email us using SafeSend securely. We will file the 1099 forms based on the information you provide on the worksheet.

  • For information regarding who is required to file a 1099, how to extract information from QuickBooks, or guidance on filling out the GC 1099 worksheet, please visit the Client Resources page on our website.
  • You may submit additional 1099 worksheets; however, these will be processed and invoiced separately.

W-2s: Last year, we made a change regarding mailing recipient copies of 1099s directly to vendors to better serve you and to ensure you meet compliance requirements. This year, we are also mailing W-2 copies directly to employees. So, what does this mean for you?

  • Ensures you meet compliance requirements with e-filing and furnish copies to recipients by the deadline.
  • Saves time and money (plus postage fees) distributing copies to recipients.
  • Ensures you update employee information such as addresses before submitting information.
  • Provides electronic copies of W-2s via your Suralink portal for your records. Be sure to review electronic copies of W-2s as soon as they are available for any errors or changes.

Rush Fee: Please submit payroll records and the 1099 worksheet completed for filing by January 24, 2024, to ensure timely filing. If we receive information provided to us after January 24, 2024, we cannot guarantee your forms will be filed on time.

An additional rush processing fee of $150 per filing entity will apply. Please note that any reports filed after January 31, 2024, could result in further additional fees.

Federal Unemployment Tax Act (FUTA) Credit Reduction: California employers will be subject to an additional retroactive 0.6% FUTA tax for the entire 2023 calendar year. This results in a maximum of $42.00 additional tax per employee, limited to $7,000.00 of wages per employee.

The due date for any outstanding 2023 FUTA tax is January 31, 2024. Read more here about the FUTA Credit Reduction – California.

What’s New in 2024?

Payroll-Related Changes and Reminders: Below is a summary of changes to labor and employment laws. We have included additional details here.

  • For the 2024 payroll tax wage limits, rate withholding requirements changes, new retirement limits, and more, please see our 2024 Payroll Tax Summary.
  • Starting on January 1, 2024, the California Paid Sick Leave law requires employers to generally provide their employees with five days or 40 hours of paid sick leave.
  • State Disability Insurance (SDI): The rate increased to 1.10%, and the taxable wage limit and maximum withholdings were removed.
  • CalSavers: The program, by default, has an automatic increase feature that will increase the contribution amount by 1% each year unless an opt-out of alternate amount is elected.
  • Reporting of fringe benefits on W-2: Employers should review whether they have correctly included/reported the value of fringe benefits in their employees and (if applicable) 2% S-corporation shareholders’ taxable wages.

Sales Tax: Some sales tax rates have changed. For rate information, please visit the California Franchise Tax Board’s Sales and Use Tax Rates page.

Get in Touch

Take it from GC — we routinely work to streamline the payroll processes of businesses. Start the year off right by staying ahead of these important changes. We value the opportunity to serve you and look forward to continuing our partnership in the coming year. Please don’t hesitate to contact us for assistance.

Wishing you a successful transition into the new year and a prosperous 2024!