Making Cents: 2023 Q1 newsletter

Changes made to Social Security’s Business Services Online

Effective Sept. 19, 2022, the registration process for Business Services Online (BSO) changed. After registering to use BSO or for any new BSO service, they will mail an activation code to complete the process. This includes those submitting W-2 and W-2C reports. To ensure your information is safe and secure, the activation code is MAILED to the business address registered with the IRS, usually received within two (2) weeks.

Wages can’t be entered using the BSO until you have entered the activation code to complete registration. See the helpful videos below for more info.

• How to register with BSO
• How to file W2 with BSO

We recommend any treasurer who’s been unsuccessful in retrieving the BSO activation code for their local by Jan. 31, 2023, to file forms W2/W3 with Tax Bandits for calendar year 2022 to expedite the process.

IRS encourages move from paper documents with e-filing

The page has turned on another year and the IRS has continued to move away from the old ways of paper forms to electronic filing of important documents for your locals.

Rather than download a PDF, printing it out and mailing it in, necessary forms can now be submitted electronically through an AUTHORIZED IRS e-filing provider. Tax Bandits is one such example of an online-only service endorsed by the SMART-TD Field Support Department.

Many quarterly and annual reports such as Forms 941, 941x, 940, 944, 990, 990EZ and 8868 can be submitted, saving some time for Local S&Ts. The cost for filing forms starts at $3.99, comparable to the cost of certified mail through the USPS.

Electronically filing these forms does add a couple layers to the process. Once a local treasurer sets up an e-filing account, the credentials for the account (user name and login password) becomes one of the pieces of information that must carry over during local leadership transitions as these documents need to be retained.

A second step is that once the form is filed and accepted, a copy of the acceptance letter needs to be sent along to the union via email. The documents should be sent to SMART-TD’s Local Support Department at localreports@group.smart-union.org.

Tips to quickly change addresses/responsible parties for EFTPS

The process to inform federal agencies such as the IRS and Social Security about a change of address or in the officer who’s in financially responsible could take weeks. However, if there’s a need to perform an urgent changeover to a local’s financial information, here are some tips on how to get a quicker turnaround on Form 8822-b:

1. Complete and sign Form 8822-b.
2. Call the IRS Business & Specialty Tax Line (800.829.4933) between 7 a.m.-7 p.m. EST. We recommend calling as close to 7 a.m. as possible to avoid long waits.
3. State, “I need to update the responsible party and address for a business so that deposits for payroll taxes that are due can be granted in EFTPS.”
4. At the top of your Form 8822-b, document the IRS agent’s name, ID # and the date and time of call. Most likely the IRS agent will request that you fax the Form 8822-b to them at the number they provide. (Faxzero.com is a website you can use to send a free fax. You will need to scan your signed Form 8822-b to your computer/phone as a PDF so you can send the fax.)
5. Then you will need to call the EFTPS customer service line at 1-800-555-4477.
6. State, “I just spoke with the IRS and faxed them an updated Form 8822-b. I need an EFTPS PIN sent to the updated address.”
7. Fax the same 8822-b (with info above on it), to EFTPS at 1-866-568-2490. This will update the address with EFTPS, and they will mail out a new PIN to your updated address.

Don’t sleep on member billed amounts!

Not keeping an eye on member billed changes and updating the payroll deductions of members can lead to problems later on.

The headache of a member calling in to ask about why money has been taken out after a change in their status is bad enough, but the problem also turns into a financial one if it goes undetected for a long period.

To stop such a scenario, be sure to review the changes when processing eBills in TD Connect in the middle of the month. There’s a report there that tells you any changes that are coming down the road.

Nobody likes when the books aren’t balanced — making it a habit to keep an eye on these changes can help the need to implement variances and makes sure the payroll deductions and billed amounts are all aligned.

Preparing the Treasurer’s Annual Report (TAR)

The Treasurer’s Annual Report (TAR) is required by the SMART Constitution to be presented to the membership and then filed at the start of the calendar year. Local trustees are to assemble early in the year to perform an annual audit of a Local’s finances and review the receipts and disbursements for the prior year before signing the report, which is then presented at the Local’s next meeting.

Copies of this multi-tiered report are filed and submitted to the SMART-TD offices before a March 31 deadline.
Local Treasurers use the WinStabs-NMR software to assemble the report that can tell the local trustees, membership as a whole and the SMART union what the Local’s fiscal outlook is and how well it is meeting SMART constitutional and federal requirements.

Information on the Local Toolbox page of the SMART-TD website can help you along in this process under the “Required Reports” header. These guides to completing the TAR include:

• TAR — Treasurer’s fillable explanations (PDF)
• Trustee Audit Guide (PDF)
• Wage & Reimbursed Expense documentation (PDF)
• Properly Recording Disbursements in Local Union Meeting Minutes (PDF)
• Local/LCA Budget Workbook (Microsoft Excel document download)
• How to pull EFTPS history (PDF)