2009 YEAR-END INFORMATION

DON'T FORGET THE FIRST STEP IN YOUR END-OF-YEAR TASKS: Set up your 2010 G/L periods and Payroll weeks - you can set them up now; you don't have to wait for your year-end update!

Year-End Changes

Innovative has reviewed 2009 tax return information to determine how changes will affect the year-end portion of your Payroll and Accounting systems. This year:

1099

The IRS changes involve fields that previously were left blank but now must contain zeroes. Innovative made behind-the-scenes modifications to the 1099 electronic file to meet the IRS mandates. No changes were made to the 1099 MISC and 1099 INT forms.

T-4

Canada now requires you to file T-4 forms electronically if you are filing 50 or more T-4 forms. IES changes to accommodate this requirement have been made on a customer-by-customer basis.

W-2

While there are 1099 and T-4 changes, there are no changes to the W-2 forms or electronic files.

Year-End Documentation

To help you meet your company's year-end needs, the following documents have been posted on our Customer Resources Site:

• Year-End Checklist
• Set Up GL Periods & Payroll Weeks Quick Reference Guide
• Year-End FAQs
• Year End 2009 What's New & PTFs
• Updated Year-End Processing User's Guide
• Transfer Instructions
• Sample Forms (These forms are for example only and cannot be printed for use in year-end processes.)
• IES Compatible Tax Forms (for ordering)
• Year-End Pricing Structure

REMINDER - Electronic Filing

Please remember that if you are filing 250 or more W-2 and/or 1099 forms, the forms must be submitted electronically. Filing requirements can be reviewed on the Social Security Administration's website at www.ssa.gov/employer and the IRS website at www.irs.gov.

Also, for 2009, Canadian T-4 forms must be filed electronically if you have more than 50 forms.