TaxBandits Knowledge Base

Why do TaxBandits need YTD details?

If you have already processed payroll with some other payroll provider and would like to run payroll with TaxBandits, you must provide year-to-date (YTD) details for all employees. These YTD details are essential for accurately processing future pay stubs and generating Form W-2 for terminated employees.

Information Required:
Here are the conditions that you must be aware of while providing YTD details:

• Quarter end -  If you switch to TaxBandits at the end of the quarter. The employer must provide the YTD details of the last quarter, which is YTD values in the last month of the quarter.
  
  For example, if you run payroll with some other payroll provider and switch to TaxBandits at the end of the quarter, you must provide the ‘YTD details’ in the last quarter’s paystub. i.e.,  payroll details for the months of (July, August, and September - Quarter 3).  The employer needs to sum up all the earnings and withholding for those months to give TaxBandits the YTD totals of September 30.
  
  

• Mid of the quarter - If you switch to TaxBandits in the middle of the quarter, you must provide the year-to-date (YTD) value from the last pay stub of the last quarter. Additionally, include the  “current” value from each pay stub for the current quarter.
  
  Let’s consider an example: If you switch in mid of the quarter(November), you will need to provide the YTD details of the last quarter (i.e., Quarter 3 YTD details). Additionally, you must include each pay stub’s current total for the current quarter.