reader

LKM Technology Memo

As you may or may not be aware, as of October 1, 2015 businesses and Credit card companies need to switch to the new Chip Compliant Cards and Card readers in order to protect themselves from losses incurred by credit card fraud. These new cards will essentially talk with the issuing bank to ensure that the card itself is a real card issued by that bank.

The move to Smart Cards is being done to bring the U.S. into sync with the rest of the world. This move also shifts the liability of the risk of loss from the issuing banks to YOU and YOUR processing company. Depending on who is the LEAST compliant will determine who holds the burden of loss. In other words, if you accept a credit cards on your old magnetic strip reader after October 1st and that card was fraudulent, you/your business will keep that lost sale on your books – no longer will the credit card company indemnify you for that loss.

So, if you haven’t already, you will need to purchase a new Credit Card EMV reader that will bring your Credit Card terminal into compliance with the new technology. So where do you get them?? Here’s a list. If I missed a system or service you are using, please let me know and I will be happy to research that EMV reader availability for you.

QuickBooks Desktop – Intuit will have their card reader for their merchant service system available in Sept – date unknown at this point. I will let you know as soon as this becomes available.

QuickBooks Point of Sale – An EMV reader is available for use with POS 2011, 2012 & 2013. This can be purchased online at http://quickbooks.intuit.com/pos-hardware/ You’d want the PIN Pad with Integrated Card Swipe3
Intuit will have new readers available sometime in Sept for use with POS 2015

• If you are using Square to process payments, They have this available now for $29.00 and I’ve provided the link below
https://squareup.com/shop/reader

• If you are using PhoneSwipe, these readers are NOT yet available. As of this morning, no target date is scheduled but they said they will be notifying each customer within the next month to tell them how they can get a new EMV compliant reader. They are aware of the Oct 1st deadline but are still working with a proto-type device. PhoneSwipe was also not sure if they would be providing this free of charge or if there would be a cost associated with this new reader.

If you have any additional questions, don’t hesitate to contact us here at LKM Accounting at (608) 239-4907

Update:  (08/25/2015)
Square has posted a “Reserve your Reader” site.  The cost of the new Device, which is very cool if I must say, is $49 but gets you ready for the next phase of pay methods – the “Tap and Go” method.  This Contactless method uses your phone device with Apple pay and  Chase Freedom (just to name a couple) and eliminates the need for Cash and Card.  Here’s the link to reserve your new updated reader device… Remember, you need to be ready for this by October 1st!

Here’s the Link to the Square site:  https://squareup.com/contactless-chip-reader/

 

Update:  (12/01/2015)

QuickBooks – What you should know:

  • Intuit is working with its partners to offer EMV-ready versions of QuickBooks Payments mobile, desktop and point of sale solutions, which work with QuickBooks GoPayment, QuickBooks for Desktop 2016, QuickBooks Online, and QuickBooks Point of Sale v12.
  • Intuit is extending the EMV liability shift by six months for its QuickBooks Payments customers to allow everyone more time to transition. If you are a QuickBooks Payments customer and unknowingly accept a counterfeit EMV card using your magnetic stripe reader, Intuit will assume your liability for the fraud until March 31, 2016.
  • Information on the new QuickBooks USB EMV Card Reader for use with Desktop 2016, QuickBooks Online, and QuickBooks Point of Sale v12, will be available soon.
    For more information on QuickBooks and EMV readers:   http://qbservices.net/faq-emv-chip-card-payment-technology/

PhoneSwipe:

  • Although PhoneSwipe has the EMV capable readers, the software for these is not yet active.  They expect everything to be functional by 1st Quarter 2016.  The readers will be contactless as well as swipe.

Update (05/12/2016)

Square reader is now available – check out their site for details on purchasing your card reader at:  https://squareup.com/contactless-chip-reader

Whats-Changed-on-Your-2012-W2-Forms

Tip 1- W-2’s

You are required to provide a W-2 to all employees, regardless of gross earnings, by January 31st. To aid in the accurate information on the W-2″s, send out a notice with your November checks and have your employees review the information on their check stubs – Name spelling, Address, Social Security number (if printed). If you don”t print the employees Social Security number on their checks, ask them to verify the information with you personally. Be sure that your employees information on their paycheck matches EXACTLY to their Social Security records. Not just the number, but the name must be exactly as it recorded with the Social Security Administration. When I was the Controller, I asked new employees to show their social security card to me (if not provided as documentation for the I-9 form) when they are hired. This way I knew, without a doubt, how the information on their payroll records should look. Should you have employees who get married during their employment, be sure they have reported their name change to you in a timely manner.

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TIP 2 – Vendor 1099-MISC Information Returns

Besides W-2″s, businesses are required to provide 1099-MISC”s to any person or business (with certain exceptions) that have been paid more than $600 during the calendar year by January 31st. Start now, by running vendor payment reports and isolating only those vendors that you know MAY need to receive this information tax return. The $600 target is just a starting point. From there you can eliminate Corporations (EXCEPT Legal and Health) from the list of vendors over the dollar criteria. If you haven”t already started to create a W-9 binder, start by sending out the W-9 forms to any vendor that you don”t have a form on file for. The reason you are starting now is that it will take you until December 31st to get these all back in to your vendors. Some of these vendors you may need to send out 2 or 3 reminder notices to get the information you need to provide those 1099 information returns. So don”t hesitate, believe me, you need to start this project now. If you”ve got a binder or folder with past years W-9 forms, review those forms against your payment list and see who you need to get a W-9 form from.

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TIP 3 – Leased Vehicles

An item that a lot of employers tend to forget about is Leased Vehicles. When vehicles are provided to employees for their use, you need to include a portion of the lease in the employees Gross wages as Fringe Benefits. Generally, this is based on the Fair Market value of the lease and the personal miles driven by the employee. The calculation of “how much” is not as easy as it may sound. There are several methods for determining how much to include in your employees wages. Consult IRS publication 15-B “Employers Guide to Fringe Benefits” for more information on this and other employee provided fringe benefits.