Useful Tips for your Payroll Year-End

posted in: Payroll Basics, What's Happening | 0

 

mt-alfano-1For all payroll administrators, payroll year end is a depressing and laborious time. This last period of the year is for bunch of tax, reporting, compliance and communication problems that requires solutions. By 31 of January, 2017, all employers are required to file W-2 forms with the (SSA) Social Security Administration as well as any 1099 and 1095 forms with the Internal Revenue Service.

The process is so crucial that you have to set a good framework to manage the process. By doing so, you can avoid committing payroll mistakes and compliance issues and getting penalties, extra tasks and discouraged employees. Read the following tips and learn how to do things in the right way.

  • In working with your year-end reports, it’s important to work with the HR, IT, payroll and other business areas that can contribute to the making and distribution of W-2 for employees.
  • Prepare a timeline of the new year’s first payroll and the old year’s last payroll. Then, work with other payroll plans.
  • Check your payroll software and ensure that the most recent updates are installed to consider the recent changes as you work with year-end payroll.
  • Identify the classification of taxability of different things as fringe benefits, deferred compensation, third-party sick pay, group term life insurance and long-term disability.
  • Take a review of the stored requirements intended for exempt and nonexempt employees which is under the Fair Labor Standards Act. FLSA is the federal law about the required minimum wage and overtime responsibilities.
  • Create a complete checklist of year-end payroll that contains the entire number of necessary activities to do and the time you need to complete them.
  • You have to verify the accuracy of the employee’s information on file such as addresses and social security numbers in making and distributing W-2s.
  • All voided and manual checks must be processed and any employee’s checks that are not issued through your regular payroll process have to be put into record. Also, don’t forget to pay your employees’ tax liabilities before the new year starts.

 

Here’s to helping you better understand what’s in your pocket.

Until next time.

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