Your Year-End To-Do Checklist for All Things Payroll
It's that time again. The dreaded year-end. Doing payroll tasks doesn't help any either. We want to make it at least a little less painful! Here is our year-end checklist for all things payroll.
W-2 Review and Update
Check to ensure all employee information is correct.
- Name Changes
- Incorrect Social Security Numbers
- Home Address Changes
1099 Review and Update
Check and make sure all independent contractor data for 1099s is correct.
- Name Changes
- Incorrect Social Security Numbers or EIN Numbers
- Business Address Changes
Order Enough W-2 and 1099 Forms
- If you have not outsourced your payroll make sure you have ordered enough W2 and 1099 forms and envelopes.
- Remember, starting this year W-2s have to be submitted to the government by January 31st.
- If you have outsourced make sure your employees know how and where to download there W2s and your contractors their 1099s.
Voided Check Processing
- Process any voided checks that have been accumulating during the year.
- Once you file the fourth quarter and year end reports it will be difficult and expensive
Verify Your State Unemployment Rate and/or Disability Rate
- If they are wrong update them and run a correcting payroll.
Run Any Bonus Payroll
- Run your bonus payrolls with a check date in the current year.
- Record any payments made to employees or gifts that are deemed compensation before or with the last payroll.
Review Any Fringe Benefits With Your Accountant
Particularly if it is considered new this year to ensure they have been taxed properly.
Cafeteria Plan Documentation
- Make sure you have your documents in your files for any cafeteria plan (Section 125) benefits that you offer. It may be difficult to get them if you get audited several years from now.
Plan Your Holiday Payroll
Make sure you get the last payroll into the tax year you want it in.
Third Party Sick Pay Information
- If you have third party sick pay retrieve and record the information.
- You are required to make it part of your quarterly filings and in the employee’s W2s (in many situations).
Current Year Tax Tables
- If you don’t outsource payroll make sure that you have current year tax tables in place.
- If not, update them and run a correcting payroll.
Filing Date Change for 2017
- This year you must file W-2s with the federal government by the 31st of JANUARY, not the end of February or March as you could in previous years.
California Business Owners: Don't forget this one extra to-do on your list. Remember, we're just the messenger.
California and FUTA Credit Changes
- If you are in California make sure you understand the implication of the FUTA credit reduction for your state and what extra FUTA tax you are going to have to pay.
- Not sure what this is? Read our blog post about it.