Get ready because here it comes…Year End! October 3rd, 2016
December will be here before you know it. How prepared are you to finish out the year? Remembering items like auto fringes, bonus payrolls, address changes and third party sick pay are things to start working on now.
In preparation for closing out the year with your payroll data, we have prepared a general checklist to assist you in the planning:
- Review upcoming Holidays- Do they conflict with any pay date scheduled or bank closings?
- Meet with staff to discuss increased work hours to meet your business holiday needs
- Notify all employees to review their W-4 status. All employees claiming Exempt for this year must complete a new W-4 for 2012 on or before February 15, 2012
- Audit proof your business! Make sure that you have I-9s on ALL employees, even ownership using the most current I-9 form which can be printed from www.irs.gov website. Valid identification should be presented to you by each employee where an employer can safely sign the bottom of the I-9 as recognition of employee proper identification.
- Review vacation days with staff over the next few months in order to optimize down time for your business.
- Coordinate early business closures with your staff. Also advise your payroll Customer Service Representative of any changes to input day or paydate. Please keep in mind that if bank holidays are on or near your paydate, you will need to submit payroll a day earlier than normal.
- Meet with your accountant to update your business income and expenses year to date. Chances are some year end planning strategies may need to occur. Make sure you have receipts for expenses paid followed up by bank statements showing activity in your business checking account. Keep your documents used to prepare your tax returns for at least three years. Protect them in case of an audit. Since the IRS has had lower tax revenues it has stepped up enforcement efforts. Thorough record keeping will help you prepare in the event of an audit along with proper employee documentation and payroll records.
- After you have reviewed your employee documentation make sure all employee addresses are up to date with ACCURATE social security numbers. Your payroll vendor can provide an Active and Inactive employee roster that will show addresses, etc. for your review. Get your postage amounts ready for mailing employee W2s by January 31, 2012. Make sure you have a plan for employees requesting a duplicate W2 and any associated employee charges for the reprint.
- Review your Third Party Sick pay totals for any employee(s) receiving short or long term disability benefits during the year. Make sure these amounts have been reported to payroll and that your insurance provider is currently sending quarterly reports along with an annual reconciliation. Quarterly reports should be sent to payroll upon receipt. Most annual reconciliation reports will be provided in January.