It is that time of the year when we have been busting our tails to make sure everything we have worked so hard for is perfectly aligned for the end of the year. Well, we have some good news for you, GetPayroll is here to make sure the end of the year is as smooth as possible. Below we have included a year-end checklist to make sure everything is in order for your business.
W-2 Review and Update
CHECK TO ENSURE ALL EMPLOYEE INFORMATION IS CORRECT.
Incorrect Social Security Numbers
Home Address Changes
1099 Review and Update
CHECK AND MAKE SURE ALL INDEPENDENT CONTRACTOR DATA FOR 1099S IS CORRECT.
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 W-2 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
W-2s 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
- GetPayroll will be closed Monday, January 1st. We will re-open on Tuesday, January 2nd.
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).
Third Party Sick Pay (3PSP) providers have until January 10 to send their 2017 information to employers.
Find out if your 3PSP provider is transmitting the W2s to the SSA or if they are simply providing the information to you to file.
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.
You should be receiving your 2018 state unemployment tax rate notice in the mail very soon. Please forward a copy of that notice to your payroll processors as the state agencies do not send us copies on your behalf.
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.
The 2017 rate for the FUTA tax credit is 2.1% on the first $7,000 of each employee’s taxable wages. This could be an additional $147 per employee.