We’re rounding the corner to the last few weeks of the year. Don’t leave your Year-End Payroll to the last minute. Even if you’re a Year-End Payroll veteran, it can still be easy to overlook crucial steps. Sitting idle could be a big mistake, make sure you take action.
What is Year-End Payroll?
Year-End Payroll involves a careful review and verification of all your financial information during the fourth quarter of the calendar year through the first quarter of the following year. Businesses are responsible for Year-End Payroll
Year-end processing ensures your company’s Payroll and taxes are compliant with current federal, state, and local regulations. If your organization isn’t compliant, it can lose money to fees and regulatory costs. Therefore, actively participating in Year-End Payroll processing saves you from future headaches and your organization loss in revenue.
As you close out your Payroll activities and set compensation and benefits for 2023, contact CorpStrat Payroll for a comprehensive check list to help you stay on track. To give you an idea, here are our top year end Payroll information to prepare and decisions to make:
1. Verify Tax Form Information
To reduce the possibility of printing W-2s/1099s with incorrect information, and to avoid penalties for missing or invalid data, please take the time to verify your employees’ critical information. Make sure the employee’s name matches their social security number, that their mailing addresses are up to date, and that the employee is coded to the correct state and local tax jurisdiction.
2. Review Employee Data During Open Enrollment
During this time, it is crucial to verify that employee deductions have been updated to payroll once open enrollment closes. If you are utilizing our benefits solution, we have several reports available to assist you in comparing your data. Regardless of your renewal date, year-end is a great time to review all employee pay data, including deductions. Please contact email@example.com if you find any discrepancies.
3. Set-up Bonus Payrolls
If you are planning a bonus payroll this year, please email firstname.lastname@example.org as we will be able to help you determine when you should submit your payroll based upon the total amount of the payroll and the check date. It is always best if you can submit your bonus payroll at least 5 days BEFORE the check date to ensure timely processing of direct deposits and taxes.
4. Add Fringe Benefits
Don’t forget to record any taxable fringe benefits by the end of the year. Email Payroll@corpstrat.com and we can answer any questions you have on this topic.
5. ACA Reporting
Employers with 50 or more full-time equivalents (FTE) are required to complete the mandatory ACA reporting using IRS forms 1094-c and 1095-C. Are you prepared? Remember that 12/23 is the deadline to provide us with this information.
6. Submit Year End Form Amendments, Changes, and Reprints
1/03/2022 by 12 PM PST is the last day to submit 2021 adjustments to ensure accurate filings. Any 2022 adjustment requested after 01/03/2022 will be subject to amendment billing. Please send any questions to email@example.com.
7. Be Aware of Changes Going Into 2023
From Minimum Wage increases to changes in HSA Contribution Limits, so many things are changing in 2023. Contact your CorpStrat Payroll representative to make sure you avoid costly mistakes by missing any of these key changes.
This is just the tip of the iceberg. If there’s something you’re not sure about, reach out to your CorpStrat Payroll account manager or email us at firstname.lastname@example.org