As the end of the year approaches, it is important to make sure that your payroll information is up to date and you are prepared to start the new year with any updates.
- Are all addresses of your employees up to date? Employees will be receiving their W-2’s in the mail in January and if an employee has moved during the year, make sure you have notified your payroll processor.
- Are you paying year-end bonuses? Make sure those amounts are communicated to your payroll processor and recorded appropriately.
- Will you be setting new compensation amounts for employees or giving raises at the beginning of the year. Communicate these timely to your payroll processor.
- Will deduction amounts be changing for medical or other insurance coverage of your employees? Provide those new deduction amounts as soon as you know what they are.
- Remind your employees of any potentially unused benefits that may expire at the end of the year. Vacation days, personal days, flexible spending accounts for medical or dependent care are some examples.
- Did an employee get married, divorced or have a child? These life events may affect employees’ withholdings for both federal and state amounts. The W-4’s on file may need to be updated to reflect these changes, which may impact their deductions.
With some planning and review of this checklist, you can successfully wrap up your current year payroll requirements and set a smooth foundation for the year ahead.
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