Year-end can be a hectic time for HR and payroll professionals. Accomplish these year-end tasks now, and the last few months of 2011 will run much more smoothly.
√ Verify your 2012 deposit schedule. Monthly depositors in 2011 deposit semiweekly in 2012 if the total taxes on the four 941s filed for the last two quarters of 2010 and the first two quarters of 2011 exceeded $50,000.
√ Plan holiday pay schedules by reminding managers of the deadlines for submitting time sheets.
√ Send 2011 W-4s to employees. Employees can compare their withholding to their tax liability. If they are underwithheld, they can adjust their withholding. Use those W-4s to fulfill your solicitation duties, if you receive a notice from the IRS that an employee’s name and Social Security number don’t match.
√ Ensure that managers who participate in nonqualified deferred compensation plans have the proper amounts withheld from distributions.
√ Review vendor files for vendors’ Taxpayer Identification numbers (TINs). Begin backup withholding for vendors that didn’t provide their TINs prior to payment. Solicit TINs by sending them Form W-9. Begin compiling Form 1099-MISC data for tax year 2011.
√ Remind employees to inform you of name or address changes, beneficiary changes, changes to pretax deductions into 401(k) plans and changes to direct deposit accounts.
√ Remove 2009 W-2c forms from the company’s website.
√ Research outstanding checks that are older than 30 days; post unclaimed checks to an unclaimed earnings account.
√ Health flexible spending accounts without grace periods should inform employees that they will forfeit amounts left in their accounts at the end of the plan year. Option: Employees can accelerate expenses for prescription drugs into this year.
√ Arrange for employee flu shots.