• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Wrap up 2011 year-end payroll

by on
in Office Management,Payroll Management

It’s not quite time to declare victory over year-end 2011. By Jan. 31, employees must receive their W-2s, and the IRS must receive your fourth-quarter Form 941, and Forms 940 and 945. Here’s what you must do now:

√ If you need an extension of time to file W-2s or 1099s, file Form 8809 with the IRS now.

√ Renew third-party designee status on Forms 940 and 945.

√ Review states’ mandatory e-filing thresholds for W-2s.

√ Review wage and tax categories. Before processing W-2s and the fourth-quarter 941, verify that the general ledger employer/employee withholding liability accounts balance. Make correcting journal entries for out-of-balance situations caused by year-end adjustments.

√ Complete your fourth-quarter 941 first, then balance the 941 and W-2 totals. What must balance: Social Security and Medicare wages/taxes and federal income tax withheld.

√ Use the Social Security Administration’s (SSA) free Accuwage software to check balances before distributing W-2s. Accuwage is available at www.ssa.gov/employer/accuwage.

√ Verify data before a preliminary printing of W-2s on plain paper. Watch: Employees’ Social Security numbers; employees whose wages exceed the 2011 Social Security wage base; benefits reported in Boxes 10 and 12; check marks in Box 13; state/local totals. Match totals to a reconciliation work sheet.

√ Check that employees sign requests for duplicate or corrected W-2s and that signatures are legitimate. This ensures that ex-spouses haven’t slipped one by employees.

√ For corrected W-2s issued to employees prior to filing, check the Void Box on Copy A, and insert “Corrected” at the top of Copies B, C and 2.

√ Notify the mailroom of the date W-2s will be mailed. Remind mailroom personnel to have sufficient postage in the postage machine.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/29263/wrap-up-2011-year-end-payroll "

Leave a Comment