• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Do you hear what I hear? Sound of closing year-end books

by on
in Office Management,Payroll Management

Year-end duties can keep you from enjoying this holiday season. But it doesn’t have to be that way, if you get through these year-end duties.

√  Distribute 2013 W-4s. Employees whose family status changed and those who claimed an exemption from income tax withholding in 2012 must file new forms; everyone else may refile.

√  Notify managers of the cutoff dates for the last 2012 payroll and the first 2013 payroll.

√  Let employees know whether you will charge a fee for issuing replacement W-2s.

√  Inform your service bureau of your W-2 schedule and changes for 2013, including employees’ benefits deductions and new W-4s.

√  Use the 2013 withholding rates for checks that will be mailed to employees late in the month, and that won’t be received until January.

√  Notify employees by the end of January if you haven’t withheld on their personal use of company cars, or are using the special accounting rule to value noncash fringes.

√  Reset employees’ calendar-year benefits balances for 2013. Include: 401(k) pretax con­­tributions, and allocations for paid time off, cafeteria plans and flexible spending accounts.

√  Process special December payroll entries—impute the tax for group-term life insurance over $50,000, personal use of company cars, interest on compensation-related loans of at least $10,000 with below-market interest rates and 2% S corp owners’ medical insurance.

√  Conduct a final review of the general ledger for “hidden” wages, notably noncash fringes.

√  Reconcile fourth-quarter taxes before the final tax payment is due to ensure timely corrections.

√  Run payroll adjustments for year-to-date corrections and void/manual checks.

√  Archive 2012 data before processing the first 2013 payroll. Ensure the Social Security wage base, state unemployment and disability wage bases (if applicable), federal/state withholding allowances and tax rates and em­­ployees’ benefits data are input into the system.

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/33814/do-you-hear-what-i-hear-sound-of-closing-year-end-books "

Leave a Comment