At last, some peace and quiet! With colleagues away on vacation, now is a great time to prep for some year-end tasks and perform general payroll maintenance.
√ Download and review changes to the Social Security Administration’s 2013 W-2 e-filing specs, Electronic Filing of W-2s (EFW2). Visit the SSA's website and click on Publications & Forms.
√ Inform high-earners when their wages become subject to the additional 0.9% Medicare tax, and that they may refile their W-4s to account for the additional tax.
√ Total employees’ supplemental pay to see if they’re approaching the $1 million mark. Reminder: Disregard W-4s and withhold at the 39.6% rate on all subsequent supplemental pay.
√ Review your B Notice procedure for independent contractors whom the IRS says are missing their Taxpayer Identification Numbers (TINs), or whose TINs are incorrect.
√ Remove Individual Taxpayer Identification Numbers (ITINs) from the payroll system. The IRS provides ITINs to aliens for tax purposes unrelated to work; employees always have Social Security numbers (SSNs).
√ Scan undeliverable W-2s and the postmarked envelopes, and shred the paper copies.
√ Have the IT department test the payroll system for employees’ names/SSNs, W-4s, ghost employees and withholding on taxable.
√ Purge the master file of terminated employees.
√ Compile a list of taxable fringes (e.g., personal use of employer-provided home computers or company cars, moving expenses), and decide how they will be recorded in the general ledger.
√ Alert Finance as employees max out on the Social Security and state unemployment wage bases.
√ Coordinate with Accounts Payable information reporting for deceased employees, employees who win prizes at company events and employees who have outstanding travel allowances and other taxable disbursements made under nonaccountable plans. Reminder: W-2s are required if the company supplies prizes or distributes vendor-supplied prizes.
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/36064/while-co-workers-are-away-take-the-time-to-get-organized "