Performing general Payroll maintenance tasks is essential for your day-to-day operations. It’s also the key to a successful year end. Get started now!
√ Confirm that all monthly, quarterly and annual balances are accumulating properly; pay attention to adjustments.
√ Inquire whether your group health insurer will pay medical loss ratio rebates this year. Tax those rebates that are attributable to employees’ 2013 pretax contributions.
√ Verify that employees aren’t deferring more than $2,500 into their health flexible spending accounts. If they are, refund and tax the excess as wages.
√ Scan the computer you use to make tax deposits for viruses and sweep them out. Review and winnow the number of employees who have access to this computer.
√ Review the individuals who have access to the company’s Employer Identification Number (EIN) and shave that down to the bare minimum. File Form 8822-B to alert the IRS to a change in responsible parties.
√ Request a transcript of the company’s tax accounts from the IRS. What to look for: that deposits were made, returns were filed and whether the IRS made offsets against the company’s other business tax accounts. Register online to use the IRS’ suite of e-services.
√ Check W-2 coding for employees’ pretax deferrals into retirement accounts.
√ Work with accounts payable to create a system for processing employee payments that are made outside the payroll system (e.g., business expense or moving expense reimbursements).
√ Audit paycard programs; ensure that employees are participating voluntarily and that they have received all applicable disclosures.
√ Ensure that the company’s policy regarding paying accrued vacation to terminating employees is enforced consistently and complies with state law.
√ Self-audit the payroll for employee name/Social Security number matches, Form I-9 compliance, garnishments, lock-in letters, tax deposits compared against 941s, tax rates and state reciprocity rules, quarterly reconciliations and checks to inactive employees.
√ Review nontax items (e.g., Web postings) for disclosure of the company’s EIN; remove those postings.