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Hot Payroll fun this summer

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in Office Management,Payroll Management

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.

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