The thermometer heating up means it’s the perfect time to perform some generalmaintenance tasks. It’s also the key to a successful year-end.
√ Confirm that all monthly, quarterly and annual balances are accumulating properly; pay attention to adjustments.
√ Verify that employees aren’t deferring more than $2,550 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.
√ Ensure that your Payroll/HRIS system is gathering aggregate and employee health benefit information on a monthly basis, including employees’ dependents’ Social Security numbers.
√ Request copies of your tax transcript to ensure that your payroll agent is withholding your taxes, remitting them to the IRS and filing Form 941 on your behalf. Register 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(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.
√ Confirm that deduction codes forare correct; test on a manual check, and then test through to a W-2.
√ Determine whether missing persons’ locators are effective in contacting former employees who are owed final paychecks or 401(k) distributions; work with Benefits to refine the steps taken to locate missing employees.
√ Ensure that the company’s policy on paying accrued vacation to terminating employees is enforced consistently and complies with state law.
P.S. Did you know that a step-by-step payroll compliance guide to each pay period, month and calendar quarter of the year is now available? Download it free here.