Ah, September. The hot, sticky air of August is clearing out, so it’s the perfect time for you to do some clearing out of your own. The payoff: a smoother year-end process.
- Verify your 2018 deposit schedule. Monthly depositors in 2017 will deposit semiweekly in 2018 if the total taxes on the four 941s filed for the last two quarters of 2016 and the first two quarters of 2017 exceeded $50,000.
- Remind employees to inform you of name or address changes, beneficiary changes, changes to pretax deductions and changes to direct deposit accounts.
- Review pay types to determine whether employees are being paid correctly.
- Suggest that employees who buy individual health insurance and who obtain advance premium tax credits refile their W-4 forms to claim fewer withholding allowances.
- Ensure that payroll data (i.e., total number of hours worked and aggregate W-2 data sorted into 12 pay bands) are accumulating properly for the EEO-1 report that’s due March 31, 2018.
- Plan holiday pay schedules by reminding managers of the deadlines for submitting time sheets.
- Send 2017 W-4s to employees. Employees can compare their withholding to their tax liability and refile if they’re underwithheld. Use these W-4s to fulfill your solicitation duties, if you receive a notice from the IRS that an employee’s name/Social Security number doesn’t match.
- Review vendor files for vendors’ Taxpayer Identification Numbers (TINs). Solicit TINs by sending them Form W-9. Begin compiling Form 1099-MISC data for tax year 2017.
- Update your bad weather policy to cover employees who can work from home.
- Research outstanding checks that are older than 30 days; post unclaimed checks to an unclaimed earnings account.
- Health flexible spending accounts without a grace period or rollover option should inform employees that they will forfeit amounts left in their accounts at the end of the year. Idea: Employees can accelerate expenses into this year.
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.