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‘Be prepared’ is Payroll’s best strategy

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in Office Management,Payroll Management

It may be slow now, but pretty soon you’ll be immersed in the minutiae of year-end duties. Here are things you can do before the deluge.

Verify your 2019 deposit schedule. Monthly depositors in 2018 will deposit semiweekly in 2019 if the total taxes on the four 941s filed for the last two quarters of 2017 and the first two quarters of 2018 exceeded $50,000.

Map out time-sheet cut off times, processing days, paydays and deposit schedules for the next year.

√ Plan holiday pay schedules by reminding managers of the deadlines for submitting time sheets.

√ 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-4s for the rest of the year and claim fewer withholding allowances.

√ Review vendor files for vendors’ Taxpayer Identification Numbers. Solicit TINs by sending them Form W-9. Begin compiling Form 1099-MISC data for tax year 2018.

√ Begin sorting 1099-MISC forms on which nonemployee compensation is reported in Box 7 from other 1099-MISC forms. Review and resort at the end of each month for the remainder of the year.

√ Update your bad weather policy to cover employees who can work from home.

√ Review new benefit offerings with HR, Finance and the C-suite so they are aware that some may be taxable.

√ Inform employees whose health flexible spending accounts don’t have a grace period or rollover option that they will forfeit amounts left in their accounts at the end of the year. Idea: Suggest that employees 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.

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