With the new year closing in on us quickly, don’t wait until December 31st to start your year-end processing. As you know, the year-end payroll process can be overwhelming to accurately calculate taxes, compensation and deductions during crunch time.
DM Payroll Services has compiled 5 quick tips to help make your year-end processing run more efficient this year.
1. Review Employee’s Personal Info
Take the time now to audit basic employee information, such as employee’s name, address, Social Security number and marital status for accuracy on W-2s. This can help you avoid penalties due to inaccurate data.
2. Prepare for ACA Reporting
Determine if you had 50 or more full-time and full-time equivalent employees in the previous calendar year and what type of insurance you offered. If you do meet this threshold, start gathering the information you need to complete the applicable 1095 or 1094 forms.
3. Make Your Adjustments
Audit your records to determine if you need to make any adjustments for third-party sick pay, non-cash fringe benefits, excess group life insurance, bonuses and other important income adjustments.
4. Confirm Retirement Contributions
Determine which employees have contributed and if the desired contributions up to the limits have been made. Also, make note of those employees that will be eligible for coverage after December 31st for the next year.
5. Process Final Payroll and Run Reports
After you run your final payroll, compare and verify your year-to-date totals for employees’ earnings, taxes and personal info. Close the quarter, and we’re here to help file your Employer’s Quarterly Federal Tax Return by Jan. 2020.
Here to Help
DM Payroll Services is here to help your year-end payroll process go smoothly. Our system provides you with the data you need to ensure accuracy on year-end reporting of ACA forms, W2s and tax filings. Learn more about our service offerings by contacting us today.
