2023 gave us another run for our money for sure. As we approach year end it will be important that business owners consider not only the ‘normal’ items to reconcile their W2 information for their employees, but all of the applicable COVID items as well.
The following list is not exhaustive, but these are most of the common items that our clients communicate to us in order to make sure the year-end process is as smooth and accurate as it can be.
It's a good idea to double check if you:
- have the correct business mailing address on file with your payroll company (this will be where your paper W2 forms are sent if applicable - did your office move this year?).
- show all employee names are spelled correctly.
- show employee social security numbers and addresses are accurate.
- have all employees who have worked this year are showing on your year-to-date employee list report.
- did, or did not, receive a new state unemployment rate for 2024.
- show all your retirement account (401K/IRA) deduction amount totals are accurate for the year, and that it matches the payments made from your account (business owners often are left off of this list, so it's a good idea to have a second look to be sure).
- will, or will not, be running any additional bonus, commission, reimbursement, fringe, or owner medical payrolls.
- have issued any manual checks over the course of the year outside of payroll.
- need to pay out any unused PTO/vacation/sick time.
- had any employees who did not have withholding taken from their checks.
- have any 3rd Party Sick Pay or Group Term Life Insurances over $50,000 that needs to go through payroll.
- have personal use of auto or other fringe pay items that need to be reported.
- have independent contractors who will need a 1099 instead of a W2.
- scheduled your payroll reporting dates to allow for the holiday banking schedule.
- will have new deduction items or amounts after open enrollment for benefits for next year.
- need 1095 forms for your employees to comply with the Affordable Care Act.
- utilized the Employee Retention Credit.
Considering the items that are applicable to you will help you prepare for a successful year end. Payroll Vault wishes you a safe and happy holiday season.