If you handle the payroll needs in your small business the words “in with the new year” may bring a tinge of anxiety to you as you think about the tasks at hand related to filing quarterly and year-end payroll tax reports and preparing W-2’s for your employees or preparing 1099 forms for nonemployee contractors by the required filing date – January 31. Payroll mistakes and compliance issues can result in unexpected monetary penalties, additional work and unhappy employees. It is important to have some steps in place to help the process flow smoothly.
5 Tips to help ease the year-end payroll process after year end (late is better than never)
- Confirm the accuracy and completeness of employee addresses and social security numbers.
- Be sure ALL payroll and bonus checks have been recorded.
- Print a summary report with all employee totals. Remember the sum of the federal and state quarterly tax reports should equal the W-3 totals.
- Verify all 1099 vendor information and request W-9’s when applicable. Any one you pay over $600 for services may need a 1099.
- Print preview and review all forms for possible errors and correct them before printing to official IRS and SSA forms or e-filing.
In the end, beginning right is the best way to ease the year-end anxiety related to payroll. Make sure information goes in right all along the way. If you need a little help, or lot, Stapley Accounting is just a phone call away. We are your payroll friend in Logan and Cache Valley. YOU CAN DO THIS!