This week’s question comes from Joe, a payroll administrator. I’m always busy at year-end. Is there anything I can do now to make 2008 year-end easier? Answer: There are several things that can be done to ease the year-end crunch.
- Review each employee’s basic information including name, address, and social security number and update for changes or mistakes.
- Be sure contractor W-9 forms are on file for preparation of any Forms 1099.
- Review company paid time off policy and remind employees of any use it or lose it feature.
- Accumulate data for special pay transactions including items that must be added for W-2 purposes. Examples include fringe benefits, including personal use of a company car, value of group-term life insurance in excess of $50,000, and medical premiums for certain S corporation shareholders. These items should be included with a live payroll run in order to collect the employee’s share of any taxes due.
- Confirm with your pension plan administrator which employees should have pension indicator box checked on Form W-2.
- Determine which employees will require an additional Form W-2 to report third-party sick pay.
- Plan and schedule any additional pay runs, including holiday and performance bonuses and directors pay.
Vision Payroll can work with you to prepare now for a smooth year-end. Contact us now with any questions or concerns.