Payroll year end requires ensuring that all the payroll data for the year is accurate, starting to prepare the tax forms needed for the following year, etc. While we at Payroll Vault Pleasanton can’t help with your shopping, we’re here to help with your year-end payroll, starting with these four tips to help this go smoother.
Tip #1. Start Early
Don’t wait until the holiday season is in full force before starting your year-end payroll. Create a checklist with everything you need to do, including the soonest date you can start working on each item.
One area you can start early is in planning your end-of-year bonuses. Decide if these will be direct deposits or physical checks to be handed to them, and then verify the taxes for these bonuses.
Tip #2. Review All of The Data
At the end of the year, it’s important to verify employee, tax, and benefits data.
Employee data includes addresses, social security numbers, classifications, family status, and more. If these things are wrong, it will potentially cause issues when filing with the IRS, potentially leading to penalties, so taking the time to verify this information is extremely important.
As for taxes, all employee wages, tax withholdings, etc. must be verified to make sure it meets the state and federal requirements. Any discrepancies should be corrected before the end of the year if possible.
The benefits data is likely what your employees will be most interested in knowing about. This is because, near the end of the year, you should be giving your employees reminders about unused benefits, such as vacation days and money still in flexible spending accounts (FSAs), they’ll almost definitely want to use up before the end of the year, especially if these won’t rollover to the next year.
Tip #3. Start Planning For The Next Year
There are many things that can potentially change from one year to the next, including the minimum wage, withholding requirements, etc. It’s necessary to know these changes as the updated payroll is set up for the following year.
Tip #4. Use Payroll Vault’s Services
There are many reasons why it just makes sense to outsource your payroll to an experienced provider like Payroll Vault. The stress of the year-end payroll only highlights these things.
Our team at Payroll Vault stays up to date with current regulations, and we’ll take care of reconciling accounts on your company’s behalf to cut down on the possibility of errors. We can also do all of your tax filing, and we have some of the most advanced payroll software available to make everything as easy as possible.
Summary:
The year-end payroll is incredibly important, with many requirements that need to be met. Payroll Vault is ready to tackle this for you, and we offer you a few tips here to help you get started.
