Your Year-End Payroll Checklist
Your Year-End Payroll Checklist

Your Year-End Payroll Checklist

When you hear the term “year-end,” what’s your first reaction?

If you’re like most employers, the consensus is the same. Year-end incites panic, uncertainty and desperation across many organizations. And for many finance departments, it’s the most stressful and chaotic time of the year.

But take a breath, the end is near. With the right plan and processes in place, you, too, can curb anxiety and close out the year on a high note. Here are some things to keep in mind prior to your last payroll to help create a successful and accurate end to 2017.

Review your payroll data Are your payroll records accurate? Pay close attention to your payroll data to confirm personal information and wage and benefit data is accurate for both active and terminated employees.

Verify employee information If Form W-2s are missing critical employee details, it could cost you. The Internal Revenue Service (IRS) can impose a penalty for each Form W-2 with a missing or incorrect Social Security number or employee name, so it’s imperative that employers review their payroll data to ensure employee names, addresses and Social Security numbers are accurate and entered in the correct format.

Verify employee benefit information First, analyze employee benefit selections to ensure that deferred compensation plan types and employee contribution amounts are correct. Then, ensure that other special tax forms and special items have been updated and submitted, such as:

  • Other compensation
  • Third-party sick pay
  • Employee business expense reimbursements
  • Taxable fringe benefits
  • Tip allocation information
  • Dependent care benefits

And if you’ve provided fringe benefits to employees, ensure that you’ve properly withheld taxes on any taxable benefits your employees have received throughout the year, including:

  • Personal use of a company vehicle
  • Non qualified moving expense reimbursements
  • Company-provided transportation or parking
  • Employer-paid education not related to the employee’s job
  • Non-accountable business expense reimbursements or allowances
  • Bonuses
  • Non-cash payments

Check for special procedures

  • Schedule any special bonus payrolls for the current year
  • Instruct employees to complete a new Form W-4 if their situation has changed or if they filed exempt during the previous year
  • Confirm that all manual checks written throughout the year have been accounted for and updated in the system
  • Determine that all voided or reversed paychecks have been accounted for in the system

If year-end is leaving you stressed and causing uncertainty, Paycor can help. Each year, we create a comprehensive year-end payroll guide and tutorial videos to prepare our clients and ensure they’re not overwhelmed with the requirements. We’d love to schedule time to learn the challenges you’re facing and how we can help make a difference at your organization. Click here to start a conversation.

More to Discover

Employee Safety During COVID-19: Compliance Toolkit

Employee Safety During COVID-19: Compliance Toolkit

Vaccines are coming to the rescue, but we’re not out of the woods yet. HR leaders can’t afford to take their eye off the ball when it comes to employee safety and compliance. Now’s the time to think about creating a vaccine policy that works for your organization, and it’s not too late to implement workplace testing. If an employee does test positive for COVID-19, you’ll want to make sure you’re ready to offer the right information and support to your whole team. Paycor is offering this free compliance toolkit, including customizable letter templates to use when you: Create a mandatory vaccine policy Implement workplace testing Inform your team that an employee has tested positive for COVID-19

Demotion Letter Template

Demotion Letter Template

There’s nothing better than seeing employees thrive, but setbacks and slips in performance do happen. One way to address performance problems is a demotion. Sometimes, it’s necessary to take a step back before you can take two steps forward. Download Demotion Letter Template When is a Demotion Necessary? In an ideal world, there wouldn’t be demotions. They are a sign something’s wrong: it could be that an employee has failed to respond to a performance improvement plan or they could just be disengaged. A demotion is the last stop before termination. If you believe the person has potential and is worth investing in, then a demotion might be the best way forward. Demotions are risky, though. You could end up with an employee who is even...

Maximum PTO Accrual Letter

Maximum PTO Accrual Letter

Encouraging employees to use their vacation days can feel strange. After all, nobody wants to leave themselves under-staffed and the rest of their team over-worked. On the other hand, what if employees rarely ever, or even never, take time off? That’s been a question facing business owners this year, as vacation plans were delayed, then cancelled, and PTO built up like never before.One problem is, PTO payout laws can turn unused PTO into an unwanted financial liability. There’s also a risk of schedule chaos down the line as everyone tries to use their days up at once. Most worrying of all is that employees who go too long without a break, even by choice, risk ending up disengaged and burned out. Download Sample Maximum PTO Accrual Letter...

How Long to Keep Payroll Records

How Long to Keep Payroll Records

Running a business, you know that compliance isn’t just about being compliant—you also need to prove it. You never know when the IRS, the DOL or the EEOC will demand to see your paperwork, which is why it’s so important to retain payroll records. To make things more complicated, each agency has its own rules for which documents you have to keep and for how long. The good news is, you don’t have to buy more filing cabinets. HR software can automatically store everything you need, with the added benefit of simplifying the whole payroll process. Why You Need to Retain Payroll Records At a federal level, you’re keeping payroll records primarily for three agencies: The IRS The Department of Labor (Wage and Hour Division) The EEOC These...