5 Tips for Managing Payroll & Year-End Processes Over the Holidays
The end of the year is a busy time for small business owners as they negotiate with seasonal employees, project deadlines, and final sales push. At the same time, they begin closing the yearbooks - while giving themselves time to celebrate their holidays.
Here are some tips to help you plan a smooth end of the year and avoid missing deadlines or details for the last days of the year.
1) Plan for Additional Payroll
Things come up, and extra payrolls and bonuses need to get paid. It’s best to plan these early and avoid last-minute processing. Any additional payrolls must have a check date before December 31, 2021, including an employee’s 2021 W-2/1099-NEC form.
2) Don’t Miss the Last Payroll of the Year
To make sure you don't miss out on your last annual payroll, take a moment now to review your payment schedule and write your final salary approval and test dates. Bank holidays are expected at this time of year, and if you do not process your salary early, your employees may receive their checks later in the day.
3) Review & Update Payroll Data & Employee Details
Ensure that any inaccurate or lost employee information is corrected or provided to your payment provider before your client's final annual payment. The IRS may impose a fine on each Form W-2 with the wrong or incorrect Social Security number or job name.
It is also essential to verify your tax code numbers to avoid tax evasion errors. Additionally, all payment changes must be completed or included in the final annual payroll.
Lastly, this is also a good time for employees to update their details and make necessary changes to their statuses, such as marriages, name changes, and status updates.
4) Check Your Workers’ Compensation Policy
The end of the year is an excellent time to assess your needs regarding employee compensation protection and review your options when you are in the market to get coverage first or review your current policy to make sure it still fits your needs. Need integrated staffing? Already have a combination of employees? If you would like to check your staff and salary, ask for more information today.
5) Be on the lookout for W-2s in January
Employers must give their employees a W-2 by January 31st. If you are a SurePayroll client, expect to receive these documents in early January, and your employees will be able to access their W-2 through staff login. You can also print W-2s to distribute to your employees yourself.
These tips should help you wrap up your annual salary commitments and make sure you reach the key earning days, leaving you more time to sell, celebrate - or both!