How to Prepare for Year-End
2014 Now We will begin at 1pm ESTUse the chat feature to ask questions!
Keep the conversation going: @dominionsystems #YearEnd
Briana Cline, CPPEmployee Development
Contact Briana: [email protected]: www.linkedin.com/in/brianacline
To help you organize your processes for a smooth year-end
Agenda
1 Year-end defined2 Importance of starting year-end prep now3 Topics we should look at prior to the end of the year4 Preparations for the New Year5 W-2 audits6 Start year-end prep now
What is year-end?
• Preparing for the last payroll of the year
• Preparing for the first payroll of the new year
• Reviewing W-2s for accuracy
But, why start now?
Errors are more likely to occur if you don’t plan ahead
Record accurate wages all year
Group Term Life over $50k
Using the IRS Premium Rate table you can find the imputed cost for your GTL.
This table looks at: • Age• Amount of coverage in excess of
$50,000• How much the employee pays for
coverage
Group Term Life over $50kCan be added to payroll each time payroll is run
Employer providedhealth coverage
W-2s must reflect this if in the previous year there were 250 or more W-2s
distributed
Health Savings Account
Must include employer and employee contributions
3rd Party Sick Pay
Paid to the employee due to injury, sickness, or disability
S-Corporatio
nAccident
and health insurance premiums
paid for 2% shareholder
s
Other compensation & benefitsKnow how to report and tax your compensation types
Additional items to note:
Communicate with your provider
Confirm who is printing W-2s
Review current PTO policy
Verify how paid holidays are handled
Preparing for the new year
Prior to the 1st payroll of the new year
Re-evaluate earnings & deductions
Verify IRS regulations
Enter paid holidays into payroll
Before releasing W-2s…
Audit, audit, audit.
Begin preparation now
Mark your calendar with audit dates
Communicate with key parties involved
Prior to the last payroll
of each quarter
Enter adjustments into payroll• Void checks• Fringe benefits• Compensation• 3rd Party Sick Pay
After the last payroll of each quarter
Complete your audits
Compare quarterly 941 to payroll reports
After 3rd quarter, but prior to the last payroll of year
Enter all adjustments into payroll
Before the first payroll of new year
Provide new SUTA rate to payroll
Verify IRS changes have been implemented in payroll
Re-evaluate earnings and deductions
W-2
audit
Conduct 4th quarter audits
Add all 941’s together and compare to W-2s
Repeat & refine
Questions?
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