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    Year-End Payroll Checklist

    December 03, 2014


    • Obtain updated addresses on current and separated employees.
    • Remind employees to fill out a new Form W-4 if their situation has changes.
    • Verify employer and employee data that is used in processing your quarterly tax reports and W-2s.
    • Confirm receipt of W-9s for all independent contractors and verify independent contractor data used in processing 1099s.
    • Confirm that employee names and Social Security numbers are accurately matched to Social Security Records.
    • Verify the current year's state unemployment insurance tax rate and taxable wage limit for each state have been properly applied and begin collecting new tax rates and wage limits for the next year.
    • Verify taxable fringe benefits have been properly recorded as compensation and appropriate taxes withheld. These may include:
      • Group-term life insurance in excess of $50,000
      • Personal use of company vehicle
      • Non-qualified moving expense reimbursements
      • Company-provided transportation or parking
      • Year-end bonuses and non-cash payments (e.g., gift cares)
      • S-Corp 2% shareholder health insurance
    • Confirm that all third-party payments to employees, such as short- and long-term disability insurance payments are properly attributed to employees as wages and related payroll and withholding taxes are paid.
    • Confirm that all “manual”, voided or reversed paychecks written during the year have been accounted for and updated in the system.
    • Determine which time off accruals reset at year-end and establish the proper time and method for properly setting up next year's accruals.
    • Ensure adequate payroll supplies to complete the year and to begin the new year, including blank checks, payroll forms and blank Forms W-2.
    • Obtain new Forms W-5 for Advance Earned Income Credit (EIC) for the new year.
    • Establish method for collecting data needed for new reporting requirements, such as health insurance data for Forms 1094 and 1095.

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