Year-end is approaching at light speed and will be here before you know it. There are a few things to keep in mind to make year-end payroll reporting go smoothly and accurately.
Start TIN Matching Now
Year-end can be a whirlwind of activity, and anything you can complete before crunch time can be advantageous. The most common reason for a filing to be rejected by Fed and State agencies is mismatched SSNs or TINs. A TIN matching process can help you avoid this issue and allow you time to resolve any mismatches now rather than during the actual filing period.
Note: Aatrix provides FREE TIN Matching as part of their Unlimited eFile Packages.
Evaluate Your Filing Process
Many businesses have done their year-end filing the same way for years. Although there is a certain comfort level with repeating a familiar process, it often is time-consuming and expensive compared to newer options. The ability to hire temporary labor to stuff envelopes and prepare mailings is problematic in the current labor market. Keeping key employees on their primary responsibilities is increasingly important as well.
Test-Drive Your Aatrix Complete eFiling Solution
Before ordering paper forms and envelopes, look at what the Aatrix Complete eFile Service offers. Aatrix allows you to test-drive your filing process without filing. This helps you get comfortable with a process you have yet to use or complete only once a year. It may also identify any issues that may appear during the error-checking process within the software.
The Aatrix Complete eFile Service offers a simple step-by-step process that processes all Federal, State, and most local W-2s / 1099s / ACAs (1095) in a simple step-by-step process. The service includes printing and mailing of all employee/recipient copies as quickly as the next business day. Click Here to check out what our customers say about our service.
Here is a quick checklist to keep in mind that can get you organized and eliminate some of the pain associated with W-2, 1099, and ACA (1095) filing.
1. Check That Employee Information Is Correct
Before compiling your W-2s / 1099s / ACAs (1095) filing information, it’s important that you verify that all employee records are correct. The most common reason for rejections is mismatched full legal names and social security numbers. These errors can trigger fines and penalties and create additional work if incorrect. Find out more on TIN Matching or SSN Verification.
2. Make Sure All Payroll, Commissions, Bonus Pay, Etc. Are Recorded Correctly
Make sure that all employee payments, including any retro pay or bonuses, have been made and recorded in your payroll solution.
3. Check Wage, Tax, And Benefits
Verify that employee contribution amounts and special tax deposit items have been updated and submitted, including sick pay, expense reimbursements, taxable fringe benefits, dependent care benefits, etc.
4. Calculate Time Off Balances
Determine your employees’ remaining paid time off. If employees must use it before the end of the year or decide to cash out the remaining days, let them know as early as possible.
5. Run The Final Payroll And Verify Employee Wages
Run your final payroll, keeping in mind that December 26th and January 2nd are bank holidays. Once the payroll has been submitted, verify employee records and deductions before creating employees’ W-2s.