It’s the end of the year and we’re all focused on holidays and trying to think of the ‘perfect gift’ for that special someone in our life. However, it is also about this time of year that HR and payroll are starting to plan for our year-end processes. To remain compliant, companies need to send out forms to employees in January and this is a great time to remind your employees to update their information!
While it’s important to check all employee data for accuracy, the following details should be your top priority:
- Address
- Birthdate
- Social Security number
- Correct spelling of names
- Up-to-date name changes
- Accurate tax ID numbers for independent contractors
- Local tax rates and configurations
Be sure to let your employees know that they need to make you aware of any changes made to address, name changes, marital status, or other important information in their records. This is also a great time to communicate any pay date changes that may occur due to the holiday season as well as any compensation or benefits changes that will take effect on the first day of the new year. It’s important to update this information as it will ease the process for you and your company.
Why is this important? There are year-end tasks to complete in the new year. Here are a few responsibilities:
- File year-end payroll tax returns – the IRS requires filing due on January 31
- Form 940 – employer’s annual; federal unemployment tax return (FUTA)
- IRS Form 941 – employer’s quarterly federal tax return.
- Reporting requirements for the Affordable Care Act
- The IRS has published its 2022 draft of instructions for Forms 1094 and 1095 which will help you prepare for ACA reporting. The forms are due by February 28, 2022, if you file on paper, or March 31, 2022, if you report electronically.
- Normally insurance carriers take care of this for you, but it’s best to make sure this gets completed.
- Distribute W-2s to employees
- By law, you need to complete this by January 31
- Check for new regulatory changes
- In many areas of the country, new regulatory changes are going into effect at the start of the year and minimum wages are increasing. It is best to be aware of these changes ahead of time.
These are just a few of the things to think about as we plan for 2023. If you have any questions or need some help planning, Reverb is here to help! Send us a note at info@reverbpeople.com
