Updated: 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 juggle seasonal employees, project deadlines and final sales pushes while also beginning the process of closing the books for the year – while also taking time out for their own holiday celebrations.
Here are some tips to help you plan for a smooth close to 2018 and avoid missing deadlines or details in the final 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. When planning, make sure to have the check date on or before 12/29/2018 to be included on an employee’s 2018 W-2/1099.
2) Don’t Miss the Last Payroll of the Year
To ensure you do not miss your last payroll of the year, take a moment now to check your payroll schedule and make note of the final payroll approval and check dates. Don’t forget to account for the banking holiday on December 25th when planning final 2018 checks.
Pro tip: SurePayroll clients can set up and pre-approve payroll. With the Christmas holiday falling on the last week of the year, scheduling your payroll prior to the holiday will ensure you meet deadlines for the last payroll of the year while also checking one more item off your to-do list.
3) Review & Update Payroll Data & Employee Details
Make sure any incorrect or missing employee information is corrected or provided to your payroll provider before your client’s last payroll of 2018. The IRS may impose a penalty for each Form W-2 with a missing or incorrect Social Security number or employee name.
It’s also important to confirm tax identification numbers to avoid tax filing errors. Additionally, all payroll adjustments should be completed or turned in by the last payroll of the year.
Finally, this is also a good time for employees to update their details and make any necessary changes to employee status, such as marriages, changes to names and updates to filing status.
4) Check Your Workers’ Compensation Policy
Need workers’ comp coverage? Already have workers’ comp coverage? Year-end is a great time to assess your needs in terms of workers’ compensation protection and either review your options if you are in the market for first-time coverage, or review your current policy to ensure it still fits your requirements. If you’d like to explore bundling workers’ comp with your payroll processing, request more information today.
5) Be on the lookout for W-2s in January
Employers must provide their employees with a W-2 by January 31st. If you’re a SurePayroll client, expect to receive these documents in early January, and your employees will be able to access their W-2s via their employee logins. You can also print the W-2s out to distribute to your employees yourself.
These tips should help you wrap up your payroll commitments for the year and ensure you hit key payroll deadlines, leaving you more time to sell, celebrate – or both!
If you’re a SurePayroll customer and looking for even more detailed information, you can download our year-end checklist.