How a Payroll Provider Can Help With Year-End Tasks
Wrapping up the end of the year as a small business owner can be overwhelming. Did you know that working with an online payroll service can make year-end a little easier?
Whether this is your first year-end or you’re a pro but looking for some extra help, we explain some of the top year-end tasks an online payroll provider can help you with.
Form W-2 Preparation
One of the most important things small business owners need to do at year-end/the beginning of the year is to prepare and distribute Form W-2 to employees. Form W-2 is the form that employees need when they file their income taxes for the April 15th filing deadline. Employers are required to distribute Form W-2 by January 31st. Bonus points with your employees if you can give it to them even sooner so they can get a head start with tax season. When using an online payroll service, W-2’s will be put together for you and all you have to do is review for accuracy and distribute to employees.
Assistance with End of Year Payrolls
Running payroll at the end of the year can get tricky as you have to consider bank holidays, bonuses, and other holiday pay. As a reminder, bank holidays are days that financial institutions are closed, meaning if payday falls on a bank holiday, employees won’t get paid. To avoid this, you’ll need to plan to run payroll early. Outside of bank holidays, the end of the year is also a popular time for end of year payrolls like bonuses and holiday pay. Unfortunately for your employees, bonuses need to be treated like any other paycheck and have the proper payroll taxes withheld. Working with an online payroll service can help you remain compliant and ensure that these extra payrolls are handled correctly.
The other thing related to these items that an online payroll service can help with is assisting if any of these go wrong. For example, some payroll services offer flexible payroll options meaning if you forget about a bank holiday, they may be able to expedite your payroll so employees are still paid on time.
Access to Reports
There are many things you’ll want to have records of when running your small business. Reporting can be time-consuming and you may not even know where to start. Some online payroll services make access to reports really easy. At year-end, access to these reports can be even more beneficial. As you’re planning for the new year it may be helpful to see how much you spent on payroll for the year so you can make any changes to budget if necessary. Additionally, you can get reports that may make planning for tax season easier and give you some key business information you’ll need to share with an accountant or bookkeeper (if you work with one).
You wear a lot of hats as a small business owner and keeping tabs on payroll and taxes can be a daunting item on your to-do list. If you’re ready to make the change to an online payroll service, the end of the year is a great time to start. Start getting important around now to make the payroll switch and give yourself the peace of mind of getting some help for the new year.
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This website contains articles posted for informational and educational value. SurePayroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, SurePayroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant. If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs.