By Lisa Calick, Carolyn Hall, Floriana Allen, and Laura Melville
The end of the year can be busy for many companies. While December brings holiday parties and end-of-year celebrations, business owners should be mindful to make sure their HR and payroll departments are on top of timely actions in order to ensure a smooth transition into the New Year. This checklist will help you get a jumpstart on your year-end planning.
Human Resources
- Review your employees’ data to make sure you have accurate and updated information, including contact information, marital status and banking information for direct deposit.
- Prepare for ACA reporting (1095-C should be provided to employees by January 31, 1095-C and 1094-C filed to IRS by April 2), if applicable.
- If relevant, finalize open enrollment details and process any renewal plan changes.
- Ensure proper carryover and/or pay out of accrued time off balances, as per company policy (Note: NJ employers are now subject to required paid sick leave regulations).
- For NY employers, be sure you are in compliance with the new sexual harassment regulations.
- Review IRS limits for flexible spending accounts and 401k plans. If your company has a flexible spending account, remind your employees to spend any balances they may lose at the end of 2018.
- Establish your 2019 holiday calendar for office closings.
- This is a great time to review all of your policies and handbooks to ensure compliance with practices and updated laws. Update your workplace posters.
Payroll
- Update employee contact information such as Social Security number, employee name and address to avoid errors and penalties.
- Review your employees’ salary information, particularly if changes are made effective January 1.
- Update your payroll for any state minimum wage changes.
- Prepare for the first payroll of New Year – be aware of any employee and/or employer federal or state rate changes effective January 1.
- Prepare W-2s and 1099 forms (distribute to employees and file to IRS by January 31). It is important to make sure your employees are properly classified, and that you have a W-9 form for your independent contractors.
- In addition to federal and state quarterly filings, prepare annual federal form 940 and if applicable federal Form 944 (file to IRS by January 31).
- Include in W-2s any third-party sick pay and any other applicable adjustments to W-2s.
While different companies may have their own individualized policies and practices, being proactive with these tasks provides a good place to start in order to have a more manageable year end process.
To learn more about how Wiss can prepare your business for year end, visit our Advisory Services page.