End-of-year reporting and taxation. Accurate employee data. Prepping for the new year. When it comes to payroll processing, December and January may be the busiest time of year…and the most stressful, especially if you’re a business owner trying to do it on your own.

The road to end-of-year processing of your payroll records doesn’t have to be a bumpy one, though. Here’s a high-level list of steps to help you from having to order “after the processing” changes to W-2s and quarterly tax returns. Remember that the employer W-2s have to be electronically submitted to the Federal government by January 31, 2019.

In order to comply with the Federal government, you will need to account for the following items before your last payroll in 2018.

  • Third party sick payments
  • Fringe benefits (auto fringe, GLI in excess of 50,000)
  • Manual checks
  • Void checks
  • S Corp health insurance premiums
  • The healthcare amounts paid by both the employee and the employer for box 12DD W-2 reporting (employers with over 250 employees from the prior year 2017 only need to comply)
  • Correct social security numbers and addresses of all employees

W-2 and 1099 production should begin as soon as your last payroll check date for 2018 is completed. In case of any errors found after filing, an amended form (W2-c or 1099-c) should be submitted as soon as possible. (The employee should also be provided the form for their records.)

Bonus calculations

If you intend to run a bonus payroll, click here to download the “gross up” (for bonuses calculating ONLY Social Security and Medicare tax deductions).

Order Your 2019 Labor Law Posters

If you would like to order a 2019 Labor Law Poster kit, click here to download the form and return it back to us via email: info@workforcesolutions.com or fax: 516-935-6848.

Need a payroll provider to ensure a smooth end-of-year processing of your records? There’s no better time to make the move than at the beginning of the new year. Contact us today for a free payroll consultation and to learn about our other Human Capital Management solutions, including HR, time and attendance, benefits administration, ACA compliance and more!