Can you believe it is December all ready and time to wrap up another payroll season? I thought it might be helpful to put together a few tips to help make the process easier.
- Provide all your employees with a W-4 to be filled out. Remind employees that if they have had life changes such as a marriage, divorce or a change in the number of dependents to make the appropriate changes on their W4. If you have not received the employee’s W4 by February 15, 2012 you must withhold based on a “single” status with zero allowances (the highest amount of withholding category).
- Double check your payroll adjustments such as group term life insurance, third party sick pay, company cars, those pesky manual checks and if you are an owner and receiving a W2, make sure your health insurance premiums are included on your W2.
- Order enough W2 forms for all your employees.
- Order enough 1099 Misc forms for all your service provider vendors.
- Verify employees’ names and Social Security Numbers (SSNs) at http://www.ssa.gov/employer/ssnv.htm
- Review your vendor categories for vendors who provide services to your company in excess of $600. Make sure you have a W9 on file for them and their Tax ID number so that you can prepare 1099 Misc forms.
- Reconcile W2 totals against all 4 quarterly reports.
- Provide W2 forms to employees by 1/31/12.
- Provide Form 1099 Misc to all your vendors whom you paid $600 or more in services by 1/31/12.
- Mail W2 forms & 1099 Misc forms to authorities by 2/28/12.