The year-end is an especially busy time for business owners. That is why PayWow has created a year-end payroll checklist for you! This checklist will help alleviate year-end errors and ensure your business remains compliant in the new year.
This year-end payroll checklist will appear on your PayWow dashboard when you log in to your account. While completing the checklist is completely optional, we suggest completing each task. The checklist will help you stay on top of your year-end payroll responsibilities and ensure a smooth transition into 2022.
You should review the checklist and complete each task listed. After you’ve completed a task on the list, you can select the “Yes” button to label the task as completed. Once a task has been completed and marked as done, it will disappear from the dashboard.
Here’s an overview of the information on the list and how to complete it:
Are all your employees and contractors listed in the directory, even terminated one?
Are their names and addresses correct?
Did an employee become an owner of 2% or more of the company this year?
Did you hire one of your contractors as an employee this year?
If your employee’s information is not up to date or inaccurate, it could result in incorrect tax filings. For W-2/1099 purposes, ensuring your employee’s and contractors’ records are accurate is very important. You should confirm information such as your employee’s full legal name, SSN or EIN, marital status, and current address are accurate. W2s and 1099s are required for both active and terminated employees/contractors. If any of your employees became an owner of 2% or more of the company this year that should be updated on their employee profile.
To review this information, on the dashboard, navigate to the “Directory” tab. You can choose between your employee or contractor directory and when you click on their profiles, the necessary information will be shown. You should check each of your employees/contractors’ profiles to ensure they are accurate.
Have you updated your State Unemployment Contribution Rate?
Tax rates and wage bases can change annually. Each year, state unemployment agencies send the contribution rate for the upcoming year. You will need to enter your new rate in PayWow when you receive it. To do so, navigate to “Settings” on the dashboard and scroll down to Tax Compliance Settings. Select your state, then, select “Add a New Rate.” When you add the new rate, you will need to note which quarter it will become effective and the UI premium rate.
Have you reviewed your time-off policies?
At the year-end, you should always review your time-off policies and make any changes if need be. If you have not established any time-off policies yet, the year-end is a great time to do so. You can also create a holiday policy if desired.
To review your time-off policies, on your PayWow dashboard, navigate to “Settings”. In settings, select “Time Off.” Once there, you can view your current time-off policies and make any updates or changes to them.
Have you reviewed your benefits plan (if any)?
Did you make any changes to the company match of a retirement plan?
Did your company make any changes to the insurance plan(s) offered?
The year-end is the perfect time to review company benefit plans and make any changes is necessary. If there are any changes to employees’ premiums, make sure they are set to go into effect on January 1st of the new year.
To review your benefit plans or add new ones, on the dashboard, navigate to “Benefits.” Once there, you can view your benefits offered to employees their contributions, the business’s contributions, and the period the benefit is offered. If you want to add a new benefit plan, click “Setup a New Benefit.”
2021 Payroll Review
Did you review your 2021 payroll records to ensure everything is accurate?
When reviewing your payroll records, you should ensure information such as hours, salaries, commissions, deductions, etc., are all accurate. Reviewing your Year-to-Date reports can be helpful when doing this. Payroll YTDs are required for record-keeping, calculations of tax obligations, and providing accurate tax documents at the year-end to employees.
To review this information, navigate to “Reports” on the dashboard. There are several different categories of reports that you can view such as payroll reports, employee, reports, and time clock reports.