End of Year Account Preparation
Purpose: To help you make sure that your payroll account is ready for the new year.
Final payrolls must be processed no later than December 27, 2019 for a pay date of December 31, 2019.
- Submit Third-Party Sick Pay (p.16) amounts to TRAXPayroll. Vendor reports may also be forwarded.
- Review deduction reports to verify employee and employer amounts are correct (especially if required to be reported per the IRS Instructions for Forms W-2 or W-3).
- Record year-to-date Health Savings Account (HSA) employer contributions (p.15) and Employer Healthcare costs in TRAXPayroll if this has not been reported each pay period (these amounts are included on the forms W-2).
- Update both active and inactive employees’ addresses and verify Social Security numbers are correct for W-2 processing. TRAXPayroll mails all W-2s unless the employee has elected for paperless delivery (inactive employees will receive their W-2 by mail regardless of this option so be sure to validate their address).
- Audit wage reports to ensure that any imputed income for the Group-Term Life Insurance Coverage (p.15) (over $50,000 of coverage) has been accounted for.
- Record any missing Taxable Fringe Benefits provided during the year (e.g. employee stock options, personal use of company vehicle, tuition, transportation, etc.).
- Ensure that 2% Shareholders paid through TRAXPayroll have been marked as such under the General page for Employee Tax Type for correct taxation of income and excludable deductions.
- Verify that any pay issued outside of TRAXPayroll or non-cash items are reported (e.g. gift cards, bonuses, etc.).
- Audit reports to confirm that all voided or reversed paychecks have been recorded in TRAXPayroll.
- Audit employee pay to ensure that wages and unemployment insurance were reported under the correct state.
*Items required to be reported following the final payroll deadline, may incur additional fees.*
- Update company and employee deduction annual maximums if needed.
- Review the pay period schedule for accuracy in the Company/Pay Group tab.
- Add any company holidays (if your organization uses this feature).
- Add next year's tax rates, tax filing deposit frequency, and unemployment tax rates in the Company/Tax tab.