It’s officially summer and 2022 is nearly halfway over. It is important to get your payroll and HR in order for the rest of the year. June and July can be slower months for most small businesses, so now is an opportune time to assess your company’s processes and perform a midyear payroll review.
Following are some suggested areas to assess in a midyear payroll review as a business owner, HR specialist, or payroll processor to help ensure that problems do not arise:
Mid-Year Payroll Checklist
By making sure that your records and forms are organized during your mid-year payroll review, it helps set you up for a more successful and smooth year-end. You can even consider performing an informal internal audit to make sure you are fully compliant with state and federal regulations.
Payroll Rate and Tax Review.
Most states and local municipalities change minimum wage rates and tax rates at the beginning of the new year. However, some states make those changes effective July 1st. The State of New Jersey is an example of a state that changes their unemployment rates July 1st. Be on the lookout for any rate change notices and be sure to forward them to our office as soon as possible!
You are responsible for making sure the correct rates are being used on your payroll. Check out the rates for this year on our 2022 Payroll Tax Alert sheet. Make sure there have not been any changes that you may have overlooked. Now is also an advantageous time to review your payroll tax filings in case any corrections need to be made for the last two quarters of 2022. The IRS takes late and inaccurate payroll tax filings very seriously and, even if you outsource, the employer is still responsible for all filings.
Whether it’s a new W-4 form or the employee needs to update their information on their W-4, now is the perfect time to take a look and see if any updates are required. For example, in 2020, the W-4 was drastically changed so it was crucial for employers and employees to check out the new form. Another situation in which it would be important for employees to update their W-4 is if they moved or have gotten married since originally filling out the form. Check with your employees and see if any changes need to be made. You can direct them to our free W4 Assistant Calculator.
For more information, check out these additional Abacus Payroll resources or reach out to an advisor today. We’re here to provide you with one-on-one customer services from start to payday, each and every pay cycle.
- 7 Questions for Your 2018 Mid-Year Payroll & HR Checkup
- 3 Areas to Assess in a Midyear Payroll Review
- Conducting an Internal Wage and Hour Audit
- What Payroll Records Do I Need to Keep?