As we kick off the new year, it is time to reevaluate your payroll process and responsibilities. Not sure where to start? Take a look at our new year payroll checklist to make sure all areas are covered.
Double-Check Your Employee Data
Though payroll might be less fun than crafting up new years resolutions, the beginning of the year is a good time to check your lists twice. Before processing your beginning-of-the-year payroll, confirm your employees’ existing data. This process includes looking at everything from their current addresses and phone numbers to potential retirement plans and the formatting for their social security information.
Other information you’ll want to check up on includes the following:
- Form W-2/W-4 accuracy and formatting
- Additional tax forms for qualifying employees (for example, extra Medicare forms for those earning $200,000 or more)
- Minimum wage compliance and 2022 payroll tax rates and thresholds
It’s also not a bad idea to corroborate your existing tax forms with your employees’ forms from the year before, especially since doing so is a great way to ensure your formatting matches up.
Turn to Outsourced HR Services
In the times of the pandemic where people are leaving jobs and constantly searching for something new, Human Resources is an extremely important part of your business. However, it is also one that tends to fall to the back burner when things get busy and may not be as efficient as it should be. Abacus Payroll’s HR Help Center is a low-cost way to protect your business from expensive and damaging HR mishaps.
Some of the HR tools that you will have access to include:
- Compliance checklists
- Customizable letter and form templates
- Sample policies and procedures
- Employee handbook resources
- Webinars and training videos
- Federal & state employment law library
- Informative e-alerts and Q&A topics
Start the new year on the right track when it comes to HR. Contact Abacus Payroll, Inc. today at 856-667-6225 or by email for more information on our HR Help Center add on.
In Summary: Your New Year Payroll Checklist
☑ Verify demographic data (addresses, phone numbers, name changes, etc.) of all current and terminated employees along with any contractors.
☑ Prepare for Forms W-2 and 1099-NEC by the January 31st deadline.
☑ Encourage employees to update W-4 forms for 2022.
☑ Review and verify employee benefit eligibility and continuation, including health care, fringe benefits, PTO, life insurance, and retirement plans.
☑ Reduce the chance of having to file a W-2c or getting hit with a tax penalty by verifying employee names and social security numbers using the Social Security Administration’s (SSA) online Social Security Number Verification Service.
☑ Setup and prepare for 2022 with accurate payroll tax rates, updates wages, and compliance with any new Department of Labor (DOL) laws.
☑ Refresh your payroll and HR team members about phishing and fraud. January and February are popular months for identity thieves to take advantage of fraudulent W-2s, 1099s, and fake direct deposit requests in order to commit tax return fraud.
☑ Update your Employer Handbook for 2022. Since March 2020, many businesses have experienced disruption and change to the way they operate. From work-from-home policies, to vaccine mandates, to updated leave and PTO policies, your Employer Handbook may be overdue for a review. If you need Employer Handbook assistance, ask about our outsourced HR support.
☑ Have you spoken to your company’s CPA about the Employee Retention Credit? Now that 2021 has come to an end, see if there are any opportunities for amended payroll returns or if any payroll reports are needed to process Paycheck Protection Program (PPP) forgiveness.
Note: Every item on this list may not apply to your specific business nor is this a complete list. Check with your payroll specialist should you have any questions or concerns.
Make the Switch Now:
The first month of the year is the easiest time to switch payroll providers. We work with a variety of small business industries and have been helping clients implement successful, compliant payroll systems since 1999.
Abacus Payroll is here to help ease your transition smoothly into the new year. Give us a call today at (856) 667-6225 or email us for a no-obligation quote.