YEAR END PAYROLL GUIDE

Verify Company Tax Information

Using your Payroll Recap & Funding Report verify your tax information. Make sure the following information is correct:

  • Tax Jurisdictions

  • Tax ID's

  • Tax Rates

Make sure you have forwarded all rate update notices for the current calendar year. If you find an error, let us know as soon as possible by emailing us at support@payrolldynamics.com.

NOV

Notify Us of Company Changes

If any of the following information has changed, let us know as soon as possible by emailing us at support@payrolldynamics.com:

  • Company Legal Address

  • Company Delivery Address for W2s/1099s

  • Bank Account

Please note, that PO Box Addresses should be avoided if at all possible. 

NOV

Verify Employee & Contractor Information
  • Employee Name (Is it spelled correctly?)

  • Social Security Number (Utilize the SSN Verification Tool)

       or

  • TIN Number (Contractors)

  • Employee Address

  • Lived-In Jurisdiction

  • Worked-In Jurisdiction

  • Pay Type

Tip* Utilize the Employee Information Screen within Fusion and select applicable columns to help view this information. As an alternative, from the same screen download the summary page by selecting employees, then select Utilities and click PDF download.

Please be sure to update information within FUSION prior to your last payroll in December. Fees may apply if year end forms will need to be re-processed. 

NOV

Prepare Your Payroll for Holiday Impacts

Notify our processing department early this year and make arrangement to reschedule your process date, pay date or delivery date that may be affected from a holiday. 

 

Email us at processing@payrolldynamics.com.

NOV

Applicable Large Employers (ALE) Mandatory ACA Reporting

Employers must determine if they are an ALE member by figuring if they have at least 50 Full-Time Equivalent (FTE) Employees.

 

Note: Rules for calculating FTE counts are not based on your own internal guidelines but rather specific criteria that the IRS defines. Read this article to see how to calculate FTE.

If you currently have ACA Administration Services, review the following to ensure accurate 1095c reporting:

  • Employee Name / SSN

  • Employee Type

  • Pay Type

  • ACA Profile​​ (Variable vs Non-Variable)

  • Benefit Profile (Offer of Coverage)

 

Click Here to download a full guide for ACA Employee Settings. 

NOV

Verify Payroll Totals (Earnings & Deductions)

Before the last scheduled payroll of the year, make sure to include any updates to information that has to be reported. 

  • Manual Checks

  • Void Checks

  • Third Party Sick Pay Payments

  • Group Term Life Insurance

  • Dependent Care Benefits

  • Moving Expenses

  • 401(k) & Cafeteria Plans

  • Retirement Plans

  • Paid Time Off

  • Taxable Fringe Benefits

  • Any other necessary adjustment to employee payroll information. 

 

Before December 31, al total must be updated for employees and all bonuses, wage adjustments and fringe payrolls should be processed. If a special payroll has to be processed to update payroll totals after the last day of the year, government agencies may charge you with penalties and interest. Payroll Dynamics re-processing & amendment fees may also apply.

DEC

Third Party Sick Pay Payments

If any of your employees received temporary disability payments, this information must be reported on their W2 and taxes will need to be paid. If you haven't already forwarded copies of these notices to Payroll Dynamics, do so immediately. 

Most third party carrier will send out a summary notification listing the total of disability payments made to any employee in the calendar year. Please forward this notification so that we may verify that the total match to what will be reported.

Please note, that Payroll Dynamics will include all third party sick pay payment information on W2s and carriers should be informed NOT to issue W2s. Duplicate reporting of this information will lead to tax notices.

DEC

Reporting Fringe Benefits

Some Fringe Benefits that employees receive may be taxable and/or may need to be included on their W2. 

If you are not certain, please consult your CPA. When reporting your fringe benefits, please be sure to include the W2 box you expect to see the fringe reported on and the taxability. Many fringe benefits are similar in name and description and can be treated differently. Once again, we highly recommend a consultation with your CPA to correctly report this information to us. 

Popular Fringe Benefits Include:

  • Medical Fringe

  • Auto Fringe

  • Gym/Club Memberships

  • Employer Paid Group Term Life

  • High Value Gifts

  • 2% S Corp Shareholders

  • Non-Qualified Deferrals

  • Non-Qualified Stock Options

DEC

Compliance Posters

For most, delivery of replacement compliance posters are delivered annually from the date you signed up. Until then, look out for email updates with minimum wage and other changes in your jurisdiction. Find the download link and post the updates until your new poster arrives. 

If you are not yet subscribed to our poster update program, please email us at support@payrolldynamics.com to sign up.

DEC

Update New Calendar Year Information

Don't leave anything to the last minute. Start entering your employee changes for the new year ahead of time and be ready in time for the first payroll. 

  • Minimum Wage Increases / Pay Rates

  • Benefit Deductions (Medical, Dental, etc)

  • Time Off Accrual Balances

DEC

Forward Tax Rate Notices

When you receive a state unemployment tax rate notice for the new year, please be sure to forward it to accounting@payrolldynamics.com as soon as possible. 

 

Other notices may also be sent to you regarding account changes or frequency changes. Please forward these as well. 

 

Please keep in mind that any rate changes that come in after the first payroll of the new year may cause YTD taxes to be recalculated. Look out for a Debit/Credit notification and view your first quarter tax package to see if your account will need to be funded for an additional tax collection.

JAN

Employer Tax Funding

Be prepared to pay a higher percentage of taxes. Starting with the first payroll of the new calendar year, taxes will increase due to your company's wage base limit accumulations starting over. 

Rate change notices for the year will also be in effect, and may potentially have risen, causing higher employer tax collections. 

JAN

Review & Distribute Year End Forms

W-2s - Scheduled to be Delivered During the Second Week of January

1099s - Scheduled to be Delivered During the Third Week of January

1095Cs - Scheduled to be Delivered During the Third Week of January

When you receive your packages, please review the details of all enclosed forms and notify us immediately if you have any adjustments. 

Employees can view forms online on the Fusion platform under My Account, My Forms. 

JAN

DOWNLOADS

A one page calendar. Displays Bank Holidays & Payroll Dynamics closure dates.

A one page calendar. Displays Bank Holidays & Payroll Dynamics closure dates.

Pin up this cheat sheet to easily lookup minimum wage, tax rates, wage bases, benefit limits & more.

  • LinkedIn Social Icon
  • YouTube Social  Icon
  • Facebook Social Icon
  • Blog

Payroll Dynamics, Inc.

35 Arkay Dr. Suite 200, Hauppauge, NY 11788

(631) 435-8700

info@payrolldynamics.com

Careers   |  Blog  |   Secure File Transfer  |  Shop