Are You Making Your List and Checking It Twice?

Wednesday, December 02, 2009

You may be ready for the holidays, but is your payroll ready? December and January are probably the two most important months for payroll administration.  Here are just a few of the more significant things employers should have on their checklist:

December     

ü  Check employees’ addresses and Social Security information on file for W-2 purposes. Employee Social Security numbers can be verified at the E-Verify website administered by the U.S. Department of Homeland Security at www.uscis.gov.

ü  Send a reminder to all employees to make appropriate changes to their W-4s for 2010, especially if they have had any life changes (e.g., marriage, divorce, change in number of dependents, etc.).

ü  Make sure that all 2010 deductions correctly reflect benefit changes made during open enrollment.

ü  Update all tax forms, withholding and publications for 2010.

ü  The Social Security wage base will remain at $106,500 for 2010.

ü  Elective contribution limits for 401(k) and 403(b) plans will remain at $16,500, with another $5,500 limit for catch-up contributions for those who are age 50 and above. The annual compensation limit for determining contributions also remains at $245,000.

January

ü  January 1 is a big day for payroll because year-to-date balances need to be reset to zero, and employers need to ensure that all wage bases, rates and limits are updated.

ü  Run a payroll report to verify W-2 information before printing forms.

ü  By February 1 (the traditional deadline, January 31, falls on a Sunday), mail or deliver W-2s and Form 1099s to all employees who worked for you in 2009.

ü  File forms 941 and 940 (Annual Federal Unemployment  Tax Return [FUTA]).

If all of this sounds daunting and you are looking for a partner to outsource your payroll to, Infinisource Payroll can relieve you of this burden. Outsourcing benefits and payroll administration can provide you with several advantages.  Many employers underestimate the time spent on creating and updating the proper forms and notices, maintaining the proper documentation, calculating the correct payroll taxes and staying on top of the newest guidelines and regulations. With outsourcing, employers gain additional resources and reduce the amount of time spent on administrative tasks, allowing them to focus on their core business functions.

When you check your payroll list this year, make sure Infinisource Payroll is on it! Call us today for a demo and start enjoying the holidays!