Payroll Reminder: Don’t Forget These Tasks
Thursday, December 11, 2008
December and January are probably two of the most important months for payroll administration. Here are some things that employers should remember to do:
December
- Check employees’ addresses and social security information that you have on file for W-2 purposes. Employee social security numbers can be verified at the Social Security website.
- Send a reminder to all employees to make appropriate changes to their W-4s if they have had any life changes. (e.g., marriage, divorce, change in number of dependents).
- Make sure that all 2009 deductions correctly reflect benefit changes made during open enrollment.
- Update all tax forms, withholding and publications for 2009.
- The Social Security wage base has increased from $102,000 to $106,800 for 2009. The 2009 mileage rate is $.55 per mile.
- Elective contribution limits for 401(k) and 403(b) plans will be $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 increases to $245,000.
January
- 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.
- Run a payroll report to verify W-2 information before printing forms.
- By February 2 (the traditional deadline, January 31, falls on a Saturday), mail or deliver W-2s to all employees who worked for you in 2008.
- File forms 941 and 940 (Annual Federal Unemployment [FUTA] Tax Return).
Infinisource offers a full-service payroll administrative product: Infinisource Priority Pay. For more information on how Infinisource Priority Pay can handle all of the tasks listed above or for a free demonstration, please contact us at 866-350-3040, Ext. 1978 or go to the Payroll section of our
website.