For Immediate Release:

Thursday, October 31, 2013

As we approach the end of the year now is the time to start preparing for the payroll year end. There are several actions we can take now to make sure that the end of the processing year goes as smooth as possible. Here are 10 recommended year end preparation items.

1. Order any supplies that will be needed including forms.
2. Prepare now for any bonuses that will be paid by the end of the year. If the amounts are now known we can plan for how those will be processed, through a scheduled payroll or through a special payroll.
3. Verify that all updates have been installed and monitor this through the end of the year. It is likely that there will be last minute changes, so be ready.
4. Verify that any ?manual? or corrected payroll checks have been entered into the system.
5. Check that any wages exceeding the Social Security threshold ($113,700) have not been taxed.
6. Verify that any pretax deductions are in the system correctly, including the correct classification of any retirement plan contributions.
7. Verify that the new Medicare tax (.09 on all wages over $200,000) has been collected.
8. Notify employees to update their information if there have been any changes, particularly address changes.
9. Verify the inclusion of any cash bonuses that have been given to employees. Remember that gift cards are considered cash. Verify any taxable fringe benefits have been calculated and included in wages. Look for items such as personal use of a company car, non-accountable expense plans and gifts or prizes given to employees.
10. Verify the inclusion of total health care expenditure in Box 12 on the W-2 with the identifier of DD if required.

These steps will help ensure that the end of the year will go smoothly. It will also allow for a good start to 2014.
If you have questions regarding year end closing or any payroll issues contact Gary at 615-542-1919 or gary@illuminaregroupinc.com.
Gary
IRS CIRCULAR 230 ? DISCLOSURE NOTICE: IRS Circular 230 regulates written communications about federal tax matters between tax advisors and their clients. To the extent the preceding correspondence and/or any attachment is a written tax advice communication, it is not a full ?covered opinion?. Accordingly, this advice is not intended and cannot be used for the purpose of avoiding penalties that may be imposed by the IRS regarding the transaction or matters discussed herein.