2020 Year-End Checklist

As we approach year-end, we recommend the following tasks be completed before the last payroll is processed.



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• Remind employees and contractors to verify any name, and business addresses as well as Social Security or EIN numbers.  
• Do any Social Security numbers need to be corrected before year-end?
• Has all 2020 income been included in the payroll for employees?
• Verify all taxable Fringe Benefits are included as taxable income, if required. The IRS Publication 15-B provides guidance on taxable and non-taxable compensation.
• If the unemployment rate has changed for the current year, confirm the rate is correct so the proper tax liability is calculated and paid.
• Process the last payroll in the tax year in which compensation should be recorded.
• If an employee received pay under the Families First Coronavirus Response Act (“FFCRA”), either Paid Sick Leave or Child Care Leave, verify the information in the payroll system is correct.
• Review Sick Leave or Vacation Time (PTO) balances for employees to ensure the carry over amount is correct.
• If a Third Party is used for Sick Pay payments (WC, STD, LTD), verify the Third Party will be submitting the W-2’s.
• If a 401(k) or other retirement plan is offered, complete year-end audits on contributions and match calculations.
• If Group Life Insurance is offered in amounts greater than $50,000 for employees and $2,000 for dependents, confirm the taxable income been included in the employee’s current year pay.
• Run final year-end reports after the last payroll of the year has been processed and before the first payroll of the new year is processed. Reports include an employee list(active and terminations), year-end compensation and benefit amounts and payroll changes throughout the year.

 
For any questions on year-end processing, contact us at [email protected]
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