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Top Payroll Processing Checklist Points to Remember and Follow
There are a couple of things you need to do before you close the annual financial book. You need to manage the list to tick the boxes in the right order. It becomes quite important to manage the tasks otherwise, there would be severe consequences. It is about following the system and doing the basics, right.
Here are the 10 points to remember while payroll processing:
1. Put Data in Place:
You should go ahead and check information, once again. It is often seen companies making horrendous mistakes by paying least attention towards employees’ details. You do not want to be missing a crucial piece of information on wages or demographics. You should take the case of terminated employees, as well. It is your responsibility to include both terminated and currently working members.
You should check the address, twice. It is one thing that goes wrong, most of the times. You would also be required to use Social Security Number Verification System to authenticate Social Security Number and employee records.
2. Use Advanced Technology to Maintain Data:
The use of advanced software helps companies to store accurate information. You should store data in a secure way. It is sensitive information what we’re talking about. It is the right combination of following a routine all year round by using the right techniques to get things done accurately in the end.
3. Closing Books in Time:
You need to ensure that employees have been paid their salaries and bonuses in time. It is about closing the books at the end of the year in the right way. Any errors or failure would lead to chaos and confusion. You should sit down with the expert and share important details.
4. W-4 forms:
Another important part of the job is to send W-4 Forms to employees. It contains information about the employee’s tax details.
5. Remember deadlines:
Remembering the dates and deadlines are again important. There are Federal and State Deposit and year-end deadlines that you need to take care of.
6. W-2 and W-4 forms:
Maintaining records is an essential part. You need to order W-2 and W-3 forms for the present year. Companies should enroll themselves with SSA or PIN to submit Forms W-2 online.
7. W-2 and W-3 approval:
Some companies have their own Forms W-2. In this case, you need to update important dates. You should also run a mock test. You need to send laser-printed W-2 and W-3 to SSA for approval purposes.
8. Check the IRS site to confirm:
It becomes important to check the IRS site to ensure that you’ve updated Forms 940, 941, 944v and 945.
9. Next year schedule:
You also need to inform employees of the next year schedule. They must be informed about taxable income, state unemployment/disability wage plans, etc.
10. Cutoff statement:
The banks should be informed about the cutoff statement for the month of December in advance.
You need to prepare a customized list depending on the business. You can check the IRS site to get more information.
Payroll processing is a tedious task and outsourcing it can help you save a lot of time and efforts. Outsourcing payroll processing services to Cogneesol gives you higher flexibility with staffing. Contact us today to know more about what we can offer you.
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