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End of Year Checklist- Things Your Business Should Review Before 2021

As this year comes to an end, it is advised that your organization takes a detailed look at your HR processes and progress from this passing year to ensure everything is up to date for the start of 2021.

 

 

Employee info

Make sure to review your employees’ records on file to ensure names, addresses, and Social Security numbers are correct and up to date. This information is important for W2’s to be issued correctly and to verify that none of the information in your employee record is fraudulent. Additionally, check with the IRS for any COVID-19 related updates to the information on the W2’s.

Payroll adjustments

If there were any changes, adjustments, or corrections to an employee’s wages, make sure those are all recorded properly. You should also keep track of any manual checks made in the year to ensure they were correctly processed. If there are any end-of-year bonuses, check with your payroll service provider to verify that everything necessary to issue the bonuses is received on time for the bonus to be properly paid in the current year.

Risk of payroll fraud

Payroll fraud, which involves the theft of money via a company’s payroll process, is, unfortunately, occurring at an alarming rate. Criminals are impersonating employees through email and making targeted requests to company payroll administrators to change employee direct deposit account numbers to the criminal’s account. It is always a good idea to be monitoring your security systems in place year-round. However, the end of the year can be hectic for many industries which can increase the chance of something slipping through the cracks that can ultimately put your company in danger.

ACH changes and updates

NACHA (National Automated Clearing House Association) updates its rules every year. Go through the new rules for 2021 to make sure you are not missing anything on your end.

State minimum wage increases

It is always important to check with your state’s guidelines and regulations for any minimum wage increases or changes that should be updated in your payroll system.

In addition to those mentioned above, the following should also be reviewed for the upcoming year:

  • Important Tax Agency Notices
  • Employees EXEMPT from Tax Withholding
  • Flexible Spending Accounts
  • State Unemployment Insurance (SUI) Rate Update
  • Enroll in EFTPS

There are so many moving parts to running any organization. Keeping everything up to date and compliant is key to starting the new year on the right foot.

Looking for a payroll service provider you can rely on? Payroll Systems offers payroll solutions that are easy to scale and a dedicated payroll specialist to ensure your specific payroll needs are met. Talk to us to learn more.

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This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.