Preparing for Year End in Payroll Mindy Harada [email protected] 1 Agenda 1. Nuts and Bolts of Year End 2. Year End To Do List PwC 2 The nuts and bolts of year end PwC 3 Nuts and Bolts of Year End • How do we handle those hard to account for items: – Business expense reimbursements – Educational assistance – Auto Allowance – Relocation – Personal use of a company vehicle – Cell phones – Gift certificates PwC 4 Nuts and Bolts of Year End • Develop a spreadsheet for tracking those items that are not run through payroll to begin with – A good way to start is to take a look at all of the payments made in the previous year through AP that were paid to an employee – Also take a look at what HR and other departments are offering to employees either by policy or by practice to make sure they are accounted for. PwC 5 Nuts and Bolts of Year End • • • • • • • • • Year End Communication to Employees Try to issue prior to December 1 Expiration of W-4 and W-5 New Social Security rates Any new wage bases, changes to local tax rates, disability insurance Date when W-2s will be mailed How to request a duplicate W-2 Address verification List of holidays for upcoming year • Can be distributed via email or as a payroll stuff PwC 6 Year End To Do List • • • • • • • • • PwC Do State of the Payroll memo Handle employee data/ address changes Set up year end committee Prepare to collect fringe benefit data and enter the information into the payroll system Create year end printing schedule or confirm with vendor Create a check list for all tax forms that will be needed for year end Order W2 forms if needed Verify that all manual checks have been processed After the last payroll, close out manual check files, timesheet files, and any spreadsheet files 7 Year End To Do List – Set up new payroll processing calendar – Set up new submission calendar for payroll— when must employees get information to the Payroll Department – Verify tax wage base and tax rate information – Download or order any forms that you need for 2011 – Obtain new Circular E and State Tax reference material – Create new spreadsheets PwC 8 Year End To Do List • Insure Box 13 Retirement Plan indicator is correct on the W-2s • Confirm that deferred comp plan type is correct and verify employee contribution amounts • Make sure GTL is correctly reported • Determine if special tax items have been accounted for: – Fringe Benefits – Expense reimbursements – Tips – Dependent Care benefits • Verify taxable wage limits • Is third party sick pay handled correctly • Personal use of a company vehicle PwC 9 Year End To Do List 1. Nonqualified moving expense reimbursements 2. Company provided transportation 3. Employer paid education not related to employee’s job 4. Non cash payments 5. Special reports needed for year end 6. Banking and payroll reporting supplies 7. Manual checks accounted for and updated PwC 10 Thank you In conclusion: It’s just easier to take a vacation in December and return in February • © 2011 PwC. All rights reserved. In this document, "PwC" refers to PricewaterhouseCoopers LLP, a Delaware limited liability partnership, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. This document is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.