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Top 10 Payroll Tasks to Prepare for Year-End

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Page 1: Top 10 Payroll Tasks to Prepare for Year-End€¦ · See a demo of Patriot’s online software for running a payroll, reports, and creating W-2s ... See IRS 2016 Instructions for

Top 10 Payroll Tasks to Prepare for Year-End

Page 2: Top 10 Payroll Tasks to Prepare for Year-End€¦ · See a demo of Patriot’s online software for running a payroll, reports, and creating W-2s ... See IRS 2016 Instructions for

● 20th year with the Patriot Software companies

● Oversee product development for Patriot’s payroll and accounting software

● Provides online payroll and

accounting software for small

business owners

● Launched Royalty Program for

Accountants

● Annie Hambach

Page 3: Top 10 Payroll Tasks to Prepare for Year-End€¦ · See a demo of Patriot’s online software for running a payroll, reports, and creating W-2s ... See IRS 2016 Instructions for

Top 10 Payroll Tasks to Prepare for Year-End

Agenda:

● Learn 10 ways to prepare now for year-end payroll tasks

● See a demo of Patriot’s online software for running a payroll,

reports, and creating W-2s

● Two ways for your practice to run profitable payroll through

Patriot’s Royalty Program

Page 4: Top 10 Payroll Tasks to Prepare for Year-End€¦ · See a demo of Patriot’s online software for running a payroll, reports, and creating W-2s ... See IRS 2016 Instructions for

Question for You:

Do you currently run payroll for your clients?

Yes, I run payroll for my clients

No, but I’m considering adding payroll services

No, and I’m not interested in adding payroll services

Page 5: Top 10 Payroll Tasks to Prepare for Year-End€¦ · See a demo of Patriot’s online software for running a payroll, reports, and creating W-2s ... See IRS 2016 Instructions for

Question for You:

How many clients do you run payroll for?

1 - 14

15 - 29

30 - 50

50+

Page 6: Top 10 Payroll Tasks to Prepare for Year-End€¦ · See a demo of Patriot’s online software for running a payroll, reports, and creating W-2s ... See IRS 2016 Instructions for

Top 10 Payroll Tasks to Prepare for Year-End

● Have current W-4 form and any state

withholding certificates

1 Verify employee names, Social Security

numbers, and current addresses

Page 7: Top 10 Payroll Tasks to Prepare for Year-End€¦ · See a demo of Patriot’s online software for running a payroll, reports, and creating W-2s ... See IRS 2016 Instructions for

Top 10 Payroll Tasks to Prepare for Year-End

● Handwritten checks

● Holiday gift cards

● Cash bonuses

● Taxable fringe benefits – See IRS Employers’

Guide Pub. 15-B

● Third-party sick pay

2 Record any earnings that happened outside

of regular payroll

Page 8: Top 10 Payroll Tasks to Prepare for Year-End€¦ · See a demo of Patriot’s online software for running a payroll, reports, and creating W-2s ... See IRS 2016 Instructions for

Top 10 Payroll Tasks to Prepare for Year-End

● Determine when this will be

paid, normally last pay of

the year

● Also note paid time off that

should be rolled over into

next year

3 Determine which employees should be

paid for unused time off

Page 9: Top 10 Payroll Tasks to Prepare for Year-End€¦ · See a demo of Patriot’s online software for running a payroll, reports, and creating W-2s ... See IRS 2016 Instructions for

Top 10 Payroll Tasks to Prepare for Year-End

● For changes going into effect January 1st

● Make changes after the final payroll is

run for this year

4 Determine who has benefit enrollment

changes and needs deduction/contribution

changes for next year

Page 10: Top 10 Payroll Tasks to Prepare for Year-End€¦ · See a demo of Patriot’s online software for running a payroll, reports, and creating W-2s ... See IRS 2016 Instructions for

Top 10 Payroll Tasks to Prepare for Year-End

● Examples:

● 401(k) deferrals = Box 12, code D

● Total medical premium costs = Box 12, code DD

● Third party sick pay = Box 13

5 Confirm all earnings, deductions, company-paid

contributions are properly set up to report in the

correct Form W-2 boxes

● See IRS 2016 Instructions for W-2 and W-3

Page 11: Top 10 Payroll Tasks to Prepare for Year-End€¦ · See a demo of Patriot’s online software for running a payroll, reports, and creating W-2s ... See IRS 2016 Instructions for

Top 10 Payroll Tasks to Prepare for Year-End

● Unemployment tax

● Some states have

disability or workers

comp tax rates

● Get copies of your

clients’ notice from

state agencies

6 Verify state-specific tax rates that are

subject to change

New Employer Information

by State

Page 12: Top 10 Payroll Tasks to Prepare for Year-End€¦ · See a demo of Patriot’s online software for running a payroll, reports, and creating W-2s ... See IRS 2016 Instructions for

Top 10 Payroll Tasks to Prepare for Year-End

● If you print your own forms

● Order from IRS or private supplier

● Make sure forms work with your

payroll software

7 Order paper W-2 and W-3 forms

Page 13: Top 10 Payroll Tasks to Prepare for Year-End€¦ · See a demo of Patriot’s online software for running a payroll, reports, and creating W-2s ... See IRS 2016 Instructions for

Top 10 Payroll Tasks to Prepare for Year-End

● Determine your needs

● Consider the cost

● Compare and analyze your

options

8 Evaluate your payroll provider for next year

Free White Paper

10 Things to Consider When Choosing

Payroll Software

Page 14: Top 10 Payroll Tasks to Prepare for Year-End€¦ · See a demo of Patriot’s online software for running a payroll, reports, and creating W-2s ... See IRS 2016 Instructions for

Top 10 Payroll Tasks to Prepare for Year-End

● Make sure to include taxable benefits

● Nonqualified plans for executives

● S-Corp shareholders are taxed on company-paid health

insurance

9 After final payroll is run for the year, verify

employee wages to confirm W-2s will be correct.

Page 15: Top 10 Payroll Tasks to Prepare for Year-End€¦ · See a demo of Patriot’s online software for running a payroll, reports, and creating W-2s ... See IRS 2016 Instructions for

Top 10 Payroll Tasks to Prepare for Year-End

● Distribute a copy of Form W-2 to each employee with

earnings last year.

● Can provide electronically with employee consent

● Heads up! Deadline is now the same for distribution to

employees and filing with SSA

10 Ready to create W-2s and W-3?

Page 16: Top 10 Payroll Tasks to Prepare for Year-End€¦ · See a demo of Patriot’s online software for running a payroll, reports, and creating W-2s ... See IRS 2016 Instructions for

Top 10 Payroll Tasks to Prepare for Year-End

● Thanks to Protecting Americans from Tax Hikes (PATH)

Act of 2015

● Copies of Form W-2 are due to employees by 1/31/17

● Forms W-2 and W-3 are also due to SSA by 1/31/17

● Deadline also applies to Form 1099 and 1096

10 Ready to create W-2s and W-3?

Page 17: Top 10 Payroll Tasks to Prepare for Year-End€¦ · See a demo of Patriot’s online software for running a payroll, reports, and creating W-2s ... See IRS 2016 Instructions for

Top 10 Payroll Tasks to Prepare for Year-End

This checklist is not all-inclusive!

You may have more payroll tasks that

pertain to your business.

Page 19: Top 10 Payroll Tasks to Prepare for Year-End€¦ · See a demo of Patriot’s online software for running a payroll, reports, and creating W-2s ... See IRS 2016 Instructions for

Question for You:

How do you charge for your payroll services?

By the hour

Per payroll

Bundled monthly fee

Page 20: Top 10 Payroll Tasks to Prepare for Year-End€¦ · See a demo of Patriot’s online software for running a payroll, reports, and creating W-2s ... See IRS 2016 Instructions for

Questions for Us?

Follow @PatriotSoftware @PatriotRoyalty on Twitter

Email: [email protected]

Sign up for your own demo account at www.PatriotSoftware.com