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Top 10 Payroll Tasks to Prepare for Year-End
● 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
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
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
Question for You:
How many clients do you run payroll for?
1 - 14
15 - 29
30 - 50
50+
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
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
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
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
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
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
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
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
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.
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?
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?
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.
Royalty Program
Two ways to run profitable payroll for your practice:
For more info, visit
https://www.patriotsoftware.com/about/royalty-program/advisor-overview
Question for You:
How do you charge for your payroll services?
By the hour
Per payroll
Bundled monthly fee
Questions for Us?
Follow @PatriotSoftware @PatriotRoyalty on Twitter
Email: [email protected]
Sign up for your own demo account at www.PatriotSoftware.com