Take time to review these year end payroll tasks. Take care of them before the holidays, when you will have other year-end tasks and employees may be taking some time off.
- Remind employees to make changes in personal information before the end of the year on their W-4 forms, so they have the correct amount withheld and so you have the right address to which to mail their W-2 forms.
- Place your order for W-2 forms for employees and 1099 forms for independent contractors. If you have a payroll service, make sure they have everything they need to prepare these forms at the beginning of January. Remember that the forms must be sent to employees and contractors by the end of January 2013 and to the IRS by the end of February.
- Determine how you will deal with employee paychecks that have been uncashed for a long time. You must make a sincere effort to find the employee (use certified letters so you can show that the letter was undeliverable). If you can't find the employee, you are required by state law to turn over uncashed paychecks to your state revenue/tax agency.
- Verify your employees' names and Social Security Numbers at http://www.ssa.gov/employer/ssnv.htm.
- Determine taxable amounts for employee W-2s for certain benefits, including percentages for personal use of company vehicles and cell phones by owners and employees and employer-paid educational expenses that may be taxable
Get the information you need to survive business tax season - sign up for my weekly newsletter or Follow me on Twitter or Facebook.