How Payroll Service Providers Can Help With Your Year-End Tasks
Operating your own business isn’t easy. It comes with the responsibility of handling many different tasks efficiently and in a timely manner. With the end-of-the-year just around the corner, there are deadlines to be met and things to do if you want to be prepared for next year.
As a modern business owner, the first thing on your mind isn’t usually your end-of-year tasks. After all, there are things that need to get done now, and the end-of-the-year’s still ages away, right?
Oh, it isn’t? It’s just over a month and a half away? You see, this is really why it’s so essential to make your end-of-year targets a top priority, right now especially, regardless of whatever else is currently going on in your life or business. Whether you’re a new business owner or have extensive previous experience, there’s a lot to do before the end-of-the-year.
Luckily for you, working with payroll service providers can actually help you finish out all of your end-of-the-year tasks. Not only will this save you time, but you can focus on whatever other tasks or projects may be most important to you right now.
Let’s take a closer look at how our services at Vision HR can help you and your Port Orange business get ahead of the year-end so you can focus on more important things.
End-of-the-year Payroll Checklist
Before you can bring your business forward into a new year, you’re going to want to make sure you’ve closed out and organized any remaining tasks so nothing’s left outstanding. Then you’ll be ready for the next chapter.
Here a few ways you can prepare for the next year, which include:
- make sure you have recorded all paychecks, including bonuses and holiday pay
- balance time-off hours
- order the correct number of W-2 forms for all of your employees
- check that all your employees’ information is correct
- verify all of your employees’ wages, deductions, and benefits
- determine your deposit schedule for the new year
And yes, you guessed it: payroll services can help you with most if not all of these tasks. You can prepare yourself for the new year best if you stay organized. Doing this takes the stress out of your end-of-year tasks and helps to start your business on the right foot for the new year.
Setting Up W-2 Forms for Employees
A W-2 is used by employers to report wages that have been paid to your employees and the taxes held from their paychecks. This form goes to the IRS for tax return processing, taxpayer services, and enforcement.
As an employer, you are responsible for giving each of your employees a W-2 Form. Your employee needs a W-2 form if you deduct taxes from their paychecks which then gets reported to the IRS.
This form is necessary for employees to file their income taxes by April of the following year. By law, employers are supposed to distribute these forms to their employees by January 31st to give them the ability to file their taxes early before the deadline on April 15th. And, for the record, Vision HR’s payroll service means the manual work of all of this is actually done for you.
We issue W-2 forms. We handle all garnished wages. Easy and simple.
Organizing Payroll
Another added benefit to payroll services is extra help with end-of-the-year payroll. This process involves calculating a few different aspects of your business, such as:
- compensation
- taxes
- deductions to be withheld
All information needs to be submitted correctly on every form; therefore, it’s crucial to be meticulous and careful to catch any possible mistakes. A mistake can cost you and your business and create issues with the IRS, which is never worth it. Typically, this process lasts from the fourth quarter of the calendar year to the following year’s first quarter.
It’s also essential to account for bank holidays, bonuses, and holiday pay. If you give your employees an extra paycheck at the end-of-the-year for bonuses and holiday pay, they need to have the proper payroll taxes withheld just like any other paycheck. Failure to do this could end up getting you or your employee in trouble with the IRS. A payroll service can help ensure that these extra paychecks are handled accordingly and that the proper taxes are taken out and submitted to the IRS.
Figuring out your end-of-the-year payroll can get complicated if you don’t account for bank holidays. A bank holiday is when financial institutions are closed, with examples including:
- Presidents day
- Memorial Day
- Labor Day
If the day that the bank is closed falls on your predicted payday, this will mean that your
employees will not get paid. To keep this from happening, you’ll need to plan payroll earlier.
Generating Spending Reports
To plan for the new year, it’s important to generate a spending report. This will show you how much you have spent on your payroll for the year. Having access to these reports can also help you alter your budget to account for money spent.
If you are a new business owner, these reports can also show you how much money you should account for next year to be prepared for the upcoming end-of-year payroll. It can also be helpful to share these insights with your accountant or bookkeeper for future reference.
Payroll Services
The end-of-the-year can be hectic for anyone, especially business owners. With everything going on in the world and Christmas just around the corner, it can be easy to feel overwhelmed. It’s essential to not forget about the most crucial thing going on for many of us around this time, however: the end of the business year.
Payroll Service Providers
Why not turn to our team of professionals at Vision HR for that extra help with your end-of-the-year tasks. As one of Florida’s leading payroll service providers, we are here to work with you and your business to relieve the stress that comes with this time of year. Visit us today to learn more about our payroll services and how we can help bring your Ormond Beach business out the other side of the end of this financial year.
