Year-End Payroll Guide
Our payroll experts have compiled monthly tasks, important information, and handy resources to make year-end payroll processing easier.
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October & November
End-Year Tips
Why it Pays to Check Social Security Information
The Social Security Administration (SSA) charges a fee to correct wages posted incorrectly to the wrong individual. To help avoid filing incorrect SSNs, check out the free verification tool the SSA provides on their website.
Furthermore, the IRS requires that employee Forms W-2 and 1095-C must match what is printed on social security cards. For example, if an employee’s name is hyphenated on their social security card, but not on their Form W-2 or Form 1095-C, the IRS will return this as an error. Failure to verify this information is correct may result in penalties.
Large Companies: Consider Electronically Filing Your W-2s
If your company is filing 250 or more Form W-2s, the Social Security Administration (SSA) requires electronic filing unless a waiver has been granted. You may file electronic W-2s using the SSA’s Business Services Online (BSO) website. There is no charge for this service and you can register online.
Are You Eligible for Disaster Assistance
and Emergency Relief?
Special tax law provisions may help businesses recover financially from the impact of a disaster. Depending on the circumstances, the IRS may grant additional time to file returns and pay taxes. Visit the IRS website for more information.
December
Before Processing Last Payroll
BEFORE DECEMBER 31, 2020
End-Year Tips
Is the Minimum Wage Rate Changing in Your State?
The federal minimum wage rate is $7.25 an hour. To see what the minimum wage is in your state, visit our Minimum Wage Rates by State.
Are You Prepared for ACA Annual Reporting?
Did you know there are 18 potential conflicts between lines 14 and 16 on the Form 1095-C? An ACA reporting solution with an error-checking algorithm ensures codes are valid and data is formatted correctly for reporting to the IRS. Learn more about Form 1095-C reporting codes.
Are You Eligible for Disaster Assistance
and Emergency Relief?
Special tax law provisions may help businesses recover financially from the impact of a disaster. Depending on the circumstances, the IRS may grant additional time to file returns and pay taxes. Visit the IRS website for more information.
January & February
BEFORE YOUR FIRST 2021 PAYROLL
Second Week of January
ENd of January 2021
ENd of February 2021
End-Year Tips
You’re Almost Done with Year-End Processing!
Make sure you distribute Form W-2s to your employees by January 31, 2021.
What’s Your Plan for ACA Reporting Next Year?
If ACA compliance and reporting was a headache this past year, make 2021 the year of change! Take the complexity out of ACA compliance and reporting with a solution that unifies your human capital management processes.
Are You Eligible for Disaster Assistance
and Emergency Relief?
Special tax law provisions may help businesses recover financially from the impact of a disaster. Depending on the circumstances, the IRS may grant additional time to file returns and pay taxes. Visit the IRS website for more information.
YEAR-END RESOURCES
Year-End Payroll Checklist
Use this checklist to keep track of your important year-end payroll tasks.
SUTA Wage Bases
Find out what your SUTA wage base is for the new year.
FUTA Credit Reduction States
Check to see if your state has a FUTA credit reduction.
Payroll Taxes: Rates and Changes
Stay up-to-date on payroll tax changes from year to year.
Minimum Wage Rates
Look to see what the current minimum wage rates are for each state.
ACA Reporting and Compliance
Use this handy guide for navigating the year-end ACA reporting and compliance.
APS SOlutions for your business
Benefits Administration with Carrier Connections - Easily conduct online enrollment, submit information to your plan providers, and adjust benefits plans as needed.
Manager and Employee Self Service - Save time and empower your managers and employees with online access to their payroll information.
APS Hire - Attract, hire, and onboard top talent with our recruiting and onboarding solution.
YEAR-END LINKS
- Internal Revenue Service (IRS)
- IRS Forms Federal Form
- W-2 General Instructions for Forms W-2 and W-3
- Federal Form 944
- Federal Form 1099-MISC
- General Instructions for Certain Information Returns
- About Form 1094-C, Transmittal of Employer-Provided Health Insurance and Coverage Information Returns
- About Form 1095-C, Employer-Provided Health Insurance Offer and Coverage
- Publication 15 Employer’s Tax Guide
- Publication 15-A Employer’s Supplemental Tax Guide
- Social Security Administration (SSA)
- SSA Regional Office Information
- Electronic Federal Tax Payment System (EFTPS)
- Filing Information Returns Electronically (FIRE) for Filing 1099s Online
- IRS Reporting Sick Pay Paid by Third Parties
- IRS Publication 15-B, Employer’s Tax Guide to Fringe Benefits
THE ONLY YEAR-END CHECKLIST YOU’LL EVER NEED
Keep track of all your monthly year-end payroll tasks with our handy checklist.
How APS Can Help
The APS Affordable Care Act Solution makes it easy to manage ACA compliance and reporting with features like part-time staff management, measurement period management, and e-filing of Forms 1094-C and 1095-C. Employees can also review and correct their data when needed with the APS employee self-service portal. HR managers can then review changes and commit them to employees’ records, saving critical time during year-end processing.
If your organization is not utilizing a benefits administration system, conducting open enrollment can be a challenge. APS Benefits Administration houses this necessary information in a truly unified database, making it easy to manage online open enrollment, multiple benefit plans, and reporting.