Don't Let Year-End Payroll Slow You Down
Did you know the new IRS Form W-4 eliminated withholding allowances?
Do you know when to file or mail relevant tax forms for your payroll?
Are you sure all your employee information is still correct?
Year-end payroll isn’t only about generating a paycheck – it’s an important time to verify forms, employee information, tax changes, your accounting, and all payments, including anything your employees earned that wasn’t part of your regular pay schedule. For a company with one or two salaried employees, payroll can be a pretty straight forward process. But the more complex your compensation, the more complex your year-end tasks may be. For example, bonus pay, handwritten checks, and paid time off can complicate your year-end payroll tasks. Especially if you haven’t processed payroll regularly because of COVID.
Was your business affected by IRS changes in 2020?
Year-end payroll always has its challenges and deadlines, but the COVID pandemic created more payroll changes than usual that may impact your small business. Changes in 2020 that may affect your business include:
- The CARES Act
- A new Form W-4
- FFCRA-qualified leave
- Social Security tax deferral
- State and local changes
- And more!
Experts recommend starting year-end payroll in October to process changes, get up to date on new laws, and give yourself extra time meet deadlines. If you’re already behind, Amador Accounting can get you caught up.
For 2020 filing, the important date to remember is February 1, 2021, when several forms are due:
W2 Wage and Tax Statements (filed, and to employees)
W3 Transmittal of Wage and Tax Statements (filed, and to employees)
1099-MISC, Miscellaneous Income (due to taxpayers)
1099-NEC, Non-Employee Compensation (due to taxpayers)
Visit the IRS website for more information about due dates and forms.
If you’re dreading year-end payroll because of all the tax changes this year, you’re not alone! It can be stressful and time-consuming in the best of years. But accurate accounting and reporting are critical to your business and especially to your employees.
Could you use some help with your payroll?
If you’re worried about how new payroll laws will affect your business, too busy running your business to take on the accounting, or just need a hand, Amador Accounting is here for your payroll needs, including:
- Updating payroll software, rates and elections
- Reviewing and updating PTO balances and rollovers
- Verifying wage and contribution limits
- Reporting fringe benefit information
- Verifying tax rates
- Filing forms with the IRS
We know how important accurate payroll accounting is to you and your employees. When you trust your payroll to Amador Accounting, you can rest easy knowing your records are accurate and filed on time. And when you don’t have to worry about payroll laws and forms, you can focus on what matters most to your business: its future.
Payroll, bookkeeping and taxes are our specialty
Every business is unique, but we all want the same thing: a successful business with happy employees. Whether your staff is few or many, your hours are seasonal or full-time, you have fringe benefits or not, with Amador Accounting on your payroll you can focus on your business knowing we’ve got your back.
Contact us on the website or call Lisa Amador at 734-330-0907 for more information about our payroll, bookkeeping, business consulting, accounting, and tax prep services. If you’ve got questions, we probably have solutions!