January brings many challenges for small businesses every year. From trying to close out year-end books to staffing for the holiday season to finalizing payroll and reporting annual returns, it truly is the busiest time of the year. OnPay works hard to make the year-end payroll process as seamless and easy as possible.
Before December 31st, 2017
1) Verify Employee and Contractor data
This information can be found on the export under the "Employee List." Click here for a guide on adding and updating 1099 Contractors.
- Confirm employee names are spelled correctly.
- Update any home addresses/mailing addresses for active and terminated employees.
- Verify employee Social Security numbers are correct.
- Confirm contractor/ business names are spelled correctly.
- Update any mailing addresses for active and terminated contractors.
- Verify employee Social Security/Employer Identification numbers are correct.
2) Verify Payroll and Year to Date data
Ensure all payroll entries are completed by December 31st
All contractor payments, W-2 earnings, and bonus' must be completed in OnPay prior to December 31st, 2017 to ensure tax payments can be made on a timely basis. Any entries not made by December 31st, 2017 could result in IRS and/or State Penalties and Interest which would be the sole responsibility of the employer.
Review W-2 Preview File
Preview your W-2's to ensure accuracy of Year-to-Date payroll data. This report can be found in the Annual Tax filing section. Click here for directions.
S-Corp Shareholder (2% or More) Benefits
Add any shareholder health or auto benefits for 2017 by following these steps: Adding 2% Shareholder Benefits to W-2s.
Record Employer Health Care Contributions
If you have paid all or a portion of an employee health insurance premium throughout the year, that data needs to be reported on each employee's W-2 along with any premiums that the employee has paid toward a company-provided plan. You can find out how to Record Health Care Contributions in OnPay here.
Third Party Sick Pay
All Third Party Sick Payments should be sent to OnPay for entry. These items must be received no later than December 31st to ensure timely completion of the W-2. Review any Third Party Sick Pay entries on the W2 Preview.
Services like personal use of company cars, gift cards, and gym memberships are taxable. Ensure these are entries are made to an employee's payroll history. For more information on Taxable Fringe Benefits, please refer to the IRS Publication 15-B.
3) Get Compliant for 2018!
Review Federal and State Law Changes that may impact your business
35 States and the District of Columbia have payroll-related changes that will take effect in 2018. These changes include Minimum Wage changes, updated state unemployment wage bases, new Paid Sick or Family Leave Laws. Click here to find out what changes affect your business.
Order New Compliance Posters
With all the changes state have made, it's a good idea to order new posters for your office. You can view the changes and order posters by clicking here.
Before January 4th, 2018
1) Choose your W-2/ 1099 Processing Option
OnPay gives you three options when it comes to providing W-2s or 1099s. You can find these options defined in the article Choosing W-2 and 1099 Delivery Options.
2) Confirm your company information
This information can be verified under the "Settings" Menu (Gear Icon).
- Confirm the spelling of the company name is accurate in OnPay.
- Update company address, if necessary.
- Verify the Federal Employer Identification Number (FEIN). This can be viewed under the "Payroll Taxes" section of the "Settings" Menu.
Before January 15th, 2018
1) Review Your Federal Unemployment Tax (FUTA) Credit Reduction
California Employers Only: Please take the time to review the total amount owed for the FUTA Credit Reduction for 2017. This information can be found on the dashboard when you log into OnPay after December 31st. If you DO NOT want OnPay to draft and pay the tax, please e-mail us at email@example.com.
Before January 31st, 2018
1) If Self-Print was selected for employee copy W-2s/1099s, employers must postmark or provide employees with copies by 1/31/18.