Year-end can be a stressful time for payroll administrators. As we are sure you know, year-end involves an abundance of tax, compliance, reporting, and communication issues that all must be addressed to ensure successful processing.
All employers must file W-2 forms with the Social Security Administration (SSA) by January 31, 2024. You also need to file any 1099 and 1095 forms with the IRS. Payroll mistakes and compliance issues could result in penalties, additional work, and disgruntled employees.
To make this process easier, we have put together our 8 top tips to help you manage year-end this year.
Tip 1: Void & Manual Checks
We don't want to see anything fall through the cracks. When it comes to confirming all manual and voided checks have been accounted for, start by asking yourself these three questions:
Do you have any manual checks that need to be entered into the payroll system?
Manual checks must be entered into payroll before the close of your 2023 year to properly collect, pay the taxes, and include inapplicable reporting requirements.
Are there any 2023 checks that have not yet been voided?
If yes, the voided checks must be processed in the quarter they occurred. Prior quarter voids must go through the Client Support team.
*Please note: Any voided or manual checks that are not entered on or before the last payroll of 2023 or prior quarter adjustments will result in additional charges for the adjustment payroll runs.
The deadline for any adjustments is December 27, 2023.
Did any of your employees receive Third Party Sick Pay/disability payments in 2023?
If you have any employees being paid either short-term or long-term disability pay (also called Third Party Sick Pay) the amounts need to be sent to PNI•HCM. We will guide you through entering the amounts into your isolved payroll system to properly record the payments and pay any employer-matching taxes that are due.
These amounts need to be entered with a regularly scheduled payroll for 2023 and must be done before year-end. You can request this information in advance from your Third Party Sick Provider before year-end.
However, if your disability policy is one whereby the insurance company pays the company matching taxes and reports the W-2 to the IRS, you should not send the information to PNI•HCM.
Tip 2: Review Employee Data
As HR, you can run reports to audit this information and remind your employees to review their address and SSNs to ensure it is correct before the end of the year.
Do you have a Self Service platform? When you do, you can have your employees audit their own information.
Has anybody moved during the year?
Please correct any address changes for your employees so their W-2s will have the current address. The W2 may not reflect the correct state if not correct timely. If any of your employees moved during the year, was their address updated in the system timely, and were the proper state taxes withheld? If not, and you're a Payroll Network client, please notify Support at support@payrollnetwork.com to make the adjustments.
Ensure Employee Social Security Numbers Are Correct
Check the social security numbers for accuracy. The most common reason for corrections is incorrect social security numbers. Please ensure that your employees' numbers are accurate, and if you're a PNI client, notify us of any corrections that need to be made at support@payrollnetwork.com. Important: do not send SSN information via email to anyone.
If you utilize an employee self-service portal, you can also have your employees log in and verify their own information.
Tip 3: Avoid Payroll Adjustments & Report Auditing
Review Your Exceptions Report
Please make sure you are reviewing the client report called Exceptions when you are previewing your payroll. This should be done year-round. The Exceptions Report will show if there are any issues still lingering with your employees, such as missing street addresses, duplicate social security numbers, missing tax IDs, and variances.
You can view the Exceptions Report under Client Reports. If you have any exceptions you are unsure how to correct as a PNI client, please reach out to Support at support@pnihcm.com and our team is happy to help you.
The best result in a streamlined year-end is to audit and correct payroll information before your last processing of 2023.
The deadline for any adjustments is 12/27/2023.
Tip 4: Remember These Important Dates in December
Bonus Payrolls
Don’t forget about bonus payrolls! If you are still planning to process a bonus payroll outside of your normal payroll for year-end, you must contact our support team before December 8 to set up a special payroll for this year at support@pnihcm.com or support@govconpay.com.
Year-end resources can be found on our website here.
Important Dates - December:
- 12/1/23: Review the 2024 processing schedule and calendar
- 12/8/23: Review employee addresses and social security numbers
- 12/8/23: Last day to request bonus payrolls
- 12/8/23: Complete the Year-end Authorization Survey (located under Links on your Client Landing Page in isolved)
- 12/25/23: PNI•HCM & GovConPay closed
- 12/26/23: PNI•HCM & GovConPay closed
- 12/27/23: Last day to process 2023 payrolls
- 12/27/23: Last day for any adjustments
- 12/27/23: Last day to request deferred printing of W-2s (fees may still apply)
- 1/1/24: PNI•HCM & GovConPay closed
Before Processing the Last Payroll of 2023:
- Ensure employees' SSNs and addresses are correct.
- Send any Third Party Sick Pay to support@pnihcm.com.
- Review and input any adjustments to ensure W-2s are accurate.
- Provide any employer HSA contributions for 2023.
- Determine any manual checks you may have provided.
- If you offer Group Term Life for your employees, the taxable portion above $50,000 must be entered before the last payroll.
Tip 5: Go Paperless
Paperless Year-end Forms & Payroll
Empower your employees by using an Employee Self-Service platform to access their personal information, pay stubs, and year-end forms. They will be able to access this information 24/7. This eliminates the need to contact your Payroll and HR support team for information because it will be at their fingertips, saving you valuable time in busy times.
The Advantages of Going Paperless:
- Implement a secure way to receive information.
- Eliminate the possibility of lost or stolen statements.
- Access their statements at any time. No need to retain paper statements.
- Reduce paper and the energy used to deliver paper statements, thus helping the environment.
- Receive an automated alert when tax forms become available.
- Support work-from-home arrangements.
Tip 6: Payroll / W-2 Delivery
Important: All employee updates to address and SSNs must be completed/corrected before your last processing of 2023.
Have or will you change your address for W-2 delivery purposes?
Please correct any address changes for your employees so that their W-2s will have the current address. If any of your employees moved during the year, was their address updated in the system timely, and were the proper state taxes withheld? If not, please notify Support at support@pnihcm.com to make the adjustments.
Have you considered electronic delivery of your employee's W-2s?
An employee Self Service portal offers the opportunity for your employees to receive W2, 1099, and 1095(ACA) forms electronically. Electronic delivery is a secure way to have your employees receive their year-end forms without getting lost in the mail.
If you need us to set up your address or are interested in Electronic Delivery, please reach out to Client Support by sending an email to support@pnihcm.com.
Tip 7: Perform a W-2 Audit
Verify W-2 information in advance. It would be best if you previewed W-2s in isolved in advance under these reports:
*Ensure your State's Tax IDs are present. This could prevent your employees from filing their tax returns. The Exceptions Report every payroll will show this missing information.
Q&A: Can employees access it electronically?
Yes, if you go paperless. We recommend that clients go paperless for security reasons and easy distribution. If interested, please get in touch with our support team before the end of the year by emailing support@pnihcm.
W-2 processing will begin the 1st week of January. You'll want to review your W-2s in December to ensure they look appropriate. As always, if you're a PNI client, please reach out no later than 12/27/23 for any W-2 changes. If you have any concerns, feel free to reach out to support@pnihcm.com.
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