6 Things You Must Know for Year-End W-2 Compliance

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It’s that time of year again! Time to finish out one year of payroll and get ready for the next. To help with the process, we created a list of reminders to ensure you maintain year-end W-2 compliance. Here are six areas to focus on.

Review Employee Information

Before your last payroll run in December, make sure your W-2 information is accurate. Double-check the spelling of your company name and legal address. Ensure employee YTD wages through the current payroll are correct. We’ll email you a preview of each W-2 with your next set of payroll reports. Notify us of any necessary corrections.

Review Employee Names

Ensure each employee’s information is accurate. Check each employee’s name for the correct spelling. Make such each address for active and terminated employees is current. Verify that each employee is paying taxes to the correct state. If you want your employees to confirm their information, ask them to log into our online portal or review their latest check stub.

Verify Adders

Pay attention to applicable W-2 adders your business needs to include in 2019 W-2s before we process them. Adders include group term life insurance greater than $50,000, third-party sick pay, personal use of company vehicle, sub-S owner insurance, non-qualified moving expense reimbursements, non-cash payments, and company-provided transportation or parking.

Send the Schedule for Bonus Runs

By Monday, December 16, 2019, provide a schedule for any additional bonus runs. Since bonuses are taxable to employees, they need to be recorded as wages.

Provide Final Payrolls

By Thursday, December 26, 2019, provide final payrolls to be processed or wage adjustments. Any adjustments made after this day may incur additional fees.  

Send Your 2020 Unemployment Insurance Tax Rate

Make sure you send us your 2020 unemployment insurance tax rate from your state unemployment agency. Email the information to admin@redriverpayroll.com. Note that for wages to be included in the 2019 W-2, the check date must be no later than December 31, 2019.   

Thank You for Being a Valued Client

We appreciate having you as a valued client of Red River Payroll. We look forward to serving your payroll needs in 2020. Happy Holidays!

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