While it seems tax season keeps rolling around faster every year, it’s time to think about preparing to file all your outstanding payroll forms for 2017. If you just opened your business earlier in the year, perhaps you’re unsure about how to go about this in a way that doesn’t create discrepancies.
Consider the statistics on how many businesses (especially small businesses) really aren’t experts on doing payroll forms. The biggest problem for businesses like yours is it takes away important work time to correct payroll mistakes.
So how you can you properly prepare your payroll forms to make it more organized? Take a look at some tips for all your IRS forms and other tasks.
Ordering the Forms You Need, and Filing Deadline Reminders
Do you have all the IRS forms needed to report your payroll for 2017? If not now, it’s not too late to get them before the end of the year. Fortunately, the IRS lets you download all forms online. They also let you order the forms directly through them if you prefer paper filing.
Once you have all the proper forms, you’ll want to note the filing deadlines based on the type of payroll you do. For instance, January 31 is a significant date this year with five filing deadlines. By this day, you need to send your Q4 940 form to the IRS. The latter includes final FUTA payments.
Don’t forget about filing your fourth-quarter 941 form and paper W-2s as well on January 31. All other quarterly 941 forms are due on April 30, July 31, and October 31.
On February 28, all paper versions of your 1099s need filing to the IRS. E-filing for these occur on March 31.
Verifying All Employee Records
While verifying all employee records can become a chore, it’s important to do so to avoid mistakes after filing your payroll taxes.
Check all the W-4s you have on file and contact each employee to assure the information is correct. With the ability to digitize W-4 forms, you could just send their file electronically and have them confirm the data is accurate.
Issuing Your Final Paychecks
As you send out the last paychecks for the month, be sure to deal with employees on non-qualified deferred compensation programs. You’ll want to withhold the right distributions on these, though the software you’re using is perhaps not withholding properly.
As you send out your final paychecks, it’s a good idea to update your software so you don’t make mistakes on distributions. Otherwise, you might have major penalties later for mistakes made.
If you don’t have the time or resources to update your software now, it’s perhaps better to outsource to a third-party accounting firm.
Reconciling Your Payroll Records
Any outstanding payroll checks that are older than 30 days should require an update on why the employee hasn’t cashed the check.
This is a critical thing to do at the end of the year before filing all payroll forms. Without following up, you’ll report inaccurate amounts that only lead to additional IRS penalties.
Those of you still unsure about all of these tasks should never become too proud to seek a professional accountant team to do your payroll for you.
Why Going Through an Online-Based Accounting Firm is Important
Going through a third-party accountant firm gives you an experienced team that has the time and experience to get these tasks done quickly and efficiently.
When you can find an agency able to handle payroll, bill management, bookkeeping, and tax prep, you can have it all without wasting precious time.
Here at Tax N Book, we’ll do all of these tasks for you this year and every year. Visit us to find out how we can help with your first-year payroll forms so we can earn your trust.