Preparing for Year End in Payroll
Mindy Harada
mindy.harada@us.pwc.com
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Agenda
1. Nuts and Bolts of Year End
2. Year End To Do List
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The nuts and bolts of year end
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Nuts and Bolts of Year End
• How do we handle those hard to account for
items:
– Business expense reimbursements
– Educational assistance
– Auto Allowance
– Relocation
– Personal use of a company vehicle
– Cell phones
– Gift certificates
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Nuts and Bolts of Year End
• Develop a spreadsheet for tracking those
items that are not run through payroll to
begin with
– A good way to start is to take a look at all of the
payments made in the previous year through AP
that were paid to an employee
– Also take a look at what HR and other
departments are offering to employees either by
policy or by practice to make sure they are
accounted for.
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Nuts and Bolts of Year End
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Year End Communication to Employees
Try to issue prior to December 1
Expiration of W-4 and W-5
New Social Security rates
Any new wage bases, changes to local tax rates,
disability insurance
Date when W-2s will be mailed
How to request a duplicate W-2
Address verification
List of holidays for upcoming year
• Can be distributed via email or as a payroll stuff
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Year End To Do List
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Do State of the Payroll memo
Handle employee data/ address changes
Set up year end committee
Prepare to collect fringe benefit data and enter the
information into the payroll system
Create year end printing schedule or confirm with vendor
Create a check list for all tax forms that will be needed for
year end
Order W2 forms if needed
Verify that all manual checks have been processed
After the last payroll, close out manual check files,
timesheet files, and any spreadsheet files
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Year End To Do List
– Set up new payroll processing calendar
– Set up new submission calendar for payroll—
when must employees get information to the
Payroll Department
– Verify tax wage base and tax rate information
– Download or order any forms that you need for
2011
– Obtain new Circular E and State Tax reference
material
– Create new spreadsheets
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Year End To Do List
• Insure Box 13 Retirement Plan indicator is correct on the W-2s
• Confirm that deferred comp plan type is correct and verify employee
contribution amounts
• Make sure GTL is correctly reported
• Determine if special tax items have been accounted for:
– Fringe Benefits
– Expense reimbursements
– Tips
– Dependent Care benefits
• Verify taxable wage limits
• Is third party sick pay handled correctly
• Personal use of a company vehicle
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Year End To Do List
1. Nonqualified moving expense reimbursements
2. Company provided transportation
3. Employer paid education not related to
employee’s job
4. Non cash payments
5. Special reports needed for year end
6. Banking and payroll reporting supplies
7. Manual checks accounted for and updated
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Thank you
In conclusion:
It’s just easier to take a
vacation in December
and return in February
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© 2011 PwC. All rights reserved. In this document, "PwC" refers to PricewaterhouseCoopers LLP, a
Delaware limited liability partnership, which is a member firm of PricewaterhouseCoopers
International Limited, each member firm of which is a separate legal entity. This document is for
general information purposes only, and should not be used as a substitute for consultation with
professional advisors.