Payroll year-end is near, and employers should start the process of information gathering to prepare and issue employee W-2 forms. In my role as a Payroll Manager, October 1st is when I began Payroll Year-End planning conversations with my HR and payroll partners. I have historically worked in organizations with non-traditional employees such as ex-pats, foreign employees, and athletes. These employees had special compensation agreements that required wage adjustments on their W-2 forms. These wage adjustments, also known as fringe benefit adjustments, were often complicated as other considerations needed to be made, such as gross-up calculations and offsets against local per diems. Below is the checklist that I used to address and ensure accurate and timely W-2s:
Instruct employees to confirm that their name, address, and social security number are accurate in the system
If there are special forwarding instructions for W-2 forms, communicate to respective parties when the payroll department should receive the forwarding instructions to ensure proper and timely delivery
Start planning all reconciliations necessary to ensure accurate W-2 forms
Over-communicate with your partners! Let them know how important it is to meet deadlines and provide all relevant information
Work with accounts payable to ensure that any compensation items (fringe benefits) paid through the process are captured in your reconciliation
Create a calendar of expectation distribute to all applicable parties
Get support from senior management communicate expectations so that everyone is on the same page
If you need support in planning your Payroll Year-End, give us a call at (833) DWHELP9 or send us an email at support@dianewhiteconsulting.com. We are here to help!
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