Over the past month, we’ve been focusing on all of those year-end tasks that seem to pile up. Year-end W-2 and ACA tasks are certainly some of the most important and need to be handled promptly and correctly. It’s a stressful time of year for pretty much every payroll and HR professional, and it’s easy for important tasks and information to fall through the cracks. However, we all know this leads not only to a hectic start to the new year, but can possibly result in fines or other penalties levied against your organization.
Year-End W-2 Adjustments
As we head into December, your organization is probably getting ready to process its penultimate or final or payroll of 2019. Before that happens, you need to ensure 2020 starts without a hitch. This includes making any final adjustments to employee W-2s. Checking the information and adjustments are correct now not only ensures your employees receive accurate W-2s, but makes sure you meet the January 31st distribution deadline.
The IRS can levy a $50 fine for every missing or inaccurate W-2 forms, so now’s the perfect time to get all of your tax-related ducks in a row, ideally before you process the last payroll of the year. What adjustments should you check, double check, even triple check? Company-provided transportation and parking, certain reimbursements, any non-cash payments such gift cards, and any employer-funded education not specifically related to the employee’s position.
Annual ACA Reporting
The first step to completing your required ACA reporting is determining the number of full-time or full-time equivalent employees your organization has. 50 is the magic number and, along with the type of health insurance coverage you company offers, determines exactly what forms you’ll need to file.
If your organization employees 50 people or more, you need to file the 1094-C and 1095-C forms, regardless. However, if you’re organization is under 50 employees, what you need to file depends on your insurance offerings. Self-insured employees require your organization to complete forms 1094-B and 1095-B. If your employees are fully insured, it’s up to your insurer to file on your behalf. FInally, if your organization has fewer than 50 employees and does not offer any insurance, you don’t have to fill out any forms.
Make Your Year-End Payroll Processing Easier with iSolved
Take the stress out of all your year-end tasks with an intuitive platform that helps your employees help themselves. From managing and updating employee information and tax status to opting out of paper W-2s, Paperless Year-End Processing from iSolved help ensure you meet every deadline at any time of year. Contact CTR to learn more.