It’s already halfway to year-end and now is the time to start preparing for year-end filing processes to make sure closing out the year goes smoothly. Our tax manager, Ariel Peterson, provides some tips for making your staffing agency’s year-end filing and printing process a success.
It’s never too early to start preparing your staffing agency for year-end and making sure employee records and information are up-to-date and accurate. Based on my experience as the tax manager here at TempWorks Software and Lone Oak Payroll, here are six best practices for your staffing agency to consider as your team prepares for year-end filing and printing.
1. Verify employee records.
Check employee profiles to ensure they are setup accurately. Make sure the employee personal information is accurate, including name, address, and social security number. Review the Pay Set-up screen to confirm Federal and State exemptions as well as Marital Tax Status, Tax State, and applicable Local Taxes are accurate. It is good practice to also review the “Employee Taxes” screen in case there are any taxes marked exempt in error.
2. Review account numbers.
Make sure the correct Federal and State Withholding tax account numbers are set up in the system. The Federal Withholding tax account number is your Federal Employer Identification Number (FEIN). The State Withholding tax account numbers will be specific to your individual accounts. It may not be your FEIN. The account numbers are stored within Jurisdiction Set-up (All Options > Administration > Employer Set-up). These are carried forward to the W-2s. They need to be accurate to prevent filing issues on the employee’s part.
3. Verify 1099 vendors.
Review your Vendor List (All Options > Vendors) and check for accuracy. If you need 1099s generated, the “Generate 1099” box needs to be checked. Consider double checking any contractor’s tax history within their Pay Setup in case payroll was processed as a W-2 with taxes deducted in error.
4. Evaluate Affordable Care Act (ACA) set-ups.
Though ACA year-end forms have historically not been due as early as W-2s and 1099s, it is still ideal to review the setups early for accuracy. There are several ACA specific reports available in the system that you may utilize.
5. Review now and again later.
Consider reviewing all these items at regular intervals as year-end is getting closer. It’s important to start preparing now while there is still ample time to make corrections. Your future self will thank you!
6. Evaluate options for tax filing and print services.
Year-end is a busy time for staffing agencies. Now is the time to evaluate whether your team has the capacity to handle all the stressful paperwork and compliance tasks internally or if you should consider outsourcing W-2 and 1094/1095 printing services to a third party. At TempWorks, we help our clients prepare for year-end by printing, preparing and mailing W-2 and 1094/1095 documents directly to your employees to make sure you meet all deadlines.
These are just a few best practices that I recommend for staffing agencies to stay on top of year-end processes and ensure that it is as smooth as possible. If you want to learn more about our W-2 Management services when it comes to year-end filings and printing services, contact your account manager today!
Ariel Peterson, Tax Manager
Ariel Peterson is the Tax Manager at TempWorks Software and Lone Oak Payroll and has been with the company since July of 2012. Her team handles everything related to payroll taxes for our clients, including tax filings and payments. In addition, she helps clients manage their accounts, keep tax rates updated, and keep their accounts in good standing.