Closing the "HR & Payroll" book on 2018
As 2018 comes to a close and you are preparing for your last payroll, just a few friendly reminders:
1. Have your employees check their address, number of exemptions and social security numbers to ensure that they are accurate. If any of their information has changed, they will need to complete a new Federal Form W4, applicable State Withholding forms and possibly a new
Note: An employer is not required to update Form I-9 (“I-9”) when an employee has legally changed their name. However, it is a best practice to keep accurate information on your I-9s and note the name change in Section 3. While not required to see proof of name change, it is a best practice to do so.
2. Reconcile employee 401K/403(b) and FSA deductions with remittance reports to the applicable vendors. Depending on the election amount you may have what I call a “penny problem” and the employee may have been under or over deducted $0.08. On your last payroll of the year, it is best practice to “true-up” you employee voluntary deductions to match their elections. If you set up your payroll/HRIS systems with an annual contribution limit, chances are over deducting may not be an issue.
3. If you provide group-term life (GTL) insurance to your employees, you might need to think about imputed income. It applies whenever you provide an employee more than $50,000 worth of life insurance. If applicable and if you have not been withholding every pay cycle, you will need to add the income amount to your last pay cycle.
4. Get your third-party sick pay information early! JANUARY 31, 2019 is the deadline for employers to file their form W-2s. Depending on your payroll service provider, Form W-2s are processed during the first week of the new calendar year and you may not have received your third-party sick pay from your insurance vendor yet. Once you receive the information, you will have to re-issue Form W-2s for the applicable employees.
5. Make sure your HRIS and payroll systems have the updated 2019 employee contribution limits for your 401(k)/403(b), FSA, QSEHRA, Transportation, etc. Click here for more information.
If you need assistance calculating and reconciling your payroll, email us at firstname.lastname@example.org, we're here to help.