Year-End Payroll + HR Guide
Our payroll and HR experts have compiled monthly tasks, important information, and handy resources to make year-end payroll and HR processing easier.
Verify the following information for your company:
- Tax Ids
- Legal name
- Legal address
- Federal, state, and local (if applicable) tax identification numbers
- State unemployment rates
Check with your provider to see if you have access to this information in your Quarterly Tax Packet. If you find an error, let your provider know so they can help you correct it.
Audit employee data to ensure you do not miss critical Form W-2 information like complete Social Security numbers, employee names, and addresses. The Internal Revenue Service (IRS) may impose a penalty for each Form W-2 with a missing or incorrect Social Security number or employee name. If there are errors, you would then be subject to the following penalties:
Large Businesses with Gross Receipts of More Than $5 Million
Time Returns Files/Provided | Up to 30 Days Late | 31 Days Late Through August 1 | After August 1 or Not Filed | Intentional Disregard |
---|---|---|---|---|
Due 1/1/2022 – 12/31/2022 | $50 per return or statement | $110 per return or statement –
| $280 per return or statement –
| $570 per return or statement –
|
$556,500 maximum
| $1,669,500 maximum | $3,339,000 maximum | No limitation |
Small Businesses with Gross Receipts $5 Million or Less
Time Returns Files/Provided | Up to 30 Days Late | 31 Days Late Through August 1 | After August 1 or Not Filed | Intentional Disregard |
---|---|---|---|---|
Due 1/1/2022 – 12/31/2022 | $50 per return or statement –
$194,500 maximum | $110 per return or statement –
$556,500 maximum | $280 per return or statement –
$1,113,000 maximum | $570 per return or statement –
No limitation |
Last updated 6/13/22 on the IRS website
The maximum penalty differs for small and large businesses, and there is no maximum penalty for intentional disregard. See the IRS’ website for more details.
Furthermore, employee information on Forms W-2 and 1095-C must match social security cards. For example, the IRS will return a Form W-2 as an error if an employee’s name is hyphenated on their social security card but not on their W-2 or 1095-C. Failure to verify this information as correct may result in penalties.
If you are not careful, these types of errors can add up to a sizable penalty. Employers can garner updated addresses from a new W-4 if an employee’s withholding allowances have changed or will change next year. Remind employees to fill out a new W-4 if their situation has changed:
- Ensure employee names are entered correctly.
- Confirm the accuracy of employee addresses.
- Confirm the accuracy of employee Social Security numbers.
Employers need to make sure all employee data is accurate so that they can avoid W-2 reprint fees. Employers who use a payroll processing company may have an online service where employees can review and correct data. If so, encourage your employees to use it as a means to review and edit critical data.
W-2 and 1099-NEC Filing Deadlines
Due Date | Deadline |
---|---|
January 31st | Supply W-2s to employees and ex-employees who worked in 2022. Supply 1099s to independent contractors who worked in 2022 and other payees.
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January 31st | e-File or file paper W-2s and 1099s.
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It is recommended you distribute W-2s and 1099s before the due dates. Mail or e-File copies of Forms W-2 and 1099 with government agencies. Send W-2s and W-3s to the Social Security Administration. Submit 1099s along with Form 1096 to the IRS. You may also have to mail or e-File copies of these forms to a specific state(s) and any state transmittal forms required, so check the requirements. Many localities also require copies of informational returns, so double-check this as well.
Form 940 Filing Deadlines
Due Date | Deadline |
---|---|
January 31st | Submit Form 940 and deposit FUTA if your company owes any remaining amount.
If you deposited all the FUTA tax when due, then you have ten additional calendar days to file Form 940.
|
Submit Form 940 for Federal Unemployment Insurance (FUTA). The FUTA tax rate is 0.6 percent, which applies to the first $7,000 in wages you pay each employee during the year. However, if you do not pay your state unemployment taxes on time, your FUTA rate will increase to 6.0 percent.
For additional information, please visit our FUTA Credit Reduction page. If your company owes more than $500 in FUTA tax for the calendar year, you must deposit at least one quarterly payment. View the IRS’s Publication 940 Employer’s Annual Federal Unemployment (FUTA) Tax Return for more information.
Something to Consider: If your company is filing 250 or more Form W-2s, the Social Security Administration (SSA) requires electronic filing unless granted a waiver. You may file electronic W-2s using the SSA’s Business Services Online (BSO) website. There is no charge for this service, and you can register online.
Veteran’s Day is Friday, November 11, and is a federal holiday. Adjust your payroll processing accordingly to prevent delays.
Before you process your last payroll of 2023, verify you have recorded and properly taxed all non-cash and cash income on the W-2 and quarterly 941 tax return. Typical W-2 adjustments include:
- Group-term life insurance over $50,000
- Personal use of a company vehicle
- Third-party sick pay
- Company provided transportation or parking
- Non-qualified moving expense reimbursements
- Non-accountable business expense reimbursements or allowances
- Bonuses and other annual incentive pay
- Employer-paid education not related to the employee’s job
- Non-cash payments
S CORPORATIONS
Another common year-end adjustment is employer-paid health insurance for subchapter S shareholders who own at least two percent of the company. Although adjusting a W-2 record to reflect this amount is relatively easy, including it with a payroll run is best. This process ensures reporting on the applicable quarterly and yearly payroll tax returns. View the IRS requirements for subchapter S filing to ensure your company reports correctly.
Contributions 401(k), 403(b), or SIMPLE retirement plans cannot exceed IRS limits. The limits are as follows:
Type of Retirement Plan | 2024 Limits* | 2023 Limits |
---|---|---|
401(k) Elective Deferrals | $23,000
| $22,500 |
403(b) Elective Deferrals | $23,000
| $22,500 |
SIMPLE Employee Deferrals | $16,000
| $15,500 |
Catch-Up Contribution for Employees 50 Years and Older | $7,500
| $7,500 |
Record any employee checks issued outside the normal payroll process and pay their tax liabilities on the applicable due dates. Confirm that all “manual checks” cut during the year have been accounted for and updated. Likewise, record all voided checks.
Some payroll checks cut throughout the year may not have been cashed. These checks should not be voided in the payroll system but should instead be considered unclaimed property and reported to the appropriate state agency. The unclaimed property office may be a division of your state’s Department of Revenue or treasurer’s office.
To recap:
- Account for manual checks written during 2023.
- Confirm that all voided checks have been recorded.
- Report uncashed checks to the appropriate state agency as unclaimed property.
Third-party sick pay is a disability insurance benefit that provides employees with partial or full-wage benefit payments in the event of an injury or illness that prevents the employee from working. These payments are not made through the employer but through an insurance company, union plan, or a state temporary disability plan.
Make sure to submit the total amount of any temporary disability payments your employees received in 2023 to your payroll provider no later than December 31, 2023. You can use the third-party sick pay statement you received from your carrier for reporting purposes.
A fringe benefit is considered a form of payment for the performance of services. For example, you provide an employee with a fringe benefit when allowing the employee to use a business vehicle for personal use. Any fringe benefits you provide are taxable and must be included in the recipient’s pay unless the law expressly excludes it.
You must report the value of fringe benefits as taxable income unless the law expressly excludes it. Fringe benefits are subject to taxes, and employers must include the amounts on Form W-2 in boxes 1, 3, and 5. The amount will also be listed as a memo in box 16.
Thanksgiving Day is Thursday, November 23, and is a federal holiday. Adjust your payroll processing accordingly to prevent delays.
Form 940 Filing Deadlines
Due Date | Deadline |
---|---|
January 31st | Submit Form 940 and deposit FUTA if your company owes any remaining amount.
If you deposited all the FUTA tax when due, then you have 10 additional calendar days to file Form 940.
|
Something to Consider: If your company is filing 250 or more Form W-2s, the Social Security Administration (SSA) requires they be filed electronically unless a waiver has been granted. You may file electronic W-2s using the SSA’s Business Services Online (BSO) website. There is no charge for this service and you can register online.
This timeline can vary depending on your company’s benefits year. Review benefits renewals with current carriers and prepare an eligible employee/participant census to market a group for optional coverage with carriers.
Carriers require a complete census showing all eligible employees and all employees currently enrolled in benefits, along with the following:
- Dates of birth and genders of all employees, spouses, and dependents
- Zip codes for residence and work-site locations
Utilize your benefits administration system to conduct your benefits renewal reviews and prepare your census. Doing so will ensure all your data is accurate before submitting benefits plan information to your providers.
How APS Can Help
If your organization is not utilizing a benefits administration system, conducting open enrollment can be a challenge. APS’ Benefits Administration solution houses this necessary information in a unified database, making it easy to manage the following:
- Online Open Enrollment: Cloud-based open enrollment is available for organizations with multiple locations in one state or across multiple states.
- Multiple Plans: Design your benefits plans and assign employees to their respective plans. Employees can view only the information that applies to them.
- Employee Self Service: Employees can access the system with a simple internet connection, securely log in, and choose elections in a matter of minutes.
- Online Document Management: The APS Doc Vault allows for additional benefits information to be loaded into the system for employees to access.
- Comprehensive Reporting: APS’ Report Manager houses 80+ out-of-the-box reporting forms, depending on HR needs. The Report Builder allows you to create, store, and email reports easily.
Determine if you had 50 or more full-time and full-time equivalent (FTE) employees in the previous calendar year and what type of insurance (self-insured or fully insured) you offered. If your provider offers an FTE Calculator, you can use it to determine how many full-time and FTE employees you had in the previous calendar year. Using this number and the type of coverage you offer, determine what forms you must use to report:
- Fifty or More Employees: Complete and file Forms 1095-C and 1094-C.
- Less Than 50 Employees (Self-Insured): Complete and file Forms 1095-B and 1094-B.
- Less Than 50 Employees (Fully Insured): Insurer is responsible for filing on behalf of the employer.
- Less Than 50 Employees (No Insurance): Reporting is not required.
Note: When the combined total of full-time and FTE employees in a controlled group is 50 or more, each individual employer is subject to reporting.
If you are required to report, gather the information you need to complete the applicable forms and determine which reporting method you will be using. Depending on how you report, you will need to compile data, including:
- The employee’s name, SSN, or date of birth (if SSN is unavailable), and address.
- The employer’s name, EIN, telephone number, and address.
- The months in which the employer offered coverage.
- The employee’s share of the monthly premium for self-only coverage (in some instances).
- The months in which a safe harbor (or other situation) applied (i.e., the employee was not a full-time employee).
ACA Annual Reporting Deadlines
Due Date | Deadline |
---|---|
March 1st (automatic extension to March 2nd) | Supply Forms 1095-C to employees.
|
February 28th* | File paper Forms 1095-C with transmittal Form 1094-C.**
|
March 31st* | e-File Forms 1095-C with transmittal Form 1094-C.**
|
*Employers that file 250+ information returns with the IRs are required to file them electronically.
**Filers can obtain a 30-day extension with the IRS by submitting Form 8809 by the filing due date.
How APS Can Help
APS’ Affordable Care Act solution takes the complexity out of the ACA. Our error-checking algorithm ensures codes are valid and data is formatted correctly for reporting. Accurately capture and report health plan coverage information to the IRS with pre-populated forms. ACA tracking has never been easier. We’ll even e-file for you.
Review employee classifications on a regular basis to ensure compliance. Refer to the duties tests and guidance provided by the Department of Labor to manage your employee classification.
For employer-sponsored plans providing prescription drug coverage, Medicare Part D reporting is due on October 15. Also, distribute creditable coverage disclosure notices to Medicare-eligible participants on October 15. The Centers for Medicare and Medicaid Services (CMS) provides guidance and sample notice forms.
Now is the time of year to start reviewing your existing budget and planning for next year. Here are some items to consider:
- Consult All Departments: You need a clear picture of what is required to oversee each department smoothly.
- Estimate Your Revenues for the Year: Know how your company is ending the year to determine the budget needed to reach next year’s revenue goals.
- Determine Your Expenses: Some expenses are concrete, while others can be moving targets. Take everything into consideration when coming up with a figure.
- Don’t Forget Other Expenditures: Factor items like computers, company vehicles, and furniture into budgeting.
- Calculate Your Cash Flow: Generating your existing income statement is essential to determining your projected cash flow for the following year.
- Be Conservative in Your Budget: It’s helpful to have optimistic projections for the next year and be realistic. Leave some wiggle room just in case company goals are not met.
- Start Planning Early: Ideally, you want to begin talking about the budget in October to ensure there is as much detail as possible. However, it’s never too late to start, as an annual budget should be monitored and adjusted.
- Monitor and Evaluate: Don’t create a budget just to forget about it in a few months. It’s essential to monitor your budget to see how things are trending and make necessary changes.
Year-End Tips
Why it Pays to Check Social Security Information
The Social Security Administration (SSA) charges a fee to correct wages posted incorrectly to the wrong individual. To help avoid filing incorrect SSNs, check out the free verification tool the SSA provides on their website.
Furthermore, the IRS requires that employee Forms W-2 and 1095-C must match what is printed on social security cards. For example, if an employee’s name is hyphenated on their social security card, but not on their Form W-2 or Form 1095-C, the IRS will return this as an error. Failure to verify this information is correct may result in penalties.
Large Companies: Consider Electronically Filing Your W-2s
If your company is filing ten or more Form W-2s, the Social Security Administration (SSA) requires electronic filing unless a waiver has been granted. You may file electronic W-2s using the SSA’s Business Services Online (BSO) website. There is no charge for this service and you can register online.
Open Enrollment
Open enrollment is a huge and overwhelming part of your yearly HR tasks – but it doesn’t have to be. Ask yourself the following questions and consider using a unified solution that can simplify your benefits administration:
- What is your open enrollment process currently like?
- How many transactions are involved in your enrollment process?
- How confident are you with your current enrollment process?
- What happens if you do or don’t make a change?
- What are the long-term effects of the changes made?
A core HR solution using a centralized database that includes benefits administration with carrier connections for transmission of paperwork to benefits providers makes open enrollment a much easier process to manage.
Disaster Assistance and Emergency Relief
Special tax law provisions may help businesses recover financially from the impact of a disaster. Depending on the circumstances, the IRS may grant additional time to file returns and pay taxes. Visit the IRS website for more information.
Review and modify existing records, documents, and systems for updated laws, regulations, internal operations, jobs, compensation, benefits, and employees’ situations:
- Policies: Review policies in your employee handbook and make changes according to new or modified laws, regulations, or internal operations.
- Job Descriptions: Modify job descriptions if any employee’s job duties, titles, or FLSA exemption status have changed.
- Compensation and Payroll: Adjust payroll to reflect changes in salary/wage adjustments, merit increases, minimum wage increases, and changes to withholding for benefits or taxes.
- Benefits: Change benefit levels for defined contribution and benefit plans; adjust benefit contributions; and modify plans per healthcare reform provisions.
- Performance Reviews: Update employees’ files with their year-end performance review. Document the evaluation in your HR information system (or another applicable database).
- Rewards and Training: Update employees’ files and your HR information systems/databases with their documented rewards, recognition, training, and development from this past year.
- Employee Information: Update employees’ addresses, personal, demographic, and emergency information in your HRIS or files.
If you have determined you need to report, review your information to avoid any errors. If your payroll provider offers ACA reporting with an error-checking algorithm, you can automatically perform the following tasks:
- Complete your Form 1094-C.
- Import and populate your 1095-C data.
- Review your 1095-C forms, make edits, correct any conflicts, or manually add a 1095-C.
- Approve and print your 1094-C and 1095-C forms for distribution to employees and reporting to the IRS.
Verify your department is adhering to record retention standards by keeping or purging individual records each year. Below are record retention guidelines with the length of time to keep records and which documents to retain:
Length of Time | Records to Keep |
---|---|
1 year | Physical exam results; employment tests, results and validation; ADA applications and other personnel records and requests for reasonable accommodation (keep for 1 year after personnel action). |
2 years | VETS-100; applications, resumes, other inquires sent to employer; help wanted ads, job opening notices, notices for opportunities for training, promotions, overtime, job opening notices sent to employment agencies or labor unions; employee personnel files (including hiring, disciplinary notices, promotions, demotions, discharges, training, tests, physicals, transfers, layoffs and recalls, job evaluations, merit systems, seniority systems). |
3 years | I-9s (or 1 year after termination); FMLA documentation (3 years after hire or 1 year after termination); polygraph tests; business records, including yearly total sales volume, total goods purchased; union contracts and individual employee contracts. |
5 years | Drug testing; OSHA forms 101, 200, 300A, and 301; compensation insurance, or for occupational injury or disease; first aid records of job injuries causing loss of work time. |
6 years | Standard ERISA documents (benefits plan, disclosure of Plan Description, Annual Reports Summary of Annual Reports, and Summary Plan Description). |
7 years | Employee wage records (time cards, wage rate tables, shift schedules, hours and days) explaining wage differentials, deductions from pay; all payroll records. |
30 years | Required medical exams and exposure records (OSHA). |
Review your retirement plan contributions and prepare annual or semi-annual employer contributions to retirement plans.
Before Processing Last Payroll
Audit employee data to ensure you do not miss critical Form W-2 information like complete Social Security numbers, employee names, and addresses. The Internal Revenue Service (IRS) may impose a penalty for each Form W-2 with a missing or incorrect Social Security number or employee name. If there are errors, you would then be subject to the following penalties:
Tax Year | Up to 30 Days Late | 31 Days Late Through August 1 | After August 1 or Not Filed | Intentional Disregard |
---|---|---|---|---|
2024 | $60 | $120 | $310
| $630
|
2023 | $50
| $110 | $290 | $580 |
2022 | $50
| $110 | $280 | $570 |
2021 | $50
| $110 | $290 | $560 |
2020 | $50
| $110 | $270 | $550 |
2019 | $50
| $100 | $270 | $540 |
2018 | $50
| $100 | $260 | $530 |
2017 | $50
| $100 | $260 | $530 |
2016 | $50
| $100 | $260 | $520 |
2011-2015 | $30
| $60 | $100 | $250 |
Last updated 10/19/23 on the IRS website
The maximum penalty differs for small and large businesses, and there is no maximum penalty for intentional disregard. See the IRS website for more details.
Furthermore, employee information on Forms W-2 and 1095-C must match social security cards. For example, the IRS will return a Form W-2 as an error if an employee’s name is hyphenated on their social security card but not on their W-2 or 1095-C. Failure to verify this information as correct may result in penalties.
These errors can add up to a sizable penalty if you are not careful. Employers can garner updated addresses from a new W-4 if an employee’s withholding allowances have changed or will change next year. Remind employees to fill out a new W-4 if their situation has changed:
- Ensure employee names are entered correctly.
- Confirm the accuracy of employee addresses.
- Confirm the accuracy of employee Social Security numbers.
Employers need to make sure all employee data is accurate so that they can avoid W-2 reprint fees. Employers who use a payroll processing company may have an online service where employees can review and correct data. If so, encourage your employees to use it to review and edit critical data.
W-2 and 1099-NEC Filing Deadlines
Due Date | Deadline |
---|---|
January 31st | Supply W-2s to employees and ex-employees who worked in 2023 and 1099s to independent contractors who worked in 2023 and other payees.
E-File or file paper W-2s and 1099s. |
Distribute W-2s and 1099s before the due date; mail or e-file copies of Forms W-2 and 1099 with government agencies. Send W-2s and W-3s to the Social Security Administration. Submit 1099s along with Form 1096 to the IRS. You may also have to mail or e-file copies of these forms to a specific state(s) and any state transmittal forms required, so check the requirements. Many localities also require copies of informational returns, so double-check to see if you must submit those forms.
Form 940 Filing Deadlines
Due Date | Deadline |
---|---|
January 31st | Submit Form 940 and deposit FUTA if your company owes any remaining amount.
If you deposited all the FUTA tax when due, then you have ten additional calendar days to file Form 940.
|
Submit Form 940 for Federal Unemployment Insurance (FUTA). The FUTA tax rate is 0.6 percent, which applies to the first $7,000 in wages you pay each employee during the year. However, if you do not pay your state unemployment taxes on time, your FUTA rate will increase to 6.0 percent.
For additional information, please visit our FUTA Credit Reduction page. If your company owes more than $500 in FUTA tax for the calendar year, you must deposit at least one quarterly payment. View the IRS’ Publication 940 Employer’s Annual Federal Unemployment (FUTA) Tax Return for more information.
Something to Consider: If your company is filing ten or more Form W-2s, the Social Security Administration (SSA) requires electronic filing unless granted a waiver. You may file electronic W-2s using the SSA’s Business Services Online (BSO) website. There is no charge for this service, and you can register online.
How APS Can Help
Employees can review and correct their data with the APS employee self-service portal when needed. HR managers can then review changes and commit them to employees’ records, saving critical time during year-end processing.
For most states, the computation date used to determine SUI tax rates for the 2024 calendar year is June 30, 2023.
Because of the unprecedented volume of initial claims during the COVID pandemic, the accumulation of benefits may significantly impact calendar year 2024 rates. You must provide any rate change notices you receive to your provider as soon as possible.
Verify that all non-cash and cash income has been recorded and taxed properly so that it can be reported on the W-2 and the quarterly 941 tax return. Common W-2 adjustments include:
- Group-term life insurance in excess of $50,000.
- Personal use of company vehicle.
- Third-party sick pay.
- Company provided transportation or parking.
- Non-qualified moving expense reimbursements.
- Non-accountable business expense reimbursements or allowances.
- Bonuses and other annual incentive pay.
- Employer-paid education not related to the employee’s job.
Non-cash payments. Another common year-end adjustment is employer-paid health insurance for subchapter S shareholders who own at least two percent of the company. Although it is fairly easy to adjust a W-2 record to reflect this amount, it is always best to include it with a payroll run to ensure that it is reported on the applicable quarterly and yearly payroll tax returns. View the IRS requirements for subchapter S filing to make sure your company is reporting correctly.
Review employee classifications regularly to ensure compliance. Refer to the duties tests and guidance provided by the Department of Labor to manage your employee classification.
Any employee checks issued outside of the regular payroll process must be recorded and their tax liabilities paid in accordance with the applicable due dates. Confirm that all “manual checks” cut during the year have been accounted for and updated in the system. Likewise, all voided checks should be recorded.
Some payroll checks cut throughout the year may not have been cashed. These checks should not be voided in the payroll system, but should instead be considered unclaimed property and reported to the appropriate state agency. The unclaimed property office may be a division of your state’s department of revenue or treasurer’s office.
To recap:
- Account for manual checks written during 2023.
- Confirm that all voided checks have been recorded.
- Report uncashed checks to the appropriate state agency as unclaimed property.
Before December 31, 2023
Christmas Day is Monday, December 25. The federal holiday is observed on Monday, December 26. Adjust your payroll processing accordingly to prevent delays.
Check with your payroll provider for the last day you can submit the final 2023 payrolls to avoid penalties and interest charges. Review your W-2s to verify the following information before processing your final payroll of the year:
- The spelling of employees’ names
- Social security numbers
- Addresses
- Wages
Many companies issue bonuses for company performance. If you give bonuses and withhold retirement deductions, ensure the amount does not exceed the annual limit. It is also crucial to process bonuses before the end of 2023 so tax payments are made on time to avoid penalties.
If you must process another payroll before the end of the year, you will have to review your company, employee, and contractor totals again.
Remember: Earnings and deductions for payments received in the next year for days worked in the current year are reflected in the new year. Payroll taxes are based on the date wages are paid.
Close the quarter and file Form 941 Employer’s Quarterly Federal Tax Return by January 31, 2024. Wrap up the calendar year 2023 and prepare to process payroll in 2024. Also, print and mail W-2s and 1099s to employees and contractors.
Report employee income and withholding amounts to employees, ex-employees who worked in the calendar year 2023, and government agencies using Form W-2. Use Form 1099s to report the income paid to independent contractors and other payees.
New Year’s Day is Monday, January 1. The federal holiday is observed on Monday, January 2. Adjust your payroll processing accordingly to prevent delays.
Year-End Tips
Is the Minimum Wage Rate Changing in Your State?
The federal minimum wage rate is $7.25 an hour. To see what the minimum wage is in your state, visit our Minimum Wage Rates by State.
Are You Prepared for ACA Annual Reporting?
Did you know there are 18 potential conflicts between lines 14 and 16 on the Form 1095-C? An ACA reporting solution with an error-checking algorithm ensures codes are valid and data is formatted correctly for reporting to the IRS. Learn more about Form 1095-C reporting codes.Are You Eligible for Disaster Assistance
and Emergency Relief?
Special tax law provisions may help businesses recover financially from the impact of a disaster. Depending on the circumstances, the IRS may grant additional time to file returns and pay taxes. Visit the IRS website for more information.
Review existing policies and procedures, accrual balances, and next year’s communications to employees, including holiday schedules and pay schedules. Plan for operations, upcoming projects, and strategic/continuous improvement initiatives. These may include:
Planning Topic | What to Review |
---|---|
Hiring & Staffing | Meet with your hiring managers to evaluate their staffing needs by department staffing needs and plan sourcing strategies. Consider retirements, terminations, promotions, turnover, company strategy, and other changes to staffing levels. |
Training & Development | Review employee development plans, training needs and/or requests, performance reviews, or training needs assessments to evaluate training needs. Schedule training and development activities for 2023.
|
Employee Relations | Plan an employee engagement survey to evaluate morale. Plan, schedule, and update critical employee events, activities, initiatives, paid holidays, etc. Distribute attendance and vacation calendars/planners to supervisors and managers. |
Performance Management | After reviews are finished, plan for the next performance management cycle, including goal setting for 2023. Work with managers to schedule follow-up, feedback, and support activities to enhance performance. |
Management Development | Review exit surveys, employee feedback, and other information about managers. Schedule recently promoted supervisors or managers requiring additional training for supervisory training or leadership development.
|
Compensation | Evaluate compensation and incentive practices for each of your employees and plan new pay programs. Schedule which salary surveys you will participate in next year. Budget for 2023 pay adjustments and/or merit increases. |
Benefits | Review ACA compliance and reporting regulations in effect in 2023 and schedule dates and tasks for compliance. Plan your benefits strategy for the upcoming year including benefit additions, enhancements, and removals. |
Compliance | Conduct an HR audit. Review federal and state compliance trends for 2023. Plan proactive efforts to maintain compliance or modifications to existing practices to ensure compliance.
|
Continuous Improvement | Plan initiatives (like deploying an HRIS) to streamline and make HR processes more efficient. Enhance processes and systems to reduce errors and improve the quality of deliverables. Evaluate vendors for HR services. For other systems in use, install updates for the most efficient use of systems and reporting. |
Review your company’s OSHA Form 300A for the required annual posting from February 1 – April 30 in a common area for employees.
How APS Can Help
APS provides a tracking system that makes it easy to manage work-related injuries and illnesses. The APS system generates the required OSHA reports in the format needed for simplified OSHA reporting.
It is essential to post the appropriate compliance posters, or employers may be subject to penalties. Depending on the employer, these posters may include:
- Job Safety and Health Protection (OSHA)
- Equal Employment Opportunity
- Fair Labor Standards Act (FLSA)
- Family Medical Leave Act (FMLA)
Visit the Department of Labor (DOL) for assistance with poster compliance requirements. Ensure you also visit your state’s labor department page to determine which state compliance posters you must post.
When forecasting future hiring, it’s essential to look at your company’s current and future goals. Are you planning for growth? Most companies want sustainable expansion from year to year. The way to achieve those goals and stay on target is to grow your workforce. Here are some questions to consider when planning for future hiring:
- Will your company launch new products that will require additional talent for a smooth process?
- Is your company planning to expand into other states or open other locations?
- What is your current employee turnover rate?
- Do you anticipate any changes in your workforce? For example, do you have several employees who will be retiring soon?
- Is your company planning to invest in any new technology? For example, are you planning to implement new HR software next year?
- Are there going to be any changes to your company’s goals going into next year?
How APS Can Help
APS Hire provides a complete applicant tracking, recruiting, and onboarding system to recruit, hire, and onboard talent for your company:
- Find the best candidates for the job quickly.
- Create an onboarding process tailored to your company’s needs.
- Build a solid recruiting strategy using high-level dashboards and detailed reports.
Before Your First 2024 Payroll
The first payroll of the year is an opportune time to review and update your employee deductions. Don’t forget to check deductions like:
- Medical
- Dental
- Life Insurance
- Retirement deductions – 401(k), 403(b)
- Other voluntary deductions
Retirement plan regular and catch-up contributions will deduct automatically from the first payroll for 2023. Review your retirement plans, report any changes needed, and submit those updates with your first payroll for 2023.
Make sure you wrap up ACA annual reporting and filing to avoid penalties for late or incomplete paperwork:
- Failure to file complete and accurate Forms 1094-C by the form deadlines will result in penalties equal to $270 per return.
- Failure to file and provide correct information on Form 1095-C could result in a $270 penalty per return.
Click here to get complete Minimum Wage Rates by state. Contact your payroll provider if any changes apply to your business.
Click here to get complete SUTA Wage Bases by state. Contact your payroll provider if any changes apply to your business.
If you receive a new state unemployment insurance rate notice for 2022, please send it to your payroll provider for updating.
Second Week of January
Martin Luther King, Jr. Day is Monday, January 16, and a federal holiday. Adjust your payroll processing accordingly to prevent delays.
End of January 2024
If your employees are receiving paper copies only, communicate when they can expect to obtain their Form W-2s in the mail. If you have the option to provide your employees with online access to their W-2s, let them know how they can access their copies.
January 31, 2023, is the deadline to file Forms W-2 and 1099-NEC by paper or electronically. The deadline is also to distribute W-2s to your employees and 1099-NECs to independent contractors.
Employers must file Form 1099-NEC for non-employees paid compensation of $600.00 or more (including fees, commissions, prizes, and awards) during the year, like independent contractors. 1099-NECs are filed with Form 1096 each year. Form 1099-MISC is now primarily used to report miscellaneous income like rent or payments to an attorney.
January 31, 2023, is the deadline to file your 1099s with Form 1096.
Employers must file Form 1099-NEC for non-employees paid compensation of $600.00 or more (including fees, commissions, prizes, and awards) during the year, like independent contractors. 1099-NECs are filed with Form 1096 each year. Form 1099-MISC is now primarily used to report miscellaneous income like rent or payments to an attorney.
January 31, 2023, is the deadline to distribute W-2s to your employees and 1099s to contractors.
January 31, 2023, is the deadline to distribute Forms 1095-C to your employees.
If additional funds are required for your Federal Unemployment, check with your payroll provider to determine when your account will be debited.
End of February 2024
February 28, 2023, is the deadline to file paper Forms 1094-C and 1095-C. If you are filing electronically, you have until March 31, 2023, to file.
Year-End Tips
You’re Almost Done with Year-End Processing!
Make sure you distribute Form W-2s to your employees by January 31, 2024.
What’s Your Plan for ACA Reporting Next Year?
If ACA compliance and reporting was a headache this past year, make 2024 the year of change! Take the complexity out of ACA compliance and reporting with a solution that unifies your human capital management processes.
Are You Eligible for Disaster Assistance
and Emergency Relief?
Special tax law provisions may help businesses recover financially from the impact of a disaster. Depending on the circumstances, the IRS may grant additional time to file returns and pay taxes. Visit the IRS website for more information.
YEAR-END RESOURCES
Year-End Payroll Checklist
Use this checklist to keep track of your important year-end payroll tasks.
SUTA Wage Bases
Find out what your SUTA wage base is for the new year.
FUTA Credit Reduction States
Check to see if your state has a FUTA credit reduction.
Payroll Taxes: Rates and Changes
Stay up-to-date on payroll tax changes from year to year.
Minimum Wage Rates
Look to see what the current minimum wage rates are for each state.
ACA Reporting and Compliance
Use this handy guide for navigating the year-end ACA reporting and compliance.
APS SOlutions for your business
Benefits Administration with Carrier Connections – Easily conduct online enrollment, submit information to your plan providers, and adjust benefits plans as needed.
Manager and Employee Self Service – Save time and empower your managers and employees with online access to their payroll information.
APS Hire – Attract, hire, and onboard top talent with our recruiting and onboarding solution.
YEAR-END LINKS
- General Instructions for Forms W-2 and W-3
- Employment Tax Due Dates
- FUTA Credit Reductions
- About Form 940 Employer’s Annual Federal Unemployment (FUTA) Tax Return
- SSA Business Services Online Registration
- IRS Information Reporting by Applicable Large Employers
- IRS S Corporations
- IRS About Publication 15-B, Employer’s Tax Guide to Fringe Benefits
- Minimum Wage Rates
- SUTA Wage Bases
- What Employers Need to Know About Repayment of Deferred Payroll Taxes
- Application for Extension of Time to File Information Returns