The Ultimate Guide to Efficient Year-End Filing

Utilize these 15 tips and tricks to handle your year-end filing with ease.

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Table of contents:

Managing year-end filings is consuming for businesses. You need to understand complex compliance regulations, calculate payroll taxes, and stay updated with evolving laws and various IRS business forms.

Administering the right strategies can make this challenging process more manageable.

1. Reconcile W-2s with Previous 941 Submissions: Match your quarterly 941 submissions with your annual W-2 submissions. Check wages under special programs and record voided checks and manual transactions correctly.

2. Prepare for E-filing: Starting January 2024, you will be required to e-file your information returns if you file 10 or more. Greenshades makes this process easier with our e-filing solution.

3. Verify Identification Numbers: Match social security and taxpayer identification numbers to avoid penalties. Use tools from your payroll provider for validation before filing.

4. Adjust for Imputed Income from Benefits: Consider industry-specific calculations and allowances for employee benefits.

5. Check the Social Security Wage Base: Align employee social security withholding with the current wage base.

6. Use Correct 1099 Forms: Distinguish between 1099-NEC for independent contractors and 1099-MISC for other non-employee income.

7. Complete W-9 Forms for Vendors: Determine withholding levels for vendors and contractors. Use backup withholding if necessary.

8. Ensure Accurate W-4 Forms for Employees: Verify employee information on W-4 forms for correct tax deductions.

9. Update Employee Access for Year-End Forms: Review your online access policies and offer digital distribution options.

10. Streamline with Electronic Distribution: Enable employees to access forms online and sync with tax preparation software.

11. Utilize Your Software Support: Take advantage of expert tax support from your payroll provider, like Greenshades, for your returns.

12. Simplify Form Production: Auto-populate year-end forms using data from your payroll provider.

13. Set Up Tax Form Storage: Store forms securely for IRS inquiries. Consider Greenshades' seven-year archiving service.

14. Remind Employees to Update Personal Information: Ensure accurate mailing addresses and personal details for smooth form delivery.

15. Start Early: Prepare ahead of time for January filings to allow for adjustments and secure lower rates for print and mail services.