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ADP Offers Year-End Payroll Tax Tips for Small Biz

Roseland, N.J. (December 12, 2012)

By Daniel Hood

The Small Business Services division of payroll provider ADP has created a series of tips for small-businesses and their accountants to help smooth the year-end.

Among them:

Verify tax IDs. Confirm that all tax ID numbers on payroll reports are up to date and correct, and correct any discrepancies before processing the company’s last payroll for 2012.

Confirm W-2 and 1099 information with employees. Ask employees to review and confirm their W-2 and 1099 info before the end of the year. Companies should send updates to their accountant or payroll provider before the last payroll report of 2012, and file any necessary W-2c forms as soon as possible.

Know their filing responsibilities. Small-business owners or managers should double-check with their accountants or tax advisors to clarify who is responsible for filing the company’s taxes.

Submit payroll adjustments. Businesses should submit any payroll adjustments for employees, such as voided or manually issue checks, to their accountant or payroll provider before the final 2012 payroll report. It should be completed by Dec. 28, 2012.

Report all missing wages or miscellaneous income/tax credits. Items such as fringe benefits, tips, COBRA payments, employee moving expenses, unsubstantiated employee expense reimbursements and others should be reported to the business’ accountant or payroll service provider before the final payroll report of the year.

“Small business owners are responsible for every aspect of their business, including hiring and managing employees, servicing their clients and adhering to complex tax regulations. That’s why, as we approach year end, it is especially helpful for small-business owners, together with their advisors, to proactively take steps that help reduce risks to their business,” said Anish Rajparia, president of ADP’s Small Business Services Division.

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