In the world of payroll, it’s all about deadlines. As soon as you close, settle, and reconcile one payroll, you start moving onto the next one. There is little down time and before you know it’s the end of the quarter, or even more daunting…year end! It is never too late to start preparing.
No one wants to think of year end, but when it creeps up on you (and it will!),it’s best to be as prepared as possible. To ease the stress that comes along with year end, there are configurations and reconciliations that can be done ahead of time, as well as creating a year end checklist to help you be as prepared and efficient as possible during this busy time.
The following items and reports are critical tools to assist with identifying errors, balancing, and reconciling your data in preparation for W-2 processing within Workday®. These are just a few reports and items to take into consideration for year end preparation.
- Review IRS reporting requirements for any W-2 updates
- Update W-2 Box Configuration (if needed) via the Maintain W-2 Box Configuration task
- Complete all payrolls for the reporting year, including all off-cycle adjustments, and prior quarter adjustments
- View W2 Errors Report
- Company W-2 Audit Report
- Audit-Negative Wages or Tax (by worker) Report
- W-2 Preview Report
- Tax Filing Quarterly Data by Company Report
- Tax Filing Quarterly Data for Workers Report
These reports can be run at any time, for any range of dates. Ideally, you should incorporate these items into your quarter end processing. This will help identify issues or out of balance items, which can be fixed ahead of time and take off some of the burden at year end.
Other items to consider are:
- Ensuring employee and employer portions of Social Security and Medicare Taxes and Taxable Wages are in sync.
- Ensuring employees have not exceeded the IRS annual limits for 401(k), FSA Health, FSA Dependent Care, etc.
Once all errors have been resolved and data has been reconciled, you are ready to send and file your Q4 and YTD tax information, and prepare for printing W-2s.
Reach out to us for more questions or check out our Payroll Insights to learn more!