One of the primary challenges for HR managers is to ensure effective and accurate payroll processing at the end of a financial year. There is a lot of pressure on businesses to complete the task efficiently and smoothly, particularly when even the smallest mistake may result in non-compliance fees and fines. However, implementing effective practices and an intuitive payroll system, like PeopleCentral, can help you stay on top of things during the year-end.
Here’s what you should know before processing your year-end payroll.
- Verify Company and Employee Information
Before the financial year ends, it is important to ensure that all data regarding your company and employees are complete and accurate. Verify that the company’s name, tax information, and tax IDs are correct and up-to-date. Employee data, including name, social security number, address, and jurisdictions. For any discrepancies or errors, update the files, and let the payroll provider know about the changes done.
- Verify and Validate Wages of Employees and Salary Slabs
The next crucial step is to verify that employee wages, tax, and benefit numbers are up-to-date with the payroll numbers. Some important information you need to verify is worker status, PTO accrual yearly, filing status, year-to-date salary and taxes, number of exemptions, pre-tax amounts, etc.
Most of this data is available on the W-4 form and employees can alter this information at any time. So, it is important to find the discrepancies and address them the same before beginning with year-end payroll processing. A payroll software program like PeopleCentral has intuitive reporting features that can help do the work for you.
- Check Whether all Payroll Taxes and Accurately Documented and Paid
Not recording and filing your payroll taxes properly may result in non-compliance. Failing to comply with state or federal tax laws may end up paying hefty payments. Therefore, it is crucial to ensure that all your payroll taxes are properly documented and duly paid.
- Manage Paid Time-Off and Bonuses
How do you manage your employees’ paid time-off? Do you pay them a lump sum at the beginning of the year or the PTO accrues over the year? What will happen to the unused time? Depending on the company’s PTO policy, manage the payments as well as keep a record of bonuses that you pay for tax purposes.
PeopleCentral is a robust and fully automated payroll management software that incorporates CPF, IRAS and MOM regulations, and facilitates electronic submissions, itemized payslips, and much more. This can help in effectively processing your year-end payroll.