· Remind employees that if there has been a change in their filing status due to marriage, divorce or dependents (birth, adoption, child turning 21), they may want to file a new W-4 for 2012.
· Make sure employee paycheck names/SSNs match their SS cards and W-4 data.
· An employer may elect to use the Special Accounting Rule; that is, treat taxable noncash fringes used any time in Nov./Dec. 2011 (e.g., personal use of company car) as paid in 2012.
Before Dec. 31, 2011
· Paychecks dated 2012 are 2012 wages, even if earned in 2011.· Check all SS withheld. If any employee exceeded the 2011 limit of $4,485.60, make an adjustment or refund before making your final tax-year 2011 deposit. Leave enough time to make adjustments and make refunds.
· Ask your payroll service (if you use one) for a W-2 adjustment run before closing out 2011 to verify and correct:
- relocation expense reimbursements;- manual or voided paychecks not in your system;
- personal use of company vehicles;
- company-paid educational assistance; and
- other taxable items paid outside of the payroll system.
· Report on 2011 W-2s pay received in 2011, provided that the employee had access to the wages without substantial limitation or restriction. In other words, even if a paycheck is dated 2012, if the pay is for 2011 and the employee had access to it in 2011, include the amount on the 2011 W-2.
By Jan. 1, 2012
· Process W-4s submitted for 2012 before the first 2012 wage payment. By Jan. 17, 2012
· Review 2011 paychecks outstanding more than two pay periods so you have time to void and reissue in time for 2011 W-2s.· Verify that total taxes withheld and SS-taxable and Medicare-taxable wages reported on 2011 quarterly 941s (or the annual 944) equal the totals of 2011 W-2s to be distributed.
· Third-parties that distribute sick pay are required to send to you by today each payee’s annual statements of wages paid and taxes withheld for tax year 2011.
