It’s A Wrap!
Tackling Year-end Payroll Tax Prep
Article written by PayTech HCM Consultants:
Andreais Thompson & Jenn Sanders
Did you know that it is common for many employers to face significant challenges and struggle with year-end tax preparation? Preparation for year-end can be grueling, and like an Olympic runner preparing to compete, one must prepare, focus, hone skills, and practice self-care.
Trying to balance business operations and maintain accurate, compliant tax preparation during one of the busiest times of the year can seem daunting. Fortunately, businesses can follow these tips to successfully navigate this hectic time and deliver smoother tax preparation while simultaneously reducing stress.
DO start early & get organized
Getting an early start to year-end planning allows time to audit and anticipate changes that may be needed prior to the final payroll run of the year. Gather your checklists and quarterly tax reporting. Set aside time to focus on reviewing documentation without distractions. Delaying can cause unnecessary frustration. Organize to overcome obstacles to tax preparation.
DON’T miss tax deadlines
It’s easy to miss critical payroll deadlines due to neglect, confusion, inadequate knowledge of laws, time restraints, lack of resources, and lack of organization. Skip the stress and the threat of hefty tax penalties by knowing the agency filing deadlines for your jurisdictions and remaining compliant with tax regulations.
DO hire professionals & use technology
Using expert knowledge to manage your year-end process ensures you stay informed and get better results. Experts use audit skills and technological tools to help with efficiency. These professionals use a systematic approach to data and record-keeping that allows for a more successful year-end tax process.
DON’T succumb to year-end stress
Avoid the stress of trying to do it all by yourself and all at once. Here is what we recommend: Hire a tax expert. Create a checklist. Set up a workable plan. Pace yourself and practice self-care by setting realistic, achievable goals. Take breaks. Check your work. Ask for help. Plan for labor and staffing shortages due to personal time off. End the year with peace of mind, knowing you’ve gotten it all done, again!
DO review your work regularly
Just as an Olympic runner would not rely solely on last year’s training to win an upcoming race, tax preparation is ongoing and happens all year. Professionals should check and correct errors regularly. Payrolls should have monthly and quarterly reconciliation reviews to ensure that year-end reconciliation is successful.
We Can Help!
Take the stressful, time-consuming, and important planning off your plate. We are here to help guide you to ensure your company is prepared this tax season!
