Don't you love just Year-End? Closing out the old and beginning anew. The seemingly endless sea of W2s and 1099s and adjustments and reconciliations. I know a lot of you are cringing at my remarks, dreading this time of year again. Hopefully, this article will make it a little easier for you this time around. Approach your year-end planning as a project and definitely don't start at the last minute. I use to start planning in October; however, depending on your time requirements, you should modify as needed.
Establish a communication plan. Your communication plan should include regular team meeting schedules and organization-wide communications for system down time notices, etc.
Create a project plan. Here, you will assign resources and tasks, outline steps and deadlines required for year-end processing. Your project plan should include these items:
a. Order Supplies. Ensure adequate time in ordering W2 and 1099 forms and envelopes. Reporting formats can change per IRS regulations. Your software provider should notify you of any changes and should also provide a patch inclusive of the changes. Also, order more forms than you need for testing purposes and re-dos.
b. Reconciliations and adjustments. Establish resources and a deadline for reconciling data and updating the system.
c. Mandatory patches and updates. Make sure your system is up-to-date on any updates. Your tech team can work with your software provider in reviewing your system updates.
d. Staff Training. Decide if training is necessary, who is in need of training and schedule the delivery.
e. Test your system. It's always a good idea to create a test databa se to test your year end processes. You want to check for performance and accuracy. Don't forget to test printer compatibility and alignment with the forms.
f. Electronic filing. The Social Security Administration offers information on filing your W2 information electronically: http://www.ssa.gov/employer/bsohbnew.htm. Check with your state for their filing requirements.
Close out and Lessons Learned. Once your year-end project is complete document your procedures, problems encountered and solutions. This will ensure a smooth process for next year.
Establish a Year-End Project Team. This will consist of a key member of each functional area – Human Resources, IT, Inventory, AP, Purchasing and General Ledger. Also assign a Year-End Team Lead.
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