Year End doesn’t have to be chaos – but you do have to be prepared!Dec 06, 2020
Pay Compression continues to be an issue. As minimum wages are increasing annually in many states, the gap between what you pay seasoned employees and new hires decreases. Consider the impact on those that have been with you for 3-5 years and find ways to value their contribution. You may not be able to increase wages, but possibly additional time off, longer breaks, training and other creative forms of compensation.
Check your job descriptions. We so often leave them on the shelf to collect dust, and then we have an unemployment claim, work comp injury or other litigation that leaves us open to action. And – it shows your employees you care. Ask managers to talk to their employees (imagine that!) and see what they are doing today that may not be reflected. Likely the physical requirements have changed these days.
Interested in spending Christmas and New Year’s Eve with family and friends? Well then – a payroll checklist is critical! There are so many things to be done at year end! Here are just a few to be sure you have done well in advance of the holidays!
- Verify W2’s early. It’s easy to fix mistakes now – it’s a mess in 2021
- Calculate your imputed income and add to payroll
- Year-end bonus’ can be added now as 2nd checks and held until the proper payroll date
- Look at your calendar for 2021 – when will you actually run payroll given holidays and weekends?
- Owner tax calculations – reach out to accounting now!
- Get ready with open enrollment changes that will be in effect in 2021
Consider new laws that go into effect in 2021. There isn’t much at a federal level, but lots going on at the state and local level. Update your posters if needed. Check with a local law firm – they should have a list easily accessible on their website.
Prepare to handle your OSHA 300A log and 401(k) audit in January. Both come up quickly right after the holidays. Your OSHA 300A may be a report in your payroll system, but you’ll need to enter some data. Same with your 401(k) audit.
Wrap this up by December 20th as a goal! Communicate with employees on dates for 2021 and ask them to check their demographics for W2. They will appreciate seeing you’re on top of these things that impact them. And then…..relax! Whatever you didn’t get to will be there when you come back in January!
Thanks for reading!
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