If you’ve verified that wages, taxes and deductions are in balance for the first three quarters, then it’s time to check the fourth quarter! Review all year-to-date payments. Are there any outstanding negatives? Are your tax deposits in balance with your liabilities?
Find any discrepancies between your totals and your provider’s reports. If you find something, now is the tine to track it down! Don’t wait until January – now is the time. Ask yourself a few questions: Are all special payments accounted for? Are there any returned payments (payments not due to an employee)? Have all tax deposits been made? Do you need to report any equity updates, stock option exercises or other changes to income that don’t involve cash?
These types of income updates can be tricky. Look out for any changes that are coming in to you late. Don’t be afraid to process additional payrolls, whether for adjustments or for bonus or other special payments.