Year-End Tips for Payroll #5

This will sound obvious, but: Be as prepared as you can be for multiple changes that will occur on January 1st.  For example, if you are a New York City employer, you already know that you are required to offer transportation benefits to your employees (if you have 20 0r more employees in New York City).  Have you taken all the necessary steps to implement this change?  Have you identified a vendor to assist with the transit benefit administration?

Also, the new law passed by Congress last week provides for permanent parity between transit and parking benefits.  This will allow for higher pre-tax deduction amounts for transit benefits.

The parity is retroactive to January 1, 2015.  Do you have your true-up calculations and refunds completed so that they can be processed in December?  Remember, the alternative is W-2C’s issued to each affected employee.

Be prepared, and the year-end process won’t be so stressful or scary!

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