Pensoft Payroll Blog1636510

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For small business bookkeepers and CFOs, year-end imposes additional obligations, as ongoing payroll tasks must be managed alongside year-end tasks, all the while gearing up for 2013. The key to successfully handling these tasks in December and January is careful planning, delegation when possible and attention to deadlines.

To that end, compiling a list of tasks, assigning them, setting deadlines, and following up will help ensure that nothing falls through the cracks. This is essential, as mismanagement or failure to file required documents by set deadlines can result in interest, penalties, and unwelcome attention from tax authorities.

Here’s some information on the top priorities regarding Pensoft Payroll Blog management at year’s end as 2012 comes to a close and 2013 begins:

Closing out 2012: While continuing to manage payroll processing as usual, it’s time to close out the year, ensuring payroll was completed accurately and running month end, quarter end and year-end reports. This means conducting a thorough review via reconciliation of all payroll and tax records to ensure compliance with applicable federal, state and local tax rules. Employers are also required to prepare and disseminate W-2 forms to their employees and 1099s to independent contractors by Jan. 31, 2013 for 2012 compensation and benefits paid.

Filing 2012 tax returns: With federal, state and local tax jurisdictions requiring returns on various aspects of business operations, preparing tax returns is more complex than ever. On the federal level, small businesses must file returns quarterly for federal income tax, Social Security and Medicare tax; federal unemployment tax reports are filed at year-end. In terms of state returns; states with income tax require filing and many also require filing of reports for unemployment and disability taxes paid. Cities, towns and counties that levy taxes typically require income tax filing in the first quarter of 2013 as well.

Preparing for 2013: Every New Year there are new rules and regulations and some of those inevitably impact payroll. Watch for our upcoming blog posts on Medicare and Social Security tax changes and the new dates for depositing employer and employee social security and Medicare taxes and the federal tax withheld from employer paychecks. In the meantime, here is a list of 2013 Federal holidays for your information.