When year-end approaches, it is crucial that you review the following checklist in order to make sure that you have provided with us all the necessary information to ensure we handle your year-end tax filings correctly. Please review each step, as we will generate your company's payroll forms based on the data provided within Fingercheck. (Please note that in order to ensure timely processing of your information, it’s key to get it into us by 12/27)
1. Review each employee's demographic information
Employee details within Fingercheck will reflect on the employee’s W-2 form. Please make sure that the employee information you have is up-to-date. Re-verify each employee’s social security number and double-check their name and address. If there have been any changes to their name or address during the year, please update the latest information in Fingercheck.
For added convenience, if your employees have self-service you can direct them to review and edit their own tax withholdings and address by logging into FingerCheck online or on the mobile app.
2. Add any unreported terminated employees
If you had any employees who were terminated during the current year, please make sure that they are included in your 941/State Form for the applicable quarter(s) during which they were employed. If they haven’t been listed on the 941, please make sure that you notify your account representative to add them into Fingercheck so we can generate a W-2 for them.
3. Enter all employees' earnings that were not processed through Fingercheck
If you gave compensation to an employee, not through the typical payroll software (for example a bonus given via a check), please make sure to enter it into Fingercheck. We need to make sure these earnings are reported and taxed appropriately. Contact your account representative if you need assistance adding them to Fingercheck.
4. Report fringe benefits / imputed income
Fringe benefits or imputed income include any non-monetary compensation given to employees like group term life insurance, personal use of a company car, fitness memberships, gifts, or other miscellaneous items. If you’ve given fringe benefits this year, they must be properly taxed and reported on their W-2. To add fringe benefits you’ll need to process them as a calculate-only earning in one of your payrolls before 12/31/2018. A calculate-only earning will not generate payment but will reflect as an earning on the W-2. Contact your account representative if you need any help in doing so.
5. Health Insurance for S-Corp owners of 2% and above
If you have any company-paid health insurance for any S-Corp shareholders that own 2% or more of the company, it will need to be accurately taxed and reported. Please make sure to collect the totals of all the 2018 health insurance premium payments for each of these owners so they can be properly recorded.
6. Review 1099 classification
Within Fingercheck you can classify a contractor as 1099M or as 1099R. Please make sure to classify all your contractors with the correct 1099 classification. Fingercheck will generate the 1099 forms on your behalf, which you can then file along with the rest of your company's 1099s.
Note: Fingercheck will not file your 1099s to the IRS, since you may have other non-payroll related 1099s.
7. Third-party sick pay
If your employees were paid sick pay through a third party, please make sure you enter the earnings in our system so that they are properly taxed and reported. Also, if you offer your employees a private disability policy, we also need to know about this because we will need to report this on your employees' W-2s. Please contact your account representative for assistance.
8. Dependent care benefits
If you provide employees with dependent care benefits up to $5,000 in 2018, please provide us with the amount your company contributed, as these figures must be reported. These amounts will appear in Box 10 of the W-2. If these were not taken out weekly, please give us a total of how much you contributed.
If your employees receive tips, it is ideal you keep track of them through Fingercheck. However, if you haven’t kept track of them please make sure to retroactively add them to Fingercheck before the year ends so we can tax these wages and properly report them on the W-2.
10. Employer-sponsored health care for companies of 250+ employees
If you offer employer-sponsored health care and have over 250 employees, you will need to report the cost of healthcare (nontaxable wages). You can simply set up a memo deduction type and select “employer-sponsored health coverage.” Setting this up will not affect your net check, it is just for reporting purposes only. It will be reported on the W-2 in Box 12, Code DD. If you need help setting this up, please contact your account representative.
If you have a total of 50+ full-time employees or full-time equivalent, you might be responsible for filing a 1095-B or 1095-C. Check with your Fingercheck account representative if you think this pertains to you.
By reviewing this simple checklist and taking the recommended steps to ensure you've supplied us with up-to-date, accurate, and required information, you ensure that your business smoothly transitions into the new year. It's essential that you do your part so we can provide you with the best experience possible, including giving you the correct W-2s, 1099s, and other necessary payroll forms owed to you for this year.