2020 is right around the corner and we want to ensure you have the best experience possible when it comes to your W-2s, Affordable Care Act (ACA) reporting and year-end tax filings. The best way to ensure success during year-end? Think about January now!
Know the Timeline
Identify the tax filings such as W-2s, 1095-Cs, 940, T4, etc. You are required to file and document the filing deadlines. In some cases, there is a deadline to get the form to the employee and a different date to file with the government agency. Create a calendar of important dates and make it available to your team.
Make a Plan
Reflect on year-end experiences from prior years. What worked well? What didn’t? What processes are you and your team unsure about? What do you need more information on? What has changed since last year? Has anything changed with your payroll that will impact tax reporting? The time to discuss and plan is now, so you are ready to execute on your plan in January.
Some questions to think about as you work on a plan:
- How will you audit the forms? Select a sampling of employees that fit scenarios you want to review. For example, when reviewing 1095-Cs, look for employees that are full-time, part-time, were enrolled in insurance, declined insurance, started mid-year, worked all year, salaried employees, hourly employees, etc.
- Reviewing W-2s? Look for employees that worked in only one state, worked in multiple states, worked all year, worked part of the year, paid salary wages, participated in 401K, had pre-tax deductions, employees with new deductions or pay types, etc. Identify and document the list of employees you want to review.
- If mailing in-house, do you have required paper, envelopes, etc.? Using the Avionté report, 1095-Cs can be printed on regular printer paper, but W-2s require special paper stock.
- Do you need to e-File? Or can you mail forms to the government agency? What vendor do you plan to use to help e-File?
- Create a task list and ensure each team member participating in the year-end activities understands the critical role they play.
- Review transaction types to ensure they are being tracked for ACA and mapped to the correct W-2 box.
- Start reviewing forms.
- W-2s are available for review; simply generate data in Weekly Process for Q4, then run the available W-2 reports to see your forms.
- 1095-Cs are also available! Generate data on the Report Preparation tab of the ACA Companion and then run the 1095-C report to see your forms. Note, that November and December codes may not be accurate as those months have not yet completed.
- Review the available resources. Avionté has a Year-End section in the Knowledge Base, full of recorded webinars, self-guided training, and information on year-end reporting that will help ensure you have the knowledge you need, when you need it!
The preparation done now will pay off in January, so here is to a smooth and successful year-end!
For more information, and before acting on any information contained within this article, Avionté recommends consulting with your legal counsel.
This information should not be construed as, and does not constitute, legal advice.
Compliance Questions or Suggestions? Email us at Compliance@avionte.com