ADP's Small Business Services division has developed a checklist of tips and reminders to small business owners, their accountants and other advisors, to help them get a head start on year-end tax preparation to help avoid delays, streamline the tax filing process and improve outcomes.
- Verify Tax IDs – Work with your accountant or company’s payroll service provider to confirm that all tax ID numbers on payroll reports are up-to-date and correct. Ensure all discrepancies are corrected before processing the company’s last payroll for 2012.
- Confirm W-2 and 1099 Information with Employees – Ask your employees to review and confirm their W-2 and 1099 information before the end of the year. Provide your accountant or payroll provider with any updated employee W-2 information prior to the last payroll report in 2012. If you need to file a W-2c form with the IRS to correct any employee’s W-2, immediately notify your accountant or payroll provider of the updated information.
- Know Your Filing Responsibilities – In some cases, either the small business owner or the company’s accountant is responsible for filing the company’s taxes. Verify your responsibilities with your accountant or tax advisor.
- Submit Payroll Adjustments – Any payroll adjustments for employees, such as voided or manually issued employee checks, must be submitted to your accountant or payroll service provider before your final 2012 payroll report. This must be completed before December 28, 2012.
- Report All Missing Wages or Miscellaneous Income/Tax Credits – Items such as fringe benefits, tips, COBRA payments, employee moving expenses, unsubstantiated employee expense reimbursements and others must be reported to your accountant or payroll service provider before the company’s final payroll report of 2012.
“Small business owners are responsible for every aspect of their business, including hiring and managing employees, servicing their clients and adhering to complex tax regulations. That’s why, as we approach year end, it is especially helpful for small business owners, together with their advisors, to proactively take steps that help reduce risks to their business,” said Anish Rajparia, President of ADP’s Small Business Services Division.
For additional resources, professionals can visit ADP’s accountant portal, which includes many accounting resources and tools. In addition, ADP Small Business Services’ Year-End Central provides guides and other resources to assist with year-end tax preparation and filings.
These tips are not intended to take the place of advice from a licensed accountant or tax advisor. All small business owners should consult with their accountant or tax advisor to ensure they are filing their taxes as required by law under the specific facts related to their business.