What to Consider for Year End

Welcome to SMB Matters.

I’m Tom Rose, Senior Vice President of Customer Success and Operations at TriNet. This podcast series takes a close look at the latest news and trends on a variety of topics related to running a successful small and medium sized business.

At TriNet, October marks the beginning of year-end/year-start season. It’s a time where the collaboration between our experts and our customers is at its highest and encompasses discussions such as preparing for accurate payroll taxes and Form W-2s.

For all SMBs, this is a busy time of the year. And to help ensure you are prepared, I want to highlight some important considerations.

First, it’s important to carve out time and review payroll items for this tax year. Some of the most critical items are:

• Correcting employee wage over or underpayments,
• Reporting all fringe benefits and imputed income,
• Capturing and reporting year-end bonus and commission information,
• Reviewing next year’s federal tax rates and limits, and minimum wage and salary bases, to see if there have been any changes,
• Returning paychecks that were not distributed or cashed, and
• Reporting equity transactions and nonqualified deferred compensation, if applicable.

Reviewing these items are critical to help ensure accurate wage reporting and payroll taxes.

Next, to help ensure your employees receive accurate Form W-2s, it’s important to report, if applicable, employer-sponsored health coverage required under the Affordable Care Act, also known as the ACA requirement.

If you are unsure whether this applies to your business, we recommend visiting the IRS’ website at IRS dot gov. It contains information specific to employers – including a page on how to determine the size of your workforce and what that means for ACA requirements.

Other items to consider as you close out the year and look ahead to 2024:

• While regulatory changes happen throughout the year, we typically see a high number of changes that take effect on January 1. Review the state, city, and local regulatory information where your employees work to see what changes have an effective date of January 1. Then, make sure to adjust policies, procedures or other items to remain in compliance.
• Review and make any updates needed to your 2024 company holiday schedule. Make sure to communicate any changes to your employees so they know what to expect in the coming year.
• Encourage employees to review their 401k contribution elections prior to January 1, 2024.

In general, it’s also a good idea to review your company’s policies and procedures as you approach the new year. This includes items such as employee handbooks, time off policies, expense policies and more. If changes need to be made, give your employees notice and communicate the updates so they know what to expect going into 2024.

Finally, it’s important to remember that your employees matter. Consider how you can show your appreciation for the contributions they’ve made throughout the year, whether that be through a year-end party or a handwritten note. Recognizing their efforts is an important step.

For additional details, resources such as checklists, deadlines and FAQs are available on the TriNet customer platform Year-End/Year-Start microsite.

As we get closer to the new year, look for a podcast specific to considerations for preparing your business for 2024.

Thanks for listening to SMB Matters. If you enjoyed this show, please leave a review on Apple Podcasts, Spotify or wherever you listen to your podcasts. And please share it with a colleague or make sure to subscribe to our newsletter at TriNet.com/Insights. While you're there, you can learn more on this topic by reading our blog. Also, we’d love to hear from you, so please feel free to drop us a line at SMBMatters@TriNet.com. SMB Matters by TriNet is committed to providing small and medium-size businesses with timely and relevant insights. Thanks again for listening.

Legal Disclaimer:

This podcast is for educational purposes only. With decades of experience supporting small and medium-size businesses, TriNet has unique insight into HR best practices for businesses. TriNet does not provide legal, tax or accounting advice. The materials in this podcast and the options and opinions expressed herein may not apply to your company or scenario, so you should consult with your own advisors on how best to proceed. Reproduction in part or in whole is not permitted without express written authorization from TriNet.