January is typically a crazy time for any business. You’re planning for the new year while simultaneously wrapping up the last. January is especially stressful for recruiting firms, who are responsible for tax reporting for large volumes of employees. Take the stress out of year-end reporting with these five steps:
The first step for success is to plan for it! Create a calendar for your team based on all the important year end reporting dates and create your own due dates for steps along the way. This helps you break up the overwhelming process of year end reporting into manageable steps. Keep in mind that due dates can change from year to year and extensions have been given for certain forms. Be sure to do your research so you are planning for the proper dates.
Printing and distributing tax forms to employees is a large undertaking, especially for high-volume staffing firms. This year, consider outsourcing your form distribution to a partner, such as Greenshades or Nelco. Outsourcing your print and mail not only alleviates stress, it’s also a great option for this year of social distancing. Rather than gathering in the office to coordinate your form distribution, stay home and let a trusted partner take care of the rest.
If you plan to print and distribute your forms in-house, be sure to order the proper paper stock for your forms, address labels, and any other supplies needed. Avionté provides reports you can run to predict the number of forms you will need to process, helping you order the proper amount of products.
It’s never too early to begin reviewing your data for the reporting year. Catching potential mistakes early makes January less stressful. Verify employee addresses and SSNs to save yourself major headaches during crunch time. You don’t need to wait until the end of the reporting year to get a jumpstart on data cleanup. In Avionté, we recommend running your data feed to Greenshades as soon as possible.
ACA reporting requires detailed tracking of when all eligible employees were offered, enrolled in or declined coverage. Take time to review your healthcare coverage tracking for full-time employees to ensure 1095-Cs are accurate. There are updates to the 1095-C form and corresponding instructions, so be sure to read our blog post about 2020 1095-C forms before you begin your year end reporting process.
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Sarah Schwartz
MARKETING MANAGER
If you began doing business in another state this year, you may need to update state EINs for the reporting year. Additionally, you will need to update SUI rates for the upcoming year once you receive them from the state. Performing these data updates early eliminate a step in your year end reporting process and prepare you for success in the new year.
