HR professionals can easily overlook their year-end HR processes resulting in costly errors and time-consuming corrections. Even when the most minor mistakes happen, it’s important to correct them immediately to avoid long-term, underlying problems and increased expenses. But wouldn’t it be even better to avoid these errors altogether?
With proper planning and the right resources, year-end processing can be a smooth and successful process. Let’s take a look at three common HR processing pitfalls and how you can avoid them.
1. Payroll processing & tax preparation
Did you know that the number one reason for amended return needs is due to employees set up with an incorrect Social Security Number? While it may seem like a tedious task, cleaning up your records can have a big impact – not only in terms of ensuring accuracy and timeliness but in preventing your headaches down the line. Click here to download a checklist of payroll processing and tax preparation must dos.
2. Reporting year-end benefits/earnings
In the craze of year end, it can be easy to overlook some benefits and earnings that must be included. There are many nuances in this area, so it would be wise to prepare a checklist for yourself earlier in the year so that you’re not scrambling come December.
Be sure that all non-cash and cash income has been recorded and taxed properly so it is reported on the W-2 and the quarterly 941 tax return. Download a list of common W-2 adjustments by clicking here.
3. Compliance rules & regulations
As if year end isn’t stressful enough, there’s always the looming stress about compliance. And you’re rightfully concerned as failing to keep up with changing rules and regulations can have serious consequences, ranging from fines and penalties to improperly calculated overtime and incorrect payments.
Rather than trying to play catch up at the end of the year, it’s best to stay in the know throughout the year. Click here to read four ways to stay up to date.
If you’re poised to avoid these three common HR processing mistakes, you might be interested in these three additional tactics for HR processing success. Download our whitepaper here.
Most HR processing pitfalls, including the three discussed in this piece, are preventable. As with most things in business (and life for that matter), taking a proactive, comprehensive approach gives you the best chance for efficiency and success.
The bottom line is – prepare now for a trouble-free year end!