The summer is winding down and moving forward into the remaining 4 months of the 2021 calendar year. Accountants start to do tax planning involving not only their 1040 clients but also their corporate clients as well.
As you prepare for these meetings, your client’s payroll processor can help make your job easier in regards to tax planning. These include the following:
1. If not done already, getting your client’s payroll reports sent to your inbox/portal on a per pay, quarterly and annual basis. This frees up the time to remind your client to have them ready when you do the client visit.
2. Better early now than later in year to have your clients that do have payroll to double check their Masterfile information on all of their employees both active and terminated in the calendar year. This includes:
A. Correct spelling of employee’s name, address and municipality they live in.
B. Making sure the social security number is correct and W-4 withholdings are correct.
C. Verifying the voluntary deductions such as retirement vehicles (401K, Simple IRA) and Pretax Health/Dental Insurance are set up correctly with the appropriate amounts since they will show up on the W-2.
D. Has the client’s independent contractors authorized a W-9 form? This would be an excellent time for them to fill one out and for your records. Is the client’s payroll provider doing the year end 1099M? If so, does the provider have year to date information on that individual?
3. Double check company address and account numbers (Federal, State and Local) on all Payroll Tax forms filed by the client’s payroll processor.
