Do A Quarter End Payroll Check-up

Summer is beginning, however it is the end of another payroll quarter. It is time to do a quarter payroll check-up and here are some items you need to confirm.

• Confirm your federal tax deposits.  You outsource remember that you’re responsible for timely filing and paying in a timely fashion. This is regardless that you have a Scottsdale CPA firm, who does this for you.  You can check this by accessing the free, on-line Electronic Federal Tax Payment System to make sure federal deposits are being made in a timely manner.
• Review severance payments to former employees.  Basically, severance pay is subject to federal and state withholding, as well as social security and Medicare tax. If you neglected to withhold these taxes in the past, you will need to file an amendment on your payroll returns. In addition, update your company payroll policies to reflect the proper method going forward.
• Make prior quarter corrections on the right form. Use the latest version of Form 941X (revised April 2014) to correct errors on a previously filed Form 941. Note that Form 941X is appropriate only for certain corrections and that you may have to file other forms as well.
• Make sure your 401(k) is current. Federal laws demand that you keep current by maintaining your plan’s tax exempt status and your plan documents. Be sure to adopt required amendments. This is also a good time to investigate implementing non-mandatory features to add benefits such as the option to allow your plan to accept Roth contributions.

Click here or contact Barone CPA today for more information regarding payroll check-ups.