New year, new you. It’s the mantra repeated by resolution-makers worldwide. For businesses, though, maybe “new year, new unity” fits the bill a bit more. Now is the time to set new precedents, undue old inefficiencies, and make the moves that will set your company on the course to continued success no matter what the world throws at it. And getting your house in order financially is a HUGE component of that.
These first-of-year payroll tips will help you start the New Year strong while keeping you compliant and punctual throughout the next 12 months and beyond.
- Get organized. The IRS requires businesses to keep financial records for a certain amount of time. A physical or cloud-based filing system can help to ensure you remain compliant with government regulations while placing important data at your fingertips when it comes time to file quarterly and annual tax forms.
- Keep a close eye on deadlines. Paperwork is the name of the game when it comes to payroll. Take a moment at the dawn of the new year to get all of your financial ducks in a row. The big forms – W2s and 1099s – must be distributed by Jan. 31 for employees and independent contractors, respectively. But there are many other reporting due dates, as well as tax deposit deadlines, to take into consideration. Spend some time with the rules and regulations and commit them to memory – and your new organizational system.
- Don’t drag your feet on new hires. Planning to grow your team? Don’t wait until the 11th hour. Instead, make certain the aforementioned, all-important forms are at the ready when you do welcome a recruit into the fold. Additionally, an onboarding process refresh may make payroll practices a bit more streamlined, putting you ahead of the game when it comes time for reporting.
- Make sure team members are classified correctly. Oh, boy. Here we go again (and again, and again). The independent contractor and employee misclassification saga continues in 2022, and it bears repeating: don’t make this mistake. Misclassification leads to non-compliance consequences including lofty fines and damaged reputations.
Here’s another great first-of-year payroll tip: send in the pros.
Maslow Media Group can handle all of your payroll minutiae throughout 2022, and every year that follows. It’s our job to help clients sidestep misclassification penalties while delivering comprehensive Employer of Record solutions for businesses of all sizes. Let us handle your employment, compliance, and tax tasks. We take full responsibility for the busy work, while your employees continue to work for you. Give us a call at 202-965-1100 to learn more.