This checklist includes important items to track over the next few months as well as items that will need to be considered as the year comes to an end.

  • Review state minimum wage requirements that will go into effect January 1 to make sure all employees are earning enough to meet new requirements for 2021.

  • Obtain updated addresses on current and separated employees.

  • Remind employees to fill out a new Form W-4 if their situation has changed.

  • Verify employer and employee data that is used in processing your quarterly tax reports and W-2s.

  • Confirm receipt of W-9s for all independent contractors and verify independent contractor data used in processing 1099s.

  • Confirm that employee names and Social Security numbers are accurately matched to Social Security Records.

  • Verify the current year’s state unemployment insurance tax rate and taxable wage limit for each state has been properly applied and begin collecting new tax rates and wage limits for the next year.

  • Verify taxable fringe benefits have been properly recorded as compensation and appropriate taxes withheld. These may include:

    • Group-term life insurance in excess of $50,000
    • Personal use of company vehicle
    • Non-qualified moving expense reimbursements
    • Company-provided transportation or parking
    • Year-end bonuses and non-cash payments (e.g., gift cards)
    • S-Corp 2% shareholder health insurance
  • Confirm that all third-party payments to employees, such as short-term and long-term disability insurance payments are properly attributed to employees as wages and related payroll and withholding taxes are paid.

Professional HR compliance consulting