As small business and their accountants and other advisers are preparing for year-end tax preparation, ADP’s Small Business Services division offers five tips for payroll taxes.
1. Verify tax IDs.
A small-business owner should collaborate with his or her accountant or payroll service provider to ensure each tax ID number on payroll reports are correct and current. Any mistake should be fixed prior to processing the company’s last payroll of 2012.
2. Confirm W-2 and 1099 information with employees.
Before the end of the year, employees should review and confirm their W-2 and 1099 information. Small-business owners are responsible for providing accountants with updated employee W-2 information before the last payroll report in 2012. If a W-2c form must be filed with the IRS to correct information on a W-2, the accountant should be notified immediately.
3. Know your filing responsibilities.
Depending on the situation, the small-business owner or the company’s accountant must file the company’s taxes, and that responsibility should be confirmed with the accountant or tax advisor.
4. Submit payroll adjustments.