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Don’t Wait Until January: Simple Steps to Prepare for Year-End Payroll and W-2 Season
As year-end approaches, many employees have questions about their payroll information and W-2s. Taking a few minutes now can help make tax season easier and less stressful.
Employees are trying to access accounts they haven't logged into in months. Addresses are outdated. Tax elections haven't been reviewed. W-2s are delayed because information wasn't updated before year-end.
The good news is that most of these issues are easy to prevent. A little preparation now can save employees and employers time, frustration and unnecessary paperwork when year-end arrives. Here are the most important things to review before it's too late.
One of the most common year-end challenges isn't a complex payroll issue. It's simply outdated employee information.
Incorrect addresses, forgotten portal passwords and unreviewed tax elections often create extra work for payroll teams and delays for employees who are eager to file their taxes.
Another issue arises when employees haven't reviewed their pay stubs throughout the year. They may not notice a tax withholding concern, an incorrect work location or another discrepancy until year-end, when corrections become more complicated.
The sooner information is reviewed, the easier it is to address.
If employees only do three things before year-end, these should be at the top of the list:
1. Log into the Employee Portal
Many employees don’t access their portal until they need their W-2. By then, they’ve forgotten their username, password or security information.
Logging in now confirms that access is working and gives employees time to update any account information before the rush of tax season.
If you've never logged in, now is the time. Employees can use the "Forgot Username" or "Forgot Password" options if needed and establish their PrismONE ID for easier access moving forward.
2. Verify Your Address
The most common issue on W-2s is an outdated address. If you've moved during the year, changed work locations or simply haven't checked your information recently, take a few minutes to verify that everything is correct in your employee portal.
3. Review Your Taxes and Withholdings
Employees should periodically review their tax elections and make sure taxes are being withheld as expected. If something doesn't look right, consult your tax advisor or income tax preparer. Syndeo cannot provide personal tax advice, but your tax professional can help determine whether your current withholding elections still make sense for your situation.
Many payroll issues can be identified early by reviewing pay stubs consistently.
For hourly employees, it's a good idea to review every paycheck. Salaried employees should still check periodically to ensure everything looks correct.
Pay particular attention to:
For employees who work in multiple states, reviewing pay stubs becomes even more important. Taxes should be withheld and reported in the state where work is performed. Reviewing the state tax codes on a pay stub can help quickly identify potential withholding errors before they become larger issues.
When questions arise, it's always better to ask sooner rather than later.
Life changes may require tax election updates that affect payroll withholdings.
Employees should review their elections whenever they experience events such as:
Many employees complete their tax forms once and never look at them again. That can lead to unexpected tax bills or refunds that are much larger than anticipated.
A quick review after a major life event can help avoid surprises later.
One common misconception is that a W-2 should exactly match an employee's final pay stub or annual salary. That's not always the case.
A W-2 reports taxable wages and tax-related information, which can differ from an employee's stated salary or final paycheck totals because of pre-tax deductions, benefits and other payroll factors.
Understanding that difference ahead of time helps avoid confusion when W-2s are issued.
If there's one action that can make tax season easier for everyone, it's enrolling in electronic W-2 delivery.
Benefits include:
Electronic W-2s are made available as soon as year-end reviews and reconciliations are complete, generally ahead of the January 31st deadline. That means employees can access their forms and begin filing taxes sooner.
Many employees only use the portal when they need a W-2, but it offers much more than that.
Depending on your employer, the portal may provide access to:
The portal also gives employees self-service access to records without needing to call HR or payroll for assistance. Having everything available at your fingertips saves time for everyone.
For Employees:
For Employers:
As year-end approaches, be prepared to discuss items such as:
Your payroll team at Syndeo will typically begin reaching out about these items in November, but gathering information early can make the process much smoother.
The biggest takeaway is simple: be proactive.
Most year-end payroll and W-2 issues don't happen because of major errors. They happen because employees wait until January to verify information, reset passwords or review tax elections.
A few minutes today can help ensure a smoother year-end process, faster access to tax documents and fewer surprises when W-2 season arrives.
The sooner you check your information, the easier it is to fix.
Let us take on your HR functions so you can strive for greatness.
Contact us.
