Start your 2023 payroll off right with this helpful checklist.
- Check Employee Data.
Review for missing or incorrect addresses & Social Security numbers. Check for any terminated employees that need to be removed. Check that terminated employees have no balances for loans, garnishments, or PTO.
- Check Wage, Tax, & Benefits Data.
Make sure that Earned Income Credit (EIC) coding is submitted correctly. Verify your new TWC rate. Test Social Security withholding = (total wages-excess wages) x 6.2%. Test Medicare withholding = total wages x 1.45%. Double-check your matching Social Security & Medicare taxes.
Verify that the reported taxes on Form W-3 equal tax deposits (total of Form 941). Check the contributions & distributions for Section 125 (cafeteria) plans for medical & childcare reimbursements. Check for excess contributions to qualified plans (such as 401(k)), especially for higher-paid employees. Verify that employee requests for benefit deduction changes for the new year are applied.
- Check for Special Procedures.
Schedule any special bonus payrolls. Verify that month-end close-out dates are accurate. Confirm that the 2023 schedule of pay dates, period ending dates, & quarter closing dates do not fall on holidays or weekends.
