With the close of the third quarter and the holiday season upon us, Payroll Tax Management (PTM) is already in the thick of preparing for year end payroll tax filing. As a payroll tax processing provider we suggest that our Remarketers and end user clients maintain meticulous records year round; but it is also good practice to prepare for year end reconciliation and balancing by
verifying each client’s year to date totals against what was processed by PTM or your current payroll tax provider. Comparing your totals to your payroll tax processor’s records can help resolve a lot of the out of balance scenarios that may cause delays (and headaches) when preparing the payroll tax filings for your clients. It’s also important to inform your payroll tax processor if you’ve processed any amendments through out the quarter/year or if you have made any other changes to your totals that could affect the annual payroll tax filings.
Changes to tax agency filing information, including; updated tax filing forms or electronic tax filing specifications are usually released throughout the year but in many cases this information will be distributed by various agencies shortly before the end of the year. PTM’s Tax Compliance team monitors the release of this information and works with PTM IT to makes the appropriate updates to our tax processing system ensuring that there are no delays in processing for clients. Additionally, your payroll software provider should update their software to reflect the changes in the W-2 file format for the Social Security Administration (SSA) and the state/local agencies that require this information prior to sending your W-2 information to your payroll tax processor in order for them to be processed accurately.
Working with a third party payroll tax processor not only saves your company time and money, but it also helps to ease some of the year end stress for a payroll service bureau!