‘Tis the Time for HR Year-End Tax Planning

[Fit Small Business | ]( HR Insights from Our Experts [Annual Review Just Ahead]( Amid the holiday celebrations and gift-giving, there are also year-end tax reports and filings that come with the new year. To avoid having to deal with these complexities after returning from the holiday break, it makes sense to take care of this business before the year ends. Let’s take a look at what you can do now to plan ahead and keep the HR side of your business running smoothly.   [Image of notepad with tax planning written on it]( Year-End Tax Planning for HR Managers   Here are some things to do before the year ends: - [Pay contractors]( and vendors in full before the year ends. Make sure that contractors have received a [1099-NEC form]( by January 31, 2023. If you haven’t already given them a [W-9 form]( to fill out, now is the time. You’ll need it back quickly since you’ll be using it to fill out Form 1099. - Ensure you have current [W-4 forms]( on file for all employees. You’ll need them to complete the [W-2 forms]( that you’re required to have sent out by January 31, 2023. - Do an internal [payroll audit]( to help identify any issues that need attention before the end of the year. Correcting minor errors and mistakes before the new year begins is much easier than waiting. - If you had 50 or more full-time equivalent employees during the year, you’ll need to pay attention to Affordable Care Act (ACA) health reporting requirements. You may need to submit [Form 1094-C]( and [Form 1095-C](. You have a little extra time to file these—the deadlines are February 28, 2023, if filing by paper and March 31, 2023, if filing electronically. - Estimate taxes and determine how much you must pay by the end of the year. Include bonuses given to employees since these are also subject to taxes. - Verify your tax payment deadlines. - Secure enough funds for tax payments and make sure to include both state and federal taxes. 📌 Here are some articles to help make your year-end go smoother: [W-9 Forms]( [1099 Reporting]( [W-4 Form and Instructions]( [How to Fill Out Form W-2]( [Payroll Tax Forms](   [Compliance illustration]( Payroll Tax Reminders   Payroll tax compliance is an important part of maintaining a smooth HR system. Here are some important upcoming dates you may need to know: - Any employee who has experienced a change in their personal or financial situation may need to complete a new Form W-4 for 2023 to include a greater withholding. - Make any payments for prior weeks that have not yet been paid; if you’re a semiweekly depositor, you should deposit taxes withheld from payroll payments as follows - FICA and income taxes withheld from paychecks distributed on November 9, 10, and 11 should be deposited by November 16. - FICA and income taxes withheld from paychecks distributed on November 12, 13, 14, 15, and 16 should be deposited by November 18. ✅ Learn more about FICA taxes plus [how to calculate the FICA payment]( you need to report and pay to the IRS.   HR Payroll Software & Services Spotlight [Image of woman in front of a computer monitor]( Want to manage payroll efficiently and accurately minus the hassle? Consider using payroll software. The best tools are affordable and let you handle wages, deductions, and taxes. You can choose from our [top 10 payroll software recommendations]( including [Gusto](, [Rippling](, and [QuickBooks Payroll](. 💡 If you’re not prepared for the added costs of a paid payroll solution, find a [free payroll solution]( or use our free template to [do payroll in Excel](.   What’s Hot In HR Content This Week Here’s some of our latest (and greatest) HR content [Featured Article] What Is a Professional Employer Organization and How Does It Work? Want a human resource partner that can help you stay on top of compliance and offer great employee benefits? Consider working with a professional employer organization (PEO) that will act as the employer of record for your company, managing HR duties like processing payroll, fine-tuning employee policies, etc. [Learn About PEO]( [Template of the week] If you’re paying more than a handful of employees, you should consider prioritizing an internal payroll audit within the next month. It doesn’t have to take long–you can just spot-check certain information. In our video, we walk you step-by-step through how to conduct a payroll audit. [[ratio]  ](   Our Expert Tip on Keeping Track of Compliance   [Robie Ann Ferrer, HR and Payroll Software Expert]( “Ensuring your business’ HR compliance requires looking at many federal and state laws and regulations. To minimize the chances of legal issues, fines, or bad publicity, appoint an HR employee to manage requirements or create an HR compliance team." -Juvy Vallescas, HR and Payroll Software Expert If you’d like to learn more about HR compliance concerns, read our article on [What is HR Compliance [+ Free HR Audit Checklist]](.   As you wrap up this year and plan 2023, it’s best to ensure that paperwork and compliance issues are handled properly. It’s also the best time to check that your HR processes and the organization’s business strategy are aligned. Doing this will ensure that you’re welcoming the new year right! Best wishes, Juvy Vallescas   For more quality resources on growing your small business: [Marketing]( | [Financing]( | [Accounting]( | [HR]( | [Retail]( | [Ecommerce]( | [Sales]( [Facebook]( [Twitter]( [LinkedIn]( [Alternate text] Want to change what you receive in your inbox? 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