Important Federal December 2008 Due Dates
In addition to your responsibilities at year-end, you have to deal with the usual last-minute crises.
By Dec. 1, 2008
- Remind employees that if there has been a change in their filing status (marriage or divorce) or number of dependents (birth, adoption, child turning 21), that they may want to file a new W-4 for 2009.
- See that employee paycheck names/SSNs match those on their SS card and/or W-4.
- The Special Accounting Rule. Your firm may elect to treat taxable noncash fringes (i.e., personal use of company cars) provided any time in November-December 2008 as paid in 2009. (If you make this election for tax year 2008, you must notify affected employees no later than Jan. 31, 2009.)
Before Dec. 31, 2008
- Do not apply the EITC to wages paid after this date unless you have a new W-5. Paychecks dated 2009 are 2009 wages, even if earned in 2008.
- Check each employee’s SS withheld. If anyone exceeded the 2008 limit of $6,324.00, make adjustments/refunds before making the final payroll tax deposit for tax year 2008. Leave enough time to make adjustments and make refunds.
- If you use a payroll service, consider asking for an adjustment run before you close out 2008 and run your W-2s. Verify and correct:
- relocation expense reimbursements;
- manual or voided paychecks that have not been put in the system;
- personal use of company vehicles;
- company-paid educational assistance; and
- other taxable items paid via accounts payable.
- Check each employee’s Social Security withheld. If anyone exceeded the 2008 limit of $6,324.00, make adjustments/refunds before making the final payroll tax deposit for tax year 2008. Leave enough time to make adjustments and make refunds.
Source: AIPB.ORG
