December snuck up on us and it’s the end of the year! Have your employees double-checked that all their payroll and tax information is correct for their W2s in January? Has your human resources team checked to be sure that all the employer-reported information is correct too?
Many, if not most, that file their income tax reports will be due for a refund from the IRS and it is very important that both employee and employer information are correct in the employee’s Gusto payroll account to help them get the correct information on their W-2 for filing on time. This is the information that you will want to double check:
1 – Is the employee’s full, legal name entered correctly in Gusto? W2’s cannot have nicknames.
2 – Is their mailing address correct? When employers or Gusto mail these out, they can only go by what is in Gusto. If an employee has moved during the year and they have not updated their home address in Gusto, the W2 will be mailed to an incorrect address and cause delays. So be proactive – have your employees verify their address information now to avoid delays later!
3 – Are all wages are accounted for? Some employers occasionally give their employees a manual check for bonuses or other expenses. Be sure that anything paid outside of normal payroll checks is documented in Gusto before the end of the year to ensure that all taxable wages are reported correctly.
4 – Is the work location correct for all employees? In previous years, this was simply the office address. More and more, though, and especially in this post-pandemic era, many employees are working from home. If they live in a state that taxes income, this is an important distinction, especially if the employer is in one state and the employee lives in another.
5 – Are the FEIN and state account numbers noted correctly? We are all human and it is possible to enter a digit wrongly when typing. Wrong information can cause costly delays though so double-check to be sure that this information is right.
Checking this information pro-actively helps you, as the employer, to report necessary information to the IRS in a timely fashion. It also shows employees that you are looking out for their interests. Win-win!
For more helpful information about preparing W2s and other tax topics, visit the IRS here. And, of course, if you have any questions about verifying information in Gusto, or any other payroll-related matters, remember… we are always only a phone call away and our payroll team will be happy to help!
