As magical as this season is for some, it’s time to remember all the little financial details involved in year-end accounting. Weeks are whizzing by and getting W-2s together is a task you can no longer put off.
Take a look at our Year-End Checklist for pertinent reminders.
Items to Consider
It is important that you report your taxable non-cash fringe benefits before or during the last payroll of 2017. If you are unsure as to whether non-cash fringe benefits are applicable, please consult your accounting department or accountant.
If these taxable fringe benefits are not included with a regular payroll, the employer is required to pay the employee FICA tax in addition to the normal employer FICA tax.
The most common examples of non-cash fringe benefits are:
- Personal use of company auto
- Excess group term life insurance premiums
- Third party sick pay
- Sub-S owner health insurance premiums
- Moving expenses (both taxable and non-taxable)
Examples of other items to consider before W-2 processing:
Box 13 checkboxes.
1. Pension plan
2. Statutory employee