Closing out the business year requires a lot of effort. To help, we recently held the first in a series of webinars that focus on key end-of-year tasks and how you can easily complete them in the RUN Powered by ADP® platform. If you missed the opening installment, you can still watch it on-demand, but we also wanted use this Tip of the Week to highlight some key takeaways and answer frequently asked questions.

Key takeaways:

The key takeaways from the first webinar included:

1. All end-of-year information is housed in RUN.
2. In RUN, you can download our Year-End Payroll Checklist for helpful guidance. (You can also find this via the webinar on-demand link, under the Related Content box.)
3. Make sure you run 2022 bonus payrolls before the end of the year, by December 30, 2022.
4. Ensure all manual checks have been recorded and processed by December 30, 2022.
5. Consider special payroll circumstances, such as fringe benefits, S-Corp amounts (2% shareholder), group term life insurance, and third-party sick pay.
6. In RUN, you can pull reports and create a report package.
7. Review tax statements (W-2s and 1099s) in RUN starting on January 3, 2023.
8. Enable employees to access W-2s in RUN.
9. Distribute tax statements and Earned Income Tax Credit (EITC) notifications (if applicable) to employees and contractors by January 31, 2023.

Frequently asked questions:

During the live webinar, we also received hundreds of questions. We answer the most frequent questions below.

Q: What will the other installments in the series cover and when will they be available?

A: The remainder of the series will cover:

1. Running payroll (This occurred on November 8, so you can now watch on-demand.)
2. Bonus and direct deposits (November 15)
3. W-2s (December 6)
4. End-of-year reports (December 13)

If you can't attend the live sessions, or want to revisit content from them, they will also be available on-demand.

Q: As a RUN client, do I need to do anything to generate the W-2s or does RUN do it automatically?

A: RUN will produce the W-2s automatically for you.

Q: Are W-2s automatically mailed to employees?

A: W-2s are mailed to the company in one package. The company would be responsible for sending physical W-2s to the employees. If your company allows employees to access their W-2s via Employee Access, employees can view them electronically there as well. If you are on our tax service, we will also file them for you.

Q: When will I receive my employees' W-2s from ADP?

A: W-2 production starts on January 1. If you receive paper copies of W-2s, most will be delivered by UPS or courier by January 13.

Q: Can employers see a preview of W-2s in RUN?

A: Yes, employers can preview W-2s in RUN starting on January 3, 2023. When you're in RUN, just look under Reports > Run single reports > Misc reports > W-2 Preview.

Q: What is the benefit of paperless W-2s?

A: Electronic W2s are less expensive for clients because ADP doesn't have to print and mail them to you. This allows your employees to access them if they are registered within the ADP mobile app or on their computer.

Q: Does ADP also provide 1099s?

A: For ADP to generate 1099s, you would need to have reported 1099 pay through payroll. If so, ADP will print the 1099 for your contractors and will send them to you for you to provide to them individually. Keep in mind, ADP doesn't file your 1099s and you are responsible for that as well as the contractor.

Q: Our payroll period will be the last week of 2022 and the first week of 2023. In what year will these wages be recorded?

A: Taxes and wages are recorded based on the check date. Therefore, if the check date is in 2023, the wages and taxes would be recorded in that year as well.

Q: If the check date is December 30 for the final payroll of the year, when should I process payroll?

A: ADP recommends processing payroll two business days before the check date.

Q: Do I need to carryover unused sick leave to the following year?

A: This generally depends on state and local requirements. Certain states and local jurisdictions require employers to allow a certain amount of paid sick leave to carry over to the next year. Check your state and local laws for details. Absent such a requirement, an employer would generally be able to force the employee to forfeit unused paid sick leave at the end of the year, unless the employer has promised to carry it over.

Q: Is there a way to generate one report listing each employee's vacation and sick leave balances?

A: The employee paid time off report should give you the information you seek. In RUN, you can simply search for that report or access it from the "reports menu" under Time Reports.

Q: How do I record third-party sick pay?

A: Third party sick pay can be recorded in RUN by going to Payroll > More payroll options > Record Third Party Sick pay.

Q: If we have someone who would have personal usage of a company vehicle, when and how does that get added onto their W-2?

A: Personal usage of a vehicle is considered a fringe benefit and is usually recorded in Box 14 of the W-2. To process this, you can use the AUTO earning in RUN. For more help on this, simply search for "Fringe Benefits" in RUN.

Conclusion:

For more guidance on end-of-year responsibilities, watch our entire webinar series live or on-demand. We'll also be covering several topics in more detail in upcoming installments of the Tip of the Week.