Chances are high that your organization has undergone some kind of change that will make year-end tasks slightly different from last year. Whether you’ve experienced a merger/divestiture, changed third-party vendors, have a remote workforce or are experiencing a gap in resources, it makes sense to prepare now instead of scrambling at the last minute to understand how your year-end checklist will be affected.

We interviewed Lorry Twisdale, director of payroll services at Wise Consulting by RSM and a certified payroll professional with more than 20 years in the payroll outsourcing/administration field, to learn why, when it comes to year-end, it’s a good idea to get started sooner rather than later.

Should you get started with year-end now?

The short answer is yes. Putting in the effort now to reduce your stress later has many benefits. Not only will you feel better prepared, but you can avoid amendments (and fees), catch and correct negative wages and reduce retroactive adjustments for employees. This preparation saves you and your employees the headache of fixing potential errors come tax time.

“The most common issues we see,” says Twisdale, “are incorrectly calculated taxable benefits requiring wage and tax adjustments that need to be applied prior to the last payroll of the year. Not only does this create a strain on your resources, but can have a significant negative monetary impact on your business and your employees. The risk of waiting until the last minute can result in the need for issuing corrected W2s/T4s/RL1s and amended returns and can affect employees’ ability to file their tax returns timely. Peace of mind and confidence that you are prepared are the reasons to act now.” 

An organization’s success heavily relies on the satisfaction and retention of its employees. Mishandling year-end processes can lead to payment inaccuracies, delayed bonuses and tax filing problems, all of which can have a negative impact on your workforce.

Taking proactive steps to streamline year-end consolidation demonstrates your commitment to your employees’ financial wellbeing. Your team receiving accurate and timely pay and benefits boosts morale and overall job satisfaction. Furthermore, you safeguard your company’s reputation as an employer of choice by avoiding common year-end payroll pitfalls.

Organizational changes—start early to understand the impact

Before you can begin evaluating data at the employee level, you must first consider organizational changes. “There may be even more of a reason to start early to ensure accuracy if your business has undergone organizational changes at any point during the calendar year,” says Twisdale. “Organizations frequently do not understand the impact small or large infrastructure changes can have on payroll, and they aren’t always up to date on the latest payroll affecting changes that come out of the federal, state, local and provincial government agencies.” 

Various changes can influence how day-to-day operations go at your organization, but they can also affect more minute (but still very important) details. Whether you’ve gone through an acquisition or merger, switched to a new human capital management (HCM) system or changed third-party vendors, these changes may lead to data consolidation challenges, tax compliance issues and even potential disruptions in payroll processing if not handled correctly. Wise consultants can help minimize errors and maintain compliance throughout the process. But it’s important to engage with Wise early to ensure all is in order well before the year-end.

Getting a head start on making sure your W2/T4/RL1s are accurate now will have several benefits, including the following:

• Ensuring employee data integrity
• Capturing fringe benefits and imputed income
• Auditing contribution limits
• Validating taxable wages
• Confirming W2/T4/RL1 box accuracy

Keep your year-end reports error-free

“Many companies do not incorporate a thorough per pay or quarterly taxable wage audit into their processes, and even fewer institute audits that target data integrity at the employee level,” says Twisdale. The year-end consolidation process involves compiling and reconciling a vast amount of financial and employee data, including resident/work location taxation, wage and tax reports, deductions, benefits and more. Without proper planning and execution, the risk of errors increases significantly, leading to costly consequences, compliance issues and frustrated employees. An early start allows you and your team the opportunity to review and validate your data meticulously, as well as make timely changes. 

Our payroll specialists can help identify and resolve discrepancies and ensure all necessary forms, such as W-2s, 1099s, T4s and RL1s, are accurately prepared and delivered on time. This diligence will save you from unnecessary stress and foster trust and confidence among your employees.

Year-end includes strategic planning for the new year

Now that you’ve checked off all the items on your year-end checklist, it’s time to do it all over again.

Year-end consolidation is about closing out the previous year and setting the stage for the coming one. By starting early, you gain valuable insight into your organization’s financial performance, allowing you to make data-driven decisions and set realistic goals for the future.

At Wise, our U.S.- and Canada-certified payroll professionals can provide comprehensive reports and analytics that offer valuable insights into your workforce’s productivity, labor costs and trends. Armed with this information, you can make informed decisions, allocate resources efficiently and position your company for success in the new year. So, don’t wait! Get started on the year-end now, and let us help you pave the way for a prosperous and hassle-free new year.

Connect with a Wise consultant for year-end support

Having the right team in place can make a massive difference in the success of closing out your organization’s year-end. Our experienced, certified consultants perform year-end planning, balance and audit year-end data to produce accurate W2/T4/RL1s, audit quarterly and annual tax returns, and ensure no year-end tasks fall by the wayside. From providing guidance on best practices to understanding the ins and outs of compliance issues, we’re here to help. 

Are you interested in what the Wise team can do for you? Call +1 800 654 4550 or email us at HCMHelp@WiseConsulting.com to get in touch with a member of our team.

This document contains general information, may be based on authorities subject to change, and is not a substitute for professional advice or services. This document does not constitute audit, tax, 

consulting, business, financial, investment, legal or other professional advice, and you should consult a qualified professional advisor before taking any action based on the information herein. Wise Consulting Associates, LLC, its affiliates and related entities are not responsible for any loss resulting from or relating to reliance on this document by any person. Internal Revenue Service rules require us to inform you that this communication may be deemed a solicitation to provide tax services. This communication is being sent to individuals who have subscribed to receive it or who we believe would have an interest in the topics discussed.

Wise Consulting Associates, LLC, is a wholly owned independent operating subsidiary of RSM US LLP. Wise provides system and operations expertise in human capital management, workforce management and payroll management technology and compliance.

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