Tax Time: Your Year-End Checklist

It’s almost December, but don’t panic.  Instead, get a head start on transferee taxes – it will save you a lot of time and frustration.  Here are 10 things you can do right now:

1) Make a Meeting Schedule time with your HR, payroll, corporate tax and relocation departments and/or service provider.  Use this opportunity to discuss year-end tasks, delegate each department’s responsibilities and finalize your year-end schedule.

2) Tip Off Transferees If you are running a year-end delta report (withholding vs. gross-up report), warn your transferees that many of them will have adjustments to their withholding buckets in December. (Some will be positive adjustments, but most will be negative adjustments.)

3) Calculate Correctly If you are calculating year-end gross-ups, remember to use the 1040 Federal Tax Return exemption numbers. The W-4 number does not always reflect the actual 1040 number.

4) Dole Out Deadlines Alert your transferees to expense submission deadlines. Give them plenty of time, but be prepared to send more than one reminder.

5) Run Test Reports Start running test files and reports between the payroll and relocation departments.  Make sure everyone is in agreement with all file formats.

6) Conduct Comparisons Have both payroll and relocation run a year-to-date report, showing what passed for the year in relocation, such as total taxable incomes and total withholdings.  If the reports don’t tie, go back and see if one of the reports slipped through the cracks during the year.

7) Look for What’s Missing Run an audit report to check for missing information that will be needed for year-end calculations. Typically, it is important to include: Marital Status, 1040 Exemptions, Tax State, Homeowner/Renter Status and Annual Salary.

8) Double Check Dates Run an expense report for all expenses entered in 2016.  Double check to be sure that none have an expense date with a different year.  These expenses might otherwise be missed for 2016.

9) Set Your Settings Double check switch and policy settings in your software program to make sure they are compliant with your company’s gross-up policy.

10) Make Another Checklist As you go through your year-end schedule, keep track of what you’ve done and make sure nothing is missed or overlooked.

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