For businesses that are preparing year-end payroll and information returns from Quickbooks, the following tips are helpful in order to avoid the most common mistakes:
- Budget ample time and set aside uninterrupted time to prepare year-end tax forms such as W-2s, W-3, Forms 940 and 941, and state quarterly tax returns.
- Order the correct tax forms to arrive on time. Most of these forms also can be purchased at office supply stores, wholesale stores, etc.
- Download payroll updates from Quickbooks before preparing the year-end tax forms.
- Be sure all forms are printed with the correct year.
- In order to eliminate costly mistakes, be sure to do a test print before the actual form is printed. It’s easiest to make a copy of the actual form to see how your information will print on it.
- Reconcile the wages reported to make sure the W-2 totals equal the amounts reported on the W-3 and the W-3 totals equal the amounts reported on the quarterly reports. Make sure all the 1099 forms are in agreement with the total on Form 1096.
- Be sure to have all the IDs and address of the 1099 recipients updated in Quickbooks. If you don’t have the correct information, you can send the vendors Form W-9 to be completed and sent back to you.
- Remember the deadline for all W-2s, W-3 and 1099-Misc-Nonemployee compensation and the related 1096 is January 31, 2018.