The holiday is fast approaching. Here are a few items to remember as you prepare for your holiday payrolls.
Due to banking holidays, you may need to allow for more time for direct deposit to make it into your employees’ bank account.
Begin to gather your year end reporting information; Auto Allowance, S-Corp Medical, Third Party Sick and Group Term Life. Some of these carry tax implications and should be included with your payroll.
Plan when and how you are giving out any Holiday bonus. Will the bonus be given out separately or with your regular payroll? This can affect the taxes needing to be withheld. Are you paying it by direct deposit or physical check?
Gift Cards are considered the same as cash and should be taxed. You will need to gross up the values of the card for tax purposes.
A little preparation now can make your holiday a little less stressful in the coming weeks.