How to Set Your Business Up for Payroll Success in 2024
The start of a new year is the perfect time to set your business up for payroll success for the following year. Many business owners find themselves juggling numerous priorities, often pushing payroll to the back burner. However, a streamlined and accurate payroll process is fundamental to any thriving business. The good news is that the PayWorks team is here to help you succeed with all of your payroll needs this year!
Here are some things we will address to make sure your business is compliant and ready to tackle the 2024 business year:
Handling W-2 requests and W-4 updates: Assist employees with obtaining W-2 forms and submitting updated W-4 forms for accurate withholding.
Reviewing and updating employment posters: Ensure you display current posters outlining employee rights under state and federal regulations.
Addressing minimum wage and paid time off changes: Check if your state or locality has revised minimum wage requirements and adjust your payroll accordingly.
By getting up-to-date on payroll best practices, you can create significant efficiencies for both you and your team, leaving you more time to focus on other crucial areas of your business. Below are five essential tips and steps to set your business up for payroll success in 2024.
Prepare to send W-2 copies to employees.
As your employees begin tackling their personal tax returns, they may request another copy of their 2023 W-2 form. PayWorks included individual W-2 copies for each employee in your Annual Report Package, so you can easily reprint these copies at your convenience.
If an employee did not receive their W-2 form due to a recent address change, please inform your dedicated PayWorks representative of the employee's new address. This will allow us to update their record accurately in our system.
Update Employee W-4 for Accurate Withholding in 2024.
At the start of a new tax year, it is common for employees to request to change their withholding status after they complete their 2023 personal tax returns. To facilitate this, employees who wish to update their federal income tax withholding should submit an updated 2024 W-4 form.
It is important to remember that the W-4 form specifically impacts withholding on paychecks based on the information provided by the employee. Since the W-4 form calculates withholding on payroll wages only, there is no way for you as the employer or PayWorks to "fix" it to reflect the final amount of tax due on their personal tax return. This is because individual tax returns incorporate a wider range of income sources and deductions beyond just payroll wages. Employees should complete the W-4 form carefully, reflecting their desired level of tax withholding based on their comprehensive tax picture.
Stay Up To Date on 2024 Minimum Wage Changes.
A number of states have changed their minimum wage rates for 2024. In addition, some states also allow localities to set their own minimum wage requirements for businesses operating in those localities. If you are still determining if your minimum wage requirement has changed, please consult your PayWorks Payroll Account Representative for more information.
Stay Up To Date on 2024 Paid Time Off Requirements.
Many states and localities have instituted or changed the paid time off/sick pay requirements. Each jurisdiction can have different limits, carry-over options, usage, and employee notification requirements for this time off. PayWorks is here to help you comply with paid time off/sick pay rules and help you track these requirements. Please consult your Account Representative for more information or specific requirements based on your business location.
Update Required Employment Law Postings.
Displaying essential posters prominently and keeping them updated informs your employees of their rights. It demonstrates your commitment to fostering a workplace environment that respects and upholds those rights and adheres to all relevant payroll regulations.
Wage and hour regulations
Most states require that you display updated employment posters in your workplace to notify your employees of certain rights under your state's wage and hour regulations. You can typically find these postings on the labor department website and download them to print free of charge.
Workers’ Compensation
Applicable states may also require you to display information regarding your workers' compensation insurance policy. You can obtain these postings from your insurance broker or carrier.
We understand that as a small business owner, navigating the complexities of payroll regulations and processes can be overwhelming. By following the steps listed above, you can establish an efficient payroll system that promotes employee satisfaction, minimizes legal risks, and ensures your business thrives in the ever-evolving payroll landscape.
Schedule a free consultation today with PayWorks to see how we can help set your small business up for payroll success in 2024!
PayWorks is not providing legal or tax advice. The information on this website is for informational purposes only and should not be relied upon as legal or tax advice. You should consult with your own legal and tax advisors before making any decisions about your financial situation.