When you have to be in charge of making sure that your employees have what they need to file their own taxes in addition to handling your own business money matters, it can seem like a lot to take on. Every year when the new season rolls around it can bring on a lot of stress for everyone. Here are three simple ways you can ensure tax time is made a bit easier for your employees.
Start Working on W-2s Early in January
If there is one thing that can make filing your taxes a headaches, it is having to wait for slow employers to give you the paperwork you need to file. Many businesses make the mistake of waiting until the last week of the month to start getting W-2 forms and 1099's ready to go. By this time, you have seven days to get those documents in the mail, your employees are probably already looking for them, and if something goes wrong at this point, you will be late. It is much more logical to start working on tax documents after end of the year tasks are tucked away at the turn of the new year.
Offer Both Digital and Paper Documentation
In order to get necessary paperwork in the hands of your employees, you have three choices: mail them, offer them electronically, or just have employees pick them up while they are at work. While most companies only have one option, it is nearly impossible to make one option work for every employee. It may be a bit more work, but making the W-2 available in both paper and digital form can take a lot of work out of the process for your payroll service department. This way, employees can choose the option that works out best for them, which can prevent problems with obtaining W-2s later down the road.
Offer Tax Filing Notices and Handouts
Offering tax advice to employees at a time of the year when you already have your hands full may sound like the last thing you want to do. However, tax time can be stressful on everyone and there is no doubt employees will appreciate any advice you have to offer. Keeping employees well informed with flyers or leaflets in their paycheck can eliminate extra questions for payroll and human resources when taxes are being filed. Some of the information you might include would be:
- When employees should expect to see their W-2
- How their W-2s can be obtained
- Changes in filing guidelines for the new tax season
- What new credits and deductions may be available
- How to plan for taxes throughout the coming year
By using these three tips, you are sure to see tax time come and go with fewer hassles. If tax time is an especially burdensome time for your company, keep in mind that you can always employ the extra hands of a payroll service or book keeping firm for help.