26 September 2019 Why some payroll adjustments can't wait until year-end If your payroll department is like most, you likely have a year-end bucket list — that is, special wage payments that you are holding until December to post to employee wage records. Waiting until the end of the year to recognize taxable wages is fine in some situations, but only when the IRS specifically allows it. Otherwise, special items of compensation are taxable at the time they are made available to employees. Because waiting too long to report taxable wages can result in late deposit penalties and more, now is a good time to carefully review items you have set aside for year-end and determine if they need to be recorded sooner. Our special report, Why some payroll adjustments can't wait until year-end, examines the special timing rules available from the IRS, the types of compensation to which they apply, and the consequence for getting it wrong.
Document ID: 2019-1707 | |||||||||
