It’s that time of year again — time to gather critical information about your business and send it to your partners at Fingercheck if you need our help.
We have a handy checklist to help ensure that you are set up for success and that we have the necessary information to process your year-end tax filings correctly.
Please review each step, as we will generate your company’s payroll forms based on the data provided within Fingercheck. Also, note that to ensure the timely processing of your information if you need our help, please get your information to us by Monday, Dec. 19, 2022.
1. Review each employee’s demographic information
Employee details within Fingercheck will be reflected on the employee’s W-2 form. Please make sure that the employee information you have is correct.
Re-verify each employee’s social security number and double-check their name and address. If there have been any changes to their name or address during the year, please update with the latest information in Fingercheck.
For added convenience, if your employees have self-service, you can direct them to review and edit their tax withholding and address by logging into Fingercheck online or on the mobile app.
2. Add any unreported terminated employees
If you had any terminated employees during the current year, please ensure that they are included in your 941/State Form for the applicable quarter(s) during which they were employed. If they haven’t been listed on the 941, please make sure that you notify your account representative to add them to Fingercheck so we can generate a W-2 for them.
3. Enter employee earnings that weren’t processed through Fingercheck
If you gave compensation to an employee, not through the typical payroll software (for example, a bonus given by check), please make sure to enter it into Fingercheck. We need to make sure these earnings are reported and taxed appropriately. Contact your account representative if you need assistance adding them to Fingercheck.
4. Report fringe benefits / imputed income
Fringe benefits or imputed income include any non-monetary compensation given to employees such as group term life insurance, personal use of a company car, fitness memberships, gifts or other miscellaneous items. If you’ve given fringe benefits this year, they must be properly taxed and reported on W-2 forms. To add fringe benefits, you’ll need to process them as a calculate-only earning in one of your payrolls before 12/31/2022. A calculate-only earning will not generate payment but will reflect as an earning on the W-2 form. Contact your account representative if you need any help.
This article provides help on adding a calculate-only earning to forms.
5. Health Insurance for S-Corp owners of 2% and above
If you have any company-paid health insurance for any S-Corp shareholders that own 2% or more of the company, it must be accurately taxed and reported. Please make sure to collect the totals of all the 2022 health insurance premium payments for each of these owners to be correctly recorded.
6. Review 1099 classification
Fingercheck offers to file 1099-NECs to the IRS.
7. Third-party sick pay
If your employees were paid sick pay through a third party, please make sure you enter the earnings in our system so that they are correctly taxed and reported. Also, if you offer your employees a private disability policy, we need to know about this because we will need to report this on your employees’ W-2s.
For in-depth instructions, please review this article.
8. Dependent-care benefits
If you provide employees with dependent-care benefits up to $5,000 in 2022, please provide us with the amount your company contributed, as these figures must be reported. These amounts will appear in Box 10 of the W-2. If these were not taken out weekly, please give us a total of how much you contributed.
If your employees receive tips, it is ideal for you to keep track of them through Fingercheck. However, if you haven’t kept track, please make sure to retroactively add tips to Fingercheck before the year ends in order to tax these wages and adequately report them on the W-2.
Cash tips are imputed income and must be reported. This article explains how.
10. Employer-sponsored health care for companies of 250+ employees
If you offer employer-sponsored health care and have over 250 employees, you will need to report the cost of healthcare (nontaxable wages). You can set up a memo deduction type and select “employer-sponsored health coverage.” Setting this up will not affect your net check. It is just for reporting purposes only. It will be reported on the W-2 in Box 12, Code DD. If you need help setting this up, please contact your account representative.
If you have a total of 50+ full-time employees or full-time equivalents, you might be responsible for filing a 1095-B or 1095-C. Again, check with your Fingercheck account representative if you think this pertains to you.
That’s a wrap
By reviewing this checklist and taking the recommended steps to ensure that you’ve supplied us with up-to-date, accurate and required information, you can be sure that your business will move smoothly into 2023.
If you have further questions, please contact our Customer Support team at 1-800-610-9501 or use our in-app messaging feature by logging into our secure site and initiating a conversation.