Reader Question: It’s a new year and it seems like our first payroll always has errors and issues. Any advice on what to look for and plan for?
– Manager, Finance
The first payroll of the year usually means you have changes to employee’s salaries, 401k contributions, Flex spending amounts, insurance / benefit coverage contributions, and even withholding amounts for taxes. Remember that some employees prior to the last payroll in 2016 would have reached their limit for social security taxes, which now will once again be a deduction from their paycheck. Also remember to refresh and record the data for accrued time off, including recording and time off that rolls over from 2016. Overall, get a list together now and have it with you when you audit the first payroll.