Reminder: A Few Things to Consider for Your Annual Year-End Payroll Reporting

To our clients and friends of the Walz Group

Just a reminder that there may be several items, in addition to normal wages, for you to consider while preparing your annual year-end payroll reporting. Below are some of the common taxable fringe benefits and other compensation items that may apply. If you have questions or are unsure whether an item is applicable, we encourage you to contact your payroll provider as soon as possible. If you transitioned to ADP as your payroll provider and need assistance, please contact us at informationreturns@walzgroupcpa.com.

Taxable fringe benefits and other compensation should be included in your final payroll subject to the proper withholdings. Reportable fringe benefits may include:

• Group-term life insurance in excess of $50,000
• Third-party sick pay (is the third party issuing a W-2?)
• Personal use of company vehicle
• Non-qualified moving expense reimbursements
• Company-provided transportation or parking
• Employer-paid education not related to the employee’s job
• Non-accountable business expense reimbursements or allowances
• Bonuses
• Non-cash payments

For greater than 2% S Corporation shareholders only:

• Company paid Health Insurance, reimbursed medical expenses, and/or HSA contributions
• Company paid Life Insurance premiums (Company is not the beneficiary)
• Company paid Disability Insurance

To view a complete list of 2022 payroll tax information, please click here.

If Walz Group assists in preparing your year-end W-2’s, please complete and return all applicable fringe benefit questionnaires no later than December 10, 2021. The questionnaires, excel templates, and other additional resources can be found on our templates page. We have enclosed the 2021 S Corp Shareholder Insurance and 2021 Personal Auto Use questionnaires for your convenience.

Please contact us at (717) 392-8200 or informationreturns@walzgroupcpa.com with any questions.