Year End Preparation: Review Tax Information

Year End Preparation: Review Tax Information

Review the Quarterly Tax Account Verification Report

The following information should be carefully reviewed and if you notice any discrepancies, contact myherd@atlashr.com immediately. 
  1. Company Name, Address, and FEIN (top left corner)
  2. Tax Code/Tax Name all active agencies are setup and accurate. 
  3. Account ID matches the state assigned tax account number
  4. ER Tax Rate matches the state assigned employer tax rate

Review the Tax Wage Details Report

This report will show you the breakdown for each tax throughout the quarter and  will be emailed to all HR contacts at the end of December. Review to ensure all wages are included and allocated to correct states. You can consider closing tax accounts with no anticipated future activity to reduce the number of tax filings and state accounts you maintain.

Employee Addresses for W2 and 1099 Forms

To ensure employees’ addresses are printed correctly on W2 and 1099 forms, review and confirm all employee addresses are up to date. 

Updated Tax Rates

If notification is received from a tax agency regarding a tax rate change, attach all applicable documentation in an email to myherd@atlashr.com.
Most tax agencies generate updated tax rate notices between November and January.  Please forward any notices received from the state as soon as possible to ensure accurate unemployment tax payments.

"Applied For" Tax Accounts

Tax accounts marked as “Applied For” or missing Tax IDs will cause electronically filed tax returns to be rejected and generate notices, penalties and interest charges for the client. Returns with no valid Tax ID must be filed on paper, however, many agencies require electronic payments and filings and paper returns are not accepted. 

For those agencies where they are accepted, clients can expect delays posting the returns and payments. As a result, it is likely that tax notices will be generated, and penalties and interest charged by the agency. 

It is always best practice to obtain all company tax ID’s as quickly as possible, review the system regularly to verify any changes, and notify AtlasHR if updates are needed. 

**Applied For tax accounts will be billed per account ID, per month for missing account numbers if not received within 30 days.

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