Verify employee benefit information:
- Confirm retirement plan eligibility
- Confirm health benefits (and imputed wages)
- Confirm fringe benefits
- Review sick time
- Review vacation time
- Review deferred compensation
We often set and forget employee benefits, but the end of the year is an important time to verify your employee benefit information. For most retirement benefit information, like your 401(k), give advanced notice of benefits, like enrollment features and withdrawal provisions to your employees. If your company matches, your employees may want to fully fund their plan by the year-end.
For health benefits, confirm that your employees have selected and contributed to their health care plans. For employees on a Flexible Spending Account (FSA), remind them to spend money in their FSA before the end of the year. If your plan has a $500 carryover option, let employees know.
If you’ve offered fringe benefits to employees, you’ll want to make sure you’ve withheld taxes for any taxable benefits your employees have received throughout the year. This includes fringe benefits such as:
- Personal use of company car
- Employer-provided parking
- Employer-provided cell phones
Some of these fringe benefits may be considered imputed wages. An imputed wage is additional income typically associated with a service. A popular form of imputed wages that requires an end-of-year adjustment is group term taxable life insurance coverage over $50,000.