Without a dedicated and reliable provider, year-end payroll is a demanding in-house task. From completing and filing tax forms to updating payroll policies for compliance in the new year, the process can quickly become dizzying. That’s why we’ve compiled these key dates for year-end payroll: to help your organization file on time, confirm necessary information with the IRS, and schedule 2023 pay dates to ensure quick processing times.
December 2022
For certain industries and business structures, it’s essential to confirm any forthcoming changes to minimum wage for 2023 (at the municipal and state levels). Explore information regarding state-level changes here, and speak with a qualified consultant or provider regarding municipal changes that will apply to your organization in 2023. Remember that some minimum wage changes activate automatically on January 1, 2023, while others begin mid-year 2023 or later.
Bank Holiday # 1 – December 26, 2022
Be sure to avoid scheduling your final payday for December 26th, as this is a bank holiday and could cause unwanted processing delays.
Bank Holidays #2 and #3 – January 2, 2023 and January 16, 2023
New Year’s Day falls on a Sunday in 2023, so banks are closed the following Monday, January 2nd. January 16th is also a bank holiday in recognition of Martin Luther King Jr. Day. Ensure that you schedule your first payday of 2023 lands outside of these two dates.
January 31, 2023
Each year, January 31st is a key deadline for filing 1099-NECs, W-2s, W-3s, Form 940 and Form 941 (or 944).
W-2 and W-3 forms must be submitted to the SSA and IRS by January 31st and provided to employees by the same date. 1099-NECs must also be submitted by January 31st for any nonemployees who were paid $600 or more in a calendar year and provided to employees by the 31st. Organizations can request a 30-day extension for W-3 and 1099-NEC forms by completing and submitting Form 8809, though it’s possible requests will be denied.
Form 940 and Form 941 (or Form 944 if you’re a small business with limited payroll tax liability) must be submitted to the IRS by January 31st. Form 940 catalogs all taxable Federal Unemployment Tax Act (FUTA) wages paid in the previous year, while Form 941 reports all federal income tax that was withheld from employees, along with Social Security tax and Medicare tax for each quarter of business.
February 15, 2023
This is an important date for employees seeking to claim/confirm exempt status for 2023 federal tax withholding. An updated Form W-4 must be filed by this date.
Bank Holiday #4 – February 20, 2023
As you prepare to schedule pay in the first quarter of 2023, keep President’s Day in mind. Payments and direct deposits will not be processed on this holiday.
March 2, 2023
By March 2nd, employers must provide their employees with Form 1095-C, which summarizes the health care coverage options that were offered by the employer in the past year (and complies with Affordable Care Act regulations).
March 31, 2023
Employers must file Form 1095-C and 1094-C to the IRS by March 31st if they are subject to the Affordable Care Act.
Additionally, Form 1099-MISC, which reports royalties, awards, rents, prizes, and other fixed or determinable income paid in the past year, must be filed electronically by March 31st. Remember that 1099-MISC forms must be sent to payees by January 31st.
Business Structure Deadlines for 2023 – March and April
It’s easy to forget that business structure has a direct bearing on when your business’ annual tax return is due. Although C-corporations have until April 17, 2023, partnerships, S-corporations, and multi-member LLCs must file their returns by March 15, 2023. Your organization must use the Electronic Federal Tax Payment System to file federal tax deposits, though state and municipal requirements vary and should be verified with your payroll provider.
Simplify Payroll for 2023 and Beyond with Cello HR
Implementing payroll policy updates for the new year while ensuring accurate payroll tax filing can feel like a daunting task. Cello HR provides an intuitive and integrated payroll platform that simplifies your entire payroll process.
Ready to enjoy in-depth reporting options and easy-to-use mobile features for your employees? Contact us today to let us know how we can support your organization now and throughout the new year.