Our topics for this newsletter include:
- Backdated checks (typically seen during payroll corrections)
- Missing or invalid SSNs for W2 employees
- Address Standardization
Backdated Checks update: We are implementing admin only security rights to backdate checks in the void/reverse screens of TempWorks. There will be an additional approvable error message for backdated payroll for standard payroll runs added to the system. These settings in our system should alleviate the need for amendments and penalties as often as possible. Our Backdated Checks article explains payroll best practices from the industry.
- Backdated Checks create tax liabilities that are past due (resulting in penalties) and need for amendments in past periods.
- TempWorks created a configuration years ago to not allow backdating of payroll checks without admin security rights to avoid these issues. Check corrections (voids, reversals), the system will force the check date to:
- Today’s date if it is not going to create negative wages in the current quarter.
- Or the last day of the most recent quarter in which the employee worked (this will no longer be a user defined field).
- Payroll runs created for standard payroll through Enterprise (weekly checks, late checks, etc.) will error during payroll if the check date selected is in the past. The error will direct you to abandon the run and re-create with today’s date or a future date.
Missing SSN Error: This is a reminder of an important proofing error that is currently in the system to warn you that your staff is attempting to pay a W2 employee with either no SSN or an invalid SSN. This error was written to alert you and your teams of any inaccurate SSN information on file prior to payroll, which should alleviate later penalties and notices from government agencies for inaccurate employee data.
- Proofing Errors - This error is documented along with all other proofing errors with instructions on how to correct.
- W2 payments should not be completed until an SSN has been collected and entered on the employee file. If your company’s legal team has put policies in place to allow you to pay an employee without an SSN, we have proofing errors that will remind you each week the employee works to collect a valid SSN prior to end of quarter.
- Data Integrity Review – This report provides your teams a chance to review the accuracy of data entered. We encourage you to review at a minimum quarterly throughout the year.
Address Standardization update: We will be implementing our integration with the United States Postal Service (USPS) to make suggestions on Employee and Customer addresses. Accurate addresses result in timely delivery of payroll and tax statement to employees, and invoices to customers.
- Enterprise Address Standardization is documented here.
- Beyond Address Standardization is documented here.
- If you would like to explore updating the option to use unapproved addresses by your team to an automatic update on your addresses that are new or edited, please contact your Account manager.
We are happy to talk through these changes if you have any questions. Most of our clients are already adhering to these payroll best practices. If there are processes you have built around being able to pay null SSN or back date wages, we would be happy to consult on why these solutions will create savings for you and your company in the long run, as well as help you adhere to IRS and SSA guidelines.