Ensure a much smoother year-end close by focusing on your closing steps prior to year end.

Reporting Personal Use of Automobiles & Lease Inclusions

• Income inclusion amounts on shareholder W2s or reduced lease deductions for proprietors.
• Maintain mileage logs to determine business use deductions.

Reporting Personal Use of Automobiles & Lease Inclusions

• Income inclusion amounts on shareholder W2s or reduced lease deductions for proprietors.
  Maintain mileage logs to determine business use deductions.
• W2 Reporting for 2% Shareholders in S-Corps
  Health, dental, vision, AD&D and certain qualified long-term care premiums (not subject to medicare and fica).
  Other fringe benefits (may be subject to FICA and Medicare) may include certain awards, adoption assistance, moving expenses, and personal use of employer provided property or services.

Updating Data Accuracy for W9  and W4 Forms

Send letters and check records of vendors and employees ensure addresses, tax identification and social security numbers when you prepare 1099s and W2s.

Bonuses

Ensure bonuses were paid by end of the year in order to be deductible.  If you are accrual based, make sure they are paid within 75 days after year end.  Contact your payroll provider to determine deadlines and any specific needs for large amounts.

Documentation and Readiness

Contact a K2N advisor to help create a planning list, determine status of your ledgers and documentation needed for year end preparation services.  Assess your assets, collect documentation from loans, vehicle purchases, review your inventory valuation and dispose of obsolete items.

Journal Entries

Contact a K2N team member and make sure that prior year adjustments have been made before you close out 2022.

 
Business tax estimates

Pay these before their deadlines to mitigate estimated tax penalties and increase state tax deductions.

State PTE Tax

Consider paying estimated tax payments at a corporate level to increase the state tax deduction.  Contact a K2N team member to estimate the savings.