Hawaii Employers: Do This After Your Last 2018 Payroll but Before Your First 2019 Payroll

December 13, 2018 Written by Oralie Chapman

End of year is a busy time for payroll as Hawaii employers get employee data organized for tax season and ready to start the new year. After the last payroll of 2018 is complete and before the first payroll of 2019 is started there is a list of things that should be accomplished.

Hawaii employer’s payroll checklist to complete after last 2018 payroll and before first 2019 payroll 


1. Check employee and employer indicative data:


Indicative data is employee data gathered in HR systems that is relevant to benefits and payroll service providers.


· Check to make sure that terminated employees are not carrying balances for vacation and sick time or loans and garnishments.

· Ensure that terminated employees have been purged from the system appropriately.

· For active employees check for inconsistent data including missing or invalid social security numbers and missing or old addresses. Have employees double check and sign off on their data.


2. Go over wage, tax and benefits information:


· Test the reasonableness of employer’s matching Social Security tax, Social Security tax withholding, Medicare withholding, matching Medicare tax and state unemployment insurance tax.

· Make sure that the Earned Income Credit (EIC) coding has been submitted properly.

· Look for discrepancies such as qualified pension discrepancies.

· Verify the Hawaii disability insurance rate and taxable wage limit.

· Verify the employer’s state unemployment insurance tax rate and taxable wage limit for each state where the employer has workers.

· Compare and reconcile differences in payroll register totals to Form W-3 totals; Forms W-2 to state and local report totals; and total wages reported for each tax.

· Check to see if reported taxes from Form W-3 equals tax deposits (total of Forms 941).

· Check for mandated tip allocations for tipped employees.

· Check for excess contributions to qualified retirement plans.

· Check contributions to and distributions from Section 125 (cafeteria) plan for child care and medical care reimbursements.

· Make sure that employee requests for fringe benefit deduction changes have been applied.

· Make sure that any employee tax and/or taxable blocks that are no longer wanted have been removed.

· Confirm the settings and clearing of special accumulators for the new year.


3. Take care of special procedures:


· Go over schedule of pay dates, period ending dates and quarter closing dates to ensure that they fall on desired dates and not on holidays or weekends.

· Schedule any special bonus payrolls.

· Verify that the new year month-end close-out dates are accurate.

· Verify that management reports for the new year are scheduled, and will include the correct weeks and process.


Partnering with Makai HR


Not excited about payroll? That’s okay; we’ve got you covered through HR outsourcing! When you partner with Makai HR you can get on with the business you are trying to grow while we take care of your employee needs from payroll to taxes, health insurance/benefits and worker’s compensation. You also gain peace of mind that you are in compliance with all of Hawaii’s employer laws (if you’ve ever looked you know that the list is very long). When choosing a PEO to partner with, there are many things to consider including cost, services and technology solutions.


With the cost of doing business in Hawaii at record highs, we know how important it is to keep labor costs in line with revenue. Our plans are priced competitively and include value-added services like time-in/time-out systems. Our three tiers of PEO service plans are tailored to the size of your business and specific needs. We offer a 100% paperless solution which means that your employees can manage their needs through a computer, tablet or phone. We can truly improve your employees work benefits while freeing you up to run your business.


What are you waiting for? Companies who partner with a PEO benefit from 7-9% faster growth, 10-14% lower employee turnover; and they are 50% less likely to go out of business. Contact us today to get started!