Understand the year end spot-check

Click on the Complete Your 2016 Payroll Spot-Check sticky-note that appears on your Dashboard to answer some questions about your payroll. This info helps Gusto gather everything we need to do your year end filings correctly. 

Teams and payrolls

Not all of these questions will apply to your unique situation.

  1. Have you added all of your current employees to Gusto?
    • We need all of your employees to be added to your account so your W-2s are prepared correctly.
    • Please add any current employees that are missing into your account. We recommend that you skip employee self-onboarding. Also, gather all paystubs for these employees in 2016 so you can provide them to our Care team, who can assist with entering that data.
  2. Have you added all of your employees who were dismissed in 2016 to Gusto?
    • We need all of your dismissed employees to be added to your account so your W-2s are prepared correctly.
    • Please add any dismissed employees that are missing into your account. Next, dismiss each employee with their correct termination date. Also, gather all the paystubs for these employees from 2016 so you can provide them to our Care team, who can assist with entering that data.
  3. Have you run all of your payrolls, bonuses, and commissions since you started in 2016 with Gusto?
    • We need to make sure we have a record of all payrolls you have run in 2016.
    • If you haven't recorded every 2016 payroll in Gusto, please gather the amounts, dates, and recipients that are missing. Our Care team can assist with entering this info.
  4. Fringe benefits include group term life insurance, personal use of a company car, and fitness incentives. Did your company offer any fringe benefits in 2016? If you did offer fringe benefits, have you added all of those benefits to Gusto?
    • We need to make sure all fringe benefits have been properly taxed and reported on your W-2s.
    • If you haven't already done so, please add all your fringe benefits from 2016 to Gusto. 
  5. Have you added all of your 1099 contractors to Gusto? We will file for all of these folks.
  6. Have you added all 2016 contractor payments to Gusto?
  7. Have you added all payroll tax exemptions, including date ranges, to Gusto?
    • We need all of your exemptions to make sure your taxes and forms are done correctly.
    • Please gather a list of the correct tax exemptions for each of your employees, including the start date and/or end date for each exemption.
  8. Before switching to Gusto, you used another payroll provider. Have you recorded all 2016 employee payments in Gusto?
    • We need all employee payments so we can accurately file your tax forms.
    • Please gather all 2016 paystubs that were not recorded in Gusto when you joined.
  9. Before switching to Gusto, did you dismiss any employees in 2016? If you did dismiss employees, have you added all of their information to Gusto?
    • We need all info about dismissed employees so your year-end tax forms are correct.
    • Please add any dismissed employees that are missing into Gusto now. Next, dismiss each employee with their correct termination date. Also, gather all of the paystubs for these employees from 2016 so you can provide them to our Care team, who can assist with entering that info.
  10. Have you added and identified all shareholders who own over 2% of your company to Gusto?
    • We need to know if you have any company paid health insurance for your S-Corp owners so it can be accurately taxed and reported. 
    • Please add an S-Corp Owner's Medical Benefit in Gusto, and add the 2% owners to the new benefit. Also, please gather the total 2016 health insurance premium payments for each of these owners so our Care team can assist with recording and taxing these payments.
  11. Before switching to Gusto, none of your employees moved or relocated for work in 2016. Is this correct?
    • We need to know if anybody moved so we can verify their state taxes are correct.
    • If any addresses have changed in 2016, please ensure that the correct addresses are in Gusto.
  12. You do not have a disability policy for your company in 2016. Is this correct?
    • We need to make sure that we accurately report any third party sick pay given to your employees through a disability insurance policy.
    • Third party sick pay needs to be manually entered by our team. There are unique forms and payments for all employees who have filed a claim. 

Special employee compensation

If any of the following apply to your company, we will follow-up with a questionnaire to gather information about the values. 

  1. Relocation expenses
    • This is money your company paid for an employee relocation. These moving expenses have to meet a certain set of criteria to be considered non-taxable. Check out IRS publication 521 for more details. 
    • Provide us with the year-end excludable moving expenses if this applies to you. These amounts will appear in Box 12 of Form W-2.
  2. Dependent care benefits
    • This is money you gave your employee to use to take care of their dependents, like infants or the elderly. Amounts under $5,000 that meet IRS criteria are non-taxable.
    • Provide us with the year-end dependent care benefit amount if this applies to you and these are only company contributions. These amounts will appear in Box 10 of Form W-2
  3. Allocated tips
  4. Untracked health insurance
    • Gusto tracks health insurance and automatically records the information on employee W-2s. However, if you have any company health contributions which are not tracked within Gusto, then they will need to be added separately.
    • Provide us with the year-end untracked health insurance amount if this applies to you and if these are only company contributions. These amounts will appear in Box 12, Code DD.
  5. Non-statutory stock options
    • The exercise of non-statutory stock options (also called non-qualified stock options) needs to be included in employee W-2s. Enter the year-end non-statutory stock option amount if this applies to you. These amounts will appear in Box 12, Code V.
    • If you have not yet processed this amount in payroll, please reach out to our Customer Care team for further assistance. 

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