The NASPP Blog

It’s that time of the year – holidays, festivities and year-end prep. I’ve often wondered how the two can go hand in hand. In today’s blog I’ll combine the two; let’s see how that works out.

Send Your Holiday Selfies

Let’s get the fun out of the way first. Chapter holiday gatherings are already in full swing, and we want to see your photos. Send me your selfies and group photos – we’ll post them to our Facebook page. Some of them might even make it into a holiday oriented future blog post. The pictures are already coming in – see anyone you know from yesterday’s San Diego chapter holiday event? Hint: Raul Fajardo of Qualcomm and James Tozer of E*TRADE.

Year-End Prep Tips

Moving on to the more serious topic of year-end. It seems like it always creeps up on us – one minute we’re celebrating and the next it’s full throttle into year-end reporting, tax and proxy season. To get ahead of the game, I thought of a few things you can do now, in December, to prepare.

1) Audit non-employees in your recordkeeping system. Non-employees who had stock compensation transactions this year will need a Form 1099-MISC. This is not to be confused with “former” employees, who will still receive a Form W-2. In many organizations preparation of 1099 forms is not handled by Payroll, so you’ll want to make sure you know who your non-employees are (including outside directors) and have that list ready come January for whomever is going to prepare the forms.

2) Attend our webcast next week (Thursday, 12/12) on Annual Tax Reporting. This will feature essential information on 6039 reporting, special reporting requirements, non-employee reporting and other detailed tax reporting instructions. This is a prime opportunity to get the lay of the land heading into tax season.

3) Revisit deferred tax withholdings (e.g. FICA on retirement eligible RSUs). If you’ve delayed collection of FICA taxes until year-end, for example (based on the IRS’s Rule of Administrative Convenience, allowing deferral of collection of some taxes until calendar year-end), you’ll want to revisit those scenarios now to determine whether any tax withholding is required before year-end. In relying on the Rule of Administrative Convenience, the idea is that taxes like social security will have reached their annual maximum withholding for many employees by now, eliminating the need to collect any additional social security – meaning none would need to be collected for the award. However, if an employee has not reached the maximum and collection of such taxes were deferred under the rule, then you’ll need to make sure you adequately withhold by 12/31.

Well, there you have it. Festivity and planning tips all in one blog. The holiday season is off to a great start. I’m looking forward to seeing everyone’s photos, and I’m wishing you a smooth sailing process as you kick off year-end as well.

-Jennifer