3 Reasons You Need to Maintain Current Employee Records

Current Employee Records

Are you consistent in keeping up with your employee records? The names, addresses, and other applicable information needs to be updated on a regular basis, to be sure that you have accurate records for your workforce.

Most companies are consistent with gathering this information when a new employee starts working. But, the details can fall through the cracks when it comes time to update employee information. Here are a few reasons why you need to stay consistent with tracking these details:

1. Tax Paperwork

At the end of each year, it is necessary to send out a W-2 for each employee. These forms need to be postmarked by January 31st every year, and they detail the annual wages for each employee. This information needs to be provided to both the IRS and the employees because the wage information will be used for the annual tax filing.

If you don’t have an accurate address for each employee, then it is likely that the tax forms will be sent to the wrong place. As a result, it will be more work for you to reprint the document and distribute it again to the employees who didn’t receive their W-2’s.

2. Paychecks

Even if employees are paid by direct deposit, it is important that you have the correct address for their paychecks. The physical address for their payroll information needs to match up with the information that the bank has on file. Also, it is best to have the right address in case the pay stub or the paycheck is dropped in the mail for any reason.

3. Insurance

Do you offer any insurance for employees? This personal information needs to be accurate for insurance purposes. Having the right address and contact information will ensure that the employee will receive mail and communication if the insurance company needs to talk with the individual. Sometimes, paperwork or plan details are sent through the mail, and it can cause a disconnect in communication if the insurance company has an incorrect address or phone number for the employee.

Keeping up with employee information can be simple if you have a good system in place. At Easier Bookkeeping, we are here to help with your bookkeeping and financial tasks. We are a team of experienced bookkeepers who knows the best way to implement an effective system for your company. By hiring an outsourced bookkeeper, you can focus on the other tasks within your company because you don’t have to worry about the financial tracking: (888) 620-0770

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