2020 is right around the corner! In preparation, we’ve crafted a list of things to take care of.
Verify your Justworks profile information
Confirm the accuracy of important information in your Settings, such as your home address, your first and last name, and your Social Security Number (SSN). If your SSN is listed incorrectly, have an admin at your company input the correct SSN in Justworks before December 18, 2019.
Double check your filing status and allowances
It isn’t too late to make changes to your allowances, but you may want to make those adjustments now so that your withholdings on your final paychecks of the year are updated.
You can use the “additional withholding amount” field if you would like to adjust your withholding from your regular salary or wage paychecks. If you’d like to designate additional withholding amounts on any end-of-year supplemental payments such as bonuses, please let your company’s Justworks administrator know. Any adjustments will only be applied prospectively.
It’s also important to note that any extra payments that you might receive towards the end of the year, such as bonuses and/or commissions, may be taxed differently than your regular salary or hourly payments. If you don’t regularly receive supplemental payments, you may see a higher-than-usual tax rate, since supplemental payments often carry a federal tax rate of 22%, in addition to other state and local taxes. It’s common to see a total tax rate of 45% for one-time supplemental payments that are scheduled with that 22% federal tax rate.
Go paperless (if you want to)!
You can opt out of receiving a paper copy of your W-2 by logging into Justworks and changing your settings here.
If you don’t opt out, you’ll receive both an electronic copy in your Justworks account and a paper copy in the mail to the home address you have in Justworks. Alternatively, if you have a separate mailing address, you can add this from your Account Settings page and receive your Form W-2 there. Your Form W-2 will be available by January 31, 2020. We’ll let you know once it’s available.
Max out your 401(k)
If you have a 401(k) and want to contribute the 2019 maximum, now’s the time to adjust your deferrals. If you have a 401(k) through Slavic, you can change your deferrals here.
If you have a 401(k) outside of Justworks, you should speak directly with your employer or your 401(k) provider to make changes.
If you joined Justworks during 2019, please sure mindful of this year’s contribution limits:
- $19,000 for employees aged 49 and under
- $25,000 for employees aged 50 and over.
Contributions made by your employer do not count towards these maximums.
Use your Flexible Spending Account funds by December 31, 2019
FSA funds do not roll over from one calendar year to the next, so if you don’t use your funds, you lose them.
Remember to use your funds before the end of the year and/or submit your receipts for any claims that you haven’t submitted. You can check out IRS Publications 502 and 503 for guidance on what products and services you can use FSA funds.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.