2021 is right around the corner! In preparation, we’ve crafted a list of things to take care of in order to wrap up the year successfully.
Verify your Justworks profile information
Confirm the accuracy of important information in your Settings, such as your home address, mailing address (if applicable),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, 2020.
Double check your filing status
You may want to log in to Justworks to confirm your withholdings are set up the way you want them. You can always change them for your payroll going forward as well as add in any additional withholding you’d like to have applied to your pay.
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 state and local taxes.
Go paperless (if you want to)!
We know the mail is a little unpredictable these days and you may not be sure where you’re receiving mail in 2021, that’s why we give you the ability to choose a digital only copy of your W-2. You can opt into electronic only delivery of your W-2 by logging into Justworks and changing your settings here.
If you don’t opt into paperless, 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, 2021. We’ll let you know once it’s available.
Want to max out your 401(k)?
If you have a 401(k) and want to contribute the 2020 maximum, now’s the time to adjust your deferrals. If you have a 401(k) through Slavic, you can change your deferrals here. Be sure to make changes to your deferrals at least 5 days before payday to ensure your change is captured in time for payroll processing.
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 2020, please be mindful of this year’s contribution limits in case you also contributed to another plan during the year.
- $19,500 for employees aged 49 and under
- $26,000 for employees aged 50 and over.
Contributions made by your employer do not count towards these maximums.
Contributions won’t automatically reset in the new year, so don’t forget to update your contributions, if desired.
Use your Flexible Spending Account funds by December 31, 2020
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. You can submit claims through March 31, 2021 for any claims incurred in 2020. 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.