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May 2015 • www.CPAPracticeAdvisor.com 19 W he n e mploy e e s a re ne a r i n g retirement, businesses tend to focus on succession planning and transfer of information. However, retirement isn't just a business management concern. It's important that busi- nesses consider the implications on payroll, which start long before an employee decides to ret i re. Most companies ofer some sort of retire- ment benef it to t hei r employees, including 401(k) matching. Employee contributions and company matches are handled through the payroll pro- cess even if the act ua l retirement funds are handled by a third-party. New hire onboarding and open enrol l ment a re popu la r ti mes for employees to sign up for or adjust contr ibutions to their retirement pla n. However, most pla ns a l low employees to make changes at any time. It's important to make sure your staf is properly processing these changes and working with your clients on any issues that may a r i se . I f c l ient employe e s don't manage retirement benefts directly through your portal, make sure your systems are set up to automatically receive and process changes made on third-party sites. Work with your clients to pro- vide ongoing retirement education, for both them and their employees. It's possible they may not realize or even think about the ways in which retirement will impact the payroll aspect of their business. Provide them w ith materials to share w ith their employees about retirement benefts. Employees that understand their retirement options are more likely to enroll and contribute to those bene- fts. Clients also need to understand their role in the retirement process. Make sure you communicate with them your ex pectations and their duties in managing the process. Since many employees choose to continue working afer they are eli- gible for retirement, it can be hard to predict when they may actually retire. Some may choose to retire as soon as eligible, while others may choose to change their status to part-time or t e m p o r a r y. Fo r e x a m p l e , s o m e employees may be able to contribute more to their yearly plan or qualify for a higher company match. Communi- cate with your clients when they have employees that become eligible for retirement or changes in retirement benefts to help them succession plan. W h e n e m p l o y e r s l e a r n o f a n employee's intent to retire they should notify you so your staf can begin the process. Pay rol l contr ibutions and company matching will need to end. Depending on the integration between your clients' payroll and retirement benefts system, this may or may not be a seamless process. If your practice provides both payroll and retirement services, you will need to make sure t hat a ny cha nges i n one s y stem is properly refected in the other. W hile retirement usually signifes the end of the working relationship b e t w e e n y o u r c l i e n t a n d t h e i r employee, it isn't always permanent. If a client rehires a retiree, you need to work with them to determine what, if any, impact this will have on retire- ment benefts and payroll withhold- ings. Will service time rollover from the previous employment? Consider any changes that will need to be made from a payroll standpoint. Make sure your payroll systems are confgured to properly handle this situation. The stop and start of retirement benefts and changes in employment status can lead to glitches or even human error. Make sure any payroll changes are processed accurately. It's important as a payroll practi- t ioner t hat you help you r cl ients manage their retirement process, pa r t ic u la rly i f you ma nage t hei r retirement benef its in addition to payroll. Changes will occur at every level, and it's likely your clients will be busy worried about succession plan- ning and the transfer of knowledge to other employees. Read more and see the monthly payroll checklist at: www.CPAPracticeAdvisor.com/12068927 Helping Your Clients Plan for Retirement By Taija Jenkins A ll things must eventually come to an end, including employment. However, thinking of the end isn't something that we like to do, even if we must. Te same holds true for your clients and their employees. While your clients know that their employees will eventually leave their business – either for another company or retirement – it may not be a reality they are prepared for. While businesses may not always foresee valued employees leaving for employ- ment elsewhere, they can foresee and, with your help, plan for employees' retirement. A Year in the Life of a PAYROLL Accountant is sponsored by SurePayroll and ADP Connect to ADP ® At ADP, we're all about connections — connecting accounting professionals like you to the right resources and opportunities to support your frm's objectives: • Give your clients access to big-business payroll and HR solutions by referring them to ADP • Generate more revenue and simplify payroll processing with our customized platform for accountants • Discover other segments to invest in or retire sooner by selling your client payroll base to ADP When you partner with ADP, you also connect to integrated HR products, retirement and more — everything your clients need to help protect and grow their business. For more information, visit adp.com/accountant or call 1-855-408-3751. The ADP logo and ADP are registered trademarks of ADP, LLC. Copyright © 2014 ADP, LLC. HR. Payroll. Benefts.