Hurricane Season: Be Prepared!

It’s hurricane season. So far, it’s been mild, but that may not last. The current lull offers an opportunity to take preparations that will protect your plan and participants if you have not already. 

The IRS offers the following tips to help be ready in case a disaster happens. 

Take Advantage of Paperless Recordkeeping for Financial and Tax Records

• Scan important tax records such as W-2s, tax returns and other paper documents onto an electronic format.
• Back up electronic files and store them in a safe place. 
• Make duplicates of files and documents and keep them in a separate.
• Copy files onto a CD or DVD. 
• When choosing a place to keep your important records, one should remember that a disaster that strikes one’s home is also likely to affect other facilities nearby, making quick retrieval of records difficult and maybe even impossible.

Document Valuables and Business Equipment

• Compile a room-by-room list of belongings and business equipment. 
• Photograph or videotape the contents of a home and/or business, especially items of greater value. Store the photos with someone who lives away from the geographic area at risk.

Check on Fiduciary Bonds

• Employers that contract with payroll service providers should ask them if they have a fiduciary bond in place. 

Continuity of Operations Planning 

• Review emergency plans annually—preparedness needs change over time. 
• Develop an emergency plan.
• Back up your computer data systems regularly.
• Decide how you will communicate with employees, customers and others.
• Use cell phones, walkie-talkies, or other devices that do not rely on electricity as a backup to your telecommunications system.
• Collect and assemble a disaster supplies kit. Include a portable generator.
• Identify the community warning systems and evacuation routes.

Finding Out More

The IRS provides resources related to disaster preparedness. 

Preparing for a Disaster (Taxpayers and Businesses)
https://www.irs.gov/businesses/small-businesses-self-employed/preparing-for-a-disaster-taxpayers-and-businesses 

Disaster Resource Guide for Individuals and Businesses
https://www.irs.gov/businesses/small-businesses-self-employed/disaster-assistance-and-emergency-relief-for-individuals-and-businesses