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Year-End Payroll Checklist: Ensuring Accuracy and Compliance
Year-End Payroll Checklist: Ensuring Accuracy and Compliance
Top 10 End-Of- Year ToDos The Best Payroll Companies Say Not To Forget
Top 10 End-Of-Year ToDos: The Best Payroll Companies Say Not To Forget The end of the year can feel extremely overwhelming even for the most experienced business owners and your payroll company can make all of the difference. Within this blog you will find a detailed todo list that the best payroll companies recommend to … Top 10 End-Of- Year ToDos The Best Payroll Companies Say Not To Forget Read More »
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May 8, 2024
Top 10 End-Of-Year ToDos: The Best Payroll Companies Say Not To Forget
The end of the year can feel extremely overwhelming even for the most experienced business owners and your payroll company can make all of the difference. Within this blog you will find a detailed todo list that the best payroll companies recommend to follow as you progress through the end of the year. If you find yourself feeling lost please feel free to reach out to HR Wise llc for further guidance.
ToDo Before Last Payroll Of The Year
Payroll Companies/Employers:
Double check and verify if anyone moved, gotten married/divorced or have children.
For Employees Double Check:
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For Contractors Double Check:
- Name
- SSN or Taxpayer’s Identification Number (TIN)
- Address
- State work locations and, if applicable, local work locations
- Earnings totals for each jurisdiction
Before the last payroll of the quarter update any employee totals that you would like to include in the quarter balances.
Update Totals of:
- Manual checks
- Voided checks
- Third party sick payments
- Group term life insurance
- Dependent care benefits
- Moving expenses
- 401(k)* and cafeteria plans
- Retirement plans
- Paid time off
- Taxable fringe benefits
- Any other necessary adjustments to employee wage and tax amounts
In the fourth quarter, before December 31st, you must update missing totals for your employees and run any bonus payrolls.
Christmas Day is on Friday December 25th and New Years Day is on Friday January 1st. As a result they will impact payrolls that would typically run on those Fridays.
If your check dates fall on either of these dates, please adjust them to avoid delaying your employees’ direct deposits and delivery of your payroll package.
There will be no payroll deliveries on Friday, 12/25. Payrolls processed on Thursday, 12/24 will be delivered Monday, 12/28. There will also be no payroll deliveries on Friday, 1/1. Payrolls processed on Thursday, 12/31 will be delivered Monday, 1/4.
In some states Labor Laws will change come the New Year. Be sure to update your posters in the workplace and educate your employees on any changes.
ToDo Before December 31st
The best payroll companies insist on running your last payroll of the year before December 31st. This payroll must be included in your employees/contractors earnings for 2021. Update as necessary.
If you have to run an Off-Cycle Payroll (to process manual checks, voided checks, or third party sick payments) after the last day of the quarter, government agencies may charge you with penalties and interest based on their deposit and filing deadlines for taxes. Tax Filing Clients: Amendment fees may apply.
Although you may process bonus payrolls at anytime throughout the year. It is common for employers to issue bonuses at the end of the year. To be sure that your W-2 amounts are correct you must process Bonus Payrolls before the end of the year.
If you want to surprise your employees with the bonus, consider processing an Off-Cycle Payroll after you run your regular payroll. That way, the bonus amount won’t be included in the year-to-date total.
If your federal tax liabilities for the bonus payroll are over $100,000.00, the taxes must be deposited the business day after the check date.
W-2s will be shipped to the delivery address associated with your payroll company, which may be different from your business’s legal address or payroll delivery address.
Please note: W-2s cannot be delivered to a P.O. Box.
The best payroll companies recommend going through and verifying your company information: including Tax IDs and Email Address.
This should be done through your payroll processing outlet. Verify the following information:
- Tax IDs
- Federal, state, and local (if applicable) tax identification numbers
- State unemployment rates
- Legal name
- Legal address*
The Families First Coronavirus Response Act and The Coronavirus Aid, Relief, and Economic Security Act are specific programs that did not exist in any years prior.
This differentiates this year from any other and it is extremely important to include this in your end-of-year todo list.
Your state Tax Agency will be sending out your Company new 2021 SUTA Rate this month (December).
The best payroll companies will insist that you update this information as soon as possible. Particularly before January 1st of 2021.
If you have not received a letter, please contact your Department of Economic Security office at 602-542-4791 (this is the Arizona DES). You will need to provide your state unemployment account number.
Remember penalties and interest will compound by the time the unemployment agencies recognize that your SUTA rate is not up to date. It is extremely important that you get this information updated as soon as possible.
