The year-end payroll scramble doesn’t have to be stressful. With some preparation, you can wrap up the year smoothly and start the new one fresh. Follow this simple checklist to ensure you meet all your deadlines.
Table of Contents
- Early December
- Mid-December
- By January 31st
- Pro Tip: Use a Professional System
Early December
- Verify Employee Data: Confirm that all employee names, Social Security numbers, and addresses are correct in your system. Any errors here will cause problems on W-2s.
- Reconcile All Payroll: Ensure your total annual wages and tax withholdings for the year match your quarterly tax filings.
Mid-December
- Plan for Year-End Bonuses: If paying bonuses, decide how they will be processed and remember they are considered supplemental wages, which have specific withholding rules.
- Prepare for Form 1099-NEC: Gather W-9 forms from all independent contractors you paid over $600 during the year. You cannot issue a 1099 without a W-9.
By January 31st
- Distribute Forms W-2 to Employees: You must provide your employees with their Form W-2 by January 31st.
- File Forms W-2 & W-3 with the SSA: You must also file copies of all W-2s with the Social Security Administration, along with a Form W-3 (Transmittal).
- Distribute & File Form 1099-NEC: Forms 1099-NEC for non-employee compensation must also be provided to contractors and filed with the IRS by January 31st.
Pro Tip: Use a Professional System
A dedicated payroll service automates almost all of this. It generates W-2s and 1099s for you, pre-fills the data, and can often e-file them directly with the agencies, saving you countless hours and ensuring accuracy.
End Your Year with Confidence
End your year on a high note. Let Payroll On The Money handle your year-end reporting, so you can focus on your business goals.