{"id":4169,"date":"2024-11-14T12:31:53","date_gmt":"2024-11-14T17:31:53","guid":{"rendered":"https:\/\/primepay.com\/blog\/year-end-payroll-checklist-for-businesses\/"},"modified":"2026-02-18T11:19:28","modified_gmt":"2026-02-18T16:19:28","slug":"year-end-payroll-checklist-for-businesses","status":"publish","type":"post","link":"https:\/\/primepay.com\/blog\/year-end-payroll-checklist-for-businesses\/","title":{"rendered":"Year-End Payroll Checklist for Businesses"},"content":{"rendered":"\n<p><span style=\"font-weight: 400;\">It\u2019s safe to say that winter brings a flurry of activity (wink wink). From managing employee PTO requests to conducting performance reviews to closing the books, it\u2019s no wonder <\/span><a href=\"https:\/\/hbr.org\/2023\/11\/how-to-prepare-for-the-deluge-of-year-end-requests?ab=HP-topics-text-15\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">HBR<\/span><\/a><span style=\"font-weight: 400;\"> refers to this time of year as the \u201cDecember deadline deluge.\u201d<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">And that last piece \u2013 closing the books and handling your end-of-year reporting \u2013 can be a doozy. That\u2019s because HR and payroll teams must prepare for the year\u2019s end, comply with tax laws, and plan for the next annual payroll.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">A great way to make sure you\u2019ve crossed all your t\u2019s and dotted your i\u2019s is to follow a <strong><a href=\"https:\/\/primepay.com\/wp-content\/uploads\/PrimepayYearEndPayrollChecklist-1.pdf\" target=\"_blank\" rel=\"noopener\">payroll checklist<\/a><\/strong>. By following a year-end payroll checklist, you can better track employee pay, manage deductions, and review payroll data. The results? Your business remains compliant, employees are paid accurately, and tax obligations are met.<\/span><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><a href=\"https:\/\/primepay.com\/wp-content\/uploads\/PrimepayYearEndPayrollChecklist-1.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"932\" height=\"523\" src=\"https:\/\/primepay.com\/wp-content\/uploads\/year-end-payroll-checklist-screenshot.png\" alt=\"year-end payroll checklist screenshot\" class=\"wp-image-7099\" style=\"width:567px;height:auto\" title=\"\" srcset=\"https:\/\/primepay.com\/wp-content\/uploads\/year-end-payroll-checklist-screenshot.png 932w, https:\/\/primepay.com\/wp-content\/uploads\/year-end-payroll-checklist-screenshot-768x431.png 768w\" sizes=\"auto, (max-width: 932px) 100vw, 932px\" \/><\/a><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-center\"><em>Grab your free <a href=\"https:\/\/primepay.com\/wp-content\/uploads\/PrimepayYearEndPayrollChecklist-1.pdf\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/primepay.com\/wp-content\/uploads\/PrimepayYearEndPayrollChecklist-1.pdf\" rel=\"noreferrer noopener\">year-end payroll checklist<\/a> to stay on track through the new year.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"jump-link-one\"><span style=\"font-weight: 400;\">1. Prepare for Year-End Payroll<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">To prepare for your year-end payroll, there are three primary steps to complete including data verification, payroll provider coordination, and fringe benefits reporting. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">We will cover each of these in more detail below.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Verify Employee and Contractor Information<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">In the best-case scenario, you\u2019ve maintained accurate employee and contractor information throughout the year. Doing so will make your Q4 smooth sailing and ideally prevent expensive delays and penalties with tax authorities.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">If you\u2019re not up-to-date, make sure you:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Confirm employee data, including full names, <\/span><a href=\"https:\/\/primepay.com\/learn\/payroll\/how-to-determine-a-valid-social-security-number\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">social security numbers<\/span><\/a><span style=\"font-weight: 400;\">, addresses, and other essential details.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Verify contractors\u2019 tax ID numbers using <\/span><span style=\"font-weight: 400;\">Form W-9<\/span><span style=\"font-weight: 400;\">.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Update your records if discrepancies are identified.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Inform your payroll service provider of any modifications.<\/span><\/li>\n<\/ul>\n\n\n\n<p class=\"has-info-light-trans-20-background-color has-background\"><span class=\"callout\"><b>TIP: <\/b><span style=\"font-weight: 400;\">Store your payroll records and tax forms for at least four years to stay compliant with legal obligations and avoid potential penalties. It\u2019s also good to store these records digitally for easy access and streamlined record-keeping.<\/span><\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Coordinate with Your Payroll Provider<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Maintaining an open dialogue with your payroll provider aids in accurate year-end <\/span><span style=\"font-weight: 400;\">payroll processing<\/span><span style=\"font-weight: 400;\">, prevents delays, and helps avoid expensive errors. Contact your payroll provider before the last payroll of the calendar year to discuss the following:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Processing the final payroll.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Any <\/span><a href=\"\/blog\/how-federal-holidays-affect-payroll\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">pay date changes due to holidays<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Tax withholdings, employee contributions, and other essential payroll adjustments.<\/span><\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1400\" height=\"951\" src=\"https:\/\/primepay.com\/wp-content\/uploads\/Payroll-Processing-Time.png\" alt=\"Payroll-Processing-Time\" class=\"wp-image-4170\" title=\"\" srcset=\"https:\/\/primepay.com\/wp-content\/uploads\/Payroll-Processing-Time.png 1400w, https:\/\/primepay.com\/wp-content\/uploads\/Payroll-Processing-Time-768x522.png 768w\" sizes=\"auto, (max-width: 1400px) 100vw, 1400px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-center\"><i><span style=\"font-weight: 400;\">When processing year-end payroll, consider the <\/span><\/i><i><span style=\"font-weight: 400;\">processing time and method<\/span><\/i><i><span style=\"font-weight: 400;\"> to ensure you hit deadlines and pay your people in a timely manner.<\/span><\/i><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Manage Fringe Benefits and Third-Party Payouts<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Maintaining compliance and avoiding potential tax penalties requires accurately reporting fringe benefits and third-party payouts.<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Submit fringe benefits \u2013 such as health insurance coverage and <a href=\"\/blog\/retirement-plans-pay-off-for-businesses\/\" target=\"_blank\" rel=\"noopener\">retirement contributions<\/a> \u2013 to your payroll provider no later than your last scheduled payroll of the year.&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Report the fair market value of these benefits on the employee\u2019s W-2 form, ensuring all tax liabilities are accounted for.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Provide details of any third-party disability payments to your payroll provider.&nbsp;<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">After running the final payroll of the year, verify that all employee wages and deductions are accurate before reporting on the W-2 form.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"jump-link-two\"><span style=\"font-weight: 400;\">2. Navigate State Reporting Requirements<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Each state has its rules and regulations, making handling state reporting requirements a bit of a mess if your employees are dispersed.<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Wage-and-hour requirements<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Withholding and tax reporting<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Unemployment tax reporting<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Specific local regulations<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">The differences between states are vast and varied, so you must familiarize yourself with the specific requirements of each state you operate in.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">However, ignoring these requirements can lead to severe consequences, including financial penalties, interest charges, and potential legal repercussions.&nbsp;<\/span><\/p>\n\n\n<div id=\"brxe-ojflqm\" class=\"brxe-block cta-block__gradient cta-block radius--xl\"><div id=\"brxe-ykuqds\" class=\"brxe-container cta-block__content-wrap\"><figure id=\"brxe-lkvktb\" class=\"brxe-image cta-block__logo tag\"><img loading=\"lazy\" decoding=\"async\" width=\"972\" height=\"256\" src=\"https:\/\/primepay.com\/wp-content\/uploads\/NEW-primepay-logo-white-lg-tagline.png\" class=\"css-filter size-full\" alt=\"\" srcset=\"https:\/\/primepay.com\/wp-content\/uploads\/NEW-primepay-logo-white-lg-tagline.png 972w, https:\/\/primepay.com\/wp-content\/uploads\/NEW-primepay-logo-white-lg-tagline-768x202.png 768w\" sizes=\"auto, (max-width: 972px) 100vw, 972px\" title=\"\"><\/figure><p id=\"brxe-lubcda\" class=\"brxe-heading cta-block__heading\">Run Payroll with PrimePay<\/p><a id=\"brxe-zwhfyd\" class=\"brxe-button btn--action cta-block__button bricks-button bricks-background-primary\" href=\"https:\/\/primepay.com\/pricing\/\">Explore Pricing<\/a><\/div><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">State-Specific Regulations<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">State-specific regulations can be as varied as the landscapes of the states themselves. Take California, for example. Employers with 100 or more employees have to report pay and hours worked data by establishment, and all employers have to report new or rehired employees to the New Employee Registry within 20 days of their employment. In addition to these state-specific regulations, employers must comply with the Fair Labor Standards Act and relevant labor laws.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Meanwhile, in Texas, there are distinct state payroll tax forms that employers can access on the official website of the Texas Comptroller of Public Accounts. Think of it as each state having its own unique guidebook that employers must understand and follow.<\/span><\/p>\n\n\n\n<p class=\"has-info-light-trans-20-background-color has-background\"><span class=\"callout\"><b>TIP: <\/b><span style=\"font-weight: 400;\">Keep your state information in one place for quick reference and up-to-date resources. Or, bookmark our <\/span><a href=\"https:\/\/primepay.com\/wage-and-tax-portal\/\"><span style=\"font-weight: 400;\">Wage and Tax Resources<\/span><\/a><span style=\"font-weight: 400;\"> for a convenient one-stop-shop of federal and state-specific information.<\/span><\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Tax Compliance Strategies<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">With each state having its rulebook, it\u2019s crucial to have a game plan for compliance. Some strategies to employ include:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Registering with the appropriate state government.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Ensuring accurate calculation and withholding of federal and state payroll taxes.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Reporting these taxes to the relevant government agencies.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">But remember, failing to comply with state <a href=\"\/learn\/payroll\/reporting\/\" target=\"_blank\" rel=\"noopener\">payroll reporting<\/a> requirements can lead to severe consequences, including late fees, interest charges, fines, and, in certain instances, felony charges and imprisonment.&nbsp;<\/span><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1081\" src=\"https:\/\/primepay.com\/wp-content\/uploads\/people-1.png\" alt=\"people management screenshot for payroll and HR\" class=\"wp-image-3313\" title=\"\" srcset=\"https:\/\/primepay.com\/wp-content\/uploads\/people-1.png 1920w, https:\/\/primepay.com\/wp-content\/uploads\/people-1-768x432.png 768w, https:\/\/primepay.com\/wp-content\/uploads\/people-1-1536x865.png 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-center\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"jump-link-three\"><span style=\"font-weight: 400;\">3. Distribute W-2 and 1099 Forms to Your Employees and Contractors<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Business owners must complete and <\/span><span style=\"font-weight: 400;\">distribute <a href=\"\/learn\/payroll\/what-is-the-difference-between-forms-w-4-w-2-w-9-1099-nec\/\" target=\"_blank\" rel=\"noopener\">W-2 and 1099 forms<\/a><\/span><span style=\"font-weight: 400;\">&nbsp;to employees and contractors by January 31. These forms report the employee\u2019s wages, tax withholdings, and other essential payroll information for the calendar year.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Once you\u2019ve provided W-2 and 1099 forms to your employees, submit them to the appropriate tax authorities, such as the SSA and IRS. Submitting these forms on time is necessary to prevent penalties and remain compliant with federal and state tax laws.<\/span><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1186\" src=\"https:\/\/primepay.com\/wp-content\/uploads\/Screenshot-of-IRS-W-2-Form-2023.jpg\" alt=\"Screenshot of W-2 IRS Form\" class=\"wp-image-4171\" title=\"\" srcset=\"https:\/\/primepay.com\/wp-content\/uploads\/Screenshot-of-IRS-W-2-Form-2023.jpg 1920w, https:\/\/primepay.com\/wp-content\/uploads\/Screenshot-of-IRS-W-2-Form-2023-768x474.jpg 768w, https:\/\/primepay.com\/wp-content\/uploads\/Screenshot-of-IRS-W-2-Form-2023-1536x949.jpg 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<p><span style=\"font-weight: 400;\">For independent contractors, you must send Form 1099, which documents payments for services provided during a specific pay period. It\u2019s a crucial step in reporting any amount of federal income and fulfilling tax reporting obligations.<\/span><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"858\" src=\"https:\/\/primepay.com\/wp-content\/uploads\/Screenshot-of-IRS-Form-1099.jpg\" alt=\"Screenshot of 1099 IRS Form\" class=\"wp-image-4172\" title=\"\" srcset=\"https:\/\/primepay.com\/wp-content\/uploads\/Screenshot-of-IRS-Form-1099.jpg 1920w, https:\/\/primepay.com\/wp-content\/uploads\/Screenshot-of-IRS-Form-1099-768x343.jpg 768w, https:\/\/primepay.com\/wp-content\/uploads\/Screenshot-of-IRS-Form-1099-1536x686.jpg 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<p><span style=\"font-weight: 400;\">However, this form comes with its own set of details. You need to have the contractor\u2019s name and address, their taxpayer identification number (TIN), and the total amount paid to the contractor during the tax year. Consider it a to-do list to complete before handing out Form 1099.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Again, you must distribute both electronic and paper records of W-2s and 1099s by January 31. Delayed distribution can result in penalties ranging from $60 to $310 per form, a price you don\u2019t want to pay.<\/span><\/p>\n\n\n\n<p class=\"has-info-light-trans-20-background-color has-background\"><span class=\"callout\"><b>TIP:<\/b><span style=\"font-weight: 400;\"> If the worst-case scenario occurs \u2013 you <a href=\"\/blog\/forgot-to-file-form-w-2\/\" target=\"_blank\" rel=\"noopener\">forget to file or have incorrect W-2s<\/a> \u2013 there are steps to take to mitigate the damage (unfortunately, building a time machine isn\u2019t one of them).&nbsp;<\/span><\/span><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1059\" src=\"https:\/\/primepay.com\/wp-content\/uploads\/Primepay-ESS-tax-documents.jpg\" alt=\"Primepay-ESS-tax-documents\" class=\"wp-image-4173\" title=\"\" srcset=\"https:\/\/primepay.com\/wp-content\/uploads\/Primepay-ESS-tax-documents.jpg 1920w, https:\/\/primepay.com\/wp-content\/uploads\/Primepay-ESS-tax-documents-768x424.jpg 768w, https:\/\/primepay.com\/wp-content\/uploads\/Primepay-ESS-tax-documents-1536x847.jpg 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-center\"><i><span style=\"font-weight: 400;\">Using an <a href=\"\/software\/hr\/hr-ess\/\" target=\"_blank\" rel=\"noopener\">employee self-service portal<\/a> allows employees to update their information and see tax documents in one place.<\/span><\/i><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"jump-link-four\"><span style=\"font-weight: 400;\">4. Meet Deadlines and Maintain Compliance<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">An integral part of your year-end payroll checklist is staying versed on essential <\/span><a href=\"\/resources\/forms-calendars\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">payroll forms<\/span><\/a><span style=\"font-weight: 400;\"> and deadlines. In short, your business must complete, file, and submit applicable payroll tax forms to the IRS, SSA, state tax authorities, and other relevant entities.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Tax Forms and Filing Deadlines<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Staying informed about tax forms and filing deadlines is essential for any business, especially in Q4. In addition to W-2 and 1099 forms, companies must file the following documents, each with its distinct filing deadline:<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Form 940, which reports federal unemployment tax, is due by January 31.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Quarterly Form 941, which reports federal income tax, Social Security, and Medicare taxes, is also expected by January 31.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Annual Form 944, which reports federal income taxes, Social Security, and Medicare taxes, is due by January 31.<\/span><\/li>\n<\/ol>\n\n\n\n<p><span style=\"font-weight: 400;\">Keeping track of these tax forms and filing deadlines can help your business remain compliant, avoid penalties, and maintain precise accounting records.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">ACA Reporting Requirements<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">When it comes to ACA reporting, being well-informed is your strongest defense. Applicable Large Employers (ALEs) need to provide the IRS with details regarding the health care coverage offered to full-time employees, adhering to guidelines set by the Equal Employment Opportunity Commission.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">This step is where Forms <\/span><a href=\"https:\/\/www.irs.gov\/pub\/irs-dft\/i109495b--dft.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">1094-B and 1095-B<\/span><\/a><span style=\"font-weight: 400;\">, as well as <\/span><a href=\"https:\/\/www.irs.gov\/pub\/irs-dft\/i109495c--dft.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">1094-C and 1095-C<\/span><\/a><span style=\"font-weight: 400;\">, come into play. They are your allies in reporting this information and keeping your payroll records in check.<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">IRS Form 1094 consolidates the information returns of Form 1095 and provides details about employee eligibility for tax credits.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">IRS Form 1095 reports information about individuals who enroll in a qualified health plan through the Health Insurance Marketplace.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">These forms come with a deadline. For paper filers, they must be submitted by February 28, 2024, or March 31, 2024 if you&#8217;re filing electronically. Make sure you mark these dates on your calendar to keep your reporting process smooth sailing. If you fail to submit these forms by the deadlines, you could face penalties ranging from $280 to $580 per return.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"has-info-light-trans-20-background-color has-background\"><span class=\"callout\"><b>TIP: <\/b><span style=\"font-weight: 400;\">Managing compliance isn\u2019t an easy feat. Let your <\/span><a href=\"\/blog\/types-of-payroll-services\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">payroll provider<\/span><\/a><span style=\"font-weight: 400;\"> navigate and file compliance forms to reduce manual errors and missed deadlines.<\/span><\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"jump-link-five\"><span style=\"font-weight: 400;\">5. Update Payroll Policies<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">As the year-end approaches, it\u2019s essential to review your payroll structure and policies and comply with federal, state, and local labor laws.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Review Payroll Structure and Policies<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Evaluating your first payroll structure and policies is vital to ensure accurate tax withholding and adherence to federal regulations. Consider any changes needed for the upcoming year, such as pay-on-demand or paycheck delivery options. Adjustments to your payroll policies can better accommodate your employees\u2019 needs and guarantee an effortless payroll process in the upcoming year.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Don\u2019t forget to stay informed about changes in state and <\/span><span style=\"font-weight: 400;\">local minimum wage laws<\/span><span style=\"font-weight: 400;\"> or health insurance coverage options, as these factors can impact your employee compensation plans.<\/span><\/p>\n\n\n\n<p>A good solution is an <a href=\"https:\/\/primepay.com\/software\/payroll\/\" data-type=\"link\" data-id=\"https:\/\/primepay.com\/software\/payroll\/\">automated payroll processing software<\/a> that can help you run reports to analyze your payroll.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1059\" src=\"https:\/\/primepay.com\/wp-content\/uploads\/best-payroll-software-primepay.jpg\" alt=\"screenshot of payroll total review before processing\" class=\"wp-image-4191\" title=\"\" srcset=\"https:\/\/primepay.com\/wp-content\/uploads\/best-payroll-software-primepay.jpg 1920w, https:\/\/primepay.com\/wp-content\/uploads\/best-payroll-software-primepay-768x424.jpg 768w, https:\/\/primepay.com\/wp-content\/uploads\/best-payroll-software-primepay-1536x847.jpg 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-center\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"jump-link-five\"><span style=\"font-weight: 400;\">Plan For Holiday Scheduling Challenges<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Federal holidays<\/span><span style=\"font-weight: 400;\"> can be a double-edged sword. While they bring joy and relaxation, they can also challenge payroll processing and create some late nights.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">By following these steps, you can make sure your payroll tasks remain uninterrupted:<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Set or modify a pay schedule.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Recognize holiday dates for adjustments.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Notify employees about changes in advance.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Update contracts for new hires.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Smoothly transition from the old to the new plan.<\/span><\/li>\n<\/ol>\n\n\n\n<p><span style=\"font-weight: 400;\">It\u2019s advisable to adjust payroll schedules for holiday periods when the regular pay date coincides with a weekend or a bank holiday. Make these adjustments in advance to ensure punctual payment to employees.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Disseminate Compliance Posters and Regulations<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">No, those compliance posters aren\u2019t hanging in the office breakroom for light reading. Maintaining compliance with federal, state, and local labor laws is crucial to avoid fines, fees, and potential lawsuits.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Keeping your compliance posters current and staying updated about the latest <a href=\"\/learn\/compliance\/labor-law-posters\/\" target=\"_blank\" rel=\"noopener\">labor laws<\/a> can protect your business from potential legal problems and foster a safe and compliant work environment for your employees.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Establish Deposit Schedules<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Determining your deposit schedule for the new year is essential to ensure timely tax payments and prevent penalties (is it clear that we want 2025 to be a penalty-free year?). Match your deposit schedule with <\/span><span style=\"font-weight: 400;\">tax deadlines<\/span><span style=\"font-weight: 400;\"> and adjust as needed to comply with federal and state tax laws.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"jump-link-six\"><span style=\"font-weight: 400;\">6. Align Year-End Accounting Procedures and Business Goals<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">As the year winds down, it\u2019s vital to focus on organizing your accounting records and setting goals for the upcoming year.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Clean Up Accounting Records<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">One part of your year-end financial review is cleaning up your accounting records. Plan to:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Clear up any irregularities in outstanding invoices.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Remove unused or closed accounts.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Clear any deposited funds to maintain accurate accounting records.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">You can ensure a solid financial foundation for the new year by addressing discrepancies in your accounting records.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Besides cleaning up your records, you\u2019ll want to stay updated about any changes in tax laws and regulations that may affect your business. These changes will keep your finances on track (and, once again, avoid those penalties).<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Tie Business Goals and Employee Feedback Together<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Setting business goals is vital in planning for the upcoming year and driving growth and improvement. Equally important is having your team make these plans become a reality. As your organization develops goals for 2025, consider how you can integrate these goals into performance management. <\/span><span style=\"font-weight: 400;\">Providing feedback<\/span><span style=\"font-weight: 400;\"> to encourage growth and development is essential.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\"><a href=\"\/blog\/how-to-get-the-most-from-your-11-meetings\/\" target=\"_blank\" rel=\"noopener\">Offering employee feedback<\/a> helps ensure your team members know their performance and how they contribute to the organization\u2019s success. Fostering a culture of continuous improvement can contribute to growth and success in the new year.<\/span><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1051\" src=\"https:\/\/primepay.com\/wp-content\/uploads\/performance.png\" alt=\"performance\" class=\"wp-image-4175\" title=\"\" srcset=\"https:\/\/primepay.com\/wp-content\/uploads\/performance.png 1920w, https:\/\/primepay.com\/wp-content\/uploads\/performance-768x420.png 768w, https:\/\/primepay.com\/wp-content\/uploads\/performance-1536x841.png 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-center\"><i><span style=\"font-weight: 400;\">When <a href=\"\/software\/hr\/performance-management\/\" target=\"_blank\" rel=\"noopener\">performance evaluations<\/a> live in cloud-based software, you provide a more equitable and <\/span><\/i><i><span style=\"font-weight: 400;\">transparent experience<\/span><\/i><i><span style=\"font-weight: 400;\"> for leadership, managers, and direct reports.&nbsp;<\/span><\/i><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Following a comprehensive year-end payroll checklist can provide a smooth transition into the new year and set your business up for success. With the above steps, you\u2019ll be well-prepared to tackle the challenges and opportunities in the new year.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">If you want to add one more item to your checklist, consider switching to a payroll provider that includes human capital management so all your people and compliance needs are in one place.<\/span><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s safe to say that winter brings a flurry of activity (wink wink). From managing employee PTO requests to conducting performance reviews to closing the books, it\u2019s no wonder HBR refers to this time of year as the \u201cDecember deadline deluge.\u201d And that last piece \u2013 closing the books and handling your end-of-year reporting \u2013 [&hellip;]<\/p>\n","protected":false},"author":38,"featured_media":4177,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[15],"tags":[],"class_list":["post-4169","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-payroll-tax"],"acf":[],"_links":{"self":[{"href":"https:\/\/primepay.com\/wp-json\/wp\/v2\/posts\/4169","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/primepay.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/primepay.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/primepay.com\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/primepay.com\/wp-json\/wp\/v2\/comments?post=4169"}],"version-history":[{"count":2,"href":"https:\/\/primepay.com\/wp-json\/wp\/v2\/posts\/4169\/revisions"}],"predecessor-version":[{"id":12476,"href":"https:\/\/primepay.com\/wp-json\/wp\/v2\/posts\/4169\/revisions\/12476"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/primepay.com\/wp-json\/wp\/v2\/media\/4177"}],"wp:attachment":[{"href":"https:\/\/primepay.com\/wp-json\/wp\/v2\/media?parent=4169"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/primepay.com\/wp-json\/wp\/v2\/categories?post=4169"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/primepay.com\/wp-json\/wp\/v2\/tags?post=4169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}