Year-End Payroll Checklist

Year-End Payroll Checklist

  • Obtain updated addresses on current and separated employees.
  • Verify the employer and employee data that is used in processing your quarterly tax reports and W-2s.
  • Confirm that employee names and Social Security numbers are accurately matched to Social Security Records.
  • Verify the employer state unemployment insurance tax rate and taxable wage limit for each state.
  • Compute uncollected Social Security and Medicare taxes for retirees and former employees.
  • Verify that withholding has been made properly, or withhold from the final paycheck for taxable fringe benefits. These may include:
    • Group-term life insurance in excess of $50,000
    • Personal use of company vehicle
    • Non-qualified moving expense reimbursements
    • Company-provided transportation or parking
    • Bonuses
    • Non-cash payments
  • Ensure adequate payroll supplies to complete the year and to begin the new year, including blank checks, payroll forms and blank Forms W-2.
  • Remind employees to fill out a new Form W-4 if their situation has changes.
  • Obtain new Forms W-5 for Advance Earned Income Credit (EIC) for the new year.
  • Confirm that all “manual” checks written during the year have been accounted for and updated in the system.
  • Determine that all voided or reversed paychecks have been accounted for in the system.

04
Dec
posted in Payroll by