Year-End Payroll Checklist

Year-End Payroll Checklist
  • Obtain updated addresses on current and separated employees.
  • Remind employees to fill out a new Form W-4 if their situation has changes.
  • Verify employer and employee data that is used in processing your quarterly tax reports and W-2s.
  • Confirm receipt of W-9s for all independent contractors and verify independent contractor data used in processing 1099s.
  • Confirm that employee names and Social Security numbers are accurately matched to Social Security Records.
  • Verify 2014 state unemployment insurance tax rate and taxable wage limit for each state have been properly applied and begin collecting new tax rates and wage limits for 2015.
  • Verify taxable fringe benefits have been properly recorded as compensation and appropriate taxes withheld. 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
    • Year-end bonuses and non-cash payments (e.g., gift cares)
    • S-Corp 2% shareholder health insurance
  • Confirm that all third-party payments to employees, such as short- and long-term disability insurance payments are properly attributed to employees as wages and related payroll and withholding taxes are paid.
  • Confirm that all “manual”, voided or reversed paychecks written during the year have been accounted for and updated in the system.
  • Determine which time off accruals reset at year-end and establish the proper time and method for properly setting up 2015 accruals.
  • Ensure adequate payroll supplies to complete the year and to begin the new year, including blank checks, payroll forms and blank Forms W-2.
  • Obtain new Forms W-5 for Advance Earned Income Credit (EIC) for the new year.
  • Establish method for collecting data needed for new reporting requirements, such as health insurance data for Forms 1094 and 1095.