Year-End Payroll Reporting Checklist

Nov 11, 2021

Year-end is approaching at light speed and will be here before you know it. A few critical steps need to be completed to make year-end payroll reporting go smoothly and accurately.

Here is a quick checklist that can get you organized and eliminate some of the pain associated with W-2, 1099, and ACA 1095 filing.

1. Check That Employee Information Is Correct

Before compiling your W-2/1099/ACA 1095 filing information, it’s crucial that you verify that all employee records are correct. The most common reason for rejections is mismatched full legal names and their social security numbers. These errors can trigger expensive fines and penalties and create additional work if not correct. Find out more on TIN Matching or SSN Verification.

2. Make Sure All Payroll, Commissions, Bonus Pay, Etc. Are Recorded Correctly

Ensure that all employee payments, including any retro pay or bonuses, have been made and recorded in your payroll solution.

3. Check Wage, Tax, And Benefits

Verify employee contribution amounts and special tax deposit items have been updated and submitted, including sick pay, expense reimbursements, taxable fringe benefits, dependent care benefits, etc.

4. Calculate Time Off Balances

Determine your employees’ remaining paid-time-off. If employees must use it before the end of the year or decide to cash out the remaining days, let them know as early as possible.

5. Run The Final Payroll And Verify Employee Wages

Run your final payroll, keeping in mind that December 25th and January 1st are bank holidays. Once the payroll has been submitted, verify employee records and deductions before creating employees’ W-2s/1099s/ACA 1095s.

6. Test-Drive Your Filing Solution – If Available

Many solutions allow you to test-drive your filing process without filing. This helps to get comfortable with a process you only complete once a year. It may also identify any issues that may appear during the error checking process within the software.