Year-end Payroll Checklist
Last updated May 7, 2024
As the year draws to a close, it's crucial to ensure that your payroll records are accurate and up-to-date. Following a structured year-end checklist will help you close out the payroll year smoothly while ensuring compliance with local tax and reporting regulations. Here's a step-by-step guide to make the year-end payroll process easier with Deel.
Year-end Payroll Checklist
- Verify Employee Information:
- Ensure employee names, addresses, and social security/tax IDs are accurate and current.
- Check that new hires or terminated employees are properly documented in the payroll system.
- Update Tax and Benefit Contributions:
- Review tax withholdings and benefit contributions for each employee to ensure accuracy.
- Adjust for any discrepancies or underreported amounts based on the latest payroll period.
- Finalize Payroll Deductions:
- Ensure all deductions, including retirement contributions, health benefits, and garnishments, have been correctly applied.
- Confirm voluntary deductions are up-to-date and correctly reflected in year-end reports.
- Reconcile Payroll Reports:
- Compare payroll registers against the company's financial ledger to identify discrepancies.
- Make any necessary adjustments and corrections before generating final year-end reports.
- Prepare Year-end Tax Forms:
- Use Deel to generate the appropriate tax forms (e.g., W-2s, 1099s, or international equivalents) for each employee and contractor.
- Confirm that all forms contain accurate figures and distribute them before the IRS deadline.
- Set New Year Payroll Schedules:
- Create the payroll calendar for the upcoming year and confirm holidays, cutoffs, and payment dates.
- Communicate the new payroll schedule to employees, especially if significant changes have been made.
- Consult Compliance Requirements:
- Verify that payroll processes meet local labor and tax regulations.
- Monitor for any changes in local or federal tax laws that might affect the upcoming payroll year.
By following this year-end payroll checklist, you'll be well-prepared for a smooth transition to the new fiscal year while ensuring compliance with all reporting and tax requirements.
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