Year-end payroll is easier when businesses begin reviewing data before the final payroll run.
Verify employee information
Review legal names, addresses, Social Security numbers, and withholding information.
Review taxable benefits and special payroll items
Certain fringe benefits, bonuses, and other compensation may require special payroll treatment.
Reconcile quarterly payroll reports
Compare wages and taxes on quarterly payroll filings with payroll registers and the general ledger.
Review contractor records
Confirm vendor names, addresses, tax identification information, and payment totals for contractors who may require information returns.
Reconcile payroll liabilities
Payroll tax liability accounts should reflect amounts genuinely owed at year-end.
Save year-end reports
Keep copies of annual payroll summaries, quarterly filings, W-2/W-3 records, contractor reports, payment confirmations, and supporting accounting reconciliations.