Ultimate Year End Payroll Checklist: Tax Filing & Procedures

Payroll year end is a key period for accounting firms and payroll service bureaus, packed with essential tasks that need to be done accurately and on time. From preparing W-2s and 1099s to reconciling taxes and ensuring labor law compliance, there’s a lot to manage.  

That’s why we’ve created the Ultimate Year End Payroll Checklist—a clear and practical guide to help you stay organized and streamline the process. By following this checklist, you’ll have the tools and insights to close payroll year end with confidence. 

What’s Inside the Year End Payroll Checklist? 

This year end payroll checklist is designed to help you streamline your final payroll procedures; avoiding costly errors. Here’s what you’ll find: 

Critical Tasks for Payroll Year End 

• W-2 and 1099 tax form preparation 

• Labor law compliance  

• Affordable Care Act (ACA) reporting  

• Year end payroll audits and more  

Year End Prep Timeline 

• When to get started  

• Key payroll tax form due dates  

• IRS filing deadlines  

Plus, learn how to offset security risks that spike during payroll year end and discover how managed payroll partners can support your compliance. 

Why Download This Checklist? 

✔ Stay Compliant: From W-2 processing to ACA reporting, ensure you’re meeting every legal requirement.  

✔ Save Time & Effort: Don’t spend hours hunting for deadlines and key tasks—everything’s already outlined for you.  

✔ Avoid Mistakes: Use detailed steps to minimize errors and make your reporting airtight.  

✔ Plan Ahead: Get a timeline with critical dates to keep you on schedule.  

✔ Strengthen Security: Protect your payroll data during this high-risk period. 

Complete the form to download your copy of the Ultimate Year End Payroll Checklist today. 

What is payroll year end? 

Payroll year end is the process businesses and payroll service providers must take to wrap up payroll-related activities for the calendar year. It involves preparing essential tax documents, reconciling payroll records to ensure accuracy, and verifying compliance with tax regulations and labor laws e.g. the Fair Labor Standards Act (FLSA).  

When is payroll year end? 

Payroll year end typically occurs at the close of the calendar year, around December 31st. This is when businesses and payroll service providers finalize all payroll-related tasks for the year. Key deadlines to keep in mind include the January 31st deadline for submitting payroll tax forms, including W-2s to employees and the IRS, as well as 1099s to contractors and the IRS.  

Other important deadlines may involve state-specific tax filings or compliance checks, which can vary depending on your location. Adhering to these deadlines is essential to avoid penalties and ensure accurate tax reporting.  

Proper preparation and timely submissions not only reduce stress but also help set your business up for a smooth start to the new year. 

Year end payroll tasks in more detail 

• W-2 Preparation Generate and distribute W-2 payroll tax forms to employees, detailing their annual earnings and tax withholdings. 

• W-3 and W-2 Copy A Filing: File W-3 (Transmittal of Wage and Tax Statements) with the Social Security Administration (SSA) and provide Copy A of the W-2s to the SSA. 

• 1099 Preparation: Prepare and distribute 1099 payroll tax forms for any non-employee compensation paid, such as independent contractors. Starting in 2024, this could also include 1099-Rs for some deferred compensation employer contributions 

• State and Local Tax Forms: Complete and file state and local tax forms, including state W-2 equivalents and unemployment forms. 

• Quarterly (or monthly) Tax Reconciliation: Reconcile tax deposits and filings with annual totals, adjusting any discrepancies as needed. 

• Payroll Reconciliation: Verify payroll data for accuracy and ensure compliance with payroll tax regulations. 

• Year End Reporting: Generate reports that summarize payroll data for the year, including payroll expenses, deductions, and other relevant information. 

• Employee Benefit Reporting: Prepare reports on employee benefits, such as retirement plan contributions, health insurance, and other fringe benefits. 

• Taxable Fringe Benefits: Calculate and report the value of taxable fringe benefits provided to employees during the year. 

• State Unemployment Reports: File state unemployment reports and confirm compliance with unemployment insurance requirements. 

• Workers’ Compensation Audits: Assist with annual workers’ compensation audits to determine premium adjustments based on payroll data. 

• Labor Law Compliance: Ensure payroll compliance with federal regulations and state labor laws, including minimum wage, overtime, and employee classification regulations. 

• ACA Reporting: Prepare and file Affordable Care Act (ACA) forms, such as 1095-C and 1095-B, for applicable large employers. 

• Year End Updates: Update payroll software and systems to reflect changes in tax laws, rates, or regulations for the upcoming year. IRIS Payroll updates systems to account for new state minimum wages, SUTA wage bases, Section 125 limits, and deferred compensation changes 

• Records Retention: Advise clients on record retention requirements and assist in maintaining records in compliance with legal mandates. 

• Tax Document Distribution: Assist in distributing tax-related documents, such as W-2s, 1099s and 1095-C tax forms for healthcare coverage. 

• Account Reconciliation: Reconcile payroll-related accounts, such as payroll tax liabilities, to ensure they match year end financial statements. 

• Year End Employee Communication: Provide employees with guidance on tax-related matters, such as how to interpret their W-2 tax forms and make necessary updates to their tax withholdings for the new year. 

• Tax Credits: Identify and apply for applicable tax credits, including the  Work Opportunity Tax Credits (WOTC). 

• Payroll Audits: Conducti internal audits of payroll data to identify and rectify discrepancies or errors. 

• Consultation: Offer expert advice and support to employer clients on year end payroll tax strategies and planning for the upcoming year. 

Get Started Now 

Download your free Year End Payroll Checklist today and take the stress out of payroll year end at the end of this calendar year.  

Partnering with a reliable payroll partner can provide valuable extra support for payroll year end. If you’re looking for expert assistance in managing your payroll, consider working with a trusted payroll partner to ensure a smooth and successful year end transition. Explore myPay Solutions to learn more.