Year-End Payroll Planning: Essential Checklist for Businesses

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Year-End Payroll Planning: Essential Checklist for Businesses

NOVEMBER 22, 2024

As we approach the end of 2024, it's crucial for business owners to prepare for accurate W-2 reporting and ensure a smooth transition into 2025. At Payroll Vault, we've compiled a comprehensive checklist to help local businesses manage their year-end payroll responsibilities effectively.

Essential Year-End Payroll Checklist:

  • Verify your current business mailing address is on file 
  • Review employee information for accuracy: 
    • Name spellings
    • Social Security numbers
    • Current mailing addresses
    • Ensure all 2024 employees appear on year-to-date reports

Financial and Benefits Review:

  • Confirm your 2025 state unemployment insurance rate
  • Verify retirement account contributions:
    • 401(k)/IRA deduction totals match account payments
    • Double-check business owner contributions are properly recorded
  • Review additional compensation items:
    • Planned bonus or commission payments
      • Outstanding reimbursements
      • Fringe benefits
      • Owner medical coverage payments

Year-End Considerations:

  • Document any manual checks issued outside regular payroll
  • Calculate unused PTO/vacation/sick time payouts
  • Review any employees with special withholding arrangements
  • Process any 3rd Party Sick Pay or Group Term Life Insurance over $50,000
  • Report personal use of company vehicles and other fringe benefits
  • Identify independent contractors requiring 1099 forms
  • Update benefit deductions following open enrollment
  • Prepare ACA compliance reporting (1095 forms if applicable)
  • Align payroll schedules with holiday banking hours

Looking Ahead to 2025:

  • Review state minimum wage changes
  • Consider implementing new payroll best practices
  • Plan for any upcoming changes in benefits or deductions
  • Evaluate payroll processing schedule for the new year

 

Payroll Vault is committed to supporting businesses with accurate and compliant payroll services. For personalized assistance with your year-end payroll processing, contact our local office. We understand the unique needs of small businesses. 

 

From all of us at Payroll Vault, we wish you a joyous holiday season and a prosperous New Year.