Year-End Payroll Review Checklist

As the end of the year approaches, now is the time to review your payroll records and make sure everything is accurate before W-2s are prepared. Taking a few minutes to verify employee information and payroll details can help prevent delays and corrections in the new year. Here is a list of items that can assist you in getting ready for the end of year.

Employee Information

• ☐ Verify employee names, Social Security numbers, and mailing addresses.

• ☐ Confirm employee contact information is current.

• ☐ Review new hires, terminated employees, and any status changes.

• ☐ Ensure all taxable fringe benefits and additional compensation have been reported.

Payroll & Tax Information

• ☐ Review year-to-date wages, tax withholdings, and deductions.

• ☐ Confirm employee and employer payroll taxes have been paid and reported.

• ☐ Review any bonuses, commissions, or other additional compensation.

• ☐ Verify health insurance premiums, retirement contributions, and other benefit deductions.

• ☐ Confirm any third-party sick pay or other special payroll adjustments have been reported.

• ☐ Review outstanding payroll corrections or voided checks.

Benefits & Employee Deductions

• ☐ Verify retirement plan contributions and employer matches.

• ☐ Review health insurance and other benefit deductions for accuracy.

• ☐ Confirm any required taxable benefit adjustments are included in payroll.

• ☐ Check year-end limits for applicable retirement contributions and other deductions.

Preparing for W-2s

• ☐ Review year-to-date payroll reports for accuracy.

• ☐ Confirm all payrolls for the year have been processed.

• ☐ Identify any missing information needed to prepare W-2s.

• ☐ Notify your payroll provider of any corrections or special circumstances before year-end processing.

Planning for the New Year

• ☐ Submit updated employee tax withholding forms, if applicable.

• ☐ Communicate any changes to pay rates, benefits, or deductions.

• ☐ Review state and local tax requirements for employees working in different locations.

• ☐ Confirm the payroll schedule and upcoming processing deadlines for the new year.