Page 5 - Payroll Year-End Planning & Checklist

8 Steps – November Activities

01 Preview 02 Summary Activities
current-year
W2 and • Gather all pertinent information and analyze the
employee 02 Q2, Q3 employee retention credits already
Celebrate data (Oct) taken and any adjustments to be made to
08 Year-end . Identify any • previously filed returns
State changes
Analyze any sick pay and extended FMLA credits
completion
to withholding due
Verify new methods (Nov) • Analyze any employer portion of Social Security
tax deferral taken in previous quarters
wage bases • Review payments and noncash items deemed
and rates are
included in 03 taxable that may not yet be recorded in payroll
Payroll Schedule testing system, including deceased employee wages
system of Form W-2, from prior year paid to estate; process in
November and December
07 Box 12, special • Identify, develop, and schedule any unique or
codes (Dec) special year-end reports

Verify State Tax • Gather facts, calculate income amounts, and
impute into pay in November and December
Unemployment withheld noncash fringes under the Special Accounting
insurance using new Rule (e.g., personal use of company car)
notices (Mar) formulas 04
File annual on first pay • Collect information, such as Social Security wage
base, deferral limits, and other threshold
06 Form 940 by for the amounts for the new year
year. (Jan)
Feb 10 (Feb)
• Identify any state changes to withholding
05 • methods
Gather data on employee workplace location
changes and state withholding balancing and
adjustments for multistate withholding
allocations