Page 6 - Payroll Year-End Planning & Checklist

8 Steps – December Activities

01 Preview 03 Execution Plan
current-year
W2 and • Verify and confirm with IT and/or third-party
employee 02
Celebrate data (Oct) providers on implementing withholding changes
and all new tax updates
08 Year-end Identify any • Collect data on payments since last meeting
State changes
completion
to withholding • requiring taxation
Get information on new and updated policies
Verify new methods (Nov) for New Year
wage bases • Schedule testing of Form W-2, Box 12, special
and rates are codes
included in 03 • Benefits: Update New Year benefit deduction
Payroll Schedule testing tables for new amounts; verify that third parties
system of Form W-2, have updated tables
07 Box 12, special • Ensure service providers that are calculating tax
codes (Dec) withholding are ready for New Year changes
• Message employees on requirements to claim
Verify State Tax exempt tax withholding status for New Year
Unemployment withheld • Determine if any estimated tax deposits for
insurance using new adjusted payrolls are needed and coordinate if
notices (Mar) formulas 04 necessary with third-party provider
File annual on first pay • Verify that the service provider has been
06 Form 940 by for the informed of any state unemployment
year. (Jan)
Feb 10 (Feb)
experience notices
05 • Test New Year calculations and Form W-4 self-
service changes
• Communicate to employees how deferred
amounts of the employee portion of Social
Security tax are to be collected in 2021