Page 8 - Payroll Year-End Planning & Checklist

8 Steps - January Activities

01 This is a 04 New Year Planning
Preview
current-year
W2 and 02 Communicate to employees any changes
Celebrate employee for the new year, including:
08 Year-end data (Oct) Identify any • Social Security wage base, 401(k) limits,
State changes
completion
tax rate, withholding, etc.
to withholding • New Year Form W-4 is required for all
Verify new methods (Nov) new hires and for employees who need
wage bases to make adjustments
and rates are • New Year reminder to employees about
included in 03 employee portion of Social Security
Payroll Schedule testing deferral repayment
system of Form W-2, File:
07 Box 12, special • All Forms W-2 or equivalents with
codes (Dec) employees and jurisdictions by their
due dates
Verify State Tax • Fourth-quarter Form 941 (by Feb. 1 if
Unemployment withheld balance due; Feb. 10 if no balance due)
insurance using new • Form 941 Schedule D if any mergers or
notices (Mar) formulas 04
File annual on first pay acquisitions occurred in 2020
06 Form 940 by for the • Any third-party sick pay recap form
year. (Jan)
(Form 8922)
Feb 10 (Feb)
• Form 940, Employer’s Annual Federal
05 Unemployment (FUTA) Tax Return, on
same schedule as fourth-quarter Form
941