Year-End Payroll Preparation Guide

Year-End Payroll Preparation Guide

As the year draws to a close, businesses need to prepare for tax filing season and ensure compliance with changing regulations.

This guide helps you understand what needs to be done in EasyTeam Payroll to ensure accurate tax filings, timely delivery of year-end forms, and proper tax calculations for the upcoming year.

Businesses face two critical tasks at year-end: verifying all business and employee information is current, and implementing any tax changes communicated by authorities. Getting these right ensures accurate tax filings, proper delivery of year-end forms to workers, and correct tax calculations in the new year.

This guide is reviewed and updated annually to reflect the latest requirements. For any questions not covered here, please reach out to payroll@easyteam.com .

Year-End Tax Forms

EasyTeam will send W-2 and 1099 forms to your workers by January 31st of the following year. We begin uploading these forms electronically to the document center from January 24th, and simultaneously send them to our printing and mailing service for physical distribution to the addresses on file.

This makes it crucial to verify all worker addresses before year-end. Learn how to verify worker payroll info.

Tax Authority Notices

During the year-end period, tax agencies send businesses notices about changes to tax rates, tax bases for social security, state unemployment, or tax payment frequencies. These changes must be updated in your payroll settings. If you need help understanding or implementing these changes, send a copy of the notice to our support team at payroll@easyteam.com .

Year-End Checklist

Business Information Verification

➡️ Verify your employer identification number (EIN.)

➡️ Confirm all state tax ID numbers are correct.

➡️ Update your business mailing address if needed.

Access your Payroll Business Profile on EasyTeam to manage your business profile.

Worker Information Review

➡️ Check that all worker addresses are current.

➡️ Verify social security numbers are on file for all workers.

➡️ Update any changes in worker tax status.

Read about how to manage employee payroll information: Managing Staff Member's Payroll Profile.

Important Administrative Tasks

➡️ Monitor incoming mail for tax authority notices.

➡️ Plan your final payroll date for the current year.

💡 Example: If you process payroll on January 2nd for work done in December, those wages will count toward the new year's taxes for both your business and your employees, even though the work was performed in the previous year.


Need help with year end operations? Chat with us via the chat bubble in the bottom right corner ❤️

Updated on: 24/11/2024