Making Year-End Payroll Processing As Simple As Possible
Year-end payroll processing may not be completely pain-free, but we do our best to keep it simple for you. We’ve put together a series of straightforward tasks and best practices below that will help you finish closing out the current year and get started on the new one.
Year-End Payroll Processing Checklist
For a quick reference, download our handy one-page checklist. It contains important deadlines and key tasks to keep you on track.
IMPORTANT DATES
December 28, 2023 — Submission Deadline for January 2 Check Date
January 1, 2024 — New Year’s Day (ASAP & banks closed)
January 10, 2024 — 1099 Services Authorization Deadline for 2023 Services
January 31, 2024 — W-2s Available
February 1, 2024 — 2023 Q4 & Annual Report Copies Available
*Payroll is due at noon (MT) at least 2 business days prior to the check date. Same-day checks and next-day direct deposits may be subject to additional fees.
Top Tasks to Complete Prior to Your First Payroll of 2024
Review the following items and work with your account manager to make changes before your first payroll of the new year.
Review your 2024 payroll schedule
Check for impacts of holidays and weekends on pay dates and notify us of changes.
Review employee benefits and compensation
Notify ASAP if you have any changes to 401(k)/Simple, HSA plans, and other premiums for 2024. And ensure employees are compensated in compliance with state and/or municipality minimum pay requirements.
Optional Tasks to Jump-Start 2024
If you have the time, the following tasks will help tidy up your records for year-end reporting (your CPA will thank you!).
Reconcile payroll journal entries in your accounting system
As part of year-end balancing, compare payroll registers to Form W-3 report totals (reported taxes from Form W-3 should equal tax deposits totals on Forms 941). Check for required Tip Allocations for tipped employees if applicable.
Review 1099 contractor payments and confirm that W-9s are on file and accurate
If you paid independent contractors, you will need to prepare and file Form 1099-NEC for each worker. If you need help, check out our 1099 processing services. (Note: Authorize 1099 services by December 15 to take advantage of early-bird discount.
Top Tasks to Complete by December 18th
Not sure where to start? Tackle these year-end payroll tasks first.
Review employee names, social security numbers & mailing addresses
Notify ASAP about updates BEFORE W-2 processing. Review and edit your “W-2 Verification/Edit List,” which is included in your report packet with your last payroll in November. Let us know if you need us to resend the list.
Review our Bonus Run Checklist
If you plan to issue holiday or year-end bonuses, or other special payroll runs, there are tax implications to consider. Plus we’ll need some specifics from you before processing.
Send ASAP important tax rate & frequency notices
Keep an eye out for the following IRS and State tax rate & frequency notices and forward copies to us. They’re typically sent in November and December, and tend to get buried in holiday mail.
- State Unemployment Insurance (UI) Rate Notice
Note: Please let your account manager know if you cannot find or did not receive this notice.
You will receive the following notices only if there is a change to your filing frequency.
- Federal Tax Deposit Frequency Notice
- Colorado Filing Change Notice
- Other State Filing Change Notices
Check that all wages and benefits, such as personal use of company car or employer-paid ski pass, were paid via payroll.
Don’t wait for your CPA’s review to find a bonus or benefit not properly recorded through payroll. If you offered fringe benefits, such as personal use of company car (PUCC), group term life insurance, or employer-paid ski pass, confirm that these types of benefits have been recorded with payroll throughout the year. To double-check that all wages have been properly recorded, including bonuses and fringe benefits, generate a payroll check register report. Also, if you offer PUCC benefits, provide the miles to your CPA so that they can calculate the fair market value of the personal use of your company car. We need to record that item prior to December 31.
Consult with your CPA for any year-end strategies, such as taxes or pension plans.
As much as we love helping with business-related questions, we are not tax experts. For tax-related questions, please refer to your tax advisor for guidance. If you would like us to communicate directly with your CPA, make sure we have an Authorized CPA Form on file.
Submit a W-2 Delivery Preference Form
We’ll automatically mail W-2s to employees in January unless otherwise instructed.
Order 2024 Labor Law Posters
Order laminated All-In-One Labor Law Posters at wholesale prices from us or download them from Federal & State labor department websites.
Request New W-4 for employees who claim exempt
All employees who claim exemption from tax withholding must complete a new W-4 each year. Direct employees to check their withholding amount by using the IRS Withholding Calculator.
Check employee compensation compliance
Ensure employees are compensated in compliance with state and/or municipality minimum pay requirements.
- Colorado 2024 minimum wage
- $14.42/hr standard
- $11.40/hr tipped
- Colorado salary minimum requirement
- $55,000 ($1,054.79/workweek)
- Denver 2024 minimum wage
- $18.29/hr standard
- $17.29/hr tipped
- NOTE: Edgewater and unincorporated Boulder County implemented municipal minimum wages for 2024.
- Federal contractor minimum wage (click here for details)
- $17.20/hr standard
- $17.20/hr tipped
Tax Planning & Officer Compensation
We love to help, but some tax planning questions require your CPA’s guidance. Review the following items with a tax professional before running your final payroll of the year.
- Owner’s compensation target: Are you on schedule to reach your target salary for the year?
- Health premium amount for S-Corp shareholders: Have you reported total premiums for the year yet?
- PUCC: Do you drive a company vehicle? If so, you must report personal use of vehicle.
- 401(k)/Simple Retirement contributions: Do you want to max out your retirement contributions and/or catch up?
