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.

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W-2 & PAYROLL TAX REPORTS NOTICE

2020 W-2s have been printed and were distributed on January 22. Employee copies were mailed directly to their address on file, or delivered according to your selection on the W-2 Delivery Preference Form.

Copies of W-2s, W-3s, as well as 2020 Q4 & annual payroll tax reports (e.g., IRS 940 & 941; CO UITR, DR 1093 & 1094) were uploaded to your ShareFile Client Portal the week of January 25. Employees of HUB clients can also access their W-2s through the HUB Employee Portal.

To help with employee questions regarding their W-2s, check out the following on our Help Center:

Top Tasks to Complete for Your First Payroll

Review the following items and work with your account manager to make changes before your first payroll of the new year.

Review your 2021 payroll schedule
Payroll schedules are provided to clients in November and January. Review them carefully and notify ASAP if you have any changes.
Review employee benefits and compensation
Notify ASAP if you have any changes to 401(k)/Simple, HSA plans, and other premiums for 2021. And ensure employees are compensated in compliance with state and/or municipality minimum pay requirements.

Optional Tasks to Start 2021

If you have the time, the following tasks will help tidy up your records for year-end reporting (your CPA will thank you!).

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.
If you had independent contractors, you will need to prepare and file Form 1099-NEC for each worker. If you need help, check out our