Payroll Year End Checklist
Finish Payroll Year End with Confidence
Year-end payroll involves more than issuing W-2s. Businesses should review payroll taxes, employee records, contractor payments, payroll reports, benefit deductions, payroll liabilities, bookkeeping reconciliation, and year-end compliance before closing the year.
Get My Payroll QuotePayroll Migration ChecklistWhy Payroll Year End Is Important
Payroll year end is one of the most important accounting periods for a business. Every payroll run throughout the year affects wages, payroll taxes, employee deductions, employer taxes, contractor payments, payroll liabilities, and financial reporting. Before closing the year, businesses should verify that payroll reports agree with bookkeeping records, tax filings are complete, employee information is accurate, and year-end reporting is ready. RemoteBooksOnline helps small businesses review payroll reporting, payroll tax filings, W-2 preparation, 1099 reporting, payroll reconciliation, and bookkeeping alignment before year end.
Payroll Year End Checklist
Verify employee names- Verify employee addresses
- Verify Social Security numbers
- Review employee classifications
- Verify contractor information
- Review year-to-date wages
- Review overtime calculations
- Verify bonuses
- Verify commissions
- Review benefit deductions
- Review retirement deductions
- Verify payroll tax withholding
- Verify employer payroll taxes
- Review state payroll taxes
- Review local payroll taxes
- Verify payroll liability balances
- Review payroll journal entries
- Reconcile payroll bank account
- Reconcile payroll liabilities
- Review PTO balances
- Review sick leave balances
- Review reimbursements
- Review garnishments
- Prepare W-2 reporting
- Prepare 1099 reporting
- Verify direct deposit information
- Review payroll reports
- Confirm payroll matches bookkeeping
- Close payroll year
Payroll Year End Timeline
Review employee information
Review payroll reports
Reconcile payroll liabilities
Review payroll tax filings
Verify benefit deductions
Review contractor payments
Prepare W-2 and 1099 reporting
Confirm payroll agrees with bookkeeping
Payroll Tax Review
- Federal payroll tax filings
- State payroll tax filings
- Employer payroll taxes
- Employee withholding
- Quarterly payroll reports
- Payroll tax liabilities
- Outstanding payroll tax balances
- State unemployment taxes
- Local payroll taxes
W-2 and 1099 Preparation
Before issuing year-end forms, verify:
- Employee information
- Contractor information
- Tax identification numbers
- Addresses
- Year-to-date wages
- Contractor payments
- Payroll deductions
- Employer taxes
- Payroll adjustments
- Corrected payroll entries
Payroll and Bookkeeping Reconciliation
Payroll should reconcile with:
- General Ledger
- Payroll expense accounts
- Payroll liabilities
- Cash accounts
- Employer tax expense
- Employee withholding
- Benefit expense
- Contractor expense
- Financial statements
- Month-end reports
Explore our bookkeeping services, accounting services, payroll processing services, and Payroll Implementation Guide.
Common Payroll Year End Mistakes
W-2 Errors
Incorrect employee information.
Payroll Tax Errors
Payroll liabilities not reconciled.
Missing Contractor Payments
1099 contractors omitted.
Incorrect Benefit Deductions
Retirement and insurance deductions not verified.
Payroll Not Matching Books
Payroll journals do not reconcile to the General Ledger.
Waiting Too Long
Leaving year-end review until January.
Simple Payroll Pricing
RemoteBooksOnline payroll is designed with clear monthly pricing. Full Payroll is $50 per month plus $7 per employee. Basic Payroll is $40 per month plus $6 per employee. Additional states are $10 per month per state. There are no per-run payroll fees.
Need Help With Payroll Year End?
RemoteBooksOnline can help review payroll reports, payroll taxes, employee records, W-2 preparation, contractor payments, payroll reconciliation, bookkeeping alignment, and year-end reporting.
Frequently Asked Questions
What is included in a payroll year-end checklist?
Review employee records, payroll reports, payroll taxes, payroll liabilities, W-2s, 1099s, contractor payments, benefit deductions, payroll reconciliation, and bookkeeping.
When should payroll year-end preparation begin?
Businesses should begin reviewing payroll several weeks before year end so corrections can be completed before W-2 and 1099 reporting.
Why should payroll be reconciled with bookkeeping?
Payroll creates accounting entries throughout the year. Payroll expenses, payroll taxes, benefits, deductions, contractor payments, and liabilities should match the General Ledger.
What payroll reports should be reviewed?
Year-to-date payroll reports, payroll tax reports, payroll liability reports, deduction reports, overtime reports, and payroll journals.
What happens if payroll reports do not match bookkeeping?
Payroll should be reconciled before year end. Differences may require payroll adjustments or accounting corrections before financial statements are finalized.
What information is needed for W-2 preparation?
Employee names, addresses, Social Security numbers, year-to-date wages, payroll taxes, deductions, and benefits.
What information is needed for 1099 reporting?
Contractor information, taxpayer identification numbers, addresses, and contractor payment totals.
Can RemoteBooksOnline help with payroll year end?
Yes. RemoteBooksOnline helps businesses review payroll reports, payroll tax filings, W-2 preparation, payroll reconciliation, bookkeeping alignment, and year-end payroll reporting.
How much does RemoteBooksOnline payroll cost?
Full Payroll is $50 per month plus $7 per employee. Basic Payroll is $40 per month plus $6 per employee.
Where do I start?
Request a payroll quote and our team can review your payroll process, payroll reports, employee count, payroll frequency, bookkeeping, and year-end reporting needs.
Ready for Payroll Year End?
Request a payroll quote and let RemoteBooksOnline help simplify payroll processing, payroll tax filings, W-2 preparation, bookkeeping reconciliation, and year-end reporting.