Transcript for "jeff kuzmich - Migrate_OD_Preparing_for_Year_End_Payroll_09082025_5029568":
Hi there. Welcome to Preparing for Year End Payroll. Avoid errors. Stay compliant. My name is Jeannie Colavito and I'm a human resource business partner within the small business market here at Paychex. I do have to say as a legal disclaimer, this presentation does not constitute any legal or accounting advice and is for informational purposes only. Even experienced payroll professionals can slip up at year end when deadlines, details and compliance requirements pile up fast. Are you fully prepared for your last payroll of the year and the first for next year? In this short and practical webinar, we will deliver an organized, easy to follow, year end payroll checklist to help you avoid common mistakes and ensure nothing important is missed. After watching this webinar, you will understand the key steps for processing the final payroll of the year, learn what's required for the first payroll of the new year, follow a detailed year end payroll checklist to avoid common mistakes, and ensure compliance and accuracy across year end payroll activities. Let's first level set our understanding of our topic and clarify what is year end payroll. It's the careful review and verification of all payroll and tax info from quarter four through quarter one, covering accurate tax, pay and deduction calculations, reviewing tax documents for the new year, filing required IRS, state and local forms, preparing for upcoming employment regulation changes. Using a payroll calendar helps keep everything on track and avoid delays. Why is year end payroll important? It ensures tax compliance by accurately calculating and filing federal, state and local taxes, avoiding penalties or legal issues. Accurate year end payroll also provides financial clarity, helping you plan budgets, meet obligations, and start the new year with clean, organized records for both the business and the employees. Before we go any further, I'd like to start by getting a gauge on what you think needs to be completed before you run the first payroll of the year. You'll see it pop up on your screen. There's no right or wrong answer. Here's the poll. What needs to be completed before running the first payroll of the year? A, finalize benefits information. B, distribute W-2s to the employees. C, file tax forms with the IRS. D, oh, this is just the start of my list. There's so much to do. E, I have no idea. No matter what your understanding, we are going to give you another checklist to make sure you have everything in order before you need to run your first payroll of the new year. There are many steps involved in filing payroll taxes and preparing for year end payroll. Let's take a closer look at some of the steps you can now take to prepare for the end of the year, even before your last payroll. First, you will want to verify business info. Double check that your EIN, business name, address and state unemployment account numbers are accurate and up to date for tax filings. Review compensation. Plan for any upcoming pay raises and ensure compliance with updated wage and salary thresholds, including Social Security wage base and any state or local minimum wage changes. Review bonuses. Understand how bonuses are taxed based on your business type, cash versus accrual basis, and know the difference between discretionary, not expected, and non discretionary, expected, bonuses as non discretionary ones may affect overtime pay earned by non exempt employees during the bonus period. Remind employees about year end policies on unused vacation, sick days or personal leave, as well as deadlines for submitting or using FSA funds, including whether your plan offers a carryover or grace period. Confirm employee info. Verify names, social security numbers, addresses and contact details to avoid W-two delays, reprints or penalties. Ensure deceased employees are properly coded. Record paychecks. Review all processed wages, deductions, benefits and tax exemptions to ensure accurate year end totals. Check tax credits. Assess eligibility for any recently introduced tax credits and file amended returns prior to IRS deadlines. Order year end forms. Get W-2s, w threes, and any required tax forms early to prepare for year end processing. Update your payroll policies for the coming year. Review or adjust your payroll schedule, paycheck delivery options, or pay on demand features. And finally, address special cases. Resolve issues for new hires, voided checks, or payroll disputes before year end. So, that's the essence of what may need to be completed before you run your last payroll of the year. While much of the planning and organization on your payroll year end checklist can be done in advance, there are several essential steps to complete after the final payroll period of the year. Once your final payroll period has been calculated, do the following. So here we go. Finalize wage and tax benefits and info. Review all employee wages, taxes, benefits and fringe benefits to ensure accurate year end reporting. Distribute W-2s. Provide W-2s to employees or ensure access to W-2s by January 31. File year end tax forms. Submit payroll tax forms and pay any taxes owed. Business returns are usually due by March 15. Set next year's payroll schedule. Review dates, adjust for holidays and weekends, and set up the payroll calendar. Finally, check minimum wage changes. Update pay rates for any new or increasing state or local minimum wage rates or state salary thresholds for exempt employees effective January 1. We've learned that managing year end payroll can be very complex for businesses and it's an easy time to make mistakes. About one third of employers make payroll errors and about 40% of small businesses face about eight forty five dollars per year in IRS penalties, often for missed payments. So far, you've learned the essential steps to take to complete payroll tasks before the year end. And you've also prepared for the first payroll of the new year. Missing a year end payroll tax deadline can have financial and legal consequences for your business, including penalties, interest and IRS scrutiny. Late filings can also result in fines and unnecessary stress. In addition to penalties, you may face audits or deeper dives into your payroll practices, which can bring more administrative burdens. You should meet all tax deadlines to avoid disrupting your business and employees. I hope through all of this, I've made you curious about what we do. Paychex can help you simplify payroll and make it accurate and on time every time. Paychex Flex can help you reduce payroll errors and the risk of potential fines, automatically calculate and send payroll taxes to help keep businesses compliant and on time, simplify year end practices, and make sure you are prepared for the first payroll of the new year. As a business owner or manager, your focus should be on what you do best, your company product or service and your clients. Let us help you with payroll so that you can stay focused on where your business needs you the most. We've got one last quick poll for you and it will pop up on your screen. If you'd like to speak with a paycheck sales professional about how we can support your business, click yes on the poll and one of our team members will reach out to you directly within the next business day. Thank you again for your time today reviewing Preparing for Year End Payroll, Avoid Errors, Stay Compliant. Thanks for joining us and have a fantastic day!