Important End of Year Payroll Information

Your December payroll checklist 

To help you wrap up the end of the year smoothly, we've put together a checklist containing important payroll action items. 

Double-check key information 

  • Make sure your company’s information is up-to-date. Verify that you've entered a tax ID in payroll for every state where your employees live or work, for instance. 
  • Make sure your company's legal name, legal address, and EIN are correct. We'll inform administrators when the W-2  preview report is available, usually by mid-December, to review. Validate that the above company information is correct on that report as well.
  • Make sure your employees’ personal information (name, address, SSN, etc.) is correct. Also review this information on the W-2  preview report
  • Make sure your employees’ payroll data is correct. Double-check that their earnings and deductions total up to the amount you expect and that you haven’t forgotten to account for any manual or voided checks. The W-2 validation preview should help you with this, too. 
  • Run a History Summary for the year on sample employees with special circumstances as a check against the W-2 Preview: 
    • An executive 
    • An employee with different resident and work (location) states 
    • An employee who moved during the year 
    • An employee who had adjustments during the year to correct prior pay periods 
    • An employee who was promoted mid-year
    • An employee who worked in multiple locations 
  • Make sure the History Summary totals match special W-2 designation amounts that apply to your organization, for example:
    • Total Dependent Care benefits match Box 10
    • Regular 401k totals match Box 12D totals
    • Taxable cost of Group Term Life over $50,000
    • Roth 401k totals match Box  12 AA
    • Total HSA benefits match Box W
    • Total health care benefits match Box 12 DD 
  • To verify that your employee names and Social Security numbers (SSN) match Social Security’s record, you can verify up to 10 names and SSNs online and receive immediate results, or submit an XLS fle with your list of employees per below: 
    • The Social Security Number Verifcation Service: 
    • For requests of more than 10 employees, use the file format here:  

Report special circumstances to us 

  • Report special circumstances to us, particularly if any of the following apply to your company.
    • Pay runs outside the system 
    • Disability payments or third-party sick pay 
    • Tips 
    • Fringe benefits
    • Tax modifications
    • Employee taxed in wrong state 
    • Stock option events 
    • Non-qualified deferred compensation (NQDC) plans 

  • Last day to submit a level of service change for 2020: 12/23/2020
  • Last day to submit a payroll data correction request for 2020: 12/18/2020

Run payroll at the right time 

  • Take holidays into account. Banks are closed on December 25 and January 1. Your pay run deadline in Zenefts will update automatically, but keep in mind that you may need to run on a different day of the week than you’re used to. 
  • For a check date of 12/24, run your last 2020 payroll by 12/18 if you’re on four day processing or 12/22 if you’re on two day processing. 
  • For a check date of  12/31, run your last 2020 payroll by  12/24  if you’re on four day processing or  12/29  if you’re on two day processing.
  • The same goes for any bonus payrolls you’d like to pay with a 2020 check date. 
This checklist is meant to be informative, but not necessarily exhaustive. It does not constitute legal or tax advice. Always check with a qualifed legal or tax advisor for more complete guidance.
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