Use this article to review critical areas, prepare for tax filings, and set yourself up for a smooth end-of-year transition.
As the year draws to a close, it’s essential to take a few key steps to ensure your payroll records are complete, accurate, and compliant.
1. Complete GoCo’s EOY Checklist
Action: Log into GoCo.io to access GoCo's dedicated EOY checklist.
Why It Matters: GoCo’s EOY checklist includes tailored action items that help ensure you’re covering all critical areas for a smooth year-end.
2. Review Tax Exemptions
Action: Confirm any updates to employee or employer tax exemptions. You’ll need to email support@goco.io for a list of exemptions if you believe this applies to you.
Why It Matters: Changes in tax exemptions can affect year-end reporting and compliance, so ensure your records reflect any recent changes.
3. Identify 2% Shareholders for S-Corp Filing
Action: Confirm that all 2% shareholders are correctly identified if you’re filing as an S-Corp. Reach out to support@goco.io if you need assistance!
Why It Matters: This designation is important for accurate reporting and tax treatment for S-Corp shareholders, affecting how you handle benefits and payroll taxes for these individuals.
4. Double-Check Year-to-Date Employer Contributions to Benefits
Action: Review the year-to-date (YTD) amounts for employer contributions to employee benefits.
Why It Matters: Accurate YTD benefits information ensures your reporting is correct, especially for contributions to retirement plans, healthcare, or other employee benefits.
5. Verify Terminated Employees and Historical Payroll Data
Action: Ensure that all terminated employees and their payroll history are in the system.
Why It Matters: Once W-2s are finalized by Gusto, no new W-2s can be issued for missed employees, so now is the time to confirm that all terminated employees’ records are complete.
6. Employee Address Verification
Action: Before year-end, verify that all employee addresses are up to date. This is a great opportunity to have employees confirm their details.
Why It Matters: Ensuring accurate addresses helps avoid delays and delivery issues with W-2s and 1099s, so employees receive their tax documents on time.
7. Verify Payroll Deductions & Benefits
Action: Review all payroll deductions and benefit information for accuracy.
Why It Matters: Confirming that deductions and benefits align with your records is crucial for precise year-end reporting. Accurate records minimize the risk of discrepancies and simplify the year-end process.
8. Finalize Adjustments for Final Payrolls
Action: For your final payrolls, review any special adjustments, such as bonuses, corrections, or retroactive payments.
Why It Matters: Verifying these adjustments helps prevent reporting errors and ensures that all compensation is accurately accounted for before the year closes.
9. Visit GoCo Academy for EOY Training
Action: Visit learn.goco.io to take our official End-of-Year training course.
Why It Matters: This course provides comprehensive guidance on EOY responsibilities, giving you the tools and knowledge to handle the season’s tasks confidently.
⭐Remember: These steps help ensure a smooth end-of-year process, from accurate reporting to timely tax form delivery. Following this checklist early can save you from potential headaches down the line and make for a seamless transition into the new year.
Reach out to support@goco.io at any time for assistance! 💚