Year-End Payroll Checklist: What Every Small Business Needs Before January 1

Dec 4

If you have employees or contractors, December is one of your busiest compliance months. Business owners in Woodland Hills and the San Fernando Valley can avoid January stress with this simple year-end payroll checklist.

1. Verify Employee Information

Confirm names, addresses, SSNs, and correct wage totals.

2. Prepare Bonuses

Decide how bonuses will be taxed and which year you want them to fall into.

3. Update Payroll Tax Rates

CA and federal rates often change on January 1. Make sure your payroll software reflects the updates.

4. Gather Contractor Information

You’ll need W-9 forms for all contractors to prepare 1099-NECs.

5. Review Your Payroll Liability Reports

Resolve unpaid taxes or discrepancies before year-end.
This prevents letters, penalties, and IRS issues later.

Need help handling payroll? Our Woodland Hills accounting firm provides year-end payroll cleanup and W-2/1099 preparation for local businesses.

Shonty Spatola