Start the New Year on the Right Payroll Foot

Before closing out the year, take a few minutes to make sure your payroll is accurate, compliant, and ready for a smooth start to 2026.

Here’s a quick checklist to guide you:

Verify employee information

Confirm employee names, addresses, Social Security numbers, and W-4s. Review any 1099 contractor information and classifications to avoid reporting errors.

Process final pay runs and bonuses

Include all 2025 earnings—holiday pay, bonuses, commissions—on your final payroll. Double-check your final federal and state tax deposits before year-end.

Review benefits and deductions

Update benefit elections, retirement plan contributions, and FSA/HSA carryovers. Make sure fringe benefits like group-term life insurance or personal use of a company car are properly reported.

Prepare year-end forms

Get ready for W-2s, 1099s, and ACA forms (if applicable). Confirm you’re meeting all federal, state, and local deadlines.

Watch for new 2025-26 requirements

Verify any wage and tax rates for 2026. Download our Payroll Tax Alert for a summary of this information. In addition, under the new OBBBA tax law, employers must now track and report:

• Tips — total qualified tips received by employees.
• Overtime premiums — the extra “halftime” pay portion for overtime hours.

Accurate tracking ensures compliance and helps employees maximize new temporary deductions. View our webinar recording to learn more at AlloySilverstein.com/recordings.

Get a quote from Abacus Payroll

Was payroll easy, accurate, and responsive this year? If not, year-end is the perfect time to switch to a service that truly supports your business. Contact us today at AbacusPay.com.