The end of the year is one of the busiest times for payroll — and one of the easiest times to miss critical compliance deadlines. Use this checklist to make sure your Florida small business is ready for a clean year-end close.
Reconcile Payroll Records
Before December 31, reconcile your quarterly 941 filings against your year-to-date payroll totals. Employee wages, Social Security and Medicare withholdings, and employer contributions should all tie out. Discrepancies now are much easier to correct than after W-2s are issued.
Verify Employee Information
Confirm that all employees have correct Social Security numbers, legal names, and current addresses on file. Incorrect W-2s require amended returns and create headaches for employees. Run a report of all employees with addresses or SSNs that haven’t been updated in the past year and verify those specifically.
Update Tax Tables and Rates
Federal tax withholding tables, FICA wage bases, and Florida reemployment tax rates can change each year. Make sure your payroll system will apply the correct rates starting January 1. If you’re running payroll manually, download the IRS Publication 15 (Circular E) for the upcoming year and verify the Florida Department of Revenue has posted updated reemployment tax rates.
Prepare for W-2 and 1099 Deadlines
W-2s must be distributed to employees and filed with the Social Security Administration by January 31. If you pay independent contractors $600 or more during the year, 1099-NEC forms are also due January 31. Start gathering contractor information — especially for any who don’t have a W-9 on file.
Review Benefit Deductions and Contributions
Confirm that all benefit deductions and employer contributions are correctly recorded for the year. Health insurance, FSA/HSA contributions, 401(k) deferrals, and SIMPLE IRA contributions each have annual limits and special reporting requirements. Ensure these are reflected accurately in employees’ W-2 boxes.
Let Pinkerton Payroll Help You Close Out the Year
Year-end payroll can feel overwhelming, but it doesn’t have to. At Pinkerton Payroll & Insurance, our payroll specialists handle W-2 preparation, tax filings, and year-end reconciliation for Florida businesses of all sizes — so you can focus on your business, not the paperwork. Learn more about our payroll services or call us at 941.497.7737.
