As the new year swiftly approaches, we wanted to provide you with information to ensure you, your employees, and your business are ready.

Employee Information Review

Verify the accuracy of each employee’s name, address, and social security number. The Employee W-2 Verification Report is available for reference; it’s found in the Reports section of your payroll account. Make any necessary updates online or report them to your Payroll Support Team by December 27, 2024.

Fringe Benefits

• Fringe Benefits (i.e., Group Term Life, S-Corp Insurance, personal use of company car, etc.) should be reported with or before your final payroll of 2024. 
• All adjustments must be reported by 12/27/24. 
• Information reported after 12/27/24 may result in additional fees to reopen the 2024 reporting period and update or amend tax returns. 
• Please refer to the Help Center for the Fringe Benefits form or Fringe Benefits Spreadsheet.

Manual/Void Checks

Ensure all manual and voided checks for 2024 are reported on or before December 27, 2024. This includes 1099-NEC (Non-employee Compensation) payments to contractors that have yet to be reported.

Bonus Payrolls

• Utilize the Bonus Payroll Form to provide details on how you would like payroll processed.
• Notify your Payroll Support Team if you will be processing a Year-end bonus payroll; we recommend that you process your normal payroll first if processing bonuses separately.
• Payrolls using a check date of December 31, 2024, must be processed on or before December 27, 2024, to ensure timely tax deposits and to avoid costly penalties. 
• Payrolls that generate $100,000+ in federal tax liability require tax deposits to be made the next business day. 
• A wire may be required to fund payrolls exceeding your ACH limit.

$100,000 Liability Payrolls

Payrolls that generate $100,000 in federal tax liability must be processed at least 2-3 business days before the desired check date to allow for timely tax deposits. 

• If using the check date of 12/31/24, the payroll must be processed on or before 12/27/24 to ensure timely tax payments.
• Federal tax deposits of $100,000+ are due the next business day following the check date.
• The “$100,000 Next-Day Deposit Rule” applies to the cumulative liability of all payrolls dated within a tax deposit period and will be due the next business day.

Wire Requirements

Payrolls exceeding your company’s ACH limit may require a wire transfer. 

• Always run your normally scheduled payroll first if an additional bonus payroll is being reported to ensure your normal payroll is processed timely. 
• Allow sufficient time to initiate a wire transfer when submitting larger-than-normal payrolls and process 2-3 business days before the check date.
  • When this occurs, you will receive an email with wire instructions.
  • Be aware of your banking institution's requirements for a timely wire transfer, as they can take 1-2 days.
• Funds must be wired to cover all EFT (Electronic Funds Transfer) transactions before the payroll is processed.

Third-Party Sick Pay

We understand that third-party agencies have until January 15th to provide you with a statement of benefits for your employees. Most agencies provide details each time a payment is made; please report this information to us as soon as possible. Third-party sick pay reported after January 15, 2025, will result in amended tax returns and additional fees.

W-2 Box 14

Provides the flexibility to report miscellaneous payroll information on the W-2. We can list specific earning or deduction information here (i.e., charitable contributions through payroll, union dues, etc.). Please contact your Payroll Support Team by December 27th if you need Box 14 reporting set up. We will automatically post any required information in Box 14, such as SDI (state disability insurance).

Check Date vs. Pay Period Worked

The check date determines which year the wages are reflected for payroll and tax reporting purposes. The pay period does not dictate which year the wages are reflected from a reporting standpoint.

• Hours or days worked in December but paid with a check date in January 2025 will be reported on the 2025 payroll tax returns and 2025 W-2s. 
• If you need specific payments to reflect in 2024, process them using a 2024 check date.

We appreciate your business and are looking forward to a great new year with you!