Year-end payroll checklist

What an Employer does each December and January: the unemployment rate notice, W-2 and W-3, Form 940, Form 941 and Form 1099-NEC.

What does an Employer need to do at the end of the payroll year?

In December, send your new state unemployment rate notice. By January 31, give each employee a Form W-2, file W-2 and W-3 copies with the Social Security Administration, and file Form 940 and Form 1099-NEC. The fourth-quarter Form 941 is also due January 31.

Most of the year-end work lands on one date, January 31. Start in December so nothing is left to the last day. Print this page (Ctrl+P, or Cmd+P on a Mac) to tick it off on paper.

In December

• Send the new state unemployment (SUTA) rate noticeNext year's payrolls are blocked without it. New-year notices often arrive late, and from December 1 your payroll team reminds you. See Send your state unemployment (SUTA) rate notice.
• Make sure every payroll for the year is approved and every person is marked paidThe year-end forms are built from approved payrolls.

Before you file

• Check each employee's name, Social Security number and addressThe W-2 uses them. The employee enters the number in their profile, and it should match their Social Security card. See Form W-2 and Form W-3 for employers.

By January 31

• Give each employee a Form W-2 and file W-2 and W-3 copies with the Social Security AdministrationJanuary 31 moves to the next business day when it falls on a weekend or holiday.
• File Form 940You have 10 extra days if you deposited all FUTA on time. See FUTA and Form 940.
• File Form 941 for October to DecemberIt is due January 31 like the other three. See Federal tax deposits and Form 941.
• Give each contractor a Form 1099-NEC and file with the IRSNeeded for each contractor you paid $2,000 or more. Check the IRS instructions for the amount that applies. See Form 1099-NEC.

After you file

• Record each filing in Reports & formsEnter the date and the confirmation number. Without a record the item shows as overdue.
• In February, remind employees who claimed exemption from withholdingThe claim ends each year. They give a new W-4 by February 15 or withholding returns to the standard amount.

Related guides

What are Form W-2 and Form W-3?, What is Form 940? and What is Form 1099-NEC?