When it comes to QuickBooks Online Payroll at year-end, there are some additional tasks you may need to consider along with the normal accounting year-end activities.
Employees fluctuate throughout the year. Staying on top of employee changes such as an address and tax status may change along with their withholdings.
Year-end is the perfect time to tidy up any loose ends and work with your client to make sure everything is up to date.
Making changes in QuickBooks Online Payroll is easy. Use this guide as a workflow for the activities to work through to get the information you may need to update employee data and get the essential year-end payroll tasks done.
The following list is an excellent place to start with closing out the end of year payroll.
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There are a few extra steps to take into consideration for year-end payroll. Remember to review and update information for inactive or terminated employees. Below are areas to consider for tasks at payroll year-end.
Review the following for employees:
- Social Security numbers
- Current address for all employees who received paychecks
- Employee wage information, local tax rates, and settings
- Benefits information for employees: S-Corp 401(k)
- Health insurance and other contributions
- Commission and fringe benefits
- General sick and vacation settings. Check time off hours used per employee
- Make sure all employee paychecks have been reported (handwritten, commission, termination, and bonus checks)
Run final payroll for year-end
- Create any year-end bonuses.
- Include final payments for fringe benefits, commissions, and contributions.
- If paychecks are direct deposits, the holidays may affect processing times. Make sure direct deposits are approved/sent in time to be processed.
Use the following link for more information on when to send direct deposit payroll during a holiday.
Set up employee access to W-2s
- Through the QuickBooks Workforce, you can allow employees to view and manage their pay stubs and W-2s online. See the QuickBooks Workforce FAQ learn more.
- Remember, regular employees, get W-2s, whereas independent contractors get 1099s.
Be aware of federal and state tax rate notices.
- State agencies may assign a new state unemployment insurance (SUI) rate for the new year. If your client gets a rate notice, you’ll need to update their SUI rate in your payroll account before their first payroll in the new year.
- Federal and state agencies may assign a new tax deposit schedule for your business. If your client receives this notice, update the schedule in their payroll system.
Accessing, Submitting, and Printing W-2 Tax Forms
QuickBooks Online Payroll Core, Premium, and Elite subscriptions electronically file Forms W-2 with the agency at no additional charge if the Automate taxes and forms setting is on.
Employee copies of W-2s will be available to print after January 10. Employee W-2s will be postmarked by January 31 and arrive within seven business days of the postmark. QuickBooks Online prefills the tax code field, so you don’t need to look it up. You only need to do this once. If prompted, you’ll need to tell QuickBooks Online Payroll if employees were active participants in a retirement plan during the tax year. Most often retirement plan contributions are tracked outside of QuickBooks Online Payroll.
QuickBooks Online Payroll Core, Premium, and Elite will submit Copy A of Form W-2 electronically for you. You can print Copy D of Form W-2 for your records. Do not send a printout of Form W-2 to the Social Security Administration.
You can access and view files that have been submitted in the Tax Center.
- From the left menu, select Taxes, then Payroll Tax
- Select Quarter, then View and Print Archived Forms
- Select the link for the submitted form
- Choose View to review or print
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- A separate browser tab will open for PDF printing
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To learn more about QuickBooks Online Payroll Core, Premium and Elite check out the other articles in this series and the Self-paced QuickBooks Online ProAdvisor Payroll Training.
The New QBO Payroll Training you will find in the ProAdvisor Training Tab of QBO Accountant