TRAXPayrollAdministrative General AdminEnd of Year Account Preparation

End of Year Account Preparation

Purpose: To help you make sure that your payroll account is ready for the new year.

What Should you do Prior to your Last Payroll Run This Year?

Final payrolls must be processed no later than December 27, 2019 for a pay date of December 31, 2019.

  1. Submit Third-Party Sick Pay (p.16) amounts to TRAXPayroll. Vendor reports may also be forwarded.
  2. Review deduction reports to verify employee and employer amounts are correct (especially if required to be reported per the IRS Instructions for Forms W-2 or W-3).
    1. Record year-to-date Health Savings Account (HSA) employer contributions (p.15) and Employer Healthcare costs in TRAXPayroll if this has not been reported each pay period (these amounts are included on the forms W-2).
  3. Update both active and inactive employees’ addresses and verify Social Security numbers are correct for W-2 processing. TRAXPayroll mails all W-2s unless the employee has elected for paperless delivery (inactive employees will receive their W-2 by mail regardless of this option so be sure to validate their address).
  4. Audit wage reports to ensure that any imputed income for the Group-Term Life Insurance Coverage (p.15) (over $50,000 of coverage) has been accounted for.
  5. Record any missing Taxable Fringe Benefits provided during the year (e.g. employee stock options, personal use of company vehicle, tuition, transportation, etc.).
  6. Ensure that  2% Shareholders paid through TRAXPayroll have been marked as such under the General page for Employee Tax Type for correct taxation of income and excludable deductions. 
  7. Verify that any pay issued outside of TRAXPayroll or non-cash items are reported (e.g. gift cards, bonuses, etc.). 
  8. Audit reports to confirm that all voided or reversed paychecks have been recorded in TRAXPayroll.
  9. Audit employee pay to ensure that wages and unemployment insurance were reported under the correct state.

*Items required to be reported following the final payroll deadline, may incur additional fees.*

What Should you do Before Your First Payroll Run Next Year?
  • Update company and employee deduction annual maximums if needed.
  • Review the pay period schedule for accuracy in the Company/Pay Group tab.
  • Add any company holidays (if your organization uses this feature).
  • Add next year's tax rates, tax filing deposit frequency, and unemployment tax rates in the Company/Tax tab.

What's Next?

Do you need to make any changes to your Hour Benefit Templates

Would you like to learn more about the options you have for PDF or Excel Reports?