The end is near! Well, year-end that is. As we head into November and on to December and January, most of us are already dreading what’s to come.
Year-end is hectic, stressful, and full of easy-to-forget (but very important!) to-dos. That’s why we created this year-end checklist and calendar to make sure you end your year on a high note.
2021 Year-End Checklist
With everything from HR to Payroll to Benefits, make sure your team closes out all their year-end tasks with these simple reminders. Additionally, you can download your Year-End Packet for even more information to prep for these final months of 2021.
Human Resources
Verify W-2 information for all employees. For example, social security numbers, correct name spelling, address.
Top Tip: If you are an SDP client, then you can run employee verification reports online using our W-2 Edit Report and/or Employee Profile Report. Don’t forget to review this critical information, especially as the IRS has been increasing its enforcement of Accuracy Penalties!
Reconcile all sick, vacation, and PTO balances for year-end payout or carryover (if applicable).
Move current year terminated personnel files to storage.
Remind employees to file an amended W-4 if there has been a change in their filing status, exemptions, etc. (If you are using employee self-service, employees can make these changes in their SDP Connect portal!)
Lastly, check if your state or municipality has a scheduled minimum wage increase effective Jan. 1, 2022. If so, make any applicable rate increases in payroll. (Note: SDP will not automatically increase your employee rates!)
Payroll
Verify all Federal and State identification numbers and notify SDP of any frequency changes.
Ensure all manual and voided checks have been entered into the payroll system.
Forward any Federal or State filing deposit frequency notices to SDP.
Forward all State Unemployment rate change notices to SDP.
Review and submit taxable fringe benefits that must be posted in payroll for W-2 reporting. For example, housing, auto, group term life insurance, etc.
Audit third-party sick payments (short- or long-term disability) made to your employees during the 2021 year to make sure all required information is captured and correct.
Run bonus payrolls as early as possible so wages can be added to your payroll schedule.
Make any SS-R deferral repayments by Dec. 31, 2021, if applicable.
Submit 1099 information to SDP by Jan. 14, 2022, if applicable.
Benefits
Verify current employee and dependent coverage.
Distribute new health/dental insurance cards (if applicable).
Compile Census information for retirement plan testing.
Review which employees have life insurance over $50,000 to report taxable income for taxable group term life insurance.
Lastly, verify Flexible Spending Account balances to confirm that employees will have the total amount deducted by the end of the calendar year.
Important Dates
For a downloadable “Cheat Sheet” of important Year-End Dates, check out page 11 of our Year-End Packet!
November
- Thursday, Nov. 11 – Veterans’ Day (Federal Reserve Closed)
- Thursday, Nov. 25 – Thanksgiving Day (SDP and Federal Reserve Closed)
- Friday, Nov. 26 – Day After Thanksgiving (SDP Closed)
- Friday, Nov. 26 – The deadline to submit enrollment for SDP’s 2021 ACA reporting and filing
December
- Friday, Dec. 3 – SDP closing at 3 PM PT
- Friday, Dec. 10 – The deadline to submit Year-End Hold Request Forms and 7200/ERC Forms if you know you will be submitting information or processing any payrolls that will affect W-2s after your last payroll run in December
- Friday, Dec. 17 – The deadline to build plans, select your safe harbor, and update measurement periods if using SDP’s Nimble Reporting Dashboard for ACA
- Friday, Dec. 24 – SDP closed in observance of Christmas
- Friday, Dec. 31 – SDP closed in observance of New Year’s Day
January
- Saturday, Jan. 1 – Minimum wage increases take effect
- Monday, Jan. 3 – Deadline to submit 7200 and ERC information to SDP for credits to be applied on Q4 2021 returns
- Monday, Jan. 3 – Deadline to submit any adjustment and correction requests for Q4 2021 W-2s and returns
- Friday, Jan. 7 – The deadline to review and submit forms for filing if using SDP’s Nimble Reporting Dashboard for ACA
- Friday, Jan. 7 – Deadline to provide enrollment request if you would like SDP to process your 1099s and did not process these with us last year
- Friday, Jan. 14 – Deadline to provide and verify all required 1099 information to SDP (if applicable)
- Tuesday, Jan. 25 – Final shipment of W-2s to companies
- Thursday, Jan. 31 – The deadline to distribute:
- W-2s to your employees (note: our goal is to get accurate W-2s to you by Jan. 25)
- 1099s to your contractors
- 1095-Cs to your employees
What do you think?
We’d love to hear about your strategy to stay on top of year-end. Have you already started prepping for the new year? Comment below to share your tips for getting everything in order and remembering important tasks.
Also, be sure to also review your Year-End Packet and register for our Year-End Prep Webinar for even more ways to have a successful year-end. Want more ways to keep your business up-to-date and compliant? Check us out on Facebook, Twitter, and LinkedIn to make sure you never miss a beat!