Complete Quarterly or Yearly Payroll Tasks

Use the following checklists to complete your quarter-end and year-end payroll tasks.

Payroll Quarter-End Checklists

Complete the following quarter-end tasks for your company and your employees.

Company Quarter-End

Task	Done
Replenish check stock and envelope inventory.
Plan and coordinate benefits enrollment, if necessary.

Task

Done

Replenish check stock and envelope inventory.

Plan and coordinate benefits enrollment, if necessary.

Employee Quarter-End

Task	Done
Review the data on audit reports.
Verify that employees are set up for the correct state and locality. Review employees who moved from one state to another during the tax year. Verify that the appropriate wages are set up for each state.
Review tax-exempt employees. Update their information, if necessary.
Review scheduled or repeating earnings and deductions.
Update annual limits for scheduled or repeating earnings and deductions.

Task

Done

Review the data on audit reports.

Verify that employees are set up for the correct state and locality.

Review employees who moved from one state to another during the tax year. Verify that the appropriate wages are set up for each state.

Review tax-exempt employees. Update their information, if necessary.

Review scheduled or repeating earnings and deductions.

Update annual limits for scheduled or repeating earnings and deductions.

Payroll Year-End Checklists

Complete the following year-end tasks for your company and employees.

Note:

For information about year-end closing in NetSuite, see Year-End Closing.

Company Year-End

Task	Done
Update company-level deduction amounts and limits for the upcoming year.
Use your audit reports to do the following: Verify that your company's legal name and address are correct on year-end forms. Verify your Federal Employer Identification Number (FEIN). Verify that earning and deduction codes print in the correct boxes. Verify that earnings are mapped to box 7 of Form 1099-NEC, and the correct IRS codes are printed. Verify that all of your employees and contractors appear on Form W-2 and 1099-NEC Audit Information. Review any letters in the Error column and review the Error Legend to understand the errors.
Notify Customer Support as soon as possible if you plan to pay any large bonuses, commissions, or stock awards at the end of the year. You may be required to process early or wire funds to meet the obligations of the resulting large payroll run. Early notification of Customer Support can avoid processing issues.
Update your unemployment rates as necessary. You are responsible for ensuring that these rates are correct. Maintaining the correct rates avoids potential penalty and interest charges relating to incorrectly paid taxes.
Update your state tax payment frequencies as necessary. You are responsible for ensuring that tax payment frequencies are correct so that related tax deposits are made on a timely basis. The timing of your tax deposits typically is based on the dollar amount of your liabilities from the previous year. State tax agencies may reassess the frequency. If you receive a notice of such a change, immediately update NetSuite. Tax deposits and filings are made based on the deposit schedule for each jurisdiction. Deposit schedules are set on the Jurisdictions subtab of the Set Up Payroll page. See Setting Preferences for Jurisdictions.

Task

Done

Update company-level deduction amounts and limits for the upcoming year.

Use your audit reports to do the following:

Verify that your company's legal name and address are correct on year-end forms.
Verify your Federal Employer Identification Number (FEIN).
Verify that earning and deduction codes print in the correct boxes.
Verify that earnings are mapped to box 7 of Form 1099-NEC, and the correct IRS codes are printed.
Verify that all of your employees and contractors appear on Form W-2 and 1099-NEC Audit Information.
Review any letters in the Error column and review the Error Legend to understand the errors.

Notify Customer Support as soon as possible if you plan to pay any large bonuses, commissions, or stock awards at the end of the year. You may be required to process early or wire funds to meet the obligations of the resulting large payroll run. Early notification of Customer Support can avoid processing issues.

Update your unemployment rates as necessary. You are responsible for ensuring that these rates are correct. Maintaining the correct rates avoids potential penalty and interest charges relating to incorrectly paid taxes.

Update your state tax payment frequencies as necessary. You are responsible for ensuring that tax payment frequencies are correct so that related tax deposits are made on a timely basis. The timing of your tax deposits typically is based on the dollar amount of your liabilities from the previous year. State tax agencies may reassess the frequency. If you receive a notice of such a change, immediately update NetSuite. Tax deposits and filings are made based on the deposit schedule for each jurisdiction. Deposit schedules are set on the Jurisdictions subtab of the Set Up Payroll page. See Setting Preferences for Jurisdictions.

Employee Year-End

Task	Done
If you use the Social Security Administration's service to verify that employee names and social security numbers match, begin the verification process without delay.
Update employee-level deduction amounts and limits.
Correct excess employee contributions to 401(k), 403(b), and SIMPLE plans.
Correct excess employee contributions to health care and dependent care spending accounts.
Notify employees to update their W-4 (Employee's Withholding Allowance Certificate) information, if applicable.
Notify employees to update their W-5 (Earned Income Credit Advance Payment Certificate) information, if applicable.

Task

Done

If you use the Social Security Administration's service to verify that employee names and social security numbers match, begin the verification process without delay.

Update employee-level deduction amounts and limits.

Correct excess employee contributions to 401(k), 403(b), and SIMPLE plans.

Correct excess employee contributions to health care and dependent care spending accounts.

Notify employees to update their W-4 (Employee's Withholding Allowance Certificate) information, if applicable.

Notify employees to update their W-5 (Earned Income Credit Advance Payment Certificate) information, if applicable.

Forms W-2 and 1099-NEC Year-End

Task	Done
Select a group of employees (totaling 5-6 individuals) to verify that items accurately print on the appropriate year-end form.

Task

Done

Select a group of employees (totaling 5-6 individuals) to verify that items accurately print on the appropriate year-end form.

Payroll Quarter-End Checklists

Company Quarter-End

Employee Quarter-End

Payroll Year-End Checklists

Company Year-End

Employee Year-End

Forms W-2 and 1099-NEC Year-End

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