A quick review at the end of each quarter helps ensure payroll records are accurate, tax obligations are met, and reporting remains aligned across payroll, finance, and HR teams.
Payroll data plays an important role in tax filings, financial reporting, and employee records. Taking time to review key areas before quarterly filings can help identify issues early and reduce the need for corrections later.
Review Payroll Data
Check all payrolls processed during the quarter and confirm that:
- Employee wages, bonuses, and commissions were paid correctly
- Employee classifications are accurate
- Off-cycle payrolls were processed as intended
- There are no duplicate or missing payroll entries
Identifying discrepancies before quarter-end can help avoid additional adjustments and reporting complications.
Verify Employee Information
Review employee records to ensure key information is up to date, including:
- Legal names
- Social Security Numbers
- Tax withholding elections
- Work locations and tax settings
- Benefits and deduction configurations
Accurate employee information supports correct tax calculations and reporting.
Review Tax Withholdings and Liabilities
Confirm payroll taxes have been calculated and processed correctly, including:
- Federal income tax
- Social Security and Medicare taxes
- State and local taxes
- Employer tax liabilities
It's also a good idea to verify that required tax deposits have been submitted according to applicable filing schedules.
Confirm Tax Account Information
Before the end of the quarter, ensure all required tax account information has been provided and validated, including:
- Federal tax ID numbers
- State and local tax ID numbers
- Agency account numbers
- Newly issued tax registrations
- Updates to existing tax accounts
Missing or incorrect tax account information can delay tax payments and filings, which may result in penalties, interest, or additional compliance requirements.
If any tax ID numbers or agency account numbers are outstanding, provide the required information as soon as possible to help ensure taxes can be filed and paid on time.
Important: If required tax ID numbers are not provided before the end of the quarter, tax funds associated with those agencies may be refunded to your organization. In that case, your organization will be responsible for filing the applicable tax returns and remitting payments directly to the appropriate tax agencies.
Reconcile Payroll Records
Compare payroll data across your systems to ensure consistency.
Common reconciliation checks include:
- Payroll registers against the general ledger
- Payroll reports against tax filings
- Year-to-date totals against internal records
Regular reconciliation can help identify discrepancies before filing deadlines.
Review Benefits and Deductions
Verify that employee deductions and employer contributions are accurate, including:
- Health and insurance benefits
- Retirement contributions
- Garnishments and other withholdings
Reviewing deductions each quarter can help catch unintended changes before they affect reporting.
Validate Contractor Payments
If your organization works with contractors, review payments made during the quarter and confirm that:
- Payments were recorded correctly
- Contractors are classified appropriately
- Payroll taxes were not applied where they should not be
Accurate contractor records support year-end reporting requirements.
Common Issues to Watch For
Some of the most common quarter-end payroll challenges include:
- Missing payroll entries
- Duplicate payments
- Incorrect employee setup
- Outdated tax withholding information
- Missing tax ID numbers or agency account information
- Last-minute payroll adjustments
Addressing these issues before filing deadlines can help reduce administrative effort later.
Recommended Best Practices
To help keep payroll records accurate and compliant:
- Conduct a payroll review before quarterly filing deadlines
- Verify all tax account numbers and registrations are on file
- Maintain supporting payroll documentation
- Resolve discrepancies as soon as they are identified
- Keep payroll, finance, and HR teams aligned on changes
- Process corrections separately when appropriate
After Your Review
Once your review is complete:
- Finalize payroll data for the quarter.
- Confirm tax liabilities, deposits, and account information.
- Prepare any required quarterly filings.
- Resolve outstanding discrepancies before the next quarter begins.
A consistent quarter-end review process helps support accurate payroll reporting, compliance obligations, and smoother year-end preparation.