This checklist helps you review key payroll, tax, and employee details before closing out the US tax year, so your year-end forms are accurate and ready on time.
Subscribe to our US Payroll and Benefits Critical Updates page for more important payroll and benefits announcements, year-end guidance, and deadline reminders.
✅ Prepare Company and Tax Details
Review your company setup to make sure everything matches official tax records. (US Payroll > Payroll Setup > Company Taxes)
- Confirm the legal company name aligns with IRS records (CP575 or 147C), the FEIN is correct, and the company address is up to date.
- Check that all state tax account numbers, tax rates, and State Unemployment Insurance (SUI) rates are accurate for every state where you operate.
✅ Review Employee and Contractor Information
Before year end, audit worker details to avoid corrections later.
For employees, confirm:
- Legal names match Social Security cards
- Social Security numbers are correct
- Home addresses are current
- Review employment status (active or terminated)
- Employee classifications (full-time/part-time, exempt/non-exempt)
- Ensure S-corp employees are correctly marked as 2% shareholders where applicable, typically under US Tax Settings in Core
- Tax status is designated, typically under US Tax Settings in Core
- W-2 delivery method is selected, typically under US Tax Settings in Core
For contractors, verify:
- A Bob Core employee profile exists for each Contractor
- Legal or business names
- SSNs or FEINs
- Contractor type (individual vs. business)
- Confirm total payments reflect everything paid through the platform
- Tax status is designated, typically under US Tax Settings in Core
✅ Audit Payroll Wages
- Make sure all payrolls intended for the tax year have been run using the correct check dates.
- Review wages, bonuses, commissions, overtime, retro pay, and tips (if applicable) for accuracy.
- Confirm taxable fringe benefits are included, such as group-term life insurance, personal use of a company car, fitness reimbursements, or moving expenses.
- If you have S-corp employees, verify health insurance is properly recorded.
✅ Review Pre-Tax and Post-Tax Benefits
- Check all pre-tax deductions, including 401(k), 403(b), HSA, FSA, and commuter benefits.
- Confirm annual limits haven’t been exceeded and identify employees eligible for catch-up contributions.
- If any benefit adjustments or corrections are needed, make sure they’re communicated before filing deadlines by contacting Support.
✅ Validate Tax Withholding and Employer Taxes
- Review federal income tax withholdings for major discrepancies and confirm state and local tax elections are correct.
- Ensure no employees were incorrectly marked as tax exempt.
- Scan employer tax liabilities for anomalies and confirm any variances are resolved or actively being addressed.
✅ Check Off-Cycle, Historical, and Manual Payrolls
- Confirm all off-cycle checks for the tax year are entered.
- Submit any historical or external payroll data by the 12/19/26 deadline.
- Review manual checks for accuracy and make sure no wages intended for the current tax year were processed with a 2027 check date.
✅ Review Draft W-2s and 1099s
- Review W-2s and 1099 drafts carefully. (Drafts are available after 11/19/26 upon request by contacting Support. Once W-2s are finalized, draft versions will no longer be available.)
- Check legal names, SSNs, addresses, wages, taxes withheld, and contractor payment totals.
- Flag any discrepancies as early as possible and confirm all workers are correctly classified and included.
✅ Confirm Final Payroll Deadlines
- Review 2026 payroll submission deadlines based on your deposit speed and pay schedule:
- 4-day payroll: December 23, 2026
- 2-day payroll: December 28, 2026
- Ensure bonuses, commissions, and fringe benefits are processed before the final cutoff.
✅ Prepare Employee Access to Tax Forms
- Make sure terminated employees have a personal email address entered on their Bob profile so their W-2 can be received automatically via email. If not, they must contact their Admin to receive their form as terminated employees cannot access Bob.
- It’s also a good idea to remind employees to update their personal information before forms are finalized.
✅ Distribute Final Tax Forms
Final W-2s and 1099s will be made available electronically by January 20. Distribute paper copies (if required) by January 31.