Summary Definition: The fourth quarter of a calendar year and the first quarter of the following year, when organizations must complete several financial and tax tasks to comply with local, state, and federal laws.
Payroll year end is the fourth quarter of the calendar year and the first quarter of the following year. It’s a busy time in which HR and payroll teams must meet several financial and tax obligations to compy with local, state, and federal laws.
These obligations can include calculating tax liabilities and deductions, reviewing and filing tax returns, and preparing for upcoming changes to local, state, or federal tax laws.
While the end of a payroll calendar year may be December 31, the year-end process can span weeks or months before and after that date. The size of an organization’s year-end window varies based on several factors, such as the organization’s size, business, industry, etc.
For example, a large conglomerate with thousands of employees may need to start its year-end work in October and might not finish until early February. On the other hand, a local store with fewer than 25 workers may only need a couple of weeks in December to finish all their year-end tasks.
Regardless, businesses should plan accordingly to make sure they don’t accidentally miss any deadlines.
Each organization’s year-end process will be different based on its size, industry, etc. However, there are a few common tasks to keep in mind during this busy season.
Download Paylocity’s HR Year-End Checklist for a printable resource to help keep you on track.
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