What to Expect & How to Prepare for Year-End Payroll
Year-End (YE) in Payroll is the process of finalizing your payroll records for the year to ensure everything is accurate, compliant, and submitted to the correct tax authorities. This includes completing necessary filings, providing employee tax forms, and making any adjustments needed to prepare for the new tax year.
As the year comes to a close, there are key payroll steps you’ll need to take to ensure everything is filed correctly and on time. Being mindful of important deadlines and making the right adjustments will help you stay compliant.
This guide outlines the critical dates, tasks, and adjustments needed to successfully close out your payroll for the year.
Key Year-End Payroll Tasks
To complete Year-End payroll, these key filings are required:
W-2 Forms for employees.
1099 Forms for contractors.
Annual Returns (such as Forms 940, 943, and W-3) at both state and federal levels.
Additional adjustments may also be necessary, including:
Manual payments made outside of the payroll system.
Imputed income from certain benefits (such as Group Term Life insurance or company-provided property).
Final bonuses or stock payouts issued before the year-end.
Year-End Critical Dates
To ensure a smooth and compliant Year-End payroll process, please note the following important dates:
Monday, December 14, 2026:
Deadline for Q4 corrections. Submit any corrections by this date, including earnings paid outside of Housecall Pro Payroll and corrected payrolls. This gives you the most time to resolve them before year-end. We’ll still process Q4 corrections submitted after December 14 as quickly as possible, but we can’t guarantee they’ll be included in the original year-end filings.
Thursday, December 31, 2026:
Final payday of 2026: Any last-minute payrolls or voids must have a pay date on or before December 31 to be included in your original 2026 filings. Corrections are subject to a 20-business-day processing window, so corrections submitted after January 1 may not make it into the original filings, though we’ll do our best.
Electronic delivery consent deadline: Make sure employees and contractors have consented to electronic delivery of their W-2s and 1099s by this date. Anyone who hasn’t opted in will receive a printed copy by mail.
January 11–15, 2027:
Forms available in Housecall Pro. W-2s and 1099s will be available to download in your Housecall Pro account.
Week of January 18, 2027:
Paper forms mailed. Printed W-2s and 1099s are mailed during this week. Please note this is the mailing window, not the delivery date — delivery times depend on the postal service.
Monday, February 1, 2027:
Forms due to workers. This is the IRS deadline to provide W-2s and 1099s to workers. (The usual January 31 deadline falls on a Sunday in 2027, so it moves to the next business day.) Electronic copies will be available, and paper copies will be postmarked by this date.
W-2 Preview Is Now Available
Reviewing your employees’ W-2s now helps you catch issues like incorrect addresses, missing wages, or wrong withholding amounts while they can still be fixed in a regular payroll run. Once W-2s are filed, those same fixes require a corrected W-2 (Form W-2c), which takes more time for you and your employees.
Review your W-2 previews today. Take a few minutes to check each employee’s draft W-2 now, while there’s still time to make corrections in a regular payroll run. The earlier you review, the more time we have to help fix anything that doesn’t look right before W-2s are filed.
How to preview W-2s:
In the left sidebar, go to Team > Payroll.
Click the Documents tab at the top of the page.
Select Reports & taxes from the sub-tabs.
Under Payroll reports, find W-2 Preview.
In the Export report window, confirm the year (2026) and click Export.
Open the downloaded PDF and review each employee’s draft W-2.
What to check on each W-2:
Employee name, address, and Social Security number
Wages, tips, and other compensation (Box 1)
Federal income tax withheld (Box 2)
Social Security wages and tax withheld (Boxes 3 and 4)
Medicare wages and tax withheld (Boxes 5 and 6)
State wages and withholding (Boxes 16 and 17)
If anything looks incorrect, contact our support team before December 14 so we have time to make corrections.
ℹ️ Please note: W-2 Preview will be turned off in early January once final W-2s are published.
Important Reminders
Missing SSNs and IDs are a top driver of failed filings and amendments.
Data that must be right:
Company: Verify Federal, state, and local IDs are present and accurate. Replace any applied-for IDs.
Employees: Verify SSNs, resident addresses for mailed W-2s, and the workplace where they actually work.
Contractors: Verify SSN or TIN, individual vs. business classification, and address for mailed 1099s.
Data that’s often missing:
Workers paid outside Check: Add every worker with wages this year, including terminated and prior-provider workers.
Disability payments: If the employer files the W-2, send benefit amounts and taxes withheld via a support ticket.
Group term life: Report imputed cost of coverage over $50,000 as an earning.
2% shareholder earnings: Report as earnings. Submit missing amounts as a correction by Dec 14.
Payroll corrections: Voids, moved wages, and added benefits. Submit as soon as possible.
How to Prepare for Year-End Payroll
Step 1: Review All Payroll Records.
Ensure all payroll entries, including manual payments and bonuses, are accurate and properly recorded in your payroll system. This will help avoid any discrepancies when preparing for year-end processing.
Step 2:Take Note of Filing Deadlines.
Keep track of key dates and deadlines for filing. Create a timeline to ensure each Year-End task is completed on time to avoid delays.
Step 3: Reach Out for Support. If you have any questions or need assistance with adjustments before the year-end deadlines, our team is available to support you every step of the way.
Step 4: Complete Year-End Payroll Checklist - Due by December 30, 2024.
You can find the checklist in the HCP Payroll area of our website.
By following these steps and keeping these dates in mind, you’ll be well-prepared for a smooth and compliant close to your payroll year.
Year-End Payroll Checklist
To help streamline your Year-End payroll process, we’ve created a checklist to ensure all tasks and deadlines are met. This guide provides clear steps for filing requirements, special adjustments, and system resets.
By following this checklist, you’ll stay on track and minimize the risk of errors or missed deadlines.
How to Access the Year-End Payroll Checklist (w/ Video Tutorial)
Access the Year-End Payroll Checklist by following the steps below:
Log in to your HCP account.
Navigate to Team > Payroll tab and click Get Started on the Overview page.
Click Fix Now next to Review company tax information.
Click Go next to each step:
Review company tax information
Preview employee W-2 filings
Reminders
Click Finished in the top-right corner of the page.
You'll then be redirected to the Payroll Overview page, where you can review your tax filings by clicking the Check Tax Filings button.
Tax ID Verification
Purpose: Ensure all tax IDs are accurate for smooth year-end processing and filing.
Review Tax IDs: Confirm all federal, state, and local tax IDs in your payroll system are correct.
Update or Verify Changes: If your business has moved or changed entity types, verify any new tax IDs.
ℹ️ Please Note: Incorrect tax IDs can lead to filing errors or penalties.
Year-to-Date (YTD) Payroll Review
Purpose: Verify payroll accuracy, including earnings, tax withholdings, and deductions.
Verify YTD Entries: Ensure all payroll data for the year, including manual adjustments, is accurate.
Download Reports: Download the “Payroll Summary" by going to Payroll > Documents > Reports & taxes.
Check for Discrepancies: Compare YTD totals with previous records. Take note of any discrepancies promptly and reach out to us for assistance.
ℹ️ Please Note: Year-to-date previews help identify and fix errors, reducing the need for corrections.
W-2/1099: Employees & Contractors Data Review
Purpose: Allow employees/workers to opt for electronic or physical W-2/1099 delivery and verify their address to ensure accuracy.
Electronic W-2/1099 Opt-In: Remind employees to opt in for electronic delivery of their W-2 forms by the specified deadline. Electronic delivery ensures faster and secure access to W-2 forms, reducing delays and improving data security.
Physical Copy W-2/1099 Address Review: Encourage employees to log in to the employee portal to confirm or update their address. Ensures that forms are mailed to the correct address.
W-2 Retrieval and Electronic Delivery Guide
How Admins Can Retrieve W-2/1099 Forms
How Admins Can Retrieve W-2/1099 Forms
To access your employee's W-2 or contractor's 1099 form, follow these steps:
Log in to your HCP account.
Navigate to the Team > Payroll tab.
Under Payroll, select Employees & Contractors.
Find the employee or contractor and click Details on the far right.
Click the Taxes tab from the top menu of the employee or contractor profile.
From here, select Tax Documents to view or download the W-2/1099 form.
How Employees and Contractors Can Retrieve W-2/1099 Forms on Mobile
How Employees and Contractors Can Retrieve W-2/1099 Forms on Mobile
If your employee or contractor has an active HCP login, they can follow these steps to view and download their tax documents:
Log in to the HCP mobile app.
Tap the Menu icon (three lines) in the upper left.
Select Payroll.
Tap Tax Documents.
Choose the desired report or form and click Download on the far right to save it to their device.
How can the employee opt in for electronic delivery?
How can the employee opt in for electronic delivery?
If your employee(s) have an active HCP User login, they can opt-in for an electronic W-2 by updating their Tax Withholding information.
Please follow these steps:
Log in to your HCP mobile app.
Go to the Menu tab (tap the three lines icon in the upper left corner).
Click Payroll.
Select Tax Withholding.
Click on Update SSN.
You will see an option to opt in for the electronic W-2—just check the box to confirm and click Save to apply the changes.
💡 Pro Tip: You can also send your employees the direct link from the HCP mobile app to make it easier for them to opt in for an electronic W-2 by updating their Tax Withholding information.
When can they expect physical copies to be delivered if they have not opted in?
When can they expect physical copies to be delivered if they have not opted in?
Physical copies of W-2s and 1099s will be mailed to employees and contractors who have not opted for electronic delivery and should be received by January 31, 2025, in compliance with federal regulations.
Preparing for a Successful Payroll Year Ahead in 2027
Step 1: Collect 2027 SUI Rates.
Monitor for updates on state unemployment insurance (SUI) rates, which may come via mail or state notifications.
Update your records by sending us the new rates for your company.
Step 2: Update Benefit Contributions or Deductions for 2026.
Apply any changes to benefit contributions, such as health insurance, retirement plans, or other employee benefits, for the upcoming year.
Step 3: Employee Withholding Allocations.
Remind employees to review and update their federal (W-4) and state withholding forms to reflect any personal or financial changes for accurate tax deductions.
Step 4: Reset Sick and PTO Balances if needed.
Reset sick leave and PTO balances in HCP under the Time Off page to start the new year with the correct amounts.
By taking these steps, you’ll ensure that your payroll is ready to go smoothly into the new year with updated tax rates, employee benefits, and accurate leave balances.
Need help?
We're here for you! Chat with Support using the Blue Chat Bubble in your Housecall Pro account, or give us a call at (858) 842-5746.