As your organization prepares for year-end payroll, it’s natural to have questions about federal tax forms, deadlines, upcoming compliance considerations, internal reporting, and how to implement payroll policy changes in the new year. 

Here, we’ll answer frequently asked questions about year-end tax forms and internal reporting processes to help you ensure timely filing and gain insights about your payroll policies as you transition into 2023.

Payroll Reports, Forms, and Protocols

In this section, we’ll answer questions about wage and tax information, including deadlines, electronic vs. paper filing, and which forms should be sent to the IRS or SSA to meet year-end payroll requirements for your organization.

Which forms should I submit to the IRS and SSA for contractors and employees? What are the filing deadlines?

All W-2 and W-3 forms must be electronically submitted to the IRS and SSA by January 31st. Depending on the tax laws where you’re located, you may also need to file your W-2s at the local and state levels. Speak with your payroll provider or a qualified tax consultant to clarify what is required for your region and industry.

1099-NEC forms are due by January 31st. These are filed for nonemployees (contractors) whose earnings met or exceeded $600, or for nonemployees who received more than $10 in royalty payments.

If you paid any nonemployee and documented payment using a 1099-NEC or 1099 MISC, you will also need to submit a Form 1096 to summarize these forms. Bear in mind that this is only required if you are filing your taxes by mail. In this case, Form 1096 is due February 28th.

When do I need to send tax forms to my employees? Which forms are necessary to remain compliant in the new year?

In order to file individual taxes, your employees will need employer-provided 1099 or W-2 forms. Employers are obligated to deliver these forms to employees by January 31st. If your organization provides health insurance, you may also need to send other forms, including a 1095-B or 1095-C.

Since local and state laws regarding salary thresholds and employee classification (exempt vs. nonexempt) are frequently in flux, remember to be mindful of IRS deadlines and protocols for W-4s, particularly for employees who may be shifting to exempt status in the new year.

Whether it’s sending 1099s, W-2s, 1095-Bs, or W-4s, remember to consult your payroll provider for the latest updates on what’s required for your specific locality, industry, and business structure.

What about payroll taxes, unemployment, and health insurance? Which forms should I file?

To report quarterly payroll taxes, including federal income taxes, social security, and Medicare, you must file a Form 941 by January 31st. Some small businesses and organizations may qualify for annual rather than quarterly payroll taxes, but only if their payroll taxes are less than $1,000 in a given year. If this is the case, they must submit a Form 944 by February 10th.

To fulfill Federal Unemployment Tax (FUTA) liability, you must complete and file Form 940 no later than February 10th.

Assuming your organization provides health insurance to employees, you must file Form 1095-B (submitted to the IRS and to each participating employee) by March 31st.

W4 Guide

What are the benefits of running internal year-end payroll reports? How can it improve my payroll policies?

A year’s worth of payroll information is actually a storehouse of historical data that can be leveraged to strengthen your payroll policy and processes in the new year. With the first quarter of the new year on the horizon, year-end payroll reports can be especially helpful in preparing for a new cycle of recruitment, hiring, and onboarding. They can also be used to demonstrate your investment in providing employees with data that helps them gauge their accomplishments within the organization, manage PTO, and monitor their financial progress via wages, retirement and other benefits and perks.

In addition to offering broadscale insights about employees’ reported overtime, attendance issues, or pay rate (particularly important for compliance in the new year), reporting can also alert you to issues with absenteeism or time theft. When it comes to PTO, workers’ compensation, and retirement compensation, internal reporting provides opportunities to improve employee engagement and organizational policy. For instance, by producing a PTO report, you can better plan scheduling and staffing in the new year (for you and your staff). A workers’ compensation report allows you to make company premium adjustments with your insurance provider based on utilization. Retirement reports (drawing from individual employee information) can help your employees track their long-term financial progress, make informed budgeting decisions, and adjust retirement contributions to meet their goals.

Enjoy Integrated Payroll and In-Depth Reporting with Cello HR

Completing payroll tax filing in an accurate and timely way can be a burdensome task when handled without the support of a professional payroll provider. That’s why Cello HR offers an intuitive and integrated payroll platform that simplifies your entire payroll process. Our goal is to make your organization’s year-end payroll process hassle-free and keep your payroll streamlined, legally compliant, and synthesized with all other facets of your HR and HCM practices (from talent acquisition to timekeeping and benefits administration).

Ready for stress-free filing, in-depth reporting options, and easy-to-use mobile features for your employees? Contact us today to let us know how we can support you – now and throughout the new year.