Tips to Close the Year Right

It’s hard to believe, but 2025 is almost in the books—and that means it’s time to start thinking about year-end payroll. Closing out the year properly is more than just a formality; it sets your business up for smoother reporting, accurate taxes, and fewer headaches in 2026.

At AdvantEdge HR, we want to make this process as stress-free and straightforward as possible. Here’s a practical checklist to guide you through your last payroll of the year.

1. Verify Employee Information

Before you process your final payroll, make sure all employee details are accurate.

• Names, home addresses, email addresses, and Social Security numbers should be up to date.
• If employees moved this year, double-check that their new addresses are updated in the system.

Accurate records here mean fewer corrections later, especially when it comes to W-2s.

Tip: If you’re unsure about any information or need help updating the system, reach out to your AEHRB team—we’re here to help.

2. Check Taxable Fringe Benefits and W2 Reporting

Year-end payroll isn’t just about wages—it’s about making sure benefits are correctly reported.

• Third-party sick/disability pay: Contact your state or insurance company for your year-end statement and provide it to your payroll team.
• S-Corp shareholder insurance: If applicable, report totals to AEHRB in writing.
• HSAs, HRAs, and other medical contributions: Track these throughout the year to ensure proper W2 reporting.
• Group life insurance over $50k: Keep a record so your W-2s reflect the correct amounts.

3. Access W-2s and 1099s

For our clients using AEHRB’s platform:

• W2s are available online through your payroll system for company admins and employees.
• If you use WorkforceHUB for timekeeping, W-2s will be automatically uploaded to employees’ portals.
• Ensure employees are registered for Employee Self-Service (ESS) to access their forms.

Want hard copies? Email us to request them—shipping fees apply.

4. Update Policies and Handbooks

Year-end is a great time to make sure your policies are current and ready for 2026, for example:

• Roll out any memorandums or updates into your handbook.
• Review recent tax and labor law changes and adjust policies as needed.
• Set company and team goals for the new year—this ensures everyone starts 2025 on the same page.

5. Plan Ahead for 2026

Closing out the year isn’t just about paperwork—it’s about setting up success. Take a few minutes to:

• Review your payroll processes and identify any areas to streamline.
• Set reminders for quarterly check-ins and tax deadlines.
• Make sure your team knows who to contact with questions in the new year.

Partner with AdvantEdge HR for Expert Guidance Year-Round

Processing your end-of-year payroll doesn’t have to be a hassle. With a few simple checks, your 2025 payroll can close smoothly, giving you confidence and clarity as you head into 2026.

If you have questions about your year-end payroll, W-2s, or policy updates, reach out to AdvantEdge HR today. We’re here to help ensure your business starts the new year off right.