Start in October
Year-end payroll is the compliance department's Super Bowl. The teams that win it are the ones who start in October, not December.
Pull a wage-and-tax register in October to identify variances between what payroll withheld and what the general ledger reflects. Small deltas caught now become large ones you cannot reverse in January.
November: verify the data you will print
Confirm names, addresses and taxpayer identification numbers before forms are generated. A correction after distribution costs several times what verification costs beforehand.
December: freeze and reconcile
Agree your final payroll calendar, reconcile quarter by quarter, and document every adjusting entry while the reason is still fresh.
Key takeaways
- Reconcile in October, not January.
- Verify identity data before forms are generated.
- Document adjusting entries as you make them.
Priya Anand, CPP
Payroll Practice Lead, Compliance Prime
