Close the books with zero surprises (and fewer fire drills)
As an accountant, year-end can feel like a scramble of W-2s, 1099s, tax deadlines, and late-night data cleanup. But it doesn’t have to. With the right systems in place and the right tools in your corner, you can breeze through payroll prep confidently and efficiently.
Here’s your Gusto-optimized year-end payroll checklist to help you get ahead of January deadlines, reduce compliance risks, and deliver more value to your clients.
1. Clean Up Employee & Contractor Data
Start with the foundation: clean data.
☐ Review all employee info: Social Security numbers, addresses, email addresses
☐ Confirm terminated employees are marked correctly and final pay has been processed
☐ Verify contractor details, including TINs
☐ Double-check worker classifications (W-2 vs. 1099)
☐ Confirm 2% S-Corp shareholders (this affects tax treatment)
2. Prep for W-2s & 1099s
Once your data’s clean, shift focus to year-end documents.
☐ Reconcile YTD pay—including bonuses, commissions, tax-exempt income, and any benefits
☐ Enter any manual or off-cycle payments into Gusto
☐ Collect missing W-9s from contractors
☐ Complete Gusto’s special compensation survey
☐ Add S-Corp shareholder insurance details
☐ Confirm digital or paper delivery settings for W-2s/1099s
3. Validate Tax Payments & Filings
Avoid discrepancies that could trigger penalties.
☐ Confirm all payroll taxes have been paid—federal, state, and local
☐ Reconcile Forms 941 with year-to-date totals
☐ Check which filings Gusto covers for each client
☐ Flag any state-specific forms that aren’t automatically filed
4. Prep for January 31 Deadlines
The IRS deadline to distribute W-2s and 1099s is January 31—don’t let it sneak up.
☐ Confirm W-2/1099 delivery preferences for every client
☐ Schedule any remaining 2025 payroll runs (bonuses, fringe benefits)
☐ Set internal cutoff dates for processing year-end client requests
5. Keep Clients Informed
Clear, proactive communication reduces stress—for both you and your clients.
☐ Clarify what Gusto handles vs. what the client needs to do
☐ Provide a simple checklist or FAQ tailored for each client
☐ Offer a year-end payroll review to surface hidden issues
☐ Educate clients on payroll/tax law changes for 2025
6. Use Gusto’s Built-In Tools
Gusto is built for year-end efficiency—use it to your full advantage.
☐ Follow Gusto’s in-app Year-End Checklist to monitor progress
☐ Export a Payroll Summary report for client records
☐ Preview W-2s and 1099s in the Documents tab
☐ Enable alerts to flag missing data or filing blockers
