Workflow Templates: Payroll Tax Compliance Checklist

Verify accuracy of each employee's personal information (name, address, social security number).

Ensure proper classification of workers (employee vs. independent contractor).

Maintain and update employee W-4 forms for current withholding allowances.

Review and validate the payroll system's tax calculation settings.

Ensure all payroll transactions are properly recorded and reconciled with bank statements.

Regularly audit the payroll system to check for discrepancies and errors.

Prepare and file federal, state, and local payroll tax returns by their respective deadlines.

Remit payroll taxes to the appropriate tax agencies on time.

Keep records of all filed returns and proof of payments.

Verify year-to-date payroll information for accuracy before closing the year.

Issue W-2 forms to employees and 1099 forms to contractors by the required deadline.

Reconcile Form W-3 and Form 941 totals to ensure consistency in reported wages and taxes.

Stay informed about changes in payroll tax laws and regulations.

Update payroll system tax tables and configurations according to new tax rates and rules.

Communicate any changes in payroll tax to employees and management.

Maintain organized payroll records for at least the minimum required retention period.

Document all payroll tax procedures and update them as necessary.

Secure payroll records to protect sensitive employee information from unauthorized access.

Payroll Tax Compliance Checklist