2025 Payroll Prep Checklist

Dec 9

Get Your Payroll Ready for 2025

The new year is just around the corner, and now is the perfect time to ensure your payroll system is ready for 2025. Payroll preparation can feel overwhelming, but with the right steps in place, you can start the year with confidence. Here’s a quick checklist from Authentic Consulting Group to help you get started:

1. Review and Update Employee Information

Confirm employee addresses, Social Security numbers, and tax withholding forms (like W-4s).
Ensure all new hires from late 2024 are correctly set up in your payroll system.

2. Verify Tax Rate Changes

Check for updated federal, state, and local tax rates.
Update unemployment insurance rates and other applicable payroll taxes.

3. Audit Year-End Payroll Data

Reconcile total wages, benefits, and tax payments for 2024.
Ensure accurate reporting of year-to-date earnings and deductions.

4. Prepare for Year-End Forms

Order and distribute W-2s and 1099s by the January 31, 2025 deadline.
Ensure electronic filing systems are ready if required.

5. Review Benefits and Deductions

Update health insurance, retirement plan contributions, and other benefits for the new year.
Check for changes in deduction amounts due to new elections during open enrollment.

6. Check Compliance Requirements

Verify minimum wage updates for applicable states and jurisdictions.
Ensure compliance with new regulations that go into effect in 2025.

7. Plan for Payroll Schedule Adjustments

Adjust for holidays and weekends in your 2025 payroll calendar.
Notify employees of any changes to payday schedules.

8. Test Your Payroll System

Run a test payroll to identify any errors or inconsistencies.
Verify direct deposit systems and payroll software updates.

9. Communicate with Your Team

Inform employees about year-end deadlines and changes for the new year.
Provide resources for understanding W-2s and tax season preparation.

10. Engage a Trusted Payroll Advisor

Partner with a payroll expert to ensure compliance and accuracy.
Leverage consulting services to streamline your payroll process for the upcoming year.

By completing this checklist, you’ll position your organization for a smooth and compliant payroll experience in 2025. Authentic Consulting Group is here to support you with expert advice and tailored solutions for all your payroll and

Laura Stoesz