Year-end 2021 – Payroll Tasks and Processes for Finalizing/Closing the Books

The deadline for filing the 4th quarter and 2021 annual payroll and information returns is January 31, 2022.
  • Review and update employee information if necessary
  • Download payroll updates to access current forms
  • Reconcile wages reported on Form W-3 to totals reported on quarterly Form 941s, or annual Form 943 or 944
  • When preparing W-2s, print a test copy to ensure correct printing on forms
  • Submit appropriate W-2 copy to employee, Social Security Administration, and state department of revenue
Updates for 2022 Payroll
  • Update rate for state unemployment for 2022, if applicable
    Update employee federal and/or state withholding, if requested

2021 has ended – it is time to begin the process of finalizing and closing the books.

Reconcile the Balance Sheet
  • Reconcile Bank & Credit Card Accounts. Void/Make adjustments for old outstanding items.
  • Review Accounts Receivable balances. Fix unapplied customer payments. Make contact with customers with overdue payments. Write off accounts deemed uncollectible.
  • Perform a Physical Inventory Count. Make adjustments where needed.
  • Confirm fixed assets additions and disposals have been recorded, along with corresponding depreciation.
  • Review Accounts Payable balances. Confirm all bills have been recorded. Fix unapplied vendor payments. Verify all information is obtained for 1099 preparation.
  • Review loan balances. Adjust for interest paid.
  • Review any remaining asset and liability account balances.
Review the Profit & Loss Statement
  • Review accounts for misclassified transactions or items that should be capitalized.
  • Review expense accounts and determine if 1099s should be prepared.

For assistance with Year-end tasks, contact Heather Lehr at (320) 314-6803.