A correction found in November is easier than one found in January. Work through these steps before your final payroll of 2026. Holiday weeks start November 11; see section 07 for shifted pay dates.

Table of Contents

• Key Dates
• Verify Company Information
• Verify Employee Information
• Verify Contractor Information (1099)
• Account for Every Payroll and Payment
• Record Special Items by December 7
• Review W-2 Previews
• Plan Around Holiday Pay Dates
• Set Up W-2 and 1099 Delivery by December 31
• Plan for 2027

PDF Version

We offer a PDF version for those that would prefer it:

 Arcoro Year-End Payroll Checklist 2026

Key Dates

Most important step: review your W-2 previews. Take a first look in November to spot gaps, then do a full review after completing sections 01 to 05. See section 06.

Verify Company Information

• FEIN matches your IRS records exactly, for each company you run payroll for.
• State withholding and unemployment IDs on file in your tax parameters for every state with employees, including states added this year.
• Tax filing authorization uploaded for each state added this year, so we can file there.
• Local tax IDs (city, county, school district) on file in your tax parameters wherever local taxes apply. 
• Any "Applied For" IDs replaced with final IDs in your tax parameters. 
• Your company is in good standing with each agency.

Verify Employee Information

What's on file now is what prints on year-end forms. Review every current and terminated employee paid in 2026.

• SSNs complete, valid and matching the employee's card
• Legal names match Social Security records, with this year's name changes applied 
• Resident and workplace addresses current, so the right state and local taxes apply 
• Terminated employees marked terminated with a termination date (they always receive mailed forms) 

Verify Contractor Information (1099)

• SSN or EIN on file
• Individual vs. business classification confirmed
• Current address on file
• Contractor payments made outside Arcoro reported to us (1099-NECs are required for contractors paid $2,000 or more in 2026, up from $600)

Account for Every Payroll and Payment

Arcoro can only file for wages entered into the system.

• Payroll schedules reviewed through year end, with regular and off-cycle payrolls (such as holiday bonuses) set up 
• Final 2026 payrolls have a pay date on or before December 31, 2026 (wages count in the year they are paid) 
• Manual checks and cash payments made outside a regular run recorded in payroll 
• Mid-year adopters: prior and terminated employees and their wages added as historical pay 

Record Special Items by
December 7

Common examples are below, but this isn't a complete list. Record any other pay or taxable benefits provided outside your regular payroll too.

• Taxable fringe benefits added to wages before your final 2026 payroll, such as personal use of company vehicles, non-accountable per diem or allowances, and gift cards 
• Employer cost of health coverage set up for W-2 Box 12, Code DD (required if you filed 250 or more W-2s last year) 
• Planned 2026 employer HSA contributions and 401(k) true-ups run through payroll by December 31 
• Benefits for S corporation shareholders who own more than 2% recorded as earnings 
• Third-party sick pay sent to Arcoro: taxable benefits, taxes withheld and the carrier notice 
• Imputed income for group term life coverage over $50,000 recorded in Arcoro, if not tracked per payroll 

Review W-2 Previews

Start in November, then review again after recording special items. Errors found after W-2s publish need corrected W-2s.

• W-2 previews reviewed for every employee, including overtime in Box 12, Code TT. Keep a list of any overtime that doesn't qualify (union, state-law or policy premiums) 
• W-2 totals match your payroll summary: federal, Social Security, Medicare, state and local 
• Draft W-2s shared with employees to catch a wrong name or address 

Plan Around Holiday Pay Dates

• Pay Schedule report pulled and holiday-impacted pay dates reviewed; off-cycle payrolls dated on a business day 
• Earlier approval deadlines for Thanksgiving, Christmas and New Year's weeks on your calendar 
• January 1 payday: confirmed that paying on December 31 makes those wages 2026 wages, reported on 2026 W-2s 

Set Up W-2 and 1099 Delivery by December 31

• Company W-2 and 1099 delivery methods reviewed and saved under General Information in Payroll (your company setting overrides worker choices)
• Workers reminded to opt in to paperless delivery and confirm their resident address

Plan for 2027

• 2027 benefit deductions, contribution amounts and effective dates confirmed 
• New 2027 state unemployment (SUI) rates entered when your notices arrive 
• Employees reminded to update their W-4 for 2027
• Roth catch-up setting turned on in the employee profile for employees 50+ whose 2026 FICA wages exceed the IRS threshold 
• Cash planned for a larger first 2027 tax debit, as Social Security and unemployment wage bases restart 
• 2026 payroll register and tax summary saved for your records