Year-end payroll checklist What to check in December and file by February 1, 2027

Why most dates land on February 1

January 31, 2027 is a Sunday. Federal rules move a due date on a weekend to the next business day. So most January 31 deadlines for 2026 land on Monday, February 1, 2027. The IRS says so outright for Form W-2. The 2026 General Instructions for Forms W-2 and W-3 set the filing date as February 1, 2027, for paper and electronic filing alike.

Some state agencies print their own date. Read each state’s booklet rather than assuming.

In November: clean up the records

1. Ask each worker to check their name, address, and Social Security number in your payroll system. A typo here becomes a wrong Form W-2 in January.
2. Ask each contractor you paid this year for a current Form W-9 if you do not have one. You need their tax ID for Form 1099-NEC.
3. List everyone you paid in 2026: employees, former employees, and contractors. Former workers still get a Form W-2.
4. Decide on year-end bonuses and gifts now, so they run through payroll before December 31.

In December: before the last payday

1. Check year-to-date wages for anyone near the 2026 Social Security cap of $184,500. Their Social Security line should stop at the cap.
2. Run any bonus, commission, or taxable fringe benefit on a 2026 check if it belongs in 2026.
3. Confirm your last 2026 payday date. A check dated January 1, 2027 counts as 2027 pay.
4. Pay any state unemployment tax you owe on time. Late state tax can cut your federal unemployment credit.
5. Look for 2027 rate notices from each state, and enter them before the first 2027 payday.

New numbers for January 1, 2027

A few federal and state figures change with the calendar year. These are the ones published so far that touch most small employers.

• Social Security wage base: $192,300 for 2027, up from $184,500, per the SSA contribution and benefit base page. 2027 Social Security wage base has the details.
• California State Disability Insurance withholding: 1.4 percent for 2027, up from 1.3 percent, per the EDD rates page. The California page has the rest of the setup.
• Form W-4 exemptions: a worker who claimed exempt for 2026 must give you a new Form W-4 for 2027. The 2026 Form W-4 says the new form is due by February 16, 2027.

State unemployment rate notices usually arrive in December or January. Use the rate on the notice, not last year’s rate.

By February 1, 2027: federal filings

Form W-2. The IRS instructions say you must e-file if you file 10 or more information returns in total, counting Forms W-2 and 1099 together. You can ask for one 30-day extension to file with SSA on Form 8809, only in limited cases. That extension does not give you more time to hand copies to your employees. How to file W-2 forms walks through each box.

Form 1099-NEC. The threshold rose to $2,000 for payments made in 2026. There is no automatic extension. How to file a 1099-NEC covers Form W-9 and filing through IRIS, the IRS free e-file system.

Form 941. The Form 941 instructions put the fourth-quarter return at the end of the month after the quarter, moved to the next business day on a weekend. If you deposited all the tax on time and in full, you get until the 10th day of the second month after the quarter. For the fourth quarter that is February 10, 2027. Form 941 covers the lines.

Form 940. The current Form 940 instructions are for tax year 2025. They moved a weekend January 31 to the next business day, and gave ten more days to employers who deposited all FUTA tax on time. The same rule points to February 1 and February 10, 2027 for 2026. If your fourth-quarter FUTA tax plus any earlier undeposited amount is more than $500, deposit it by the due date. Form 940 and FUTA tax covers the credit and the deposit rule.

By the end of January: state filings

Each state has its own fourth-quarter returns and often a yearly withholding reconciliation. Three examples from guides on this site:

• Oregon: the fourth-quarter Form OQ and Form 132 are due February 1, 2027. Form OR-WR, the yearly withholding reconciliation, is a separate filing due by January 31. Oregon Form OQ covers both.
• Arkansas: the fourth-quarter contribution and wage report to the Division of Workforce Services is due January 31, per its handbook. Arkansas Tax21 has the penalties for filing late.
• California: the quarterly returns go to the EDD, the state office for employer payroll tax accounts. If you just started paying wages, California EDD employer registration covers the 15-day clock.

Some states also want your Forms W-2. The Oregon booklet, for one, says Forms W-2 go to the Department of Revenue electronically through iWire. Check your state’s page. Oregon, Arkansas, and the other state pages list the agency links.

If you find a mistake

Fix it in the right place. A wrong Form W-2 after you file is corrected on Form W-2c. A wrong Form 941 is corrected on Form 941-X. A wrong state return uses that state’s amended form. Before you file, a fix in the payroll system is enough. That is why the November record check matters.

Where payroll software fits

Most payroll plans file Forms W-2, 941, and 940 for you, and many file 1099-NEC too. Read the plan’s help page. State year-end returns vary more by plan. The methodology page explains how we grade the state side. Gusto is one plain link. Patriot is the other service on this site. Either way, the records you clean up in November are what the software files in January.