The weeks between the end of the year and the end of January are some of the busiest for small employers. Several federal filings are due at once, and most of them depend on information you can clean up now, in the fall, while there is still time. This checklist covers the major deadlines and the preparation that makes them go smoothly.
The January 31 cluster
Several of the most important federal payroll filings share the same deadline: January 31. When that date falls on a weekend or legal holiday, the deadline generally moves to the next business day. January 31, 2027 is a Sunday, so filings for the 2026 tax year that are due on that date are generally due Monday, February 1, 2027. Confirm dates each year with your payroll provider or tax professional.
- Form W-2. Furnish to each employee and file with the Social Security Administration.
- Form 1099-NEC. Furnish to each independent contractor you paid at or above the reporting threshold, and file with the IRS. Federal legislation enacted in 2025 changed the reporting threshold beginning with payments made in 2026, so confirm the exact threshold in the current IRS instructions for Form 1099-NEC before deciding who receives one.
- Form 941 for the fourth quarter, reporting federal income tax withholding and Social Security and Medicare taxes.
- Form 940, the annual federal unemployment (FUTA) tax return, for employers subject to FUTA.
Your state will have year-end filings as well. North Carolina employers, for example, file an annual withholding reconciliation, Form NC-3, with the North Carolina Department of Revenue by the end of January.
What to do this fall
Verify employee information
Names and Social Security numbers on Form W-2 need to match Social Security Administration records. Ask employees to confirm their legal name, mailing address, and Social Security number now, especially anyone who married, moved, or changed their name during the year.
Collect Form W-9 from every contractor
You need each contractor's legal name and taxpayer identification number to issue Form 1099-NEC. The best practice is to collect Form W-9 before the first payment. If any are missing, request them now rather than in late January.
Review contractor classification
Year-end is a natural checkpoint for confirming that the people you pay as independent contractors really are contractors. The label in a contract does not decide the question. Federal and state agencies look at the working relationship, including how much control you have over how the work is done and whether the person operates an independent business. Misclassification can lead to back taxes, penalties, and wage claims.
Reconcile payroll
Compare year-to-date payroll totals with what was deposited and reported on your quarterly returns. Look for taxable fringe benefits that need to appear on Form W-2, such as personal use of a company vehicle. Gift cards given to employees are treated like cash and are taxable wages, regardless of the amount.
Confirm your status under the Affordable Care Act
Employers with 50 or more full-time employees, including full-time equivalents, are generally applicable large employers under the Affordable Care Act and have additional reporting obligations on Forms 1094-C and 1095-C early in the year. If you are near that threshold, confirm your status with your benefits advisor.
HR housekeeping that is easier at year-end
- Review the handbook. Update policies for law changes that took effect this year or take effect January 1. See our employee handbook service if yours needs more than a light update.
- Refresh required postings. Confirm your federal and state workplace posters are current, and that remote employees can access required notices.
- Purge I-9 forms you no longer need. Employers must keep Form I-9 for each employee for three years after the date of hire or one year after employment ends, whichever is later. Forms past that point can be securely destroyed. Keeping I-9s separate from personnel files is a sound practice.
- Confirm E-Verify obligations. Some states require private employers to use E-Verify. North Carolina, for example, requires employers with 25 or more employees in the state to use it. If you crossed that number this year, act now.
- Review paid time off carryover. Make sure your policy clearly explains what happens to unused time at year-end, and follow it consistently. In some states, accrued vacation can be treated as wages owed at separation depending on how the policy is written.
- Plan for minimum wage changes. If you have employees in states or cities that raise the minimum wage on January 1, update pay rates before the first payroll of the year.
A note for business owners
Payroll deadlines are not the only annual obligations. Most states require an annual report to keep a business in good standing. In North Carolina, LLC annual reports are due April 15. A missed annual report can eventually lead to administrative dissolution. If that has already happened, our guide to reinstating a dissolved LLC in North Carolina walks through the process.
How we can help
An HR compliance audit is a practical way to get ahead of year-end: we review classification, onboarding paperwork, records, and policies, and help you correct issues before filing season rather than during it.
This article is general information, not legal, tax, or financial advice. Laws and agency guidance change, so confirm current requirements with a qualified professional before acting. Last reviewed September 30, 2026.