Year-end payroll is one of those things every business owner knows is coming — and most still scramble through it at the last minute. Between W-2s, tax filings, benefits reviews, and compliance updates, there are a lot of moving pieces, and getting any one of them wrong can mean penalties, frustrated employees, or a mess you're untangling well into the new year. This episode is the practical checklist you need to close out the year cleanly and walk into January ready.
In this episode, you'll learn:
- Every form and report you need for year-end payroll — W-2s and when to distribute them (don't wait until the last minute — your employees are waiting on refunds), W-3s, 1099-MISC for any contractor paid more than $600, Form 940 and 941 for federal unemployment and quarterly payroll taxes, state payroll reports, your payroll reconciliation report, and the payroll register — plus why employee and contractor classification needs to be audited before these go out
- The four-part year-end payroll checklist — employee data and records (verify contact info, tax withholdings, benefits enrollments, and emergency contacts before November if possible), compliance and legal requirements (confirm local labor law compliance, update tax information including the January 2025 exempt salary threshold change, and conduct a records audit), year-end reporting (generate W-2s early, file annual payroll tax returns on time, reconcile earnings and tax reporting), and preparing for the new year (update payroll software with new tax rates, evaluate employee benefits for the upcoming year, communicate changes transparently with employees)
- What to actually do about overtime right now — why you should be looking at overtime data every single payroll (not just at year-end), why your handbook needs a policy requiring supervisor approval before overtime is worked, and how to use overtime trend data to make educated workforce planning decisions — including when it's time to bring in a part-time employee or contractor instead of burning out your current team
- Why lifestyle spending accounts are worth your attention as a small business owner — how Salt and Light Advisors provides $350 per employee annually through a lifestyle spending account that employees can use for anything from individual health plans and dental to therapy, fertility treatments, teen coaching, gym memberships, and wellness tools — and why this approach can be more practical and attractive for small businesses than a traditional group health plan
- Why year-end payroll is also a people operations moment — why more than 50% of employees report that financial stress changes how they operate at work, why handing an employee a W-2 and nothing else is a missed opportunity, and how offering financial literacy resources (Dave Ramsey materials, LinkedIn Learning, book clubs, referrals to local financial institutions) can meaningfully impact retention and morale heading into the new year
Chapter Markers:
- 00:00 — Why Year-End Payroll Matters and Why HR Pros Need to Care
- 01:51 — Year-End Payroll Forms Overview: W-2, W-3, 1099, 940, 941 and More
- 04:33 — Checklist Part 1: Employee Data and Records
- 06:12 — Reviewing Overtime Hours and Building an Overtime Policy
- 07:31 — Assessing Benefits and Deductions (And What Your Insurance Broker Should Be Doing)
- 09:15 — Checklist Part 2: Compliance and Legal Requirements
- 10:06 — Updating Payroll Tax Information (Including January 2025 Salary Threshold Change)
- 10:51 — Conducting a Records Audit Before Year-End
- 11:53 — Checklist Part 3: Year-End Reporting
- 13:13 — Filing Annual Payroll Tax Returns and Reconciling Earnings
- 16:01 — Checklist Part 4: Preparing for the New Year
- 16:25 — Updating Payroll Software for the New Year
- 17:29 — Setting Employee Benefits for the New Year (Lifestyle Spending Accounts)
- 20:34 — Communicating With Employees: Financial Stress, Resources & Going Beyond the W-2
If you're closing out the year and realizing your HR systems — payroll, documentation, compliance, benefits — aren't as buttoned up as they should be, the free HR Audit is the fastest way to see exactly what needs attention: saltandlightadvisors.com/hraudit
🔍 Ready to find out what's really going on inside your business? Take the free Salt & Light HR Audit at saltandlightadvisors.com/hraudit. In about 10 minutes, you'll get a clear picture of where your people operations stand — and exactly where to focus next. No fluff, no sales pitch. Just clarity.
Resources to keep building:
🎯 Take the free HR Audit — Score your HR systems in 5 minutes and see exactly where your gaps are. 👉 saltandlightadvisors.com/hraudit
🎙️ Listen to Don't Waste the Chaos — The podcast for small business owners building strong people operations. 👉 kerrimroberts.com/podcast
📖 Get The HR Easy Button — Kerri's book on building HR systems that actually work for small businesses. 👉 https://amzn.to/4cPyrFh
✉️ Subscribe to the newsletter — Weekly HR insights for founders, in your inbox every Monday. 👉 saltandlight.myflodesk.com/saltandlightadvisors
Need fractional HR support or want help with year-end compliance? 👉 saltandlightadvisors.com/contact
Ready to build foundational HR systems on your own? 👉 saltandlightadvisors.com/hrfoundations
Connect with Kerri: 📷 Instagram: instagram.com/kerrimroberts 💼 LinkedIn: linkedin.com/in/kerrimroberts 🐎 Hippo Creek Farm on Instagram: instagram.com/hippocreekfarm
Episode-specific resources mentioned:
- Salt and Light Advisors lifestyle spending account partnership — saltandlightadvisors.com/contact
- Salt and Light Advisors insurance broker referrals — saltandlightadvisors.com/contact
- Oura Ring ($40 off code — contact Kerri directly)
- Dave Ramsey financial literacy resources — ramseysolutions.com
- U.S. Department of Labor (FLSA exempt salary threshold update January 2025) — dol.gov
- LinkedIn Learning — for financial literacy and employee development courses
Full show notes + transcript: https://kerrimroberts.com/dontwastethechaos/episode-41-top-branding-tips-from-a-culture-driven-agency-ceo-rczgr
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