December 4, 2025

Year-End Payroll Checklist: What Every Small Business Needs Before January 1

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If you have employees or contractors, December is one of your busiest compliance months. Business owners in Woodland Hills and the San Fernando Valley can avoid January stress with this simple year-end payroll checklist.

1. Verify Employee Information

Confirm names, addresses, SSNs, and correct wage totals.

2. Prepare Bonuses

Decide how bonuses will be taxed and which year you want them to fall into.

3. Update Payroll Tax Rates

CA and federal rates often change on January 1. Make sure your payroll software reflects the updates.

4. Gather Contractor Information

You’ll need W-9 forms for all contractors to prepare 1099-NECs.

5. Review Your Payroll Liability Reports

Resolve unpaid taxes or discrepancies before year-end.
This prevents letters, penalties, and IRS issues later.

Need help handling payroll? Our Woodland Hills accounting firm provides year-end payroll cleanup and W-2/1099 preparation for local businesses.

Shonty

Shonty Spatola, CPA, CFP®, is the founder and owner of Spatola & Company CPA, a small business accounting firm in Woodland Hills, California. For more than 17 years he has helped business owners across the San Fernando Valley and greater Los Angeles, including Encino, Calabasas, and Sherman Oaks, with proactive bookkeeping, tax planning, tax preparation, payroll, and outsourced CFO services. His firm has served over 2,000 small businesses and prepared more than 8,000 financial statements. Holding both CPA and CFP® designations, Shonty pairs day-to-day accounting with bigger-picture financial strategy so clients keep more of what they earn and plan ahead with confidence.