If you use 7shifts Payroll, it is crucial to prepare your restaurant for Year-End Filing as 2025 closes and the new tax year begins. Completing these steps ensures your 7shifts account is ready for accurate year-end processing and a smooth transition into the next tax year. Taking these steps now helps you avoid tax penalties and keeps your team feeling supported and ready for a great year ahead! ✨

Things to know

• Admins can track year-end progress and outstanding tasks directly in 7shifts by navigating to Payroll > Overview.
• The IRS may impose penalties for tax forms containing incorrect information, so accuracy is key.
• 7shifts does not automatically re-apply W-4 exemption statuses; employees must resubmit these annually to stay exempt.

2025 Year-End checklist

1. Review business tax details

1. Ensure all Federal, State, and Local tax IDs are present and accurate in 7shifts.
2. To update tax setup, navigate to Payroll > Settings > Company Settings > Tax Setup > Update tax setup.
3. Confirm Third Party Administrator (TPA) access is current and approved for all applicable states.

2. Confirm team earnings and personal details

1. Verify that all active and terminated employees have accurate personal information in their 7shifts employee profile.
2. Confirm employee earnings are accurate and reflect all wages for the 2025 year.
3. If your employees are eligible for tax relief under the OBBBA Tax Relief Guide, verify these details for reporting in Box 14 of the W-2 Form.
4. Use the Preview Tax Documents - W-2s guide to check employee details before final filing.
5. Learn how to preview (and update) employee tax details here.

3. Manage paperless statement consent

1. Encourage employees to opt-in for paperless W-2 statements directly in their 7shifts account.
2. Review the list of employees who have not opted in to prepare for potential mailing costs.

4. Record missing external payments

1. Identify any payments made to employees outside of 7shifts Payroll during 2025.
2. Run an off-cycle payroll to record these manual payments so they appear on year-end tax forms.
3. Set the off-cycle payment method to Paper Check but do not print a check to ensure wages are recorded without re-issuing funds.

How to prepare for 2026

Update unemployment rates and policies

• Update your 7shifts tax setup with any new unemployment rates provided by your tax agency.
• Refer to 7shifts Payroll - Updating Business Tax Rate for instructions.
• Update benefit amounts for medical, dental, and vision within the 7shifts Payroll - Benefits and Post-Tax Deductions settings.
• Review and adjust Time Off Policies and balances for the new year.

Manage 2026 W-4 Form exemptions

• Remind employees to submit updated W-4 Forms if they had life changes that affect their tax withholding.
• Employees can follow the How to Submit an Updated W-4 Form in 7shifts guide.
• Download the W-4 Exempt Employees Report to identify staff who need to resubmit their exempt status.

Accessing year-end forms

7shifts will notify you by email once your 2025 tax forms are ready in the Payroll Dashboard. You can view and download these forms by navigating to Payroll > Reports > Tax Documents.

• Quarterly Tax Documents are available within the first two weeks after a quarter closes.
• Annual W-2 and 1099 forms are available one week before January 31.
• Most forms are generally posted by the 17th of the month following the close of a filing period.