2024 Year-End Checklist

If you're using 7shifts Payroll, it's crucial to ensure your restaurant is prepared for Year-End Filing as 2024 comes to a close and the new tax year begins. This article will explain the importance of year-end filing and outline the key steps to ensure your 7shifts account is ready for both year-end processing and a smooth transition into the new tax year.

What is Year-End Filing? 

Year-End filing is the process by which payroll providers prepare and submit all necessary fourth-quarter and annual tax returns for the previous calendar year. This process ensures compliance with federal, state, and local tax regulations. It includes creating employer Federal tax returns, along with state-specific returns. These documents detail withheld taxes and employer contributions and must be submitted by their deadlines. 

Additionally, Year-End filing involves generating W-2s for employees, summarizing annual wages and tax withholdings, and 1099s for independent contractors, reporting total payments made. These documents are essential for employees and contractors when preparing their own tax filings. 

Year-End filing is crucial for accurate tax reporting and ensuring that employees and contractors receive necessary documents for their personal tax obligations. 

2024 Year-End Checklist

Your 7shifts Payroll Year-End to-dos are now featured directly in-app! Admins can navigate to Payroll > Overview to review progress + outstanding admins tasks from the Payroll Dashboard.

1. Review your business tax details 

• Ensure all Federal, State and Local tax IDs are present and accurate in your 7shifts account.
• To review/update tax setup: navigate to Payroll > Settings > Company Settings > Tax Setup > Update tax setup
  

2. Confirm earnings and personal details of your team in 2024 

• Ensure that all active and terminated employees have updated and accurate personal information in their 7shifts user profile. This is critical for generating accurate W-2 and 1099 forms.
• Confirm employee earnings are accurate and reflect wages (including changes) for the year.
• Learn how to preview (and update) employee tax details here.

3. Get employee consent for paperless statements 

• Encourage employees to opt-in to receive paperless documents to reduce mailing costs. Employees can opt-in directly from their account, or an Admin user can do this on their behalf.
• Learn how to opt-in for paperless statements here.

4. Record missing payments on payroll 

• If you've paid any employees outside of 7shifts payroll in 2024, make sure to record those payments in 7shifts by running and off-cycle payroll with manual payments.
• Learn how to run an off-cycle payroll here.

Preparing for 2025

1. Update Unemployment Rate

• As we move into the new year, it's important to keep an eye on potential changes to unemployment rates. You should be notified by your tax agency of new rates (if applicable) toward the end of the year and make the applicable updates in your 7shifts tax setup. 
• To review/update tax setup: navigate to Payroll > Settings > Company Settings > Tax Setup > Update tax setup

2. Review and update time off policies and benefits 

• Update benefit amounts for medical, dental and vision.
   Learn more about Benefits in 7shifts here.
• Review sick and paid time off policies and balances.
  Learn more about Time off policies in 7shifts here. 

3. Update W-4 Forms for 2025 Exemptions

• Employees should update their Federal (W-4) and state withholding forms to reflect life changes, such as marriage, having children, or changes in income, to ensure the correct amount of tax is withheld from their paychecks.
• Employees can submit updated W-4s from the 7shifts web app. Learn how here.
• Employers can identify exempt employees and prompt them to resubmit by downloading the W-4 Exempt Employees Report. Learn how here.