December checklist, Quarter 4 and year end filings for businesses in the United States

Complete your year-end payroll reconciliation
Make sure benefits from this year are included on 2026 payrolls
Reflect on business structure changes this year
Preview your W-2 forms
Review year-end direct deposit schedules 
Audit your contractor information 
Review contractor bills and payments 
Update employee tax profiles for 2027
Verify employer tax rates for 2027
Distribute your 2026 forms to your workers 

Complete your year-end payroll reconciliation

If you pay your employees by check, perform a payroll bank reconciliation through December 31, 2026: 

• Look for outstanding checks
• Make sure you've accounted for employee expense reimbursements
• Compare state and federal payroll tax withdrawals from your bank account to the amounts on your tax liability records

To review payroll taxes in Wave, go to Payroll > Taxes. For more steps and information on year-end accounting, see the Accounting year-end checklist.

Make sure benefits from this year are included on 2026 payrolls

If you are missing a benefit and have yet to run your final 2026 payroll, add it to payroll before the end of the year. To do this, follow the steps on how to assign a deduction, bonus or benefit to an employee.

If you have already approved your final payroll for the year, view how to amend an approved payroll period at year-end. For additional support, open Mave, Wave’s automated chatbot, and request a Support Agent.

A reminder that November 22, 2026, is the last day to request adjustments to Form W-2 prior to filing. This deadline allows us enough time to process corrections by the filing deadline. We’ll do our best to complete any Q4 corrections submitted after this date by January 31, but we can’t guarantee it, and a Form W-2C may be required.

Reflect on business structure changes this year

If you changed your business structure in 2026 and received a new EIN, you will need two sets of year-end forms. Use your old EIN for wages paid before the change, and your new EIN for wages paid after the change. 

You’ll need to create a second business in Wave for your restructured business. See What to do when your business structure changes.

Preview your Forms W-2

Preview your W-2s now to make sure you’ve entered correct wages, benefits and employee information for 2026. Learn about common mistakes and how to fix them, and read more about new reporting requirements for 2026 in our guide, Why and how to preview your W-2s

Review year-end direct deposit schedules

As 2026 comes to a close, it's important to keep direct deposit timelines in mind. Payrolls and direct deposits do not process on Federal bank holidays. This means if a bank holiday falls on the day you normally approve payroll, pay employees, or anytime in between, you must approve payroll at least one business day earlier. 

Audit your contractor information

In order for contractor payments to show up on Form 1099-NEC at year-end, the contractor must have been listed as a contractor in your Vendors list. If you need to update this, here's how:

1. On the left-side menu, click Purchases > Vendors.
2. Select the vendor's name.
3. Click the arrow under Actions, then click Edit.
4. Under the vendor name, select Type.
5. Update the vendor type to 1099 contractor, then click Save.

Make sure to review and confirm all contractor Tax Identification Numbers (TIN). If your vendor is an Individual, ensure that their Social Security Number (SSN) is correct, and that their name matches what is on their SSN card. If your vendor is a Business, ensure their Employer Identification Number (EIN) and Business Legal Name are correct.

Review contractor bills and bill payments

You’ll soon be able to view 2026 payment details for 1099-NEC contractors in Wave. We’ll let you know when this becomes available.

If you paid contractors outside of Wave in 2026, make sure you have created bills in Wave and recorded manual payments. This will ensure these contractor payments are reported on the 1099-NEC.

The federal filing threshold for Form 1099-NEC is $2,000 for tax year 2026. If a contractor's total payments meet or exceed this threshold, Wave will submit a federal filing.

If a contractor's total payments do not meet the federal $2,000 threshold but do meet your state's filing threshold:

• No federal filing will be submitted
• A contractor copy of the 1099-NEC will still be generated
• A state filing will be submitted, where required

Update employee tax profiles for 2027

January 1, 2027: The 2027 tax year begins. If an employee needs to update their withholding for 2027, have them complete a new W-4 Employee Withholding Certificate issued by the IRS. They should also complete a new state W-4 if applicable.

Verify employer tax rates for 2027

November 2026: State agencies will begin to issue 2027 Unemployment Tax Rates. If applicable, update your tax rate in Wave to ensure taxes will be calculated correctly for next year. To update your tax rate, see Update your business tax profile.

Distribute your 2026 forms to your workers

January 31, 2027: This is the last day to provide Forms W-2 and 1099-NEC to your employees and contractors.

For specific due dates and filing guidelines for State and Local agencies (where applicable), consult those tax departments directly.