Payroll end of year (US)

Make sure your final payroll and tax filings are up to date for the end of the financial year.

  1. Complete processing pay runs for the year.

    Process Payroll

  2. Distribute copies of W-2 forms to your employees.

    Print payroll tax forms and mark them as filed with the IRS

    Xero doesn’t send W-2 forms to employees directly.

  3. Check employee Social Security Numbers prior to filing in your year end returns. These are available in the Employer copy W-2 forms.

  4. Calculate the Federal Unemployment Tax (FUTA) for your business if your state is eligible.

    • Download your federal 940 form. Xero will prompt you to recalculate FUTA if applicable.
    • Xero then processes an unscheduled pay run, if needed, and provides details of any additional FUTA obligations that you will need to pay.
  5. File the federal and state tax filings for your business's payroll, such as federal 940 and 941, before the required due date.

    Available payroll tax forms and payment methods

    When you print out or create a PDF of your W-2 form, Xero also includes your W-3 in the last page of the PDF.

  6. Collect new W-4 forms for the new tax year and update them before the first pay run in the new year.