Whether it's submitting payroll adjustments, processing year-end bonuses, maxing out retirement contributions, or just closing out the 2025 books and reporting annual returns, we know there's a lot to get done during the holiday season. That's why we've put together this calendar of important deadlines, to help you wrap up 2025 with confidence.
Year-End Deadlines |
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New Year Deadlines*Because the typical postmark deadline of January 31 falls on a Saturday, this year's deadline is Monday, February 2nd. |
December deadlines
Early December (ASAP)
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Any adjustments to a pay run that has already been processed in 2025, must be received by OnPay as soon as possible, to ensure the timely completion of the W-2 information update. This includes supplemental wages and Third-Party Sick Pay (with notice provided by an insurance company).
Third Party Sick Pay
Third Party Sick pay includes any insurance payments received by an employee through an insurance company and is considered earned income for the employee. The insurance company will provide a notice that details what should be added to the employee's income. To have these amounts added to the employee's W-2, please send the notice to OnPay. These items must be received no later than Friday, December 30th to ensure timely completion of the W-2. You can review any Third Party Sick Pay entries on the W-2 Preview.
Note: Third-Party Sick Pay can only be added to employee W-2s by OnPay, and only upon our receiving a copy of the notice provided by an insurance company what should be added to the employee's income.
Before Monday, December 22, 2025
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Ensure all bonus payroll entries are submitted by December 22, 2025
If you need to submit bonus pay runs before year-end, allow enough time for them to process in 2025. Depending on the amount, bonus pay runs often require extra time due to IRS Next-Day Rules and pre-approved direct deposit limits.
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Ensure that all 2025 pay has been submitted with enough time for wages to be received by December 31, 2025. This includes any supplemental pay, like bonuses or tips.
While banks are closed on Christmas Day, submitting pay runs on the 25th will have no impact on your turnaround time.
See Pay schedules that are impacted by Christmas bank closures→ -
Ensure that any additional contributions toward employee retirement plans are received before year-end.
Depending on the amount, bonus pay runs often require extra time due to IRS Next-Day Rules and pre-approved direct deposit limits.
Before Wednesday, December 31st, 2025
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Confirm the following company information is accurate:
Company Profile
- Company name is spelled correctly
- Company address is accurate
- Federal Employer Identification Number
Payroll Taxes
- State Tax ID for each state where you pay employees
- Federal Employer Identification Number
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Confirm the following information is accurate for all employees and contractors paid in 2025:
Employee data
- Confirm employee names are correctly spelled
- Update home/mailing addresses for both active and terminated employees
- Verify that employee Social Security numbers are correct
Contractor data
- Confirm that contractor/business names are spelled correctly
- Update mailing addresses for active and terminated contractors
- Verify that Social Security numbers, ITINs, and Employer Identification numbers are correct
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Ensure all payroll entries are completed by Wednesday, December 31
To ensure that all tax payments can be made on time, all contractor payments, W-2 earnings, and bonuses, must be completed in OnPay by Wednesday, December 31, 2025. Any entries not made by Wednesday, December 31, 2025, could result in IRS and/or State Penalties and Interest which would be the sole responsibility of the employer.
S-Corp Shareholder (2% or More) Benefits
If your business is organized as an S-Corp, add any shareholder health or auto benefits for 2025 by following these steps: Adding 2% Shareholder Benefits to W-2s.
Record Employer Health Care Contributions
Has your business paid all or a portion of any employee health insurance premiums throughout the year? That data needs to be reported on each employee's W-2, along with any premiums that the employee has paid toward a company-provided plan. You can find out how to Record Health Care Contributions in OnPay here.
Fringe Benefits
Services like personal use of company cars, gift cards, and gym memberships are taxable. Ensure that entries which document any fringe benefits received are made to an employee's payroll history. For more information on Taxable Fringe Benefits, please refer to IRS Publication 15-B.
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Update deposit frequencies and tax rates
All new withholding deposit frequencies and unemployment tax rates with an effective date of January 1st, 2026 must be entered into OnPay on or before December 31, 2025.
Review Federal and State Law Changes that may impact your business
A number of states across the US have payroll-related changes that will take effect in 2026. These changes include Minimum Wage changes, updated state unemployment wage bases, and new Paid Sick or Family Leave Laws. These changes are announced state-by-state, and are updated accordingly.
If your state unemployment rate is changing for 2026, please make sure to update your OnPay account with the new rate before January 1, 2026.
Order New Compliance Posters
With all the changes states have recently made, it's a good idea to order new posters for your office. Follow the below link to see what's changed. You can even order new posters!
January deadlines
Before Wednesday, January 14th, 2026
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On top of providing workers with lifetime digital access to their W2s and 1099-NECs, OnPay makes it easy to deliver printed forms to employees and contractors, either by self-print or direct mail.
Self-print
This option comes at no extra fee, and lets you to manage the printing and distribution of these forms on your own.
- Download year-end forms from OnPay
- Print these forms on 8.5"x11" printer/copy paper, using a home or office printer
- Distribute these printed forms to your workers, either by hand or by mail
- Hand-delivered forms must be received by 2/2/26*
- Mailed forms must be postmarked by 2/2/26*
Direct mail
Let OnPay manage the printing and distribution of these forms for you. We'll print, pressure-seal, and mail these forms directly to your employees and contractors.
- $10 per form
- Each worker's form is delivered to the address listed in their OnPay profile
All employees and contractors paid through OnPay have lifetime access to digital copies of these forms through their OnPay portal, or in the OnPay mobile App.
Before Monday, February 2nd, 2026
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- All workers must be in possession of their year-end forms by or before February 2, 2026*
- If you opted to print your own W-2’s and 1099’s, you are required to postmark or provide copies to employees no later than 2/2/26*
*Because the typical postmark deadline of January 31 falls on a Saturday, this year's deadline is Monday, February 2nd.
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