On the Third Week of Year-End, Payroll Gave to Me…

A reconciliation spree!

If last week was about cleaning up your people data, this week is where you dive straight into the numbers.

This is the week you pull the covers off your pay codes, deductions, and taxable benefits — and either breathe a sigh of relief or say, “Oh no, not again.”

This is Prepping the Pay — the unsung hero of payroll year-end.

Because it doesn’t matter how perfect your employee records are if the pay details underneath are a mess.

What “Prepping the Pay” Really Means

Every paycheck tells a story — but if yours have been whispering inconsistencies all year, now’s the time to listen.

“Prepping the pay” means checking every category that affects taxable wages and deductions.

That includes things like:

• Fringe benefits

• Bonuses and commissions

• Taxable insurance

• Car allowances

• Expense reimbursements

• Third-party sick pay

You don’t need to fix every discrepancy this week — but you do need to find them before they show up on a W-2.

Because nothing ruins holiday cheer like a surprise mismatch in Box 1 of Form W-2.

Why This Step Matters

Payroll is the bridge between people and compliance. When the earnings and deductions flowing through your system are correct, your year-end filings practically take care of themselves.

When they aren’t? You’ll be chasing ghosts through 941s, W-2s, and state reconciliations while everyone else is at the holiday party (true story).

Cleaning up pay details now means fewer corrections later —

and fewer 3 a.m. panic sessions about imputed income.

This Week’s Payroll Prep Checklist

1. Audit your earning codes.

   • Verify which codes are taxable, non-taxable, and which ones report to the W-2.

   • Check for duplicates or outdated codes from past years.

     
     

2. Confirm deduction limits.

   • 401(k), HSA, FSA, commuter, deferred comp — make sure contributions haven’t exceeded IRS limits.

     
     

3. Review fringe benefits.

   • Group-term life insurance, personal use of company vehicles, gift cards, and awards.

   • Identify any taxable benefits that haven’t yet been processed.

     
     

4. Balance gross-to-net.

   • Confirm totals match across payroll runs, general ledger, and tax reports.

   • If something’s off, flag it for reconciliation in Week 5.

     
     

5. Document what you find.

   • Keep a “Pay Prep Log” — even if it’s a simple spreadsheet.

   • Your January self will thank you for it.

Payroll Philosophy of the Week

Year-end isn’t about discovering perfection — it’s about discovering truth.

This is when payroll turns detective, accountant, and superhero all at once.

When your pay data balances, you don’t just avoid errors —

you gain confidence in every report you send.

And honestly?

That feeling of seeing everything reconcile perfectly?

It’s like the holiday bonus we all deserve.

You’ve now tackled the who and the what.

People data? ✅CHECK

Pay data? ✅CHECK

By auditing your codes, verifying deductions, and double-checking taxable benefits, you’re building the foundation for accurate W-2s and balanced year-end reports.

And that, my friends, is how you turn chaos into confidence — one payroll run at a time.

You’re officially one-quarter of the way through The Twelve Weeks of Year-End.

Your reports make sense,

your numbers behave,

and you’re starting to remember why you love payroll in the first place.

Week 4 Sneak Peek:

“Turkey, Gratitude, and Garnishments”

Next week, we shift gears from pay prep to holiday timing and obligations — a.k.a., the week where direct deposits meet Thanksgiving dinners.

We’ll talk about garnishment clean-up, holiday pay schedules, and how to say “thank you” to payroll without adding a taxable gift card.

This is where payroll earns its halo —

through persistence, precision,

and the occasional caffeine miracle.