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💘 Cupid's Q1 Payroll Checklist: A Mid-Quarter Review

Writer's picture: Lindsey KarkosLindsey Karkos
🌹Roses are red, payroll is due, We see all the love and hard work that you do! 🌹💸

As we enter the season of love, let’s also show some love to tax compliance! We’re midway through Q1 of 2025, and that means:


✅ Wrapping up tax filings for 2024


✅ Ensuring smooth payroll processes


✅ Dodging compliance heartbreaks 💔


 

💘 Treat yourself to our Q1 Payroll Checklist


To make life just a little easier, we put together this quick-reference Payroll checklist of key Payroll & Tax Deadlines, Updates, and Compliance Reminders to keep your books balanced and your heart happy! 💕


 

💟 W-2 Love Notes & Fixes


💌 Got W-2 errors? Fix them before tax season stress kicks in!


your employees are reviewing their W-2s, and any mistakes—like incorrect Social Security numbers, name misspellings, or pay discrepancies— can cause delays and IRS penalties. If needed, file 🔗Form W-2C (Corrected Wage Tax Statement) as soon as possible to avoid any potential employee frustration as well as dodge preventable compliance nightmares during this shiny new year!

🧡 Humanic's Pro Tip:

Encourage employees to review their W-2s early and report any issues (asap) before they file their tax returns.

 

💟 ACA & 1095-C Deadlines


💌 Don't let penalties break your heart! February and March bring Affordable Care Act (ACA) reporting requirements.


If your company is an Applicable Large Employer (ALE) (50+ full-time equivalent employees), you need to file ACA forms 1095-C and 1094-C to report health insurance coverage.


🚨 Don’t let penalties break your heart! 

Late or missing filings can lead to costly IRS fines.


 

💟 Q1 Payroll Compliance Check-Up


💌We all need a little TLC sometimes! Your payroll compliance is no exception!


Check-up and verify:

  • Are your tax tables updated?

  • State wage laws reviewed?

  • New hire reporting in place?

Stay ahead of potential compliance heartbreaks.


 

💟 Unclaimed Wages & Escheatment Prep


💌 Payroll doesn’t just give money—it finds money, too!


Make sure any forgotten wages are properly reported, keeping in mind that each state has unique escheatment laws, meaning unclaimed wages must eventually be reported and sent to the state’s unclaimed property division.


💔 Avoid the ghosted paycheck problem!

Review your records for any uncashed checks and try to contact the employee before they become an "ex" in your system...


🧡 Humanic’s Pro Tip: Keep a policy in place to track unclaimed wages and ensure compliance with your state’s deadlines!


 

💟 Quarterly Tax Filings – Keep the IRS Romance Alive


💌 The IRS loves timely filersdon’t stand them up!


By the end of Q1, payroll teams need to submit Form 941 (Employer’s Quarterly Federal Tax Return) and any applicable state withholding filings.


📅 Key Deadlines:

🔹 April 30, 2025 – Q1 Form 941 Due

🔹 State filings – Check your state’s deadlines, as some require monthly or quarterly payroll tax deposits.


👻 Late filings can trigger penalties—don’t let the IRS ghost you! 

Stay ahead of deadlines by setting up reminders and e-filing where possible.


🧡 Humanic’s Pro Tip: If you’re dealing with cash flow issues, look into the 🔗IRS’s Electronic Funds Withdrawal or EFTPS system to schedule tax payments in advance.


 

💟Bonus & Commission Payments Cupid’s 🤑 Arrow


💌 Are bonuses and commissions part of your Q1 payroll love story?

Bonuses and commissions are great, but they come with specific tax withholding rules that can trip up even seasoned payroll pros.


💰 Supplemental wage withholding rates for 2025:

🔹 Flat Rate Method: 22% (for bonuses under $1M)

🔹 Over $1M? The IRS bumps it up to 37%—yeeeesh!


 

💟 Payroll Records – Keep the Love Letters (Legally!)


💌 Not all love notes last forever, but payroll records have to!

Payroll compliance means keeping records for a minimum of 3-4 years, depending on federal and state requirements.


📁 What to Keep:

✅ W-2s & W-4s

✅ Payroll tax filings

✅ Timesheets & pay stubs

✅ Direct deposit authorizations


🧡 Humanic’s Pro Tip: If you’re still relying on paper files, consider a digital document retention system like the utilization of Humanic Payroll® to make recordkeeping (& audits!) easier 😉


 

💖 Love Your Payroll & Avoid Heartbreak!

Payroll and Tax Compliance might not fit the bill for a Romantic Lifetime Movie, but keeping on top of deadlined, filings, and best practices keeps your business and employees feelin' the love! ✨



💌 Need a little extra compliance support? 

Work with Humanic's trusted payroll team of payroll tax professionals to ensure you're always ahead of the game!

We wish you all a very happy first quarter of 2025, and may your payroll be as smooth and rich as a box of gourmet chocolates! 🍫💕

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