The Year-End Payroll
& Audit Checklist
for Contractors.
21 items to clear before December 31 — 1099s at the new $2,000 threshold, workers' comp audit prep, bonus withholding, and the 2027 wage laws that hit January 1. Work the boxes, download the PDF, or hand the whole thing to us.
Every year the same pattern: the shops that get hit with a comp audit surprise, a misclassified sub, or a missed 1099 deadline are the ones that treated year-end as a January problem. It isn't. The payroll you run in November and December is the payroll your auditor prices in March.
This is the same list we walk through with contractors across California and Nevada. Check the boxes right on this page, or grab the printable PDF and tape it to the wall. Items marked CA or NV apply only in that state; NEW items changed for 2026.
— Key dates
- Mon, Feb 1, 2027Jan 31 is a Sunday. W-2s to employees and SSA · 1099-NEC to subs and IRS · Q4 Form 941 and annual Form 940.
- Before Dec 31, 2026Everything on this checklist. Bonuses paid after year-end are 2027 wages — and 2027 audit payroll.
— Free 2-page PDF
Where should we send it?
We'll email the printable checklist in 60 seconds. Nothing to install, no card, no spam.
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21 items · Work through this before Dec 31 · CA & NV rules flagged
Tap the boxes as you go — your progress tracks right on the page
Subcontractors & 1099s
The fastest way to get dragged into a workers' comp audit is an uninsured sub. Close that file before the last check of the year goes out.
0 of 5 done
Workers' comp audit prep
Your audit is priced off payroll you run now. Fix the class codes and the overtime treatment before the auditor asks, not after.
0 of 6 done
Year-end bonuses
Bonuses are wages. Run them right and they're deductible and predictable. Run them wrong and they show up on your comp audit.
0 of 3 done
Profit First cash
Year-end is where Profit First either pays off or gets exposed. The tax account and the audit reserve are not optional.
0 of 3 done
Get ready for 2027
These land January 1, 2027. The owners who calendar them now are the ones who don't get a surprise in the first payroll of the year.
0 of 4 done
— Run restaurants & bars version too?
Restaurants & bars version
Running a kitchen or a bar? The restaurant side of this checklist covers the new tip-reporting W-2 boxes, Form 8027, card tips under Labor Code 351, and the no tip-credit rule in CA and NV.
Open the Restaurants & bars version checklist— Print it, tape it to the wall
Get the printable 2-page PDF.
Same list, formatted for the shop wall or the office printer. Every box, both states, all the 2027 numbers on one sheet. Enter your email and it's in your inbox in a minute.
— Free 2-page PDF
Where should we send it?
We'll email the printable checklist in 60 seconds. Nothing to install, no card, no spam.
100% free · Unsubscribe anytime
— Founder story
Built by blue-collar, for blue-collar.
Profit First Payroll was founded by Matt Frechette, who brings 20+ years of hands-on experience in blue-collar environments. He's seen shops thrive — or unravel — because of poor cash flow, inconsistent owner pay, late crew checks, and workers' comp audit nightmares. PFP is built explicitly for trades and labor-heavy businesses: proper crew classification, project-based volatility, and protecting profit in high-risk industries.
— Free 20-min call
Want a second set of eyes before year-end?
Book the free 20-minute review. We'll go through this checklist with you — line by line — and tell you exactly what's leaking before December 31.
Book the free review