End of Year Business Tasks
Even during the busy holiday season, there are a few key tasks every business owner should complete. In this blog, we’ll walk through essential renewals, tax reporting requirements, payroll updates, and practical tips to make your January, and your transition into tax season, much smoother.
To start, download our Free End of Year Business Task Checklist by clicking the button below, print it out, and follow along!
We did release a YouTube video outlining most of this information; if you would rather listen along instead of reading, please see below!
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Before December 1st
Super Quick Minnesota Reminder that the new MN paid leave starts on January 1st, 2026 and employees must be notified regarding the changes by December 1st, 2025.
Download and post the required Paid Leave poster, in the break room or a visible location for your employees.
Provide a written notice to each employee outlining what portion they will have deducted from their paychecks and get a signed copy back from them to keep in their employee file. Reminder that S-corporation owner/employees are not exempt and will also need to have a signed employee notice on file.
Before December 31st
Renew Legal Business Name
For our Minnesota clients, it is time for your annual renewal of your Business Name with the Secretary of State!
If you are not in Minnesota, check in with your state’s Secretary of State. Some states are annually, while others are as long as 10 years.
Minnesota is free, as long as you renew before it expires. If you miss the deadline, reinstatement fees are much higher and you risk losing your name once it is inactive. Check your expiration date by entering your business name on your Secretary of State’s website. We’ve included the MN SOS link below. Once you search your company name and locate, click on details to view information. You will need to log into your account to renew.
S-Corp Owner Tips
If you’re an S-Corp owner/employee who receives personal tips, make sure those tips are fully entered through your payroll provider before December 31st. This ensures your entire 2025 tip income is properly reported on your W-2 in Box 1, Box 5, and Box 7. This step is especially important for 2025 because of the new One Big Beautiful Bill Act, which allows you to deduct up to $25,000 of tip income reported on your W-2. Accurately recording these tips through payroll ensures you qualify for the deduction and don’t pay income tax on those tips.
S-Corp Owner Health Insurance
If you’re an S-Corp owner and your business pays your health insurance, those premiums must be reported correctly to your payroll provider. Be sure your payroll provider reports them on your W-2 in Box 1, Box 16, and Box 14 for it to be a business deduction.
Pass Through Entity (PTE) Tax
If your business is a Partnership or S-Corporation, you can elect and pay Pass-Through Entity (PTE) Tax for additional tax savings. This allows the business to pay your personal income tax as a deductible business expense. This is unique to each business, so please contact your tax accountant to see if this would benefit you. This isn’t available in all states, so make sure to confirm whether yours is included.
Minnesota did just release that this is the last year for PTE tax, so make sure to use this in 2025.
Minimum Wage Updates
If you have employees, make sure you check your state’s Minimum Wage updates. Many states implement new rates on January 1st, so it is essential to remain on top of any changes and stay compliant.
Also, check for any new state laws that impact payroll, such as the Minnesota Paid Leave. Best practice is to visit your state’s Department of Labor website every December, as many changes begin January 1st, and to also sign up for their email updates.
New Year Budget
If you are creating a new budget for the next fiscal year, now is the best time to begin preparation as year-end and the holiday season gets busy fast.
If you need assistance with this, it is a service we offer!
On December 31st / January 1st
There are a few tasks you need to do right at the end of the year, which means on December 31st at the end of the workday, or on January 1st at the beginning of the workday. If these tasks are applicable to your business, make sure to schedule a reminder to complete them on that day:
Vehicle Mileage: Record your vehicle’s odometer reading if you track mileage for tax purposes.
Inventory Count: Complete a physical inventory count and report the total value to your tax accountant.
Cash on Hand: Count any petty cash to ensure it matches your books.
After January 1st
W-9s and 1099s
If you have paid any person, service provider or landlord over $600 outside of payroll in 2025, then you will need to gather W-9s for each of them so you can issue 1099s. It’s best practice to request and receive a W9 and certificate of insurance prior to paying any vendor. This makes worker’s comp audits and 1099 processing much easier. We recommend using January to catch up on any missing W-9s from the previous year.
1099s are typically due around January 31st, depending on weekends. In 2026, they are due February 2nd. However, if you file electronically through QuickBooks the deadline to submit the 1099s is January 28, 2026 by 5pm.
Send a 1099-NEC to any Contractors, accountants and non-employee service provider.
Send a 1099-MISC for Attorneys, rent payments, medical payments, or direct sales.
Most providers, including QuickBooks, now default to electronic filing. Make sure you have the correct email address for each contractor.
QuickBooks can also print and mail them for a fee (which we suspect may increase to $6 this year, though that is unconfirmed). You can also print and mail them yourself through QBO.
If you need help with 1099s, that is a service we provide.
W-2 Special Reporting for Health Insurance
If you provide employer-sponsored healthcare, you may need to add the total annual cost in Box 12 DD on the W-2 for each applicable employee. This is not done automatically for small businesses through your payroll company; you will have to contact them directly to ensure this is reported.
W-2s
W-2s are also due by January 31st (or February 2nd in 2026). Make sure to carve out time to send these out. Many payroll providers now send them electronically, so confirming workforce login instructions with your employees, if you use QBO payroll, can be helpful. QBO can mail them out if needed, but in 2026 they will charge $6 per mailed W-2. We recommend either mailing them yourself or having employees switch to paperless.
If you have not updated your settings in QBO to paperless, QBO will automatically mail W-2s for the $6 charge. Check your settings and ask us if you need help!
This is also a good time to verify employee emails, mailing addresses, and ask employees if they need to update their W-4s for the new year.
New Unemployment Rate
Finally, update your new year’s Unemployment rate with your payroll processor. These should be sent out by mail in early December, or you can typically look them up on your state’s Unemployment website.
Tax Prep
Now let’s talk about wrapping up for tax season:
Make sure you have compiled all your needed receipts, recorded your transactions for the year, and answered any questions from your bookkeeper.
We recommend avoiding “Miscellaneous” categories whenever possible, as it helps your tax accountant.
Don’t forget to reconcile everything, not just your main bank account. Check your loans, credit cards, and any other active accounts as well.
Be sure to hand off statements to your bookkeeper if they do not have digital access.
January and February are extremely busy for bookkeepers and accountants. Scheduling your January check-in call early, and arriving prepared with all statements and questions answered, will make the process much smoother. If you need assistance, visit our Tax Prep page below, and if you are our client, make sure to book!
We know that was long! Thanks for sticking with us!
Taking care of all these items and being prepared for the new year helps your business start strong and stay organized. If you need help with any of these items, we do offer these services.
