2025 Payroll and 1099 Guide
Grimbleby Coleman’s Client Accounting Services team has released the 2025 Payroll Summary to help employers manage payroll tax withholdings, deposit schedules, and key year-end deadlines. This resource provides guidance on submitting your 1099 information to us and crucial updates such as changes in State Disability Insurance rates, Cal Savers, FUTA, and more. Our team is here to support your processes and answer any questions as you prepare for the upcoming tax year.
Be Aware of these Deadlines for Year-End 2024:
| 1/24/2025 | Deadline to submit payroll and W-2 information to GC to ensure timely filing |
| 1/24/2025 | Deadline to submit 1099 spreadsheet to GC to ensure timely filing |
| 1/31/2025 | Deadline to file all 4th quarter payroll reports and submit payroll tax payments |
| 1/31/2025 | Deadline to file W-2s to government agencies and provide a copy to employees |
| 1/31/2025 | Deadline to file 1099s to government agencies and provide a copy to recipients |
New for Year-End 2024
1099s
Download our 1099 worksheet for vendor filing information. Please fill out this sheet with the required 2024 data and use SafeSend to email us securely. We will file 1099 forms based on this information. This worksheet includes options for basic and enhanced services, along with a fee calculator. It is essential to use this year’s updated version for 2024.
For additional guidance with using this sheet and information on who should file a 1099, or how to get the data from QuickBooks, visit our helpful video walkthrough or other resources on our Client Resources page. See the bottom of the page under Additional Tools and Templates.
Keep in mind that you can submit multiple 1099 worksheets; however, each submission will be processed and invoiced separately.
W-2s
Continuing from last year, we’ll mail W-2 copies directly to employees, ensuring compliance, saving time and postage, plus meeting e-filing requirements by the deadline. Electronic copies will be available for your records via your Suralink Portal. Review your W-2s as soon as you are able to verify accuracy.
Rush Fee
Submit payroll records and 1099 worksheets by January 24, 2025, to guarantee on-time filing and avoid a $150 rush processing fee per submission. Late submissions (after January 31, 2025) may incur IRS penalties.
Federal Unemployment Tax Act (FUTA) Credit Reduction
California employers will be subject to an additional retroactive 0.9% FUTA tax for the entire 2024 calendar year. This results in a maximum of $63 additional tax per employee, limited to $7,000 of wages per employee. The due date for any outstanding 2024 FUTA tax is January 31, 2025. Read more here about the FUTA Credit Reduction – California.
New in 2025
For 2025 payroll tax wage limits, rate withholding requirement changes, new retirement plan limits, and more, please see our 2025 Payroll Tax Summary.
- State Disability Insurance (SDI): The rate increased to 1.20% and applies to all taxable wages without limit.
- Cal Savers: The program, by default, has an automatic increase feature that will increase the contribution amount by 1% each year unless an opt-out of an alternate amount is elected.
- Reporting of fringe benefits on W-2: Employers should review whether they have correctly included/reported the value of fringe benefits in their employee wages and (if applicable) 2% S-corporation shareholders’ taxable wages.
- Sales Tax: Some rates have changed. Refer to the California Franchise Tax Board’s Sales and Use Tax Rates page.
Get in Touch
Our Client Accounting Services team can answer any questions about your business’s payroll processes. Use these forms and reminders to get off to the right start, and please don’t hesitate to contact us for assistance. Thank you for putting your trust in our team.
Here’s to another year of partnership, and a Happy New Year in 2025!