Everything you need to close out payroll for the year.
Holiday pay dates, processing deadlines, bonus rules, and the fringe-benefit items that get missed most often — all in one place, updated each year.
Important year-end dates
Days our office is closed and days the Federal Reserve is closed.
Bonus payroll guide
Bonuses are taxed differently than regular wages. Here's what that means for what your employees actually take home.
| Bonus method | Federal withholding | When it's used |
|---|---|---|
| Flat supplemental rate | 22% | Bonus paid separately from regular wages, under $1M |
| Combined with regular pay | Standard W-4 rate | Bonus added to the same check as regular wages |
| Mandatory flat rate | 37% | Total supplemental wages over $1M in the year |
Let us process your bonus payroll
Send us the amounts and we'll run the bonus payroll for you — correct tax treatment, direct deposit, and W-2 reporting handled end to end.
Process your own bonus payroll
Running it in-house? Use the guide that matches your bonus method for step-by-step instructions.
Planning Ahead
Please keep in mind that all bonus payroll runs must be submitted FIVE business days prior to your check date before 2 p.m. CST.
Bonus Deadlines
The last day to enter bonus checks to ensure they are processed before Christmas is December 18, 2026 and before year-end is December 23, 2026.
Fringe benefits — do these apply to you?
Four items that need to be added to W-2 wages if they apply. Tap "Show decision tree" on any item to walk through it step by step. If any of the items apply to you, please email the information to payroll@sjhl.com.
Shareholder health insurance
Applies if you're an S-corp and pay premiums for an owner with more than 2% of the stock.
Show decision tree
Personal use of a company vehicle
Applies if a company vehicle is used for anything other than 100% business driving.
Show decision tree
Group term life insurance
Applies if any employee's coverage is more than $50,000.
Show decision tree
Third-party sick pay
Applies if an insurer paid an employee directly and the company paid any of the premiums.
Show decision tree
Your experience rate notice
Each fall, your state sends a notice setting your new unemployment insurance tax rate for next year, based on your company's layoff history. We need a copy to keep your payroll withholding accurate.
- Usually arrives by mail or state portal between October and December
- Sometimes labeled "experience rating," "contribution rate," or "tax rate" notice
- Send us a copy as soon as it arrives — don't wait for us to ask
- No notice yet? Let us know and we'll help you track it down