Business Payrolls Survey

Special Payments Made During the Month of December

Many special payments are paid to employees at the end of each year. This guide should help you in providing us with the necessary information concerning these special payments.

Report for special payments which are paid to employees for work performed or for other entitlements that are separate from regular wages and salaries; are paid at any time during the month of December and are not related exclusively to the last pay period of the month of December; and are usually recorded in the books using the cash basis method of accounting.

Following is a list of typical special payments made at the end of the year. This is not a comprehensive list. There may be other payments unique to your organization. If in doubt, please report the payment and explain what it covers.

Special payments can be for:

  • Any overtime paid during the reference month, including overtime accumulated from previous months
  • accumulated vacation pay
  • advance vacation pay
  • annual bonuses
  • Christmas bonuses
  • commissions and/or commission adjustments
  • cost of living adjustments
  • draws: annual, quarterly, monthly and/or periodic draws by owners of incorporated companies
  • other bonuses: ability, incentive, merit, piece work, production, sales, etc.
  • termination, severance and retirement payments

Report all moneys paid to your employees in the month of December. It is very important that you report the dates of the period the payment covers and not the payroll month in which the payment was paid out.

We thank you for your continuous cooperation and we wish you the very best during the New Year.

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