Q&A with J&S Accounting: Avoid These Common Payroll Mistakes During the Holidays
Monday, December 01, 2025
Because “holiday cheer” shouldn’t come with payroll panic.
The holidays are a joyful (and busy) time for small business owners, but they can also bring payroll headaches if you’re not careful. Between bonuses, PTO, and bank holidays, even minor oversights can snowball into costly errors.
At J&S Accounting, we see the same issues pop up every year, and the good news is, they’re completely avoidable with the proper prep. So let’s tackle your most common year-end payroll questions.
Q: “I want to hand out holiday bonuses, do I have to tax them?”
A: Yep- the IRS loves a good Christmas bonus, too.
Cash, checks, and gift cards all count as taxable income and must be included in W-2 wages. Small non-cash gifts (like company mugs or swag under $25) are generally fine, but larger monetary gifts must be reported.
Q: “We’re slammed right now. What’s the easiest way to avoid overtime mistakes?”
A: Overtime errors are one of the biggest year-end payroll pitfalls. Non-exempt employees must be paid 1.5x their regular rate for any hours over 40 in a week (or per state law).
Q: “What if payday falls on Christmas or New Year’s?”
A: Great catch- banks close, but your employees still expect to get paid.
You’ll need to adjust your payroll calendar and process a few days early to avoid delays.
Q: “We’ve had a lot of PTO this year. How do I keep vacation balances accurate?”
A: This one’s huge. Make sure all vacation, sick, and holiday pay is tracked properly and your policy is current, especially if you have “use-it-or-lose-it” rules or carryover policies.
The Bottom Line
Payroll mistakes are easy to make when your schedule is packed, but they’re also easy to prevent with a little help.
At J&S Accounting, we help small business owners:
- Review payroll data before filing deadlines.
- Verify employee and contractor information and assist with 1099 reporting.
- Assist with year-end reporting requirements
Need a quick year-end payroll review? Book a meeting with the J&S team today, and start the new year confident, compliant, and stress-free.
About J&S Accounting
At J&S Accounting, we provide expert bookkeeping services tailored to the unique needs of small businesses and nonprofits. We recognize the challenges that come with maintaining accurate financial records and how vital this is for the smooth operation and growth of your business. As a woman and minority-owned firm, we’re proud to offer our expertise to businesses in Savannah, GA, and across the nation, helping them navigate financial complexities and achieve better financial management.
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Disclaimer:This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business from a professional accountant. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. J&S Accounting does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. J&S Accounting does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers and viewers should verify statements before relying on them.
© 2023 J&S Accounting. All Rights Reserved.
Disclaimer
This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business from a professional accountant. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. J&S Accounting does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. J&S Accounting does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers and viewers should verify statements before relying on them.