This article is about Justworks PEO. What product am I using?
When your company joins Justworks PEO, we ask for your company’s Year-to-Date (YTD) payroll report as part of the onboarding process. This information helps us accurately capture your employees’ previous earnings and ensure taxes are calculated correctly going forward.
Here’s why we request this, what’s included in a YTD report, and how to submit it.
Why We Ask for YTD Payroll Reports
YTD payroll reports allow Justworks to properly account for wages your employees earned this calendar year before switching over to our platform. This ensures:
- Accurate tax tracking: We can correctly calculate federal tax obligations like FICA and FUTA without overcharging you or your team.
- Correct wage base limits: We won’t double-charge taxes that your employees or company may have already paid through your prior payroll provider.
- Smooth transitions: Especially if your transition occurs in the middle of a quarter, YTD data helps us file quarterly tax returns correctly on your behalf.
Without this data, your company will not be able to recover any overpaid employer taxes; however, employees may still receive refunds when they file their personal taxes.
What Should Be Included in a YTD Report?
Your YTD payroll report should contain the following details per employee:
- Withholdings for Social Security, Medicare, and unemployment insurance
- The state(s) in which employees are working
- The period covered (ideally from January 1 through your Justworks start date)
Common Report Names by Provider
If you're using a previous payroll provider or PEO, here's what the correct report is typically called:
-
ADP:
Look for the Master Control Report. Column Y typically contains the YTD taxable wages. -
Gusto:
Use the Payroll Journal and run it in the Advanced view for full YTD wage breakdowns. -
Paychex:
Submit both the Quarterly Report and Year-to-Date Report for a full picture. -
TriNet:
Either the Payroll Register (YTD) or Wage & Tax Details Report will have the information needed. -
QuickBooks:
Use the Payroll Summary by Employee Report and check the Adjusted Gross Pay column. -
Extensis (PEO):
Submit the Wage.Tax.Report in CSV format. Use the second line for each employee—this contains the correct taxable wages. -
Insperity:
Look for the Wage and Deduction Report. Be sure the settings include Taxable Wages as part of the criteria.
If you’re unsure where to find your report, your former payroll provider’s support team should be able to help generate the correct file.
How to Submit Your YTD Report
Your Onboarding representative will guide you on how to upload your YTD report securely through your Justworks account or during the onboarding process.
Please ensure:
- The file is in PDF, CSV, or Excel format
- Each employee’s name, state of work, and YTD taxable wages are clearly visible
- The report reflects all earnings prior to your Justworks start date
Important Notes
- Mid-Quarter Transitions: If you’re joining Justworks in the middle of a calendar quarter and your employees are based in states where you report taxes directly (also known as “client reporting” states), we file an amendment for your previous payroll provider's return.
- State Unemployment (SUI): In some states, your unemployment wage base may continue rather than resetting when you join Justworks. Your YTD report helps us ensure we apply the correct rules based on your setup.
What Happens If I Don’t Submit a YTD Report?
If no YTD payroll data is submitted:
- Your employees may still recover any overpaid taxes during tax filing season
- Your company may be taxed more than necessary throughout the year and the company will not be eligible to recover these overpaid funds.
- Some employees may be taxed more than necessary throughout the year; however, they may still be able to recover overpaid taxes during tax filing season
To avoid these issues, we strongly recommend submitting your YTD payroll report before your first payroll processes through Justworks.
Need Help?
If you’re not sure how to access or prepare your report, the Justworks Onboarding team is here to assist. You can also contact your previous payroll provider and request a YTD report with taxable wage details for each employee.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for accounting, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.