What Does “Books Closing” Mean?
After your final regularly scheduled payroll in December, your payroll books automatically close for the year. Once closed, no additional payrolls or adjustments can be processed for the current tax year unless your books are reopened.
Important: If your last regularly scheduled payroll occurs in early or mid-December, your books may close at that time. You may therefore receive your W-2s before the end of December.
If you need to process payments or adjustments after your final December payroll, you must request to hold your books open before December 4th, 2026.
You May Need a Hold If You Have:
- Personal use of a company vehicle (PUCV/PUCC)
- Owner health insurance for 2% S-Corporation shareholders
- Year-end bonuses that will not be included in a regularly scheduled payroll
- Group-term life insurance for coverage over $50,000
- Employer-paid HSA contributions not previously reported
- Additional 1099 or contracted labor information
- Third-party sick pay
How to Request a Hold:
- A Hold Books Open request must be submitted through Paycor's electronic Hold Books Open form.
- The form may be completed and submitted by either you or your Tesseon Account Manager. Regardless of who submits it, the request must be submitted and confirmed.
- Request Deadline:
- Hold Books Open Fee: $250 per client ID
- What the hold does: Keeps your books open through the end of December, or through January for third-party sick payments. You may run additional payrolls as needed; the standard $99 fee applies to each off-cycle payroll.
- Late Requests: If your request is received after December 4th, the fee increases to $750.
How to Avoid Fees
Whenever possible, include bonuses, fringe benefits, and other special payments in your regularly scheduled December payroll. This can help you avoid the $250 Hold Books Open fee and additional off-cycle payroll fees.
Need to Hold Books Open?
If you need your books to stay open, submit your request before December 4th to avoid the $750 re-opening fee.
IMPORTANT: Holding books open does NOT pause tax payments. All tax obligations continue as scheduled.
What Are the Fees for Reopening?
If your books close and you subsequently need to make changes, there may be three separate charges:
- Reopen the books – charged per occurrence
- Correct W-2s – charged per W-2, when applicable
- Amend tax returns – charged per return, when applicable
These are separate charges, so the total cost can vary depending on the number of employees affected and whether tax returns need to be amended.
Plan Ahead to Avoid Reopen Fees
Before your final regularly scheduled payroll:
- Review your remaining year-end payroll needs.
- Determine whether you have any items that need to be processed or reported after your final regularly scheduled payroll.
- If applicable, submit the Paycor Hold Books Open form before the deadline.
- Provide your Tesseon Account Manager with any applicable year-end information as early as possible.
- Confirm that your Hold Books Open request has been submitted and approved.
Don't wait until January to determine that you needed your books held open. A hold is significantly less expensive and less disruptive than reopening your books after year-end processing has begun.
For more information, check out our Year-End website.