As 2025 draws to a close, Acumatica users must prepare for year-end financial closing, tax reporting and compliance requirements. This compilation brings together the essential resources from the Acumatica Community forum, official documentation and expert guidance to help your business navigate the year-end process smoothly:
Guide: Learn How to Close Each Period in Acumatica
Whether you need to close out a monthly, quarterly or annual period, Acumatica gives you multiple options for defining and managing financial periods as well as automating close procedures. These configuration settings make it much more seamless to process and record transactions for each period and ledger, updating each module and subledger without additional manual input from your team.
This guide by SWK Technologies helps you use your configured setup to significantly speed up your period- and year-end closing in Acumatica and ensure you do not miss a step:
FAQs for 2025 Year-End Payroll in Acumatica
Acumatica has published comprehensive payroll guidance organized on a monthly to bimonthly timeframe. Here are the key preparation periods to note:
- October – November: Verify and update employer tax IDs, unemployment rates, and wage limits. Confirm Q3 reconciliations are complete. Prepare your 2025 year-end calendar identifying last payroll dates for 2025 and first payroll dates for 2026. Update employee tax settings including Box 13 and ACA settings.
- Late November – December: Coordinate with Accounts Payable on payments requiring W-2 reporting. Perform trial W-2 runs through Aatrix to identify and correct errors. Create 2026 payroll and time calendars. Process year-end adjustments as needed. Review terminated employees and verify employee earnings, taxes and benefits data.
- January: Verify first 2026 payroll results. Ensure all 2025 paychecks and adjustments are released. Update special tax items for bonuses, other compensation, and fringe benefits. Reconcile W-3 amounts with 941 reports and EFTPS deposits. Complete Q4 and annual wage and tax reconciliation. Finalize W-2 reports by January 30 (Aatrix deadline) and distribute to employees by January 31.
- February – March: File 1095-B and 1095-C forms. Check IRS.gov for latest deadline updates (typically February 26 through Aatrix for paper filing, March 31 for electronic filing with IRS).
For month-by-month checklists and detailed task lists, consult the complete Payroll FAQs: 2025 Year-End Guide for US Payroll.
OBBBA Changes for Overtime and Tips
New federal legislation signed in 2025 (the One, Big, Beautiful Bill Act, or OBBBA) introduces temporary tax deductions affecting payroll year-end processing:
- No Tax on Overtime Pay: Workers can deduct up to $12,500 in overtime pay ($25,000 for joint filers) from taxable income. The deduction phases out for incomes above $150,000 ($300,000 joint filers) and applies retroactively to January 1, 2025 through December 31, 2028. Overtime compensation must be reported on Form W-2.
- No Tax on Voluntary Tips: Workers can deduct up to $25,000 in reported tips from taxable income, with the same income thresholds and effective period as overtime deductions.
- Key Considerations: Employers will continue withholding federal taxes from tips and overtime throughout 2025. Workers will see savings when filing 2025 taxes in early 2026. State income taxes still apply.
- Additional Changes: Starting with payments made in 2026, the Form 1099-MISC and 1099-NEC reporting threshold increases from $600 to $2,000.
For complete details, refer to the New Legislation on Overtime Pay and Voluntary Tips Community post.
1099 Processing in Acumatica for 2025
Acumatica has published updated guidance for 2025 tax year 1099 processing, covering implementation details for 1099-MISC and 1099-NEC forms and e-filing options.
Key updates for 2025 include:
- Pre-printed form adjustments: Use Custom Margins with Left margin set to 0.5 for 1099-NEC forms
- E-file format changes: Updates included in 2025 R2 GA, 2025 R1 SP1, and later builds
- Known issues: Golden Parachute payments still appear in e-files but cannot be filed through FIRE System; CF/SF state list still shows Oregon missing and Missouri included (contrary to 2025 IRS requirements)
- File format: System generates .txt files for IRS FIRE system upload (.csv format for IRIS not supported)
For more detailed instructions and troubleshooting, refer to the 1099-MISC and 1099-NEC Updates for Tax Year 2025 post here.
Year-End Closing in Acumatica Demo by SWK Technologies
SWK’s annual year-end closing webinar provides a walkthrough of critical closing procedures in Acumatica.
This video includes a comprehensive breakdown of the critical year-end processes you must follow, in order, soyou can close out your 2025 financials with confidence. You will learn handy, time-saving tips, and you will get a complete walkthrough on how to close your Acumatica General Ledger and sub-ledgers across modules, including:
Click the video below to start watching:
Additional End-of-Year Info from the Acumatica Community
Here are some additional informational resources from the Acumatica Community:
1099 Reporting
For the up-to-date information, known issues, and how-to questions related to 1099 reporting for the 2025 tax year, refer to the following articles:
- Known Issue: 1099-MISC/NEC e-file from Create E-File form does not reflect 2025 IRS CF/SF updates—Oregon missing and Missouri still included
- Known Issue: 1099-MISC e-file still includes Golden Parachute payments on the Create E-File form for the 2025 tax year
- Known issue: Prepayment entered for a 1099 vendor does not appear in 1099 forms until it is applied to a bill
- How to correct a 1099 box in a released or paid AP bill
- How to report 1099 Tax Box 4 (Federal Tax Withheld)
- Troubleshooting: The Amount to Report value is zero on 1099 Year Details (AP654500) report
Payroll Checklist
For the up-to-date information and known issues related to Payroll reporting, refer to the following articles:
Additional Important Payroll Links
- Aatrix: Guides
- General Instructions for Forms W-2 and W-3 (2025
- 2025 Publication 15
- 2025 Publication 15-B
- Employer W-2 Filing Instructions & Information
- 2024 Instructions for Forms 1094-C and 1095-C
- 2025 Payroll Tax Updates
- 2026 Payroll Tax Updates
View SWK’s Acumatica End-of-Year Resource Compilations
Every year, SWK compiles a list of EOY resources to help Acumatica users like you streamline your financial close. If you would prefer insight into a previous version of Acumatica, we can help.
Refer to the following articles to find the information you need:
- Acumatica Year-End Resources for 2021
- Acumatica Year-End Resources for 2022
- Acumatica Year-End Resources for 2023
- Acumatica Year-End Resources for 2024
Get Additional Acumatica Year-End Support from SWK
SWK Technologies is an award-winning Acumatica partner and value-added reseller (VAR) with multiple support and development experts who are happy to help you build the cloud technology stack that returns the best value for you. With various educational and training resources available, SWK will help your team optimize your Acumatica workflows and environment to make year-end closing and more seamless, letting you get back to what you do best.
Contact SWK today to learn more about our Acumatica support resources and discover how we can enhance the value of your Acumatica implementation.