Which task is essential for compliance during quarterly payroll processing?

Reviewing quarter and year-end hotspots is a critical compliance task during quarterly payroll processing because it involves identifying and addressing potential issues related to tax calculations, reporting requirements, and various regulations that may change from one quarter to another. By focusing on these hotspots, payroll specialists ensure that the payroll process aligns with federal, state, and local laws, which helps avoid penalties and ensures accurate reporting.

This review process allows for proactive measures to be taken, such as adjusting tax rates or complying with new regulations that could affect payroll outcomes. This diligence is essential for maintaining the integrity of the payroll system and safeguarding the organization from compliance-related issues.

In contrast, tasks such as sending out employee performance reviews or monitoring employee work hours, while important, do not directly affect compliance related to payroll processing. Updating payroll software can improve efficiency and functionality but is more of a housekeeping task rather than a compliance necessity specifically tied to quarterly processing.