Closing a payroll year

The Payroll application is date sensitive and operates on a calendar year basis. There are no special procedures required for month-end or quarter-end closing.

When you close a payroll year, the application:

Changes the year in the Payroll Year field on Company (HR00.1) to the new year
Deletes all arrears withholding deductions created by the application during the previous year
Creates new pay period and work period dates for pay plans defined in Pay Plan (PR21.1)

Year-to-date totals on Employee Deduction are not affected when you run Year End Close (PR999). They are reset on the first day of the new year based on the system date.

After closing the payroll year, you can still return to make adjustments to the prior year.

Perform a full backup of files before you process the Year End Close.

Note: You must run Payroll Year End Close (PR999) before you run the first payroll cycle of the new calendar year. Running PR999 does not effect your Year End processing. Running PR999 prepares you for running payroll in the new year.

Close a payroll year

Access Payroll Year End Close (PR999).
Select Report Option 3 Both Close and Plan Update.
Run the report.
If you detect errors in wage and tax information after you run PR999, make adjustments to the previous year on Adjustment (PR82.1).

We recommend that after you run PR999, you define your security to restrict access to PR999. If you restrict access, you assure that no one will rerun PR999 during the payroll year. Run PR999 to close payroll only once a year. If your pay plan effective date is not the first of the year, then you have the option to run PR999 mid-year for Report Option 2 Pay Plan Update to update pay plan work periods and pay periods.