How do I Close a Payroll Year?

Payroll is date-sensitive, operating on a calendar year basis. Closing the calendar year, also known as the payroll year, involves running Payroll Year End Close. No special procedure is 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 to the new year so Year to Date data and Quarter to Date drill around data are for the new year

• Updates pay plans and creates work periods and pay periods for the new year

  Note: You must review these deductions prior to closing the payroll year.

• Deletes all withholding deductions in arrears created by the application during the previous year

Once the payroll year is closed, you can still go back and adjust employee payroll history to balance for the previous year end. To access the prior payroll year once it is closed:

• Process and close any adjustments or voids

• Close the adjustments or voids with Payroll Close in Update mode

  Note: If you are processing adjustments for the prior year, make sure you use a date appropriate for the previous year so that it posts correctly for W2 processing. You cannot use the current year for adjustments in the previous year.