Timeline

After Final Payroll Run of the Year

• Reconcile Payroll Accumulators for Year-End
• Run Trial Reports — Run and verify trial W-2 and 1099-R reports (PYW2PW) to evaluate and validate the Year-End accumulators. The trial reports should be compared to the quarterly reports (941).

Before First Payroll Run of the New Tax Year

• Roll Payroll Accumulators into the New Tax Year
• Create/Update Tax Tables - W2 for the New Year
• Update Tax Calc Codes (as necessary) — Any necessary tax calculation formula changes will be included in the Year-End BusinessPlus Release download, in the form of calc code files. As additional changes become available, updated calc codes and tax tables will be posted on the Customer Portal, to download and apply.
• Set Up IRS Tax Levy
• Create/Update Calendars and Schedules for the New Tax Year — Calendar and schedule definitions must be created for the new tax year in order to process payrolls. Of particular importance are schedules and hours related to patching processes and timecard entry. Calendar and schedule definitions are updated through menu masks PYUPCA and PYUPSC respectively.
• Create/Update Payroll Periods for the New Tax Year — Payroll Period definitions for the new tax year are required for processing payrolls. It is generally recommended that all payroll periods for the new tax year be defined prior to running any payroll. Care should be taken to ensure that the number of periods is correctly specified since this affects annualized wages in tax calculations. Be careful to define frequency codes correctly as well as fiscal and tax year months and quarters. Typically, users simply pattern the new period definitions on the prior year's setup. Pay period definitions are created/updated using mask PYUPPR .
• Update CDH Rates and Limits (as necessary) — While rate and limit changes can sometimes be mandated to become effective mid-year, most coincide with the beginning of a new tax year. FICA rates and limits typically change with the start of a new tax year, for example. Clients need to review CDH definitions for any setup changes required by such mandates. Rate and limit values are often identified on CDH Definition pages, (menu masks PYUPCC and PYUPDD). Clients may also have such values embedded within specific calculation codes. It is important to note that the location of these rates/amounts will vary with the CDH definitions and calculation codes. Both old and new rates may be set up simultaneously by creating CDH definitions with effective begin/end dates. Most clients find it easiest to change a rate when it takes effect.
• Update Employee Pay and CDH assignments (as necessary) — For clients whose Pay Assignments and CDH Assignments have regular begin/end dates that coincide with the calendar year, it will be necessary to create new assignments for the coming year.
• Run Trial Payroll for First Pay Period in the New Year — Since so many basic configurations and calculation codes are being changed at the start of a new tax year, it is very important that a "trial payroll" be run for the initial pay period of the new year. It is generally recommended that trial payrolls be done before any live payroll run, but it is especially important here. Recommended steps: PYTCDTUB (Create Timecard Batch), PYTCDTPT (Patch by Pay line), PYPAFC (Force Calc), PYREEL (Prelist), PYTPDP (Trial Payroll).

By the End of January

• Process/Distribute W-2 Forms to Employees
• Review Common Codes (PYFG/PY601C, PYW2/EOxxxx, PYW2/BOX12-##, PYW2/BOX14-##)
• Load the printer with the W-2 ELF form (if applicable) — Clients using Easy Laser Forms (ELF) to print the 1099-MISC, 1095-C, and W-2 forms on blank/perforated paper must purchase the ELF forms each year and load them to the printer.
• Produce W-2 Forms
• Generate the W-2 Electronic Submission File
• Check the submission file for errors using AccuWage
• Submit the file — Refer to filing requirements by tax year.

After W-2 Processing

• Update Limits for Pay Base Accumulators — Various pay bases may have annual dollar limits set up in the PYPB common codes. These limits need to be reviewed and updated as necessary for processing in the new tax year. However, the W-2 extraction process is sensitive to those pay base limits and they should not be changed until after the W-2 filings are complete. Remember to update the FICA limits on the CDH definitions, as the standard calc codes make use of those values.