Payroll Year End Closing

The following procedures outline steps necessary to properly close out the current year in Payroll. Follow them closely!

BEFORE CLOSING THE YEAR:

• Make sure VMS program files are updated with the current programs.
• Post all outstanding payroll batches for the current year.
• Print the following reports:
• Employee Totals report (under Master File Lists)
• Deduction Report
• Hours Worked Report
• Federal Tax report
• State Tax report
• Cost Center Report
• UC3 Report
• Make a backup of your current data files.
• Label the backup “Payroll data December 31, 2005”.
• Store this backup in a safe place.
• Do not write over this backup for any reason!
• You do not have to do a month or quarter closing. The year-end close will perform this function.

TO CLOSE THE YEAR:

From the Payroll menu select “26. END OF YEAR”. Choose the appropriate selections and enter the reporting tax year and select OK.

Selecting the “Clear VACATION and SICK Pay accruals” box will zero out these fields in the Employee file.

Selecting the “Remove TERMINATED Employees” box will delete payroll history for terminated employees.

AFTER YEAR IS CLOSED:

• Enter the new Federal and State Tax Tables before processing the first payroll of the new year.

• When processing the first payroll of the new year, verify that the checks are dated for the new year.

• Employee federal or state W-2 information can be edited from the W-2 FORMS option.