Year-End Processing Cycle

The payroll year-end processing cycle consists of the following tasks:

Task	Description
Install the update	You must install the update to run year-end programs. The update contains changes that comply with the most current government legislation. Perform the following steps: 1. Install the year-end payroll software update for the current year. 2. Complete the application-specific instructions (ASIs) for the update. This guide does not include software installation instructions and the necessary ASIs.
Verify payroll history	Review both the Taxation History Integrity report and the PDBA History Integrity report for accuracy. Correct any inaccurate history records to ensure that you report the correct information to the government.
Run year-end rollover programs	Run the Year-End Payroll Month Rollover and the Year-End Calendar Month Rollover programs to carry forward employee pay type, deduction, benefit, and accrual (PDBA) balances to the new year.
Verify setup	Verify that employee, company, PDBA, and tax type information is accurate. You can also set up next numbers at this time. Caution: You might need to process a conversion program to ensure that all employee names are in the correct format. If employee names are not in the correct format, government reporting agencies do not accept your year-end information. See Verifying Employee Names and Addresses for instructions for correcting employee names. You can verify W-2/IRS defined codes. You can set up wage adjustments, pay types for 1099 processing, and descriptions for amounts that you report in Box 12 and 14. You can also verify that each employee in your organization has a valid Social Security Number before you create and submit year-end information.
Set up special handling code tables	Set up special handling code tables to group PDBAs that you need to report in addition to wages that are already in tax history.
Enter third-party sick pay	Enter third-party sick pay for separate W-2, regular W-2 forms, and electronic filing reporting.
Build the year-end workfile	Create the W-2/1099 workfile ID, add special handling code tables to the workfile, and review workfile build information online.
Print audit reports	Print audit reports and run payroll balancing reports to verify year-to-date history and information.
Print forms	Print all year-end forms.
Create electronic filing	Create federal and state electronic files and send the information via electronic filing.
Print W-2c forms	If necessary, correct errors and print W-2c forms to report accurate information.