1. Administering Payroll for United States End-of-Year Processing
  2. Examples of Updating Year-End Tax Data for the US

Examples of Updating Year-End Tax Data for the US

In the course of preparing and processing your year-end tax data for reporting, you may determine that changes or corrections are needed.

How you uptake those changes into your year-end reports depends on where you're in the process.

  • After you have run the year-end archive

  • After you have generated your employee Form W-2s Draft mode

  • After you have generated your employee Form W-2s in Final mode

  • After you have distributed the employee Form W-2s

  • After the third-party tax-filing supplier's submission deadline

For further info, see the following sections.

After You Have Run the Year-End Archive

If you make changes to your employee data after you ran the year-end archive, you can still update the archive, assuming:

  • You haven't generated the Form W-2 by running the W-2 Employee Report flow in Final mode.

  • Your third-party tax-filing supplier's deadline for accepting 4th quarter tax files hasn't yet passed.

To do this:

  1. Make your changes to the tax data.

    You may have to perform a balance adjustment. For further info, see the following on My Oracle Support.

    • Oracle Cloud Human Capital Management for the US: Balance Adjustments (1600728.1)

    • Oracle Cloud Human Capital Management for the US: Batch Balance Adjustments (2053488.1)

  2. Roll back and rerun the Archive End-of-Year Payroll Results flow to capture your changes.

    If only a small number of employees are impacted, you can:

    • Roll back the archive for those employees and rerun

    • Retry the archive for those employees

  3. Run the W-2 Register flow, and review your year-end data. Correct any errors that come up.

  4. Use the W-2 Employee Report flow to create your employee W-2s.

  5. If you haven't already done so, use the Third-Party Quarterly Tax Filing Extract to process your tax data and submit the 4th quarter tax file to your supplier.

    If you have already submitted the file, you must resolve the tax data changes with your supplier. Depending on the data changed and the scope of the change, you can:

    • In most cases, regenerate a 4th quarter tax file and submit it to your supplier.

    • For corrections to data that's not passed in the tax file, such as registration IDs, contact your supplier to determine the best action.

After You Have Generated Your Employee Form W-2s Draft Mode

The W-2 Employee Report flow provides a Draft mode so you can create sample Form W-2s for testing and verification purposes.

In this case, if you need to make updates, it's assumed:

  • You have successfully run this flow in Draft mode.

  • You haven't run this flow in Final mode or distributed the forms to your employees.

  • Your third-party tax-filing supplier's deadline for accepting 4th quarter tax files hasn't yet passed.

After reviewing these reports, if you determine that changes are necessary:

  1. Make your changes to the tax data.

    You may have to perform a balance adjustment. For further info, see the following on My Oracle Support.

    • Oracle Cloud Human Capital Management for the US: Balance Adjustments (1600728.1)

    • Oracle Cloud Human Capital Management for the US: Batch Balance Adjustments (2053488.1)

  2. Roll back the Archive End-of-Year Payroll Results flow.

    If only a small number of employees are impacted, you can:

    • Roll back those employees and rerun the archive and Draft W-2 flows

    • Mark for retry the impacted employees in the Draft W-2 flow and archive flow and rerun them

  3. Rerun the archive to capture your updated data.

  4. Run the W-2 Register flow to review your year-end data.

  5. Run the W-2 Employee Report flow.

    • If you feel additional checks may be necessary, run this flow in Draft mode again and repeat your review.

    • If you're certain the Form W-2 is ready for employee distribution, run this flow in Final mode and distribute the forms to your employees.

  6. If you haven't already done so, use the Third-Party Quarterly Tax Filing Extract to process your tax data and submit the 4th quarter tax file to your supplier.

    For corrections to data that's not passed in the tax file, such as registration IDs, contact your supplier to determine the best action.

After You Have Generated Your Employee Form W-2s in Final Mode

Changes to your year-end tax data may be necessary after you have run the W-2 Employee Report flow in Final mode. In these cases, you can update the forms with the changes, assuming:

  • You haven't issued the Form W-2s to your employees.

  • Your third-party tax-filing supplier's deadline for accepting 4th quarter tax files hasn't yet passed.

Note: Because you ran this flow in Final mode, it applied data locks on the archived data. You must roll back this flow before you can retry or roll back the archive.

To do this:

  1. Make your changes to the tax data.

    You may have to perform a balance adjustment. For further info, see the following on My Oracle Support.

    • Oracle Cloud Human Capital Management for the US: Balance Adjustments (1600728.1)

    • Oracle Cloud Human Capital Management for the US: Batch Balance Adjustments (2053488.1)

  2. Roll back the W-2 Employee Report flow.

  3. Roll back the Archive End-of-Year Payroll Results flow.

    If only a small number of employees are impacted, you can:

    • Roll back the archive and Final W-2 flows for those employees, and rerun them.

    • Mark for retry the impacted employees in the Final W-2 and archive flows, and rerun them.

    Note: If you made changes made to the following values, you don't have to rerun the archive.For these values, the W-2 Employee Report flow derives them from live data.

  4. Rerun the archive to capture your updated data.

  5. Run the W-2 Register flow to review your year-end data.

  6. Run the W-2 Employee Report flow.

    • If you feel additional checks may be necessary, run this flow in Draft mode and repeat your review.

    • If you're certain the Form W-2 is ready for employee distribution, run this flow in Final mode and distribute the forms to your employees.

  7. If you haven't already done so, use the Third-Party Quarterly Tax Filing Extract to process your tax data and submit the 4th quarter tax file to your supplier.

    If you have already submitted the file, you must resolve the tax data changes with the supplier. Depending on the data changed and the scope of the change, you can:

    • In most cases, regenerate a 4th quarter tax file and submit to your supplier. The supplier determines what changes were made and submits file EFW2 to the appropriate agencies.

    • For corrections to data that's not passed in the tax file, such as registration IDs, contact the supplier to determine the best action.

After You Have Distributed the Employee Form W-2s

Changes to your year-end tax data may be necessary after you have generated and issued the employee W-2s. In these cases, you must create Form W-2c to report the new tax data.

To do this:

  1. Make your changes to the tax data.

    You may have to perform a balance adjustment. For further info, see the following on My Oracle Support.

    • Oracle Cloud Human Capital Management for the US: Balance Adjustments (1600728.1)

    • Oracle Cloud Human Capital Management for the US: Batch Balance Adjustments (2053488.1)

  2. Run the W-2c Archive flow. This captures changes for employees.

  3. Run the W-2c Register Report flow to verify the changes for the corrected employees.

  4. Run the W-2c Employee Report flow.

    Use the Draft mode to create an output file suitable for review.

    When you're certain the Form W-2c is ready for employee distribution, run the flow in Final mode.

    Note: Running this flow applies data locks on the archived data. Once locked, you can't change that data through either retry or roll back of the archive. If you detect errors in your Final report, you must roll back the W-2c Employee Report flow before correcting and archiving the data and regenerating the report.

  5. If you're using the Third-Party Quarterly Tax Filing Extract to process your tax data through a third party, you must resolve the data error with your supplier. Depending on the data changed and the scope of the change, you can:

    • In most cases, rerun the 4th quarter tax file and submit to the third-party supplier. The supplier determines what changes were made and submits file EFW2c to the appropriate agencies.

      Note: Not all third-party providers support the submission of the EFW2c file or the automatic generation of Form W-2c from your extract. Consult with your supplier for more info.

    • In cases where fewer than 250 employees are impacted, you have multiple submission options.

      For further info, see the Social Security Administration's Employer W-2 Filing Instructions and Information website.

    • For corrections to data that's not passed in the tax file, such as registration IDs, contact the supplier to determine the best action.

After the Third-Party Tax-Filing Supplier's Submission Deadline

After generating your employee W-2s and submitting the EFW2 file, you find changes are necessary. If the deadline for submitting tax files to your supplier has passed, you can't update the EFW2 file or employee Form W-2s with new info. Instead, you must create Form W-2c to report the changes.

To do this:

  1. Make your changes to the tax data.

    You may have to perform a balance adjustment. For further info, see the following on My Oracle Support.

    • Oracle Cloud Human Capital Management for the US: Balance Adjustments (1600728.1)

    • Oracle Cloud Human Capital Management for the US: Batch Balance Adjustments (2053488.1)

  2. Use the Third-Party Quarterly Tax Filing Extract to create an updated 4th quarter file for your supplier. Depending on the data changed and the scope of the change, you can:

    • In most cases, rerun the 4th quarter tax file and submit to the third-party supplier. The supplier determines what changes were made and submits file EFW2c to the appropriate agencies.

      Note: Not all third-party providers support the submission of the EFW2c file or the automatic generation of Form W-2c from your extract. Consult with your supplier for more info.

    • For corrections to data that's not passed in the tax file, such as registration IDs, contact the supplier to determine the best action.

  3. Run the W-2c Archive Process flow.

  4. Run the W-2c Register Report flow to verify the changes for the corrected employees.

  5. Run the W-2c Employee Report flow.

    Use the Draft mode to create an output file suitable for review.

    When you're certain the Form W-2c is ready for employee distribution, run the flow in Final mode.

    Note: This flow performs locking actions on the data regardless of the setting you choose. If you detect errors in your Final reports, you must roll back those flows before correcting the data and regenerating the reports.

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