1How Do I Prepare for US End-of-Year Processing?

US end-of-year processing consists of multiple steps, which you must complete in the correct order. You should perform these steps first in a test environment.

Before your fourth quarter starts, run a trial year-end process to validate your results.

End-of-year processing entails the following activities. Amend them as required to suit your specific organization needs. Best practice is to document any changes thoroughly to ensure proper processing in the future.

My Oracle Support provides many applicable technical briefs as resources for you. For further info, see the United States Information Center (2063588.2) on My Oracle Support.

1. Configure for end-of-year.

   Before beginning your end-of-year reporting, make sure you've performed the following operations.

   • Familiarize yourself with the legislative announcements and all known issues.

   • Configure your year-end tax forms.

   • Configure the calculation cards for each employee.

   • If you're performing your tax filing through a third party, configure the Oracle Cloud Third-Party Tax Filing Interface.

2. Order year-end tax form paper stock.

   For employees opting to receive paper delivery of their year-end tax forms, you print these forms on 4up perforated paper.

   

   You have the option of using paper stock with the employee instructions preprinted on the backside. However, you can elect to print the instructions yourself.

   The US Form W-2 printing format supports form #5208 and window envelope #4444-1. You can buy these forms from any supplier you choose, such as Evergreen, Greatland, and Complyright.

   No specific paper stock is needed for Form W-2PR, W-2c, W-2cGU, or W-2cPR.

3. Complete all payroll processing for the year.

4. Perform your prearchival processing.

   • Reconciliation reports

5. Fix any balance problems detected by the prearchival reports.

6. Perform your quarter-end processing for the fourth quarter, and resolve any errors detected.

7. Use the Assign Control Number for Puerto Rico Employee flow to assign W-2PR control numbers to your Puerto Rico employees.

   Note:

   You must manually set the control numbers for Forms W-2cPR.

8. Archive your end-of-year payroll results.

9. Perform year-end balance reconciliation, and resolve any errors detected.

   Resolving these errors might require balance adjustments.

10. Use the W-2 Register Report to validate your archived data, resolve any balance issues detected, and repeat the year-end data archive.

11. Generate the year-end tax and wage reports.

    • Use the Third-Party Quarterly Tax Filing Extract flow to submit your end-of-year data to your third-party tax filing provider. You submit this data to your third-party provider, which generates the appropriate electronic files and submits them. These files include EFW2, EFW2c, MMW2PR-1, and Form 940.

      Note:

      The Third-Party Quarterly Tax Filing Extract isn't dependent on the year-end or quarter-end archives.

    • Use the W-2 Employee Report flow in Draft reporting mode to create year-end forms for report verification purposes.

    • Use the W-2 Employee Report in Final reporting mode to create your employees' year-end forms. This flow creates the electronic forms published on the employees' Me page. It also generates the printed forms for those employees who have opted for paper distribution.

12. Distribute the employee forms as indicated by employee election.

    For 1099-R recipients, you must contract with a third-party provider to print and distribute their year-end forms. Use the Third-Party Tax Filing Extract for Retirees to generate an output file of your retiree year-end data. See their documentation for instructions on how to pass this file to their print services.

13. Lock the W-2 and W-2c document types in Document Records to prevent them from being changed.

14. Run the year-begin flow.

    Run any necessary year-begin flows between running the last payroll of the year and the first payroll of the next year.

15. If changes are required to your year-end tax data after you distributed your employee year-end forms, generate and distribute Form W-2cs.