1. Administering Payroll for United States End-of-Year Processing
  2. End-of-Year Processing for the US

End-of-Year Processing for the US

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 numerous 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 have performed the following operations.

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

      For further info, see the following on My Oracle Support.

      • Oracle Cloud Human Capital Management for US: Payroll Legislative Release Dates (2542789.1)

      • Oracle HCM Cloud Functional Known Issues and Maintenance Pack (1554838.1)

      • Oracle Applications Cloud Known Issues and Update Documents (1603154.1)

    • Configure your year-end tax forms.

      For further info, see the following in the Help Center.

      • Configure the Form W-2

      • Configure the US Territorial Year-End Tax Forms

    • Configure the calculation cards for each employee.

      For further info, see the following in the Help Center.

      • Configure Calculation Cards for Year-End Tax Forms

      • Configure Calculation Cards for US Territorial Year-End Tax Forms

      • Reporting Information Calculation Card for the US

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

      For further info, see Oracle Cloud Human Capital Management for United States: Third-Party Tax Filing Interface technical brief (1594079.1) on My Oracle Support.

  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.
    This image displays a sample of the Form W-2 4-up format paper stock.

    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 purchase 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

    For further info, see Prearchival Reports for the US in the Help Center.

  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.

    For further info, see the following.

    • Quarter-End Processing for the US in the Help Center

    • Oracle Cloud Human Capital Management for the US Payroll Reconciliation (2086251.1) on My Oracle Support.

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

    For further info, see Assign Control Number for Puerto Rico Employees in the Help Center.

    Note: You must manually set the control numbers for Forms W-2cPR. For further info, see Configure Calculation Cards for US Territorial Year-End Tax Forms in the Help Center.

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

    For further info, see Archive Year-End Data for the US in the Help Center.

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

    For further info, see Oracle Cloud Human Capital Management for the US Payroll Reconciliation (2086251.1) on My Oracle Support.

    Resolving these errors might require balance adjustments. 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)

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

    For further info, see W-2 Register in the Help Center.

  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. Refer to their documentation for instructions on how to pass this file to their print services.

    For further info, see Oracle Cloud Human Capital Management for the United States: Third-Party Tax Filing Interface (1594079.1) on My Oracle Support.

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

    For further info, see Configure the Form W-2 in the Help Center.

    • Configure the Form W-2

    • Configure the US Territorial Year-End Tax Forms

  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.

    For further info, see Begin-of-Year Processing for the US in the Help Center.

  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.

    For further info, see the following in the Help Center.

    • Examples of Updating Year-End Tax Data for the US

    • Examples of Updating Year-End Tax Data for US Territories

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