To help users understand the year end process of payroll.
There are some items that can be updated before payroll year end. To update these items, open G2 and click on Admin – setup – configure payroll.
The first item is Pay Schedules.
Create new pay schedules for the new payroll year. Only create the pay schedules that will actually be used. (Pay schedules can be added at any time during the year, if the need arises.) It is best to use the same codes that were used the year before. If there are any codes that were not used last year, the codes will need to be added to the affected employees.
Remember, if a pay date for a particular pay period falls on a holiday; adjust the pay date for that pay period accordingly before payroll is processed for that period.
Have a list of your holidays and a calendar handy when creating these pay schedules. Also, if a pay date falls in the next year, that pay period will be processed in the next payroll year it cannot be included in the current payroll year.
*Remember to add any new codes to the employee file.
The next step will be the Tax Tables. Create the federal tax tables for the new payroll year. (For use with the federal deduction code, usually (FED). The appropriate information can be found in the Circular E provided by the Internal Revenue Service. Make sure the Tables for Percentage Method of Withholding pages are chosen.
*Example only check circular e for correct amounts:
Create the state income tax tables for the new payroll year, if there is a state income tax and the state deduction code reads from the tax tables. This is determined by what has been entered in Deduction Type of the deduction code.
If a ‘T’ is entered in this field, enter new tax tables. If an ‘S’ is entered in this field and tax calculation changes are to be made, please contact IDS as soon as possible to get these changes made.
Create the Earned Income Credit tax tables (for use with the deduction code EIC), if there are any employees that receive this credit. Make sure to choose the Tables for Percentage Method of Withholding pages.
Next will be Statutory Holidays. Enter the statutory holidays for the new year. The system uses this list to apply the appropriate holiday pay on the wages page when entering payroll.
*Example only check local requirements
Next, users will look at items to update after generating the last payroll of the year.
Make the following updates after the last payroll has been processed for the year, as these areas do not differentiate by payroll year. The changes will take effect as soon as they are entered.
Payroll Configurations are found by opening G2 and clicking on Admin – Setup – Update Module Configurations.
Review the configurations to confirm they are correct. Update the payroll year and the limits for SUTA and FUTA. The W2 year should be set for the year that needs to process the W2s in – so if the W2s have not been created yet, users will need to change it to the year that has just been completed.
If the W2s have been created, then the year can be changed to the current payroll year.
Next, Update state file in Admin – Setup – Configure Payroll – State Codes
Update the Minimum Wage amounts if necessary. Enter the SUTA yearly limit.
Next are the Deduction Codes. If necessary, update any deductions that have changed. For example, update the SSE and SSC deductions for social security with the maximum amount per year.
This means the maximum amount of the deduction and not the maximum wages. This information is provided in the Circular E. Multiply the gross wage by the percentage and enter the dollar amount in Maximum per Year field.
If the percentage amount has changed, update the Amount field. If the FUTA and SUTA maximum amounts have changed, correct them in the same way.
Create any new deductions that will be implemented. Don’t forget to add any new deductions to the employees file on the deductions page.
For State Constants users will need to sign into Traditional Astra. (12-1-4-?)
If the state income tax information has changed for the following states, enter the changes in the appropriate state option in 12-1-4. Update any deductions that have changed, check yearly limits