| What happens if I process payroll for the new year before I close the old year in Payroll? |
Resolution | If the check status is New, Processed, or Altered: - Close the year in Payroll. For more information, see How do I close the year in Payroll?
- Reprocess payroll checks. For more information, see How do I reprocess checks in Payroll?
This will ensure that the following totals are correct: - YTD (year-to-date), QTD (quarter-to-date) and MTD (month-to-date) totals are stored in each employee's setup. These totals do not change to prior period totals until the year is closed in Payroll. Until you close the year, the amounts that appear in the YTD, QTD, and MTD totals are actually last year, last quarter, and last month totals.
- Payroll calculations include YTD, QTD, and MTD totals and limits. If you are ready to issue checks for the new year, but you do not close the year in Payroll, the totals and limits that calculate are actually last year's totals. This prevents the calculation of pays, deductions, taxes, and fringes where a limit was met in the previous year. To correct these calculations, you may need to manually increase the amount of pays, deductions, taxes, and fringes that do not calculate.
- The subject-to amount for a tax where a limit was met in the previous year does not calculate. To correct the subject-to amounts, you must recalculate subject-to for the new year.
- The YTD totals on a check stub are the total of the YTD totals plus the printed check's totals. If you do not close the year in Payroll, the YTD totals on a check stub include last year's pays, deductions, taxes, and fringes.
Note: You cannot post checks with a check date in the new year until you close the previous year.
If you printed a check for the new year before you closed the old year in Payroll, see How do I correct a check I issued for the new year before I closed last year in Payroll? for instructions on how to make corrections. Where can I find Year-End Procedures Guides (YEPG)? How do I reprocess checks in Payroll? How do I correct a check I issued for the new year before I closed last year in Payroll? How do I close the year in Payroll?
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