When you issue a check for a new year before you close last year in Payroll, the taxable, subject-to, and tax calculations are affected and do not calculate properly. Other pays, taxes, deductions, and fringes with limits can also be affected.

If the checks are not yet distributed to your employees:

• Void the checks, close the Payroll year, and then process the checks again.

If the checks have been distributed to your employees:

Note: You can still void the checks however you'll want to make sure that the net check amount matches what was on the checks given to your employees. If you choose to not void the checks, complete the following steps:

1. Close the Payroll year (Tasks, Close Year).
2. If your taxes have not been updated for the new year, download and update your taxes.
3. Recalculate subject-to for the current year. See How do I recalculate subject-to article linked below.
4. If you want to correct the tax amounts that calculated, issue a tax correction check. For information about tax correction checks, see the links below. Any pays, deductions, or fringes with limits that should have calculated on the first check need to be manually added to the employee's next check.