Year-End Closing for Payroll

Here are some hints for customers to be aware of when closing the Microsoft Dynamics SL Payroll module:

• The Microsoft Dynamics SL Payroll module is closed with the Year option in the fiscal period ending 12/31 or the latest calendar date not exceeding 12/31. Even if the date of 12/31 doesn’t fall in your last period of the year, you must still select the Year option in the General Ledger Closing screen for the Payroll module.

• Year-end closing moves all employee records to the next calendar year and creates new deduction records for the next calendar year based on the current year.

• Payroll checks may still be processed and released for the closed year by using a check date in that year.

• Calculations from the current year should be either processed or cleared prior to closing the year. See Microsoft Knowledge Base Article 847736.
https://mbs.microsoft.com/knowledgebase/KBDisplay.aspx?WTNTZSMNWUKNTMMYUTMZWVZSQTWWUNTTWWSQPZKYYRXPYZXOKSWKLRKVOXZPTVNW

• W-2 calculation for 2009 can be run after closing the Payroll module for the year.

• Tax table updates for 2010 withholding rates should be available for download in December 2009 and should be loaded after the Payroll year-end close has been completed.

• Be sure to verify all deduction records in Payroll Deduction Maintenance for correct withholding and expense accounts or sub accounts.

W-2 Processing in Payroll

The IRS often issues changes to W-2 forms, and Microsoft releases year-end updates to address these mandated changes. Year-end updates can be downloaded from PartnerSource and CustomerSource. These updates need to be applied to your Microsoft Dynamics SL installation prior to year-end processing. Directions for the installation are included in the update file.

Here are some hints to be aware of as you approach year-end closing of your Payroll module:

• Payroll W-2 data is always updated based on paycheck dates. Period to post has no relevance to this process.

• W-2 calculation can be run at any time, even before the year has ended, and can be rerun as many times as necessary. It is highly recommended that your customers run this process long before the W-2s are due to the IRS in order to give themselves time to work through any discrepancies they may find.

• Your customers should use the Employee W-2 History screen to review the results of the W-2 calculation process.

Some issues require modifying maintenance screens and recalculating W-2s for all employees. Some examples are:

1. If the deduction is missing the State Employer ID, this can be corrected in Deduction Maintenance (History)/W-2 Control tab.

2. If the W-2 is missing your customers’ company Federal Employer ID, have them correct this in Company Maintenance.

3. Incorrect Boxes – Deduction or Earnings Type Maintenance (History)/W-2 Control tab.

• The following are examples of errors that require initialization of the Employee W-2 History screen or Employee History screen to correct:

1. Incorrect wages reported due to incorrect setup of tax exempt deductions.

2. Adjustments for taxable items not captured through regular payroll processing such as taxable use of a company automobile or taxable life insurance benefits.

• Initialized changes to the Employee W-2 History screen may be protected during recalculation of W-2s if necessary. You should select the Protect Edited W-2 Information check box located on the W-2 Calculation screen prior to recalculating your W-2s.

• Final W-2 calculation must be done when all payroll data has been entered and released for the calendar year.

• Only create the Magnetic Media file after all W-2 issues have been resolved.