Costpoint Online Help

Contents of the Close Payroll Year Screen

Use the fields and options to configure the Close Payroll Year screen.

Identification

Use the fields in this block to create a new parameter ID or to retrieve a previously saved parameter ID. A parameter ID represents a set of screen selection parameters. After you have saved a parameter ID and its related parameters, you can retrieve them using Query.

You can use the retrieved parameters to produce reports and run processes more efficiently and with greater consistency. The saved parameters are also useful and necessary when you want to run the process as part of a batch job. Many users save a unique set of parameters for each different way they run a report or process. When you select a previously saved parameter ID or parameter description, the associated saved screen selection parameters automatically display as selection defaults. The page setup and print options, if there are any, are also included in the saved parameter ID. You can change any of the associated selection defaults as necessary.

Field Description
Parameter ID

Enter, or click to select, a parameter ID of up to 15 alphanumeric characters. Choose characters for your parameter ID that help identify the type of selections you made on the screen, such as PERIOD or QUARTERLY.

When you save your record, all the selections made on the screen are stored with the parameter ID. Later, you can retrieve the parameter using Query.

You can use the parameter to run the process more efficiently because you can select the parameter ID with its previously defined screen selections. After the default selections display on the screen, you can override the defaults.

Description

Enter, or click to select, a parameter description of up to 30 alphanumeric characters.

Selection Ranges

Pay Cycle

Field Description
Option

This field always displays One.

Start

Enter the four-character pay cycle code or click to select the code for which you want to close the payroll year. This is a required field.

Sort By

Use the options in this group box to control the sort of the report.

Field Description
1st Sort

Use this drop-down list to select the first sort criteria. Options include:

  • Employee ID: Select this option to sort the report by employee ID.
  • Employee Name: Select this option to sort the report by employee name.

Pay Cycle Data

This group box becomes available after you enter the Pay Cycle. This non-editable table displays the dates for the Pay Cycle that are closed by this process.

Current

Field Description
Start Date

This non-editable field displays the current start date of the pay cycle that is open.

End Date

This non-editable field displays the current end date of the pay cycle that is open.

Payroll Year

This non-editable field displays the current payroll year for the pay cycle that is open.

Note: Your current dates must be the last pay cycle of the current payroll year.

Next

Field Description
Start Date

This non-editable field displays the next start date of the pay cycle that is opened by this process.

End Date

This non-editable field displays the next end date of the pay cycle that is opened by this process.

Payroll Year

This non-editable field displays the next payroll year for the pay cycle that is opened by this process.

Note: The next dates must be the first pay cycle of the new payroll year.
Close Payroll Year

To close the payroll year, click the arrow to the right of and select Close Payroll Year. When you first enter this screen, this option is grayed out. You can select this option after printing the journal report as part of this session (the button becomes available after printing). If you then select this option, you receive a message asking if you really intend to close. If you click OK, the closing process proceeds. Selecting this button closes the last pay period of the current payroll year. The Pay Cycle Schedule on the Manage Pay Periods screen reflects the closing by clearing the check box in the Open Flag column. It also updates the employee deduction limits for deductions with an ongoing/cumulative limit, by reducing each limit by the amount deducted for the calendar year. If the ongoing deduction limit is "$0.00," the Method is updated to NO DED on the Manage Employee Deductions screen.

There are three edits in the closing process. Two hard edits prevent the pay cycle year from being closed. The first occurs if there are current Pay Cycle Period transactions in the Employee Payroll table (Payroll Edit table) that have not been posted to the General Ledger. The second occurs if the open pay cycle period is not the last pay period of the current payroll year. There is also a soft edit that occurs if there are no records in the Employee Earnings table for the current period.

Print/Close Payroll Year

You can click the arrow to the right of and select Print/Close Payroll Year when you first enter this screen. If you do, you receive a message asking if you really intend to close. If you click OK, the journal report prints with the closing process following immediately. Selecting this option closes the last pay cycle of the current payroll year. The Pay Cycle Schedule on the Manage Pay Periods screen reflects the closing by clearing the check box in the Open Flag column. It also updates the employee deduction limits for deductions with an ongoing/cumulative limit, by reducing each limit by the amount deducted for the calendar year. If the ongoing deduction limit is "$0.00," the Method is updated to NO DED on the Manage Employee Deductions screen.

There are three edits in the closing process. There are two hard edits that prevent the pay cycle year from being closed. The first occurs if there are current Pay Cycle Period transactions in the Employee Payroll table (Payroll Edit table) that have not been posted to the General Ledger. The second occurs if the open pay cycle period is not the last pay period of the current payroll year. There is also a soft edit that occurs if there are no records in the Employee Earnings table for the current period.

Hints

  • Deduct Excess Life Insurance: Be sure that you have deducted social security and Medicare on excess life insurance premiums over $50,000.00.
  • Enter all Paychecks Dated Before December 31: All paychecks (regular and bonus) that are dated in the calendar year being closed must be entered into Costpoint and properly posted to the General Ledger through the Payroll Journal. Paychecks that are not posted before the calendar year is closed are not included on W-2s unless they are manually entered into the Manage Employee Savings Bonds screen.
  • Print the Earnings Report and Review: Review the Earnings Report to ensure that the earnings are reasonable.
  • Make a Backup: Make a data backup of the EMPL_DEDUCT table so that you can restore the pre-close data if necessary. If you are upgrading to a higher version of Costpoint in the near future, back up the executables before upgrading.
  • Update Tax Tables: Update the Manage Federal Taxes screen for the new year's tax information so that taxes for the new year are properly calculated. The federal and state tax tables can be copied in from the CD-ROM or can be manually entered into the appropriate screens after you close the payroll year. Complete updated printed federal and state information and a Tax Update diskette are usually mailed in late January/early February. Note that if you did not receive the updated section before your first or second payroll, you do not need to modify your state withholding tables if your states did not change. If they did change, review the nature of the changes in your updated withholding booklet from the state(s). You can enter the changes into the appropriate tax tables. Another option is to withhold at last year's rate for one or two payrolls, which is normally not a material difference. We cannot mail the updated tax tables until the end of January because there are many state changes that take place in late December and early January.
  • Add Additional Compensation Items: Enter W-2 adjustments directly onto the Manage Employee Savings Bonds screen. Additional compensation items that are social security and Medicare taxable must be added to gross pay before the year is closed and social security and Medicare withheld from employees. See the W-2 Processing topic for more extensive information.
  • Print Quarterly Payroll Taxes Reports: The Quarterly Payroll Taxes Reports include any additional compensation items you added which you need to prepare your 941 and state unemployment filings.
  • Reprint the Employees' Earnings Report: You want to reprint this report if you added additional compensation items on the Manage Employee Savings Bonds screen, because the additional compensation items are included.
  • Print the State and Local Withholding Tax Reports: Print these reports (Tax Reporting) for the period beginning 01/01 and ending 12/31. These reports support the year-to-date wages and withholdings for each state and locality.
  • Print W-2s : You are now ready to print W-2s. Please refer to the documentation for the individual menu selections and to the W-2 Processing topic.