Close Payroll

If you have Payroll, you can print all of your year-end forms and close the calendar year.

Tip: If you have questions about the tax update, check out the Payroll Tax Update FAQs.

There are a few things you need to do to close payroll.

Back up your data

  1. On the File menu, click Backup / Restore / Archive > Backup Data.
  2. Enter a reason for the backup, such as "Backup before closing payroll".
  3. Select a backup method, and enter or select any relevant information.
  4. Click Start Backup.
  5. After your data is backed up, you can print the backup information for your reference.

Check your data for errors

On the File menu, click Test / Fix > Fix Data Discrepancies. If errors display, correct them before you continue.

Check for a program update

On the File menu, click Check for Program Update.

Finish entering all transactions

On the Transactions tab, click Accounting Overview. Make sure all transactions are entered for the year.

Update benefits and allowances

If needed, you can edit employee benefits/allowances, employer benefits, group-term life insurance, and dependent care information.

  1. On the Payroll tab, click Tax Setup > Benefits/Allowances.
  2. In the navigation pane, click the benefits/allowances you want to edit.
  3. Make any necessary changes.
  4. Click Save.

examples of employee benefits

Update employee wages and paychecks

If needed, you can edit employee wages or paychecks.

  1. On the Payroll tab, click Employees > Wages/Master Paycheck.
  2. Locate the employee whose record you want to edit.
  3. Make any necessary changes.
  4. Click Print Actuals Report to verify that check totals are correct.
    Tip: It's useful to print this report for each employee before printing the first checks of the new year.
  5. Click Save.

Verify employee information for the Affordable Care Act (Form 1095-B or 1095-C)

If you haven't set health care coverage terms or added covered individuals yet, do that before running the proof list report.

  1. On the Reports tab, click Payroll Reports.
  2. Expand employee listing reports, and double-click Affordable Care Act Proof List.
  3. Proceed through the report windows, and select any necessary options.
  4. Select the employees you want to print, then click Preview.
  5. Verify that the information is correct. If it's not, go to the affected employee's QTD & YTD Totals window and make the appropriate changes on the Affordable Care Act tab.
  6. Print the report if you need it for your records.

Report Preview showing the Affordable Care Act Proof List

Run the monthly, quarterly, and yearly processes

  1. Run monthly reports and processes after you print your last paychecks.
    1. On the Transactions tab, click End of Period > Payroll End of Month.
  2. After you're finished with monthly reports and processes, you can run the quarterly items.
    1. On the Transactions tab, click End of Period > Payroll End of Quarter.
    2. Click Test Totals to ensure QTD/YTD totals are correct before running other items.
  3. When you're done running quarterly reports and processes, you're ready for yearly items.
    1. On the Transactions tab, click End of Period > Payroll End of Year.
    2. On the Processes & Reports tab, click Test Totals to make sure QTD/YTD totals are correct before running any other reports or processes.

Electronically file your tax forms

PDS partners with Nelco to offer tax e-filing solutions for federal and state W-2, 1099, 941, 944, and ACA forms. This is an optional service, offered at additional cost.

If you electronically file your tax forms, you do not need to print them.

Close the calendar year for payroll

Once you print all the reports and forms you need, you can close the payroll year.

  1. On the Transactions tab, click End of Period > Payroll End of Year.
  2. To save the information for next year, select Copy Employee Benefits, Copy Personal Activities, and/or Copy Affordable Care Act on the Processes & Reports tab. Otherwise, that information on the employee records is blank for the next year.
  3. If you want to overwrite any existing Affordable Care Act information, select that option.
  4. Click Close Calendar Year for Payroll.
  5. Label the backup as the "Year-end backup" and keep it separate from other backups.
  6. Click Yes when prompted to advance to the next year.

Close Calendar Year for Payroll information and options