Before you process payroll in a new calendar year, you must first close the previous year using the Close Year command. When the year is closed, all employees’ earnings are “zeroed” out and inactive employees are deleted. These instructions are for Payroll versions 7.7.4a and lower and all versions of Canadian Payroll.
Note: Usually you will need to close the year before you have printed W-2s, Canadian forms or year end reports for your employees. If this is the case, you should make sure you have at least two valid backups of your year-end payroll files, then close the year. That way, you can print W-2s, Canadian forms or year end reports from a backup in which the year is still open.
Before You Close the Year
Before you close the year, you should do the following:
- Backup Company Files-
Before you close the year, we recommend that you make at least two backups of your payroll files and verify that those backups will open. See Tech Notes on “Backing Up Company Files” & “Restoring Company Files” for more information.
- Post Payroll Checks-
If you are using MultiLedger, you should make sure to post all employee checks and employer checks before closing the year.
Note: If you close the year before posting payroll checks, you can post them from a backup of your files made before you closed the year.
- Print all reports that are useful for a complete audit trail of your company’s payroll.
- If you need to delete any employees, mark them as Inactive on the Personal tab of the Employees window.
Using the Close Year Command
1 With your payroll company files open, choose Close [current year] from the File menu.
An alert appears verifying that you are requesting to Close [year].
2 Click OK.
An alert appears to remind you to make a backup of your files. It also reminds you that closing the year deletes all inactive employees and that the only way to return to the previous year is by restoring a backup.
If you have not made a backup of your payroll files, click Cancel, make a backup, then start over with step 1.
3 Click OK.
An alert appears that checks may now be entered for the new year.
4 Click OK.
Canadian Payroll
1 With your payroll company files open, choose Close [current year] from the File menu.
An alert appears to remind you to make a backup of your files. It also reminds you that closing the year deletes all inactive employees and that the only way to return to the previous year is by restoring a backup.
If you have not made a backup of your payroll files, click Cancel, make a backup, then start over with step 1.
2 Click OK.
An alert appears that checks may now be entered for the new year.
3 Click OK.