867 Payroll Year End Preparation Checklist PDF

[1]
Explain what are all the Year End Processing activities.
Year end processing is more related to payroll than other modules.
The main things to keep in mind are: year-end payroll and tax filing schedule, calendar
extends correctly into the next year, user training for 221(payroll adjustment), tax
configuration for upcoming year, etc.
Year End Preparation Checklist

The following checklist presents a timeline of milestones that SAP recommends you
observe for Year End payroll processing. This list includes both general milestones that
pertain to standard payroll practices and specific milestones that relate to Year End
processing in SAP Payroll. We recommend that you perform these milestones in
chronological order.
November
During November, we recommend that you plan to complete the following milestones if
they have not already been completed earlier in the year:
Review the current Year End Tax Reporter User Guide, found on the Year End
Web site in SAP Service Marketplace, at http://service.sap.com/hrusa.
Refresh your test client(s) with all current Master Data and Customizing found in
your productive client(s).
Install all required HR Support Packages (HRSPs), up to and including the Year
End Base HRSP defined for your release.
Apply Year End Transports (or equivalent HRSPs) when necessary.
Define strict timelines and deadlines for:
o Entering Year End Adjustments. To this end, and to avoid undesired

claims from being stored in your system, identify a time window when
FICA-taxable adjustments can be entered before the final payroll run of
the year.
o Reminding employees to update their mailing address, W-4 or EIC W-5
data, and any W-2 contact information.
o Performing and auditing Tax Reporter simulation runs.
o Performing Payroll Reconciliations.
o Performing and auditing Tax Reporter production run(s).
o Printing results from Tax Reporter production run(s).
Per SAP Note 175641, order tax forms for printing and envelopes, or
Schedule a block of time with your outsourcing organization for printing.
Attend course HR710 (U.S. Tax Reporter) or workshop WUSTAX (Advanced
Get more SAP Human Resource Tips:

http://www.sap-img.com/sap-hr.htm
[2]
U.S. Tax Reporter) through SAP Americas Education and Registration

Department. To enroll in either offering, call (888) 777-1727, or visit the Online
Training Catalog at http://service.sap.com/education.
Identify all individuals who will hold responsibility for Year End processing in
Tax Reporter, then provide these individuals with the necessary security
authorizations, or confirm that they already possess them. Remember that
company executives may require specific authorization.
December
Before performing your final payroll run of the year, we recommend that you:
Review the Year End Web site in SAP Service Marketplace, at

http://service.sap.com/hrusa, as often as possible.
Apply Year End Transports (or equivalent HRSPs) when necessary.
Confirm the availability and configuration of your PostScript printer(s).
Review the configuration information of the Tax Reporter User Guide you read in
November and complete Tax Reporter configuration for the following items:
o W-2 boxes 11 through 14
o Company information, blocking factor, download format for data files
o Features UTXTM, UTXRP, UTXPR and UTXJS
o Other configuration, as necessary
Identify and enter all existing adjustments; for additional information, consult the
Adjustment User Guide published for your release at
http://service.sap.com/hrusa.
Before running your first payroll run of the new year, identify and clear all existing
claims from the current tax year; for additional information, consult the Claims
Processing User Guide published at http://service.sap.com/hrusa.
Perform W-2 simulation runs for small employee groups.
Use the Payroll Reconciliation Report to compare payroll results with simulated
Tax Reporter data; for additional information, consult the Payroll Reconciliation
Report User Guide published at http://service.sap.com/hrusa.
Apply all applicable Tax Update Bulletins (TUBs) for BSI TaxFactory.
Perform test runs of the full W-2 production process.

o If using a test client with a copy of production data, consider performing a
productive Tax Reporter run in the test client.
o Estimate the necessary Tax Reporter runtime on the production server.
o Ensure that no system time-outs occur.
o Print some W-2s to confirm printer setup, authorizations, and alignment.
o If you are outsourcing your printing, run the applicable interface.

[3]
Before running your first payroll run of the new year, update state unemployment
insurance and other tax rate changes for the new year as necessary.
Establish a holiday calendar for the new year; generate and review pay periods
for the new year, if you have not already done so.
Simulate and perform your first payroll run for the new year.
January
After the new tax year has begun, plan to:
Review the Year End Web site in SAP Service Marketplace, at

http://service.sap.com/hrusa, as often as possible.
Identify and process all prior-year adjustments.
Perform Tax Reporter simulation runs.
Use the Payroll Reconciliation Report to verify the accuracy of your simulation
run results.
Perform any necessary Tax Reporter configuration changes.
Perform your Tax Reporter production run(s) and validate the outputs.
Use the AccuWage application from the Social Security Administration to validate
your electronic data W-2 file.
Print and distribute all year-end tax report forms.
Inform the SAP Year End Support Program that you have successfully completed
W-2 production.
File year-end forms with federal, state and local tax authorities.
Issue and file any last-minute correction year-end forms.
February
If you have not already done so:
Test W-2 Post-Filing Run functionality in the following areas; for

additional information, consult the User Guide for W-2 Post-Filing Run
published at http://service.sap.com/hrusa.
o W-2 Post Filing
o Corrections
o Reprints
o Reissues
Establish a process for performing W-2c and reprint runs.

[4]
Resource Guide
Recommended Reading
mySAP Certification - Criteria For Application
The guidelines: Criteria to applying for a SAP Certification:
http://www.sap-img.com/general/mysap-certification.htm
My SAP HR Certification Experience

Let me share my certification experience with you. Keep following things in mind when
preparing for the exam:
http://www.sap-img.com/human/my-sap-hr-certification-experience.htm
SAP HR Transaction Codes

List of SAP Human Resource commonly used transaction codes.
http://www.sap-img.com/human/sap-hr-transaction-codes.htm
IMG Steps Invovled In Time Management

Those configuration steps in Time Management.
http://www.sap-img.com/human/img-steps-invovled-in-time-management.htm
How To Configure Personnel Actions

The steps to configure personnel actions in SAP HR.
http://www.sap-img.com/human/how-to-configure-personnel-actions.htm


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[1]

Explain what are all the Year End Processing activities.

Year end processing is more related to payroll than other modules.

Year End Preparation Checklist

Apply Year End Transports (or equivalent HRSPs) when necessary.

Define strict timelines and deadlines for:

o Entering Year End Adjustments. To this end, and to avoid undesired

Attend course HR710 (U.S. Tax Reporter) or workshop WUSTAX (Advanced

Get more SAP Human Resource Tips:

U.S. Tax Reporter) through SAP Americas Education and Registration

Review the Year End Web site in SAP Service Marketplace, at

Confirm the availability and configuration of your PostScript printer(s).

Perform test runs of the full W-2 production process.

Get more SAP Human Resource Tips:

Review the Year End Web site in SAP Service Marketplace, at

Perform Tax Reporter simulation runs.

Perform any necessary Tax Reporter configuration changes.

Print and distribute all year-end tax report forms.

Issue and file any last-minute correction year-end forms.

Test W-2 Post-Filing Run functionality in the following areas; for

Establish a process for performing W-2c and reprint runs.

Get more SAP Human Resource Tips:

My SAP HR Certification Experience

SAP HR Transaction Codes

IMG Steps Invovled In Time Management

How To Configure Personnel Actions

Get more SAP Human Resource Tips:

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