When discussing the end of the year, most people are winding down from the year and are planning holiday parties and vacations. Those that are in payroll know...
Year-End Payroll Success: Essential Planning Guide
Smart financial planning starts with understanding the critical steps for year-end payroll processing. This comprehensive video guide delivers practical insights for businesses using Sage HRMS and Scissortail HCM systems, making complex year-end processes manageable and efficient.
The Foundation of Year-End Success
A successful year-end process hinges on early preparation and meticulous planning. The video emphasizes two fundamental principles:
- How you start the year shapes your year-end success
- Creating an early action plan is crucial for smooth execution
Essential Components of Your Year-End Action Plan
The video outlines critical elements that should be part of every organization's year-end strategy:
- Planning meetings with key stakeholders from accounting, payroll, and mailroom departments
- Strategic scheduling of important dates, including vacation periods and bank holidays
- Comprehensive task listing and responsibility assignment
- Robust disaster recovery planning and backup verification
W2 Processing and Compliance Updates
A significant focus is placed on W2 processing requirements, with important deadlines and retention guidelines:
The January 31st deadline for both employee distribution and Social Security Administration filing is now strictly enforced, with no extensions available.
New retention guidelines require organizations to:
- Keep undeliverable W2s for four years from the tax return due date
- Maintain 1095 forms for three years
- Electronic access eliminates the need to retain physical copies
System-Specific Considerations
The video provides detailed guidance for both Sage HRMS and Scissortail HCM users:
Sage HRMS Configuration
Key focus areas include:
- 401(k) plan reporting setup
- Healthcare benefit reporting configuration
- Pension plan status verification
Scissortail HCM Features
Notable advantages include:
- Automatic system updates scheduled for December 29th
- Simplified electronic W2 consent management
- Streamlined delivery policy configuration
