Close Pay Period

 

Close the current pay period and set the next pay period. This is the pay period you will be using to create and record payroll transactions. Running this routine will also create the future pay period if it doesn't already exist. 

 

When you close a pay period, it means that you have completed all necessary payroll processing tasks for that specific period, such as calculating employee wages, withholding taxes, and other deductions, and issuing paychecks or processing direct deposits. Closing a pay period typically involves several steps:

  1. Finalize Timecards: Ensure that all employee timecards or attendance records for the pay period are complete and accurate.

  2. Calculate Gross Pay: Calculate the gross pay for each employee based on their hours worked, salaries, or other compensation.

  3. Deduct Taxes and Other Withholdings: Subtract federal, state, and local income taxes, as well as any other mandatory deductions, from the gross pay to determine the net pay.

  4. Prepare Payroll: Generate payroll checks or initiate direct deposits for each employee, including any additional payments such as bonuses or commissions.

  5. File Payroll Tax Forms: Prepare and file payroll tax forms, such as Form 941 (Employer's Quarterly Federal Tax Return) or Form 940 (Employer's Annual Federal Unemployment Tax Return), as required by law.

  6. Update Payroll Records: Update your payroll records to reflect the payments made and deductions taken for each employee.

  7. Review and Reconcile: Review the payroll calculations and reconcile them with your accounting records to ensure accuracy.

 

Closing a pay period is an important step in the payroll process as it ensures that employees are paid correctly and that payroll taxes are withheld and remitted accurately. It also helps keep your payroll records organized and up to date.

 

In this section: 

How do I close a pay period? (2023.05)

How do I close a pay period? (2023.11)

How do I change the default pay period check issue date?

How do I print reports for a prior pay period date?

Warning: Weekend date

 

 

 

 

 

 

 

 

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