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What are the implications of recreating the 2011 year-end wage file after having loaded the 2012 tax tables? We often have a few adjustments to make to payroll for the previous year after having loaded the latest payroll tax table update. Does the year-end closing routine actually use any values from the tax tables? One would think it would simply look at payroll transactions for 2011 and base its calculations on that.
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Thanks Richard!
The 2012 tax tables have been re-released (12/27/2011) so they now have the employee FICA properly stated. Make sure you have a copy or first quarter will be a bummer - like last year eek!
Kind regards,
Leslie
Leslie, your answer, as usual, is spot on. I was just curious as to the details. The 2012 tax table update was loaded last night. The date on them is now 12/29/2011. Usually what happens here is some health benefit payment that needs to be adjusted. The user who does this every year meticulously goes over all the reports before sendng to IRS so no issues have every been logged.
Hi Richard,
Yes, the year-end closing routine does use a couple of values from the tax tables.
First - make sure you did not load round 1 of the 2012 tax tables because they are wrong. The FICAS went up to 6.2%.
I have an article on my blog that explains where the Year-End wage file comes from and why it matters if the FICA information is different. Look here: dynamicsconfessions.blogspot.com/.../how-is-ficas-wages-and-withholding.html
Knowing how it works can allow you to manipulate it so that it doesn't matter.
Kind regards,
Leslie
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