Payroll: Year End 2012

Current Year: Payroll: Year End

What's new for 2012 Year End/Tax Year 2013

• Federal and many State Tax Rates have changed for 2013. Tax Tables have been updated to reflect these changes. We recommend that you check this site several times during the year for the latest information!!!!
• The 2% reduction in the Employee FICA rate expired on 12/31/2012. Tax Tables have been updated to reflect this.
• To assist with state specific tax information, please consult the following link: http://www.payroll-taxes.com/state-tax.htm
  (NOTE: GivenHansco is not responsible for the information provided on this site, we are providing this as a self-help service for our customers.)
• Two New programs have been added to enhance year end maintenance:
  • Adjust Company Definitions & Factors
  • Adjust Definition Balances

• For 2012 W-2s, employers with more than 250 employees will need to report health insurance costs paid by the company to each employee.
  • Starting with the 2010/2011 year end update Keystone has the ability to track these health insurance costs. Keystone payroll users have 2 options:
    • Follow the special procedures in Keystone to track employer paid health insurance. See Payroll: Year End Modifications
    • Calculate and manually enter employer paid health insurance at the end of 2012. Using the new program Adjust Definition Balances makes this much easier.

Also see: Health Insurance

Year End Procedures

Before Running the first Payroll of the new Year

• Make a backup to file and save in a permanent location. see Keystone Database Backup
• Web Update to the latest Keystone version. (New changes for 2012 start in version 2.5.17 ... More updates to follow!)
• Review Health Insurance and determine if you need to run Year End Modifications to configure health insurance reporting information for 2013.
• Set up Payroll Periods for 2012. see Setup Periods

Processing W-2s

• Determine if Health Insurance needs to be reported. See: Health Insurance
• Verify all year end balances are correct for 2012
• Update W-2 Setup
  • Make sure to update this for 2012 health insurance reporting if required
  • Make sure all States are complete with up to date E.I.N. codes
• Print W-2s
  • Verify W-2 Values
• W-2 E-File Export
  • Verify with Accuwage http://www.socialsecurity.gov/employer/accuwage/index.html

NOTE: Accuwage is designed to verify the Federal W-2 E-File. Though it may work for some states, in general it should only be used to validate the Federal file. For some states, it may report errors where there are none.

• Print W-3s
  • Verify W-3s with company totals

NOTE: Payroll may be run in the new year before the prior year W-2s are printed. Payroll runs in the new year will not affect prior year W-2s.

Frequently check Keystone Help and this page for any updates

GivenHansco strongly recommends that you manually verify the numbers reported on W-2/W-3 forms and use the SSA AccuWage program to verify the numbers on W-2 E-File Export. By submitting W-2/W-3 forms and W-2 E-File Export data to the IRS, you are legally testifying to the accuracy of the data.

Prior Year Information

2011

Payroll: Year End 2011

2010

The 2010 Payroll Year End update had three major changes including preparation for changes in Health Insurance Reporting:

• Hire Act reporting for 2010.
• New Health Insurance requirements for 2012 (originally slated for 2011, now deferred until 2012 IRS Notice).
• New Social Security rates that differ from employee and employer for 2011.

You must run the Year End Modifications program for these changes to take effect