Payroll: Year End 2011

Current Year: Payroll: Year End

Notes for 2011 Year End and the new year 2012

• The reduced Social Security rates for employees continues for all of 2012.
  • NOTE: Keystone 2.5.1 and beyond contain support for the 2% FICA employee tax cut which was recently extended for the remainder of 2012.
  • Read about Tax Cut Extension (IRS.GOV)
• For 2012 some (or all employers) may need to track health care provided from the company to each employee. Starting with the 2010/2011 Keystone added a special ability to track this value. Keystone payroll users have 2 options:
  • Follow the special procedures in Keystone to track employer paid health insurance.
  • Calculate and manually enter employer paid insurance at the end of 2012.

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 2011 start in version 2.5)
• Run Year End Modifications to configure payroll updates
• Set up Payroll Periods for 2012. see Setup Periods

Processing W-2s

• Verify W-2 Setup
• Print W-2s
• W-2 E-File Export
• Print W-3s

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

Prior Year Information

Special Notice for 2010 Year End

The 2010 Payroll Year End update has three major changes:

• 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