One way to make the payroll year-end process a little less stressful with Dynamics GP is to verify your W-2 amounts throughout the calendar year. If you uncover discrepancies at the end of the year that need to be fixed, you are under a time crunch to research to pinpoint the problem and adjust accordingly. If the error was made several months in the past, it may be hard to remember all the details and figure out the resolution. If you don’t review the data and find errors until January, the correction may be even more complicated to adjust because you are in a different calendar year.
Instead of waiting until the end of the year to check and see if your W-2 amounts are correct, verify them throughout the year. You could easily create a spreadsheet or custom Dynamics GP report to do the following, at a minimum:
- Calculate Federal Taxable Wages
- Calculate State(s) Taxable Wages
- Calculate Social Security Taxable Wages
- Calculate Social Security Tax
- Calculate Medicare Taxable Wages
- Calculate Medicare Tax
You could prove the amounts each quarter when you file your quarterly tax returns, or you could verify the amounts as often as each payroll.
Plus, if you discover an error in your configuration of the taxability of a certain code in the middle of the year, you have the opportunity to not only adjust for the payroll or payrolls that are incorrect, but also you can more timely correct the configuration so the error or discrepancy does not continue to grow.
If you check all your W-2 amounts during the year and make any adjustments prior to year-end, your payroll year-end process will go so much more smoothly!
Have any questions about the payroll year-end process or Dynamics GP in general? Please reach out to one of our experts at any time.