In the steps below, we are considering the old year to be 2015 and the new year to be 2016.
1. Sign on with a 12/31/15 business date and enter and post time cards.
2. Change the business date to the January 2016 check date.
3. Roll the Payroll Balances forward to 2016.
4. Enter any 1-time deductions and calculate net pay.
5. Run the Preliminary Check Register and check all the calculations.
6. When calculations are correct, change the business date back to 12/31/15 and produce checks and direct deposit payments using the January 2016 check date.
The system should create two trace reports, one with a 12/31/15 posting date which posts the employer costs to December and credits the Accrued Payroll; the second should post with the January 2016 check date, crediting the payroll liability accounts and cash and debiting Accrued Payroll.
NOTE: It is critical that step 4 be run with a January 2016 business date so that the system recognizes that all data items with annual limits (such as .SDI CA and .E SUTA) have been zeroed out and are starting over. If you run the calculation with a 12/31 business date, the system will assume that people have exceeded their annual limits and will not calc these items. By calculating with a January business date and then switching back to the December business date before producing checks you will "trick" the system into calculating these items correctly and posting to the proper periods.