Hello Donna! It is best practice to close the current accounting period before opening the next. However, we understand that for myriad reasons, some agencies may prefer to extend that timeframe.
Ultimately, this is up to you, as you are able to have more than one accounting period open at a time. Just be sure you complete your year end in time for your tax deadlines and you'll be set!
I'm not sure you understood my question. I was asking if you have to do any steps other than closing the accounting period to start January 2025 payroll, or after we close the last accounting period for payroll in December does it just automatically go to the next year accounting period? Also, if we have to do any special steps on payroll before doing our W-2's other than closing 2024 accounting period.
I know we have to do the quartely's 941 940 suta and futa, then the W2's correct?
Sorry if I'm confusing you, I just had heart surgery so i may be talking in circles. Thank you so much, Donna O'Connell
Hi Donna, thanks so much for the extra details here! I hope your recovery is going well, and that I can help you out here.
To clarify, there is no specific order for completing the 940, 941, and W-2s. This process is determined by each staffing agency based on their preferred workflow. The system is designed so that once you close the current accounting period in your weekly process, the next accounting period automatically becomes available. After you close the current accounting period (December 29, 2024), the next accounting period (January 5th, 2025) will be available for use. To be clear, you don’t need to close the accounting period to begin the January 2025 payroll.
As for handling the last two days of December, it's up to each staffing company to decide how to include those days in payroll, especially since payroll ends midweek in 2024. The key factor here is the check date:
If the check is dated in December, the wages will be reflected on the 2024 W-2s.
If the check is dated in January, the wages will appear on the 2025 W-2s.
Before generating the 2024 W-2s, I recommend reviewing the Year-End Payroll Checklist to ensure you’re fully prepared. Here’s the link for your reference: Year-End Payroll Checklist (US). I hope that helps!
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Do you have to close out payroll year end before you start your 2025 payroll?
Hello Donna! It is best practice to close the current accounting period before opening the next. However, we understand that for myriad reasons, some agencies may prefer to extend that timeframe.
Ultimately, this is up to you, as you are able to have more than one accounting period open at a time. Just be sure you complete your year end in time for your tax deadlines and you'll be set!
Hi Max,
I'm not sure you understood my question. I was asking if you have to do any steps other than closing the accounting period to start January 2025 payroll, or after we close the last accounting period for payroll in December does it just automatically go to the next year accounting period? Also, if we have to do any special steps on payroll before doing our W-2's other than closing 2024 accounting period.
I know we have to do the quartely's 941 940 suta and futa, then the W2's correct?
Sorry if I'm confusing you, I just had heart surgery so i may be talking in circles. Thank you so much, Donna O'Connell
Hi Donna, thanks so much for the extra details here! I hope your recovery is going well, and that I can help you out here.
To clarify, there is no specific order for completing the 940, 941, and W-2s. This process is determined by each staffing agency based on their preferred workflow. The system is designed so that once you close the current accounting period in your weekly process, the next accounting period automatically becomes available. After you close the current accounting period (December 29, 2024), the next accounting period (January 5th, 2025) will be available for use. To be clear, you don’t need to close the accounting period to begin the January 2025 payroll.
As for handling the last two days of December, it's up to each staffing company to decide how to include those days in payroll, especially since payroll ends midweek in 2024. The key factor here is the check date:
Before generating the 2024 W-2s, I recommend reviewing the Year-End Payroll Checklist to ensure you’re fully prepared. Here’s the link for your reference: Year-End Payroll Checklist (US). I hope that helps!