Year End Process

Various Forms required quarterly or at Year End
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W-2
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Wage and Tax Statement
Employers must report to their employees the amounts paid and
withheld so the employees can complete their own income tax
returns and pay any amount owed to the Internal Revenue Service
and state and local governments.

Form 940
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Employer's Annual Federal Unemployment (FUTA) Tax Return
Employers use Form 940 to determine your FUTA taxable wages for the calendar year
and the FUTA tax liability on those wages after accounting for applicable state
unemployment tax credits and FUTA tax deposits made during the year

Form 941
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Employer's Quarterly Federal Tax Return
Employer's total taxable wages paid and payroll tax liability, which is then reconciled
with the employer's record of tax deposits and wage and tax information provided to
employees on their W-2 forms.

Form 1099-R
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Employers who make distributions of retirement income from qualified
plans are required to report those distributions and any amount withheld for
FIT/SIT/LIT on form 1099-R.
Form 1099-R requires distributions from any of the following be reported:
• Pensions
• Annuities
• Retirement or Profit sharing plans
• IRAs
• Insurance Contracts

State Quarterly Wage listing
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At the state level, employer's electronically submit report of employee wages subject to
SUI to the states in which they have employees. Oracle payroll provide a report named state quarterly wage listing which produce this data in correct format as per state. You can compare this report with Federal/State remittance report to reconcile.

Usually year end processing has following process

1) Running pre-archival reports
2) Fixing the balance issues if there any
3) Running state quarterly wage listing process
4) Running year end pre-process.
5) Running post-archival reports.
6) Generating government mandated reports

Pre-Archival Reports
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These reports are divided into three categories
a) Diagnostic Reports
b) Balancing Reports
c) Reconciliation Reports

Diagnostic Reports
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Unacceptable Tax balance Report :- Identifes wrong withheld amount for various tax categories. e.g. FIT, SIT, LIT, SUI, SDI, FUTA, SS, Medicare etc.

Invalid Address Report:- list of employees who has wrong primary address

Over limit Report:- show employees with taxes withheld more than legal limit or wages in excess to wage limit or salary deferrals more than annual limit.

Balancing Reports
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GRE Total Report:- List total for all GREs or mentioned one. This report help to reconcile with W-2s

Tax Remittance Report :- Shows federal, state and local taxable wages and taxes summerized for date range

Reconciliation Reports
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Employee Run Results Report :- shows problem with individual employees balances

Payroll Activity Report :- Shows employee and group-level payroll details for pay runs, quick pays, balance adjustments, balance initializations, voided payments, and reversals.