Human Resources: Payroll System

The fiscal year end procedures for the Human Resources Payroll System involve the following general functions:

• Generating reports for verification, auditing, and administrative purposes.
• Clearing accrual information from the previous year on earnings, deductions, and attendance.
• Updating tables for the new year relating to pay codes, deductions, taxes, salary schedules, and calendars.
• Updating employee pay rate and deduction information.
• Liquidating payroll encumbrances in the Fund Accounting System.
• Awarding leave accruals for fiscal leave banks.

Processing fiscal year end for Human Resources

1. Complete the final payroll for the current fiscal year. Perform all of the following steps before running the first payroll of the new fiscal year.
   You may wish to retain last night's backup until the process is complete and verified.
2. Generate all necessary reports before clearing any monthly, quarterly, or fiscal balances. The following reports are typically generated at fiscal year end, though others may be run as well:
   
   • Quarterly Salary Information
   • Salary and Deduction Information
   • Payroll File Totals
     In addition, be sure to run all relevant state reports as well as any reports you generate using third party software that include fiscal-to-date totals.
3. Run the Human Resources > Periodic Routines > Periodic Processing > Clear Monthly Totals and Clear Quarterly Totals options to clear month-to-date and quarter-to-date balances. Skip the Clear Quarterly Totals if your fiscal year end does not coincide with the start of a new quarter.
4. Run the Human Resources > Periodic Routines > Year End > Fiscal Process option to clear fiscal-to-date earnings and taxes, deduction/benefit amounts, and deduction salaries. This option also includes fields for purging terminated pay rates, if needed.
5. Verify attendance balances and rollover amounts by running the following reports:
   • Employee Leave Balances
   • Attendance Tracking
6. Run the Human Resources > Periodic Routines > Year End > Attendance Rollover option. In setting up leave records for certain accrual types, you can either reset leave banks or roll over leave banks based on parameters established in the Leave table.
7. Run the Human Resources > Periodic Routines > Year End > Fiscal Leave Accrual option to accrue leave for employees with an accrual type of F (fiscal).
8. Run the Human Resources > Periodic Routines > Year End > Summer Pay Fiscal Year Accruals > Load option, until you are satisfied with your records.
   Once you proceed with the fiscal year end for Human Resources, you should not run the load again.
   Note
   If you want your journal entries to be created for period 12, the Human Resources > Periodic Routines > Year End > Summer Pay Fiscal Year Accruals > Post option must be run before the Fund Accounting > Periodic Routines > Year-End > Year End > Update Ledgers option. If Summer Pay's Post option is run after Fund Accounting's Update Ledgers option, the journal entries will be created for period 13 of the prior year.

9. If your Organization Chart has changed for the new year, use the following Human Resources > Reference Tables > Payroll options to update account numbers:

   Pay Code Table	Local Tax Table
   Deduction Table	FICA/Medicare Table
   Federal Tax Table	EIC Table
   State Tax Table

   For updating taxes and deductions, you can also use the applicable Human Resources > Reference Tables > Future Changes options.

10. If your Organization Chart has changed for the new year, run the Human Resources > Periodic Routines > Year End > Payroll Distribution option to change account numbers in employee Pay Rate records.
11. Run the Human Resources > Entry & Processing > Employee > Employee Deductions > Add New, Find, or Delete options to update employee deduction records as needed.
    For updating employee deductions, pay rates, and employee status, you can also use the applicable options through Human Resources > Periodic Routines > Periodic Processing > Effective Date Changes.
12. Run the Human Resources > Reference Tables > Payroll > Salary Schedules > Add New and Find options to create and update salary schedules for the new year.
    • You also can use Human Resources > Reference Tables > Future Changes > Salary Schedules > Import to load future salary schedule records into the Future Salary Schedule table.
    • If you use the Salary Negotiations System, complete all procedures for generating new year Salary Schedules in this system instead of in Human Resources.
13. Run the Human Resources > Reference Tables > Payroll > Calendars > Add New option to create calendars for the new year. You can also use the Calendar table's Import option to import existing calendars or Copy option to copy calendar information to a new calendar.
14. Run the Human Resources > Reference Tables > Payroll > Job Classes > Find option to assign new year schedules and calendars to existing job classes.
15. Run Human Resources > Reference Tables > Payroll > Job Classes Add New option to set up new job classes for the next year, as needed.
16. Run the Human Resources > Periodic Routines > Year End > Update New Year Rates option to update Pay Rate records for employees in job classes that contain new or changed salary schedules as well as new or updated calendars.
17. Run the Human Resources > Periodic Routines > Periodic Processing > Liquidate Payroll Encumbrance to reset the following accounts in Fund Accounting to zero: Payroll Reserve for Encumbrance and Payroll Encumbrance Control.
18. Run the Fund Accounting > Reports > System Maintenance > Check Ledger Balances > Per Fund option to verify that all funds are in balance.
    Important
    If you encounter an out-of-balance condition at any stage of the fiscal year-end process, contact PowerSchool for assistance.
19. Minimally, run the following Fund Accounting > Reports > Audit Trails options to verify your budget codes are in balance:
    • General Ledger Audit Trail
    • Expenditure Ledger Audit Trail
    • Revenue Ledger Audit Trail
    • Project Ledger Audit Trail (if applicable)
20. If your organization uses the Recruitment System, run the Human Resources > Entry & Processing > Recruitment > Update Postings For New Year option. This step must be done after the fiscal year end processing for Fund Accounting has been completed.

Note
You may need to repeat certain processes over the course of the new year to update pay rates, contracts, attendance codes, and leave codes.