Payroll Considerations

Payroll Considerations

This guide is only for companies whose payroll is fully processed in BIS. But before we start with this guide, there are a few Payroll Considerations to review.

Reminder: Payroll taxes are calculated based on the pay year or check date, not the pay period date. That includes all the rates and limits.

Fiscal Year and Calendar Year are the same.
Considerations to process the last payroll of the current fiscal year or the first payroll of the following fiscal year:
  1. The new year has not started yet
    1. Payroll pay year/check date is in December of the current year
      1. Treat this payroll like any other payroll for this current year. No special considerations apply.
      2. Dates used for hours, additions, deductions, and tax-deferred belong to the current year.
    2. Payroll pay year/check date is in January of the following year
      1. Enter the payroll with a current year Pay Period Date
      2. Change the Pay Year to the following year.
      3. Start the new fiscal year.
      4. Set the check date in January of the new year.
      5. Complete the payroll process in the new year.

  2. The new year has already started
    1. Payroll pay year/check date is in December of the prior year
      1. Move to the prior period using the option "Change Fiscal Year Period".
      2. Process and complete the payroll while still on the prior period.
      3. Move back to the current period using the option "Change Fiscal Year Period".
    2. Payroll pay year/check date is in January of the new year
      1. Treat this payroll like any other payroll for this new year. No special considerations apply.
      2. New year or prior year dates can be used for hours, additions, deductions, and tax-deferred.

Note: The Pay Year can be set to the next year even if the new year has not started yet:


Fiscal Year and Calendar Year are different.
Considerations to process the last payroll of the current calendar year or the first payroll of the following calendar year:
  1. Payroll pay year/check date is in December of the prior year
    1. Move to the prior period using the option "Change Fiscal Year Period".
    2. Process and complete the payroll while still on the prior period.
    3. Move back to the current period using the option "Change Fiscal Year Period".

  2. Payroll pay year/check date is in January of the new year
    1. Treat this payroll like any other payroll for this new year. No special considerations apply.
    2. New year or prior year dates can be used for hours, additions, deductions, and tax-deferred.


Tip: Remember that since BIS maintains full access to the last two years of data (Current Period and Prior Period), it is possible to make many adjustments to the prior year, and to reprint reports with the updated information.




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