Harris School Solutions

How K-12 Schools Can Successfully Execute Calendar Year-End

One of the biggest challenges managing K-12 school financials can be handling calendar year-end procedures. Not only do you need to carefully make sure that all your records are accurate, but you also need to make certain that you are staying current with state and federal reporting requirements.

Having a set step-by-step process for calendar year-end is one of the best ways to help navigate the complicated process. If you are curious about which steps you need to take to streamline your year-end procedure, check out the 12 step, two-part process we’ve outlined below.

Payroll CYE Steps

1. Verify All Employees & Company Information/h2>

Your first step should be insuring your employee’s information is up to date and correct. “Know who you are paying” is at the top of the list when it comes to payroll best practices.

2. Run Final Payroll of the Year

The final paycheck of the calendar year will often land around holiday time. It’s also important to be aware that you may need to adjust your schedule to avoid the bank holidays of December 25 and January 1.

3. Update Tax Tables

Before you run the first payroll of the new year, you’ll need to update your tax tables to stay compliant with the latest state and federal tax rates.

4. Apply Any Deduction Changes & New Pay Types

After running your final payroll and updating your tax tables your next step should be identifying and applying any new deductions or updated pay types for the upcoming year.

5. Review & Verify W-2 Information

Similar to step number one, make sure to verify all W-2 information. Pay special attention to any newly added deduction or pay types in boxes 10,12, and 14 to make sure they are flagged with the correct W-2 code.

6. Print Your W-2s

Now you are all set to print your W-2s and generate the electronic files.

Accounts Payable CYE Steps

7. Verify Federal ID Number

A simple but critical best practice is to verify that your Federal Tax ID number or EIN (Employee Identification Number) is correct before you start any part of the calendar year-end process.

8. Review Vendor Type & 1099 ID

Before starting the reconciliation process, you’ll want to make sure you review that all your vendors are categorized correctly with the corresponding 1099 ID.

9. Reconcile 1099s & Receipts then Adjust 1099 Balances

Now you can finally reconcile your 1099s with your receipts and then adjust any 1099 balances when necessary.

10. Print 1099 Reconciliation & Vendor History Reports

Now that you’ve reconciled your 1099s with your receipts you can print your 1099 Reconciliation & Vendor History reports.

11. Verify 1099 Organization Information, 1099 Recipients, & Vendor Totals

One final review to be 100% sure that you have all the correct, up-to-date information and that all your totals match.

12. Print Your 1099s

You can now print your 1099s and generate the electronic files.

Each system and internal protocol may differ from school district to district, but if you follow these simple steps, you’re on the right path to successfully closing your school’s calendar year-end!

Download the Checklist for Your Calendar Year-End Close!

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