Preparing Payroll and Supplier Data for Year End in RFMS

Before generating year-end tax forms, complete the following steps to prepare payroll and supplier data in RFMS.
These steps should be performed after completing all accounting reconciliations and ledger closings described in the article Year-End Closing and Reconciliation in RFMS.

Prepare Payroll and Supplier Data

Step	Action Items
1. Confirm Year-End Reconciliation Is Complete	☐ Verify that all vendor payments, payroll batches, and banking transactions have been posted and reconciled.  ☐ Do not begin year-end payroll processing until all journals and ledgers are closed.
2. Establish the New Tax Year	☐ Go to Accounting > File > Human Resources > Processing > Prepare Pay – All Workers.  ☐ When prompted, select Yes to create an ending point for the current year and start the new one.  ☐ This step resets year-to-date totals for all employees and suppliers.
3. Update Tax Tables and Rates	☐ Install the most recent HR tax update before running the first payroll of the new year.  ☐ Update all state or provincial unemployment and disability rates as needed.  ☐ Canadian users: confirm CRA and Revenu Québec rates are current.
4. Verify Employer Setup	☐ Review your company’s legal name, address, and identification numbers (EIN for U.S. or BN for Canada).  ☐ Confirm that federal, state/provincial, and local IDs are entered correctly.
5. Review Employee and Supplier Records	☐ Verify that names, addresses, and Tax IDs (or SINs) are formatted correctly.  ☐ Close inactive or duplicate records before proceeding.
6. Back Up Your Data	☐ Perform a full system backup before running any year-end utilities.  ☐ Store backups securely—reversal requires restoring from backup.

Next Steps

After completing these steps:

1. Proceed to Running the First Payroll of a New Year in RFMS to confirm that payroll is configured  and posting correctly.
2. Once the first payroll has run successfully, continue with:
   • Processing W-2s and 1099s in RFMS (U.S.)
   • Processing T4 and T5018 Forms (Canada)