Five Keys to a Successful US Payroll Year-End

  • by Steve Bogner, Managing Partner, Insight Consulting Partners
  • August 15, 2005
Implement these five best practices when you prepare for year-end US federal, state, and local tax reporting requirements. Combined with SAP’s Payroll functionality, they will help you plan your year-end Payroll processes.
Key Concept

The year-end season generally starts in mid-September when every US HR/Payroll customer receives a letter from SAP. This year-end letter describes the dates the year-end changes will be released from SAP, dates and locations for year-end training classes, and general year-end support information. If you have SAP HR/Payroll, and use it to process US payroll, but haven’t received this letter from SAP, contact your SAP account team to be included in the year-end program. SAP also makes all its year-end documentation available on SAP Service Marketplace at service.sap.com/hrusa. Click on the Documentation link at the bottom of the page.

The regulatory requirement to issue W-2, 1099-R, and other tax forms always makes the end of the calendar year a busy time for US payroll departments. Every year brings changes to this regulatory reporting, either at the federal, state, or local level. While SAP’s US Payroll functionality eases some of that year-end burden, a substantial amount of work remains.

I’ll explain five practices I’ve seen used by various US companies that you can apply to your company’s year-end R/3 or mySAP ERP payroll process. For an overview of US regulatory reporting requirements and SAP-provided documentation, see the sidebar, “Regulatory Reporting Overview.”

Although the regulatory information in my article is specific to the US, the information about applying HR Support Packages applies to any country.

Steve Bogner

Steve Bogner is a managing partner at Insight Consulting Partners and has been working with SAP HR since 1993. He has consulted for various public, private, domestic, and global companies on their SAP HR/Payroll implementations; presented at the SAP user's group ASUG; and been featured on the Sky Radio Network program regarding SAP HR.

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