After you complete year-end processing and before you process payroll for the new calendar year, complete all of the following:

1. Review the tax rates and wage caps for next year’s taxes.
2. Update next year’s tax settings (for example, W4 information) for employees.
3. If you need to update employee wage caps, use the Update Earnings/Deductions task to update the annual and lifetime maximums for multiple or all employees at once.
4. On the Employees > Payroll detail pages, review earnings and deductions that have reached their maximum amounts. For the earnings and deductions to calculate again this year, set the Calculate field to Yes.
5. Review accrual balances. You can use the Accruals report (Reports > Payroll > Transaction Reports) to validate each employee’s accruals as they were earned and taken by date.
6. Define the next fiscal year if you haven’t already done so (select Setup > Payroll > Fiscal Year Calendar).