Payroll: When to close the payroll year

The payroll tax year is the calendar year in which payroll transactions are processed.  The payroll tax year must coincide with the calendar year for tax purposes.  When you close the payroll year, it not only closes out the payroll information, it also clears the 1099 information for vendors for the year.  

All payroll reports, payroll forms and 1099 forms must be printed before closing the payroll year.  It is recommended that you close the payroll year after everything is completed for the year and before the end of the 1^st quarter of the new year.  

Peachtree provides a Year-end Wizard to guide you through the closing process.