Easing the Pain of the Year End Project

The Year End process can be a complicated, highly visible one. LBi has created guidelines to smoothly manage this daunting process.

In a company’s Human Resources and Payroll area, there are a number of particularly time consuming processes that occur at the end of each year. These Year End processes are critical and can include:

• Imputed Income calculations
• Deferred Income processing
• Applying tax updates
• End of year bonuses
• Merit increases
• First payroll of the new year
• W2s and 1099s
• State Filings

Typically a team is created to manage the process. LBi has managed this process for several clients and has come up with a project methodology that helps the process run smoothly.

The first step in this methodology is the creation of a checklist. The Year End (YE) process begins by establishing task schedules and priorities. This enables the team to understand both the scope and the scheduling of events and is an essential first step in YE planning and project management. The checklist is used throughout the YE process to ensure that no critical steps are overlooked. After verification by the project stakeholders, the completed checklist is then used to build the Year End Calendar.

The YE Calendar of events expands the tasks in the checklist and incorporates dates and responsibilities. It is then used as a template for complete documentation.

The next step is to perform the required legal and regulatory changes as published by PeopleSoft or other HCM system, or requested by the company, to keep everything in compliance. These items are then added to the Checklist and Calendar.


The final step is to create a comprehensive inventory of all processes, customizations and ad-hoc reports. We identify all special queries required for “data cleanup” and balance adjustments. It is critical to include these ad-hoc reports and processes and productionalize them, as they are typically needed each year. We then assemble all the documentation and testing plans and results for SOX compliance and audit readiness.

There are four key steps in LBi’s Year End methodology:
1. Year End Checklist
2. Year End Calendar
3. Regulatory Updates
4. Inventory

By following these steps, the seemingly daunting Year End process becomes a manageable project.