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USPS Calendar Year-End Closing Checklist

USPS Calendar Year-End Closing Checklist

Individual ITC's may supply slightly different instructions depending on the policies and procedures of the ITC.  Therefore, these procedures are intended to be general guidelines only.

 

Important Dates:

Please check with each agency for their rules when the due date falls on a non-work day.  Most sites state states if the filing deadline falls on a Saturday, Sunday, or legal holiday the deadline will be the next business day.  

  • Federal filing deadline to Business Services Online is January 31, 2026.

  • Ohio State Tax filing deadline to Ohio Business Gateway is January 31, 2026. 

  • Kentucky State Tax filing deadline is January 31, 2026.

  • Michigan State Tax filing deadline is January 31, 2026.

  • Pennsylvania State Tax filing deadline is January 31, 2026.

  • West Virginia State Tax filing deadline is January 31, 2026.

  • Regional Income Tax Agency (RITA) filing deadline is February 28, 2026.

  • Central Collection Agency (CCA) filing deadline is February 28, 2026.

  • City Tax filing deadlines may vary.  Please check with each city.

Preliminary Calendar Year-End Closing

 

  1. Create the W2 SSN Verification Submission File

 2.  Life Insurance: Process any Life Insurance payments.  Before your last pay of the calendar year, process Life Insurance Pay Types for any employee that is provided life insurance premiums over $50,000. See Reporting Taxable Amounts - Life Insurance Premium for further details.
3.  Adoption Assistance: Process any Adoption Assistance payments.  Before your last pay of the calendar year, process Adoption Assistance Pay Types for any employees with adoption assistance.  See Reporting Taxable Amounts - Adoption Assistance for further details.  
4. Non-Cash Taxable Benefits: Process any Non-Cash Taxable Benefits payments.  Before your last pay of the calendar year, be sure to process Non-Cash Taxable Benefits Pay Types for any employees with reimbursable employee expenses.  See Reporting Taxable Amounts - Non-Cash Taxable Benefits for further details.  This payment will update the Total Gross and Applicable Gross 
5. OSDI W2 Abbreviations: Verify the W2 abbreviation field on all OSDI records.  The OSDI code needs to be listed first (required), followed by any description.  Click here for a complete list of OSDI codes.
6. Verify All City Tax Records:
W2 Abbreviations:  Verify the W2 abbreviation field on all City records.  The first six characters will be printed on the employee's W-2.  If left blank, the value in the abbreviation field will print.
8. City Tax Payroll Items: 
RITA City Taxes: For any City reporting to RITA, verify the following:

https://www.ritaohio.com/TaxRatesTable

9.  CCA City Taxes: For any City reporting to CCA, verify the following:

http://ccatax.ci.cleveland.oh.us/?p=mmspec

10.  Other State: Verify Other State information is complete and accurate

11.  HSA: Verify any Payroll Items being used for HSA purposes have the Annuity Type field set to Other.
12. W2 Configuration:  Verify all information is complete and accurate.

The Submitter EIN is the Federal ID used when registering with Social Security Administration-Business Services Online (SSA-BSO)

The Submitter User Id is the unique Id assigned when registering with the Social Security Administration-Business Services Online (SSA-BSO)

 

13.  OAPSE Report: (if applicable)  REQUIRED

If needing to import the OAPSE report definition, do the following:

  • Go to the Report Repository (found under Help>Public Shared Reports Library)

  • Click Public Share Report Library

  • Under CYE-Based Reports, click OAPSE Report.rpd-json to download the file to your computer

  • Go to Reports>Report Manager

  • Click Import Report

  • Browse to locate the OAPSE Report.rpd-json on your computer

  • Click Save

 

Month End Closing

14.  Complete Month End Closing.  A complete Month-End Checklist can be found by clicking here.

 

Quarter End Closing

15.  Complete Quarter End Closing.  A complete Quarter-End Checklist can be found by clicking here.

 

STOP:

If you need to begin January payroll processing BEFORE completing W2 processing, do the following:

  • Leave the December posting period OPEN (December does not have to be Current for W2 processing).

  • Go to Core>Posting Period, click Create. 

    • Calendar Month = January

    • Calendar Year = YYYY

    • Current = Mark the checkbox to make the January posting period CURRENT

  • Process your first January payroll.

When you are ready to process your W2s, you may do so at any time beginning with Step 16.

 

W2 Processing

Steps 16 - 23 in the W2 Processing section are a repeat of Steps 2 - 12 in the Preliminary Calendar Year End Closing section of the checklist.  If Steps 2 - 12 were not already completed, please assure Steps 16 - 23 are completed now.

16. OSDI W2 Abbreviations:  Verify the W2 abbreviation field on all OSDI records.  The OSDI code needs to be listed first (required), followed by any description.  Click here for a complete list of OSDI codes.
 17.  City W2 Abbreviations:  Verify the W2 abbreviation field on all City records.  The first six characters will be printed on the employee's W-2.  If left blank, the value in the abbreviation field will print.

State of Indiana: The State of Indiana requires a county withholding as well.  Please use the following information to verify the State of Indiana has been set up properly:

  • The Payroll Item Configuration record for the vendor has the Type equaling CityTax and the assigned Payee has IN as the address state.

  • The Payroll Item record for your employees has a Deduction Type equaling Residence and the appropriate Indiana county code (found in Indiana EFW2 (W-2 and WH-3) Electronic Filing Requirements, Appendix A) is entered in Standard CF>Code 1. 

    • The codes are currently 01 – 92. If using 1 – 9, it must be entered as 01, 02, 03, 04, 05, 06, 07, 08, 09.  

 

18. City Tax Entity Codes:  For all cities verify the Payroll Item Configuration>Entity Code.  The Tax Entity Code allows a submission file (electronic or paper copy) for each city to be created.  For those filing electronically, verify the Tax Entity Code for that city is entered.  It is suggested to  reach out to the city tax department regarding their tax entity code requirements.  If filing by paper, enter the first 5 letters of the city name.  City information can not be filed (either electronically or by paper copies) unless the Tax Entity Code is present.

19. RITA City Taxes: For any City reporting to RITA, verify the following:

https://www.ritaohio.com/TaxRatesTabl

20.  CCA City Taxes:  For any City reporting to CCA, verify the following:

http://ccatax.ci.cleveland.oh.us/?p=mmspec

21.  

Other State: Verify Other State information is complete and accurate

22.  HSA: Verify any Payroll Items being used for HSA purposes have the Annuity Type field set to Other.

This amount will be placed in Box 12 with code W.

 

23. W2 Configuration:  Verify all information is complete and accurate.

The Submitter EIN is the Federal ID used when registering with Social Security Administration-Business Services Online (SSA-BSO).

The Submitter User Id is the unique Id assigned when registering with the Social Security Administration-Business Services Online (SSA-BSO).

 

24. Dependent Care: Process any Dependent Care Benefits that were not processed as part of any payroll using the Dependent Care Payroll Item Type during the calendar year. 

A Core>Adjustment to the Federal Tax Payroll Item is the only requirement. The amount entered exceeding the maximum ($5,000.00) will be added to the Total Gross and Applicable Gross fields on Federal Tax, Ohio State Tax, and City (if applicable) Payroll Items. 

These amounts will appear on the W2 in Box 10.

 

25. Third Party Sick Pay:  Process any Third Party Sick Pay payments.  See Third Party Sick Pay for further details. 

There are two types of Third Party Sick Pay - Taxable and Non-Taxable.  Based on the type of Third Party Sick Pay paid, enter the following Adjustments:

 

This information will be placed on the W2 in Box 12 as a Code J.

 

26.  Life Insurance: Process any Life Insurance payments.  See Reporting Taxable Amounts - Life Insurance Premium for further details.

If the Life Insurance Premium Pay Type was included prior to the last pay of the calendar year (refer to Step 2 of the checklist), then no further steps are necessary.

If the Life Insurance Premium Pay Type was not used prior to the last pay of the calendar year, a Core>Adjustments using the Type of Life Insurance Premium for the calculated cost must be created. The Life Insurance Premium Adjustment will automatically update the Total Gross and Applicable Gross on the Federal Tax, Ohio State Tax, City (if applicable), Medicare Payroll Items.  No further adjustments are necessary for Total Gross and Applicable Gross. 

The Medicare withholding must be paid.  The Board will need to pay for both the Employee and Employer portion of Medicare. The employee can then reimburse the district - if desired.   Create a Core>Adjustments for the Medicare Payroll Item using the Type of Amount Withheld and/or Board's Amount of payroll item.  If Medicare is fully board paid, create a Core>Adjustments for the Medicare Payroll Item using the Type of Board Pickup Amount of Payroll Item.  This adjustment will update both the Medicare pickup and Medicare on the W2.  Another adjustment will need to be made to balance the 941 QTD Employer's Medicare Contribution using Type of Board's Amount of payroll item for this amount. 

The software provides the ability to withhold city tax on non-cash earnings. City tax withholding is based on whether the Core>Payroll Item Configuration>Tax Non Cash Earn checkbox is marked or not marked. Keep in mind, city taxes may also need to be paid if the employee is not a resident of the city where the tax is deducted.

27.  Fringe Benefits: Process any Fringe Benefits payments. See Reporting Reimbursable Employee Expenses on the Employee's W2 for further details. 

This information will be placed on the W2 in Box 14 as a Code Fringe.

 

28.  Moving Expenses : Process any Moving Expense payments.

Reimbursements for moving expenses paid to active military employees, including payments made directly to a third party, should be reported.  The moving expense amount is treated as an excludable fringe benefit. 

A Core>Adjustments to the Federal Tax Payroll Item is the only requirement.

This information will be placed on the W2 in Box 12 with a code P.

 

29.  Company Vehicle: Process any Company Vehicle payments.  

A Core>Adjustment to the Federal Tax Payroll Item is the only requirement.  The Vehicle Lease Adjustment will automatically update the Total Gross and Applicable Gross on the Federal Tax and Ohio State Tax Payroll Items. 

This information will be placed on the W2 in Box 14.

30.  Adoption Assistance:  Process any Adoption Assistance payments.  See Reporting Taxable Amounts - Adoption Assistance for further details.   

If the Adoption Assistance payment (refer to Step 3, using the Adoption Assistance Pay Type) was processed as part of a payroll prior to calendar year end, no further processing is required.  

If the Adoption Assistance Pay Type was not used prior to the last pay of the calendar year, a Core>Adjustments using the Type of Adoption Assistance for the payment must be created.  The only Adjustment needed is the Type>Federal Tax Payroll Item. The Adoption Assistance Adjustment will automatically update the Total Gross and Applicable Gross on the Federal Tax, City (if applicable), Medicare Payroll Items. No further adjustments for Total Gross and Applicable Gross are necessary.

The software provides the ability to withhold city tax on non-cash earnings. City tax withholding is based on whether the Core>Payroll Item Configuration>Tax Non Cash Earn checkbox is marked or not marked. Keep in mind, city taxes may also need to be paid if the employee is not a resident of the city where the tax is deducted.

This information will be placed on the W2 in Box 12 as a Code T.

 

31.  Non-Cash Taxable Benefits:  Process any Non-Cash Taxable Benefits. See Reporting Taxable Benefits - Non-Cash Taxable Benefits for further details. 

If the Non-cash Taxable Benefit payment (Step 4, using the Non-cash Taxable Benefit Pay Type) was processed as part of a payroll prior to calendar year end, no further processing is required.  

If the Non-cash Taxable Benefit Pay Type was not used prior to the last pay of the calendar year, a Core>Adjustment to the Federal Tax Payroll Item is required.  The Taxable Benefits Adjustment will automatically update the Total and Applicable Gross amounts on the Federal Tax, Ohio State Tax, City and OSDI (if applicable), and Medicare (please refer to the proceeding paragraph for steps to process both the employee and employer portion) Payroll Items.  No further adjustments for Total Gross and Applicable Gross are necessary. 

The Medicare withholding must be paid.  The Board will need to pay for both the employee and employer portion of Medicare. The employee can then reimburse the district - if desired.   Create a Core>Adjustments for the Medicare Payroll Item using the Type of Amount Withheld and/or Board's Amount of payroll item.  If Medicare is fully board paid, create a Core>Adjustments for the Medicare Payroll Item using the Type of Board Pickup Amount of Payroll Item.  This adjustment will update both the Medicare pickup and Medicare on the W2.  Another adjustment will need to be made to balance the 941 QTD Employer's Medicare Contribution using Type of Board's Amount of payroll item for this amount.                                                                                                                                                                                                                                                                 

32.  Employer Health Coverage Costs.  If all of the appropriate health insurance Core>Payroll Item Configuration records have had the Employer Health Coverage checkbox(s) marked the entire calendar year and both employee and/or employer amount(s) are tracked on the system, and the totals being reported are accurate, nothing further is required. 

If the Employer Health Coverage Costs needs updated, create a Core>Adjustments for the Federal Tax Payroll Item using the Type of Health Insurance.  Keep in mind, the amount entered on the Health Insurance Adjustment does not override the existing amount. The Adjustment amount is added or subtracted to the existing total. 

This information is placed in Box 12 with code DD.

 

33.  Health Reimbursement Arrangement Information:  This only applies to those employers with less than 50 full-time equivalent employees (those who work 130 hours a month or 30 or more hours a week for 120 consecutive days) and the employer does not offer a group health plan to any of their employees. 

The only Adjustment needed is the Type>Federal Tax Payroll Item.

34.  W2 Overtime: Add W2 Overtime that was not marked as ‘Included’ during payroll. This will add to the Qualified Overtime amount.

The only Adjustment needed is the Type>Federal Tax Payroll Item.

 

This information is placed in Box 12 as Code TT.

 

W2 Report and Submission

If digital delivery of W2's has been implemented, is it strongly recommended this feature be temporarily disabled (or staff be notified that changes can not be made for a certain time period) while W2 processing occurs.  

When processing the W2 Submissions, Forms, and/or XML options, the employer information should default to the values in Core>Organization.  If the employer information is blank (not defaulting), set the Save and Recall option to Default and the information should populate as expected. For more details regarding the W2 Report and Submission program and its options, click here.

35.  Run W2 Report and Submission - Error Report

W2 Report and Submission/Generate Report can be run as many times as necessary until all data on report is correct.  Please see document called Affects of Special Situations on W2 Processing for additional assistance with balancing.

37.  Create Print File for the Employee Copy of W2's:  

If printing Employee 8.5" x 14" Z-Fold W2's using the USPS file:

  • Info - Job started to generate W2 Forms.  Generated Forms can be found in the W2 Form Output Files View.

If printing Employee 8.5" x 14" Z-Fold W2's using Edge's Account Ability:

38.  Create Print File for the City Copy of W2's: 

If printing City 8.5" x 11" 4- Up copies using the USPS file:

  • Info - Job started to generate W2 Forms.  Generated Forms can be found in the W2 Form Output Files View.

If printing City 8.5" x 11" 4 Up copies W2's using Edge's Account Ability:

Please go to System>Configuration>W2 Configuration and verify the ‘District Will Submit Own W2 Files’ checkbox is marked correctly. If your ITC is submitting the file on your behalf, the checkbox should be unmarked. If you are submitting your own file, the checkbox should be marked.  Please work with your ITC to determine how this field should be marked.

For the Steps below that require you to use your BSO, your existing BSO User ID and password are no longer used to access BSO employer services. You must use a Social Security online account, Login.gov, or ID.me credential to gain access to the BSO application. For more information, click here.  All submitters must obtain a BSO User Identification (ID) through our registration process (see Section 5) and must enter that BSO User ID in the RA (Submitter) Record.

39.  Create Print File for Employer Copy of W2's:  
40.   Create and Submit Federal Submission File:

OR     

41. Create and Submit Ohio Submission File.

OR

42. Create and Submit Other State Submission File(s) - if applicable:

The following is the criteria each state requires for filing on paper or electronically: (Each state will have its own requirements and testing procedures for wage report submissions. The district must consult each state's own department of revenue or labor website for their testing application)

State

Filing Requirements

State

Filing Requirements

Indiana

Requires electronic filing if 25 or more W2's.

Kentucky

Only accepts electronic filing W2's.

Michigan

Requires electronic filing if 250 or more W2's.

Pennsylvania

Requires electronic filing if 10 or more W2's.

West Virginia

Requires electronic filing if 25 or more W2's.

OR

43. Create and Submit City Submission File(s) (if applicable):  This will need be run for each City being submitted electronically.

OR

44. Create and Submit CCA Submission File (if applicable):

OR

45. Create and Submit RITA Submission File (if applicable)

OR

46.  Run the YTD Report (Optional).
47.  Create W2 PDF File. This file will be placed in the Utilities>File Archive>W2 Archive.  This file is also used by the ESS for employees to access their W2 information.

48.  Close the December Posting Period.

49.  Verify Calendar Year End Report Bundles.