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YEAR END PROCEDURES. HR Unlimited Resources Suzy Bass Vice President Retha Hicks Consultant / Trainer 502-314-8984. Things to do Before Year End. Employee payouts (per policy manual) Any Unused Compensatory Time Any Unused Vacation/Sick Time

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HR Unlimited Resources

Suzy Bass

Vice President

Retha Hicks

Consultant / Trainer


things to do before year end
Things to do Before Year End
  • Employee payouts (per policy manual)
    • Any Unused Compensatory Time
    • Any Unused Vacation/Sick Time
      • Since the board may adopt and follow a reasonable plan of allowing vacations and/or sick leave, such fringe benefit must be adopted by ordinance and provided to the employees of the municipality. Any provision for payments of unused vacation and/or sick leave must be clearly disclosed in the ordinance or employee handbook that has been adopted as ordinance.
salary employees
Salary Employees
  • If you pay on an annual salary:
    • You may have to adjust the last pay of the year

Things to do Before Year End

  • Bond Payments
  • Make sure any bond payments due are paid by December 31
  • Loan Payments
  • Make sure any loan payments due are paid by

December 31

things to do before year end1
Things to do Before Year End
  • Input New Salaries (I know I know)
    • Make sure how many pay days are in the next year (this should be done during budget time of the current year)
    • Input new INPRS Rates (Formerly PERF)
    • Input any Employee Deduction Changes
    • Most software will allow you to put in future rates and put them in a ‘hold’ file until you roll over the year
  • Input New Budget
    • Begin inputting the budget that Council has approved for 2013
      • When you receive your 1782 Notice, make sure to reduce any appropriations that have been cut by the DLGF

Things to do Before Year End

  • Certification of Names and Addresses to County Treasurer (Due June 1 & Dec 1)
    • IC 6-1.1-22-14
    • Any Employee who receives compensation (full time or part time)
    • The County Treasurer will send a list of names of those who owe
      • They won’t send a garnishment order
    • Employer shall treat the garnishment as any other garnishment and deduct amount from employee’s pay until paid in full
things to do before year end2
Things to do Before Year End
  • Encumbered Appropriations
    • Allows any unpaid purchase order or contracts be carried over into the next years budget
    • With the opening of a new budget year and a new set of ledgers, it is to the advantage of a municipality to review the unpaid purchase orders and contracts which remain on the ledgers as “encumbered.”
    • Those items under purchase order or contract are to be added for each appropriation account and the total carried to the new 2013 corresponding account.
    • The actual unpaid amount of the purchase orders or contracts should be totaled and shown as a separate amount on the appropriation ledger sheet for 2013, with proper explanation, and added to the 2013 appropriation for the same purpose.
    • This will ensure that the 2013 budget will not be expected to stand any expense not anticipated in making the budget.
    • We suggest making a list of these encumbered items and make it part of the minutes in your last business meeting of the year.
    • Remember, the appropriations encumbered and carried forward can be used for no other purpose other than the purchase order or the contract for which they were appropriated.

Things to do Before Year End

  • Negative Appropriations
    • Make correcting entries
    • Transfers between line items in same series are allowed without approval
    • Transfers between series (ie…200 to 300 ) must be authorized by Resolution or ordinance
    • Transfers between departments are NOT allowed
      • How do you fix this if there is a department in the red?
  • Additional appropriations
    • This takes approximately 45 days from start to finish
    • What reasons would you have for requesting additional appropriation?
      • You want to buy something that you did not originally budget for
      • You incur an unexpected expense

Things to do Before Year End

    • Negative Funds
    • IC 36-1-8-5.1 (Rainy Day) *
    • IC 6-3.5-7-12.7 (CEDIT) *
    • IC 36-1-8-9 (RiverBoat) *
    • Funds Must be in the Black at December 31
    • Make loans or correct appropriations
  • Dormant Fund Balances – Transfers Authorized
    • IC 36-1-8-5
      • Gives city and town councils authority to order the transfer of any unused and unencumbered balance in any fund raised by a general or special tax levy, the purposes of which have been fulfilled, to the general fund or rainy day fund. This action may be taken by a city or town council at any public meeting.
      • From DLGF - The amount transferred to the Rainy Day Fund from a dormant fund DOES NOT count in the 10% computation law
due 2013
Due 2013
  • 4thQtr 941
    • Due Jan 31
  • 4thQtr Unemployment
    • Do Not include Elected Officials
    • Due Jan 31
    • Prepare a list of prior year bills paid in 2013 (this is not the same as encumbered)
      • You will need this for the annual report
    • LRS – Road Report - For Communities with more than 20,000 population
    • IC 8-17-4.1-5 - Annual operational report
      • Sec. 5. The governing body shall prepare by April 15 of each year an operational report for the prior calendar year of the department within the county or municipality that has road and street responsibilities
100r report
100R Report
  • 100R Report
    • Report of Names, Addresses, Deputies, and Compensation of Public Employees
    • **NEW - The report must also indicate whether the political subdivision offers a health plan, a pension, and other benefits to full-time and part-time employees
    • **NEW - MUST use city/town address for all Employees (by Law)
    • **NEW - Must be submitted in Gateway beginning January 2013
    • **NEW – You will submit the TOTAL gross for 2012 and not the hourly rate or salary per pay
    • Who is Responsible for submitting the 100R
      • The Law States
        • Cities – Mayor
        • Towns – Town Council President
      • The Clerk Treasurer or Controller has rights to Gateway so we suggest you submit it


w 4 w 2
W-4 & W-2
  • W-4 – Have one on file for every employee
    • If an employee changes exemptions they must fill out a new W-4
    • Not necessary to fill one out each year
    • W-2 – Given to each employee
    • Run All Payroll reports
    • Generate W-2s
    • Balance 941s for the year with the YTD totals of W-2s
    • Gross, Federal Gross, FICA Gross, Medicare Gross, State Gross, Local Gross
      • These figures are not always the same


  • 1099R- Police and Fire Pension
    • Annual 945 (Due Jan 31)
    • If state/county is withheld from check, a copy of 1099R is due to IN Dept. of Revenue along with W-2s
    • For 2012, file Form 945 by January 31, 2013. However, if you made deposits on time in full payment of the taxes for the year, you may file the return by February 11, 2013. Your return will be considered timely filed if it is properly addressed and mailed First-Class or sent by an IRS-designated private delivery service on or before the due date.

Report on 1096 to IRS by Feb 28, 2013

1099m 1099s
1099M & 1099S
  • 1099M - Contract Employees
    • W-9 – Must have a W-9 for anyone you have to send a 1099M or 1099S
    • This is for your file only unless a copy is requested by the IRS
    • Send to all vendors that you have paid $600.00
      • Can you send to vendors paid under $600?
      • Who gets a 1099 regardless of payment amount?
        • Attorney
        • Medical Facilities
    • 1099S - Sale of Real Estate

Due to Recipient by JANUARY 31

Report on 1096 to IRS by Feb 28, 2013

example of letter requesting w 9
Example of Letter Requesting W-9

ATTN: Accounts Payable:

The Internal Revenue Service has notified us that we must have on file a W-9 Form for each vendor with whom we do business. We are then responsible for reporting the information from your W-9 to the IRS.

We are mailing this W-9 Form to you and request that you complete it, returning it to us as soon as possible. We are told by the IRS that, unless we get the W-9, which includes your Tax Identification Number (TIN), we must begin withholding 30% of any monies due you as backup withholding.

One note, if you are a sole-proprietor, please double check the name you registered with the State. Most of these read: John Q. Jones d/b/a Acme Paper Company. The number you have used to register with the State may be your social security number. If that is the case, then you need to list your name on the first line of the W-9.

Thank you in advance for taking care of this matter promptly!


annual report
Annual Report
  • IC 5-3-1-3 provides that each city controller or city and town clerk-treasurer shall have published an annual report of the receipts and expenditures of such city or town within 60 days after the close of each calendar year.
  • The annual report is to be published one time in two newspapers unless there is only one newspaper in the city or town, in which case publication in the one newspaper is sufficient. If no newspaper is published in the city or town, then publication is to be made in a newspaper published in the county in which the city or town is located and that circulates within the city or town.
  • IC 5-11-1-4 requires such reports to be filed electronically with the State Board of Accounts no later than sixty (60) days after the close of the year. Instructions will be sent to all municipal fiscal officers.
annual urt report
Annual URT Report
  • Every taxpayer who receives more than one thousand dollars ($1,000) in receipts from the retail sale of utility service is required to file an annual utility receipts tax return, Form URT.
  • Any taxpayer who does not file an annual utility receipts tax return for a taxable year may be required to execute and file with the Department a sworn statement that the taxpayer did not receive more than one thousand dollars ($1,000) of taxable gross receipts during the taxable year.
  • When the taxpayer files an annual utility receipts tax return, the taxpayer shall pay to the Department the total utility receipts tax liability incurred by the taxpayer for the taxable year, minus the total estimated payment that was made for that taxable year.
  • A taxpayer who used a taxable year that ends on December 31 shall file the taxpayer’s annual return on or before April 15 of the immediately succeeding year.
  • A taxpayer, whose taxable year does not end on December 31, shall file the annual return on or before the fifteenth day of the fourth month after the close of the taxpayer’s tax year.
cancellation of old outstanding checks warrants
Cancellation of Old Outstanding Checks/Warrants
  • IC 5-11-10.5
  • All checks outstanding and unpaid for a period of two years as of December 31 of each year shall be declared cancelled.
  • Not later than March 1 of each year, the controller or clerk-treasurer shall prepare or cause to be prepared a list in duplicate of all checks outstanding for two or more years as of December 31 last preceding.
  • The original copy shall be filed with the city or town council and the duplicate copy maintained by the controller or clerk-treasurer of the city or town.
  • The controller or clerk-treasurer shall enter the amounts so listed as a receipt to the fund or funds upon which they were originally drawn and remove the checks from the list of outstanding checks. If the fund from which the check was originally drawn is not in existence or cannot be ascertained, the amount of the outstanding check shall be receipted into the general fund of the city or town.
  • Must be done by March 1 or must wait until the following year
helpful websites for year end procedures
Helpful Websites for Year End Procedures



Public Access Counselor

State Board of Accounts

Department of Revenue

Go to forms and publications

Publication 15B

Circular E

Indiana code

  • Child Support
  • Other Garnishments
    • What are the rules?
    • How much do you deduct?
    • Which has priority
    • What if you have more than one of the non-child support garnishments?
things to do before year end3
Things to do Before Year End
  • Make sure you have taxed employees on personal use of Municipality Take Home Vehicle
    • Commuting Rule
      • Tax Employee on $1.50 each way for personal commuting to and from work
    • Lease Value Rule
      • For Elected Officials and highly compensated Officials (no that is probably not you)
      • Can be done monthly, quarterly or annually
        • make sure it is done before last payroll is completed