Previous Pay Statement is not finalized

How to resolve the following error message during payroll processing: "Previous pay statement is not finalized. You will not be able to close this pay statement."

What does this error mean?

The system can only correctly calculate payroll taxes and jurisdictional tax limits once all previous pay statements for each employee are finalized. This error is populating because the employee has another pay statement in the closed status on another payroll check date. You cannot close or finalize one employee on more than one payroll at a time. 

How to fix this warning

Your options are to:

  • Finalize all previous payroll check dates. Payroll check dates need to be finalized chronologically.
  • Re-open the pay period and any closed pay statements on the other payroll.
After finalizing or re-opening pay statements, you must recalculate your current payroll pay statements to clear the error messages.