Sage 100Cloud Year-end Processing and Payroll Webinar 2019
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The document provides an extensive guide on year-end planning and processing for Sage 100, covering critical tasks such as preparing for 1099 and payroll year-end processing, setting up fiscal year maintenance, and completing necessary updates and reconciliations. It includes specific instructions for different versions of Sage 100 and emphasizes the importance of backups and validation before closing the year. Additional sections detail the processing order for various modules and the necessary forms for tax reporting and e-filing.
Sage 100Cloud Year-end Processing and Payroll Webinar 2019
- 1. Year-End Planning for Sage 100 To Join the Audio: US: +1 408 638 0968 or +1 646 876 9923 or +1 669 900 6833 Passcode: 399 997 149 Lanette Felsch and Sue Pawlowic RKL eSolutions, LLC 12/4/2019
- 2. AGENDA • Preparation • 1099 Vendors - Calendar Year End • Fiscal Year End • Year End Resources • Payroll • Preparing for Payroll year end processing • Payroll Period and year end processing- Reports • Processing and filing Quarterly and year end forms • Processing and filing w-2/W-3 Form and Aatrix • Period year end close • Tax table updates • Post year end processing considerations • ACA • Q&A
- 3. Verify your Disaster Recovery Plan Setup paperless office for reports Create a copy of your live company before closing the year Calendar Year End vs. Fiscal Year End Preparing for Calendar Year End
- 4. In order to process year-end tax forms in Sage 100, you must install the 2019 IRD and the year end eFiling (Aatrix) update. The IRD is typically available the 3rd week of December. Before installing the IRD, validate Sage 100 and any 3rd party applications are compatible. Supported versions of Sage 100 are: 2019 Update 0 and higher (6.10.0) 2018 Update 2 (6.00.2) 2017 Update 5 (5.40.5) - End of Life If you need an update or IRD installed, please contact RKL Support for assistance. Email: support@rklesolutions.com If you need to upgrade from Version 2017 or lower, please contact your RKL account manager. Preparing for Calendar Year End
- 5. Preparing for Calendar Year End To Determine your current version of Sage using Classic View, go to Help > About Sage 100 Classic View
- 6. Preparing for Calendar Year End To Determine your current version of Sage using the Standard View, go to Help > Sage 100 Standard View
- 7. Preparing for Calendar Year End 1099 Preparation Open Library Master > Main > Company Maintenance and confirm your EIN number has been entered:
- 8. Preparing for Calendar Year End 1099 Preparation – Version 2017 Go to Accounts Payable > Reports > Form 1099 eFiling and Reporting
- 9. Preparing for Calendar Year End 1099 Preparation – Version 2018 and 2019 Go to Accounts Payable > Reports > Form 1099 Tax Reporting
- 10. Preparing for Calendar Year End 1099 Preparation - 1099’s are processed through a 3rd party product called Aatrix - To download 2019 forms, choose Automatic Update and follow the prompts - If Automatic doesn’t work, choose Download Update and browse to the Aatrix website for the download
- 11. Preparing for Calendar Year End 1099 Preparation - Test access to Aatrix before year end
- 12. Preparing for Calendar Year End 1099 Preparation The wizard will pull the 1099 information from Sage and have you validate each section: Addresses, Income, Tax IDs, etc.
- 13. Preparing for Calendar Year End 1099 Preparation - Forms Aatrix will eFile for a fee or you can print your own forms. Tax forms can be ordered from Sage Checks & Forms, or call 800-617-3224
- 14. 1099 Processing Payment History Report Correct Vendor 1099 amounts on the Vendor Masterfile as needed Preparing for Calendar Year End
- 15. 1099 Processing In the below screen, choose the correct options for electronic filing or printing Preparing for Calendar Year End
- 16. Setup your next fiscal year: General Ledger > Setup > Fiscal Year Maintenance Validate GL Budget Settings & Journal Resets: General Ledger > Setup > General Ledger Options Preparing for Fiscal Year End
- 17. Verification of History retention in each module Preparing for Fiscal Year End
- 18. Processing Fiscal Year End - Reconciliation • Post all Journals & registers – Don’t forget GL! • Purchases Clearing Report • If Inventory valuation is LIFO, FIFO, Lot or Serialized, then reconcile negative tiers. • Trial Balance uses Posting date • Aging reports use Invoice date. • Please Validate with your Accountant any additional reconciliations that may be needed for your company.
- 19. Processing Year End - Module Order of Closing Order *P/E Module Steps to Close 1 Bill of Material Verify all transactions are posted. No formal closing procedure 2 WO Reconcile WIP to GL. Print period/year end reports. 3 Manufacturing Reconcile WIP to GL. Print period/year end reports. 4 X PO Reconcile PO Clearing Report to GL on last day of month*. Print Reports. Run Period end processing. *If last day of month is not possible, then reconcile to current GL balance. PO Clearing Report is perpetual. 5 X SO Print Reports. Run Period end processing. 6 X Inventory Negative tier adjustments if applicable. Perform Physical Inventory Count. Reconcile Inventory to GL. Print Reports. Run Period end processing. 7 X MRP Period end is performed once per year to close out the previous year’s projected demand 8 X Payroll Quarterly & Year end closing based on Calendar year 9 X AR Compute Finance charges if used. Print Statements if used. Validate Commissions if used. Reconcile AR to GL. Print Reports. Run Period end processing. 10 X AP Reconcile AP to GL. Print Reports. Run Period end processing. 11 X Job Cost Reconcile to GL. Print Reports. Run Period end processing 12 Bank Reconcile to bank statements. (Occurs when Bank statement is received). *Note Bank module does not retain any history 13 X GL Reconcile to subsidiary modules (AR, AP, PO, INV). Reconcile and Validate Financial reports. Run Period end processing. When Year end is processed, income and expense accounts will roll into Retained Earnings. *P/E = There is a period end function that must be performed. The Period End function will advance that module to the next Period and will purge history/completed transactions depending on parameter settings (how many periods/years are being stored in that module). If using Temp customers or vendors, they may be purged. **Please Validate with your Accountant specific reports or year end tasks that may be needed for your company.
- 20. Processing Year End PTD & YTD Buckets Defaults to Current Period
- 21. Processing Year End Sage Help Center – Online Period end Checklists
- 22. Processing Year End Closing Tips Period End Reports Period end will purge history based on parameter options. PO History General Ledger controls what period can be posted General Ledger CAN be Re-Opened Company Maintenance will allow you to restrict posting to current and 1 future period Close modules every period Year End Backup
- 23. Preparing for Payroll QTR/Year End Processing Payroll Period end occurs each quarter and at the end of the calendar year. Versions 2017 – When the payroll period end processing is run, QTD and or YTD data is purged from the system and can only be recovered by restoring to a backup, so it is imperative that a database backup is performed, as well as a backup company created, before running period end processing. Do not begin entering payroll for the new quarter until the backup company is created and quarter end has been completed. **Payroll Setup - Before processing Period End, verify that Payroll Options are set to Retain Perpetual Payroll History. This must be done before the first 2020 payroll to retain history for ACA (Affordable Care Act). Version 2018 and 2019 – When the payroll period end processing is run, QTD and YTD data is stored in the system for the number of years chosen in Payroll Options. The minimum number of years you can store data is 4 (including the current year). You can enter payroll into future quarters and periods. However, RKL strongly recommends a backup company be created before running period end processing to avoid any issues and to ensure backup history is available.
- 24. Payroll QTR/Year End Processing - Overview Install Interim Release Download (IRD)
- 25. Payroll QTR/Year End Processing - Reports Print Quarterly Payroll and Year end Reports This section covers reports you should run quarterly to save for your own records and to assist in reconciling the information on your tax forms. Sage recommends the following reports (at a minimum) be printed BEFORE period-end processing: 2017 2018/2019
- 26. Payroll QTR/Year End Processing – Reports (Cont.) • Quarterly Tax Report (ID 26733): Produces a summary of each employee's wage and tax information for the current quarter and year for each tax jurisdiction. This report should be used to assist in reconciling your quarterly 941 form and applicable State quarterly tax forms. • Quarterly Governmental Report (ID 49696): Used for reporting quarterly income and tax information to various governmental agencies. The default format supplied with your Payroll module accommodates the original federal Form 941A. This federal form is not required, but may be applicable for some state requirements. • Employee Totals Verification (ID 26175): Used to confirm the calculated values of check totals for employees equal the employee totals in Tax Summary. This report lists employees with discrepancies, and employee totals that differ from check totals. Review this report before printing W-2 forms to verify the correct information is reported to the IRS. • Payroll Check History report (ID 48774): Lists all checks written for a specified period by employee. Use this report for reference purposes. This report may not be appropriate for all reconciling purposes. • Earnings Report Provides a month-to-date, quarter-to-date and year-to-date summary of employee earnings information detailed by hours and amounts. This report is updated using the pay period ending date entered in Payroll Data Entry. • Deduction Reports (ID 49698): Provides a month-to-date, quarter-to-date, and year-to-date summary of employee deduction information for up to six deduction codes. This report is updated using the pay period ending date entered in Payroll Data Entry. • Benefit (Time Off) Accrual Report Provides a year-to-date summary of accrued benefit hours and amounts, by employee, for the three types of benefits (vacation, sick pay, and the third benefit type defined in Payroll Options). If the third benefit type is not defined in Payroll Options, the fields for this benefit type do not print. Pension Plan History Report Provides a summary of hours worked and earnings amount by employee for a date range for pension plan deduction codes. • Worker’s Compensation Report Provides a recap of workers' compensation tax calculations. This report can be printed with employee detail or can be summarized by workers' compensation code. The number of paychecks, wages, and hours applying to specific codes are reported, as well as the tax extension for each employee. In the Workers' Compensation Maintenance window, when Monthly is selected in the Type of Limit field, the Workers' Compensation Report prints for the month defined in the Payroll Accounting Date field.
- 27. Install Interim Release Download (IRD) Available on Sage website approximately December 23, 2019. Must be downloaded and installed before running W-2s Must be on a supported version of Sage 100 in order to be able to install IRD 2017 update 5 (5.40.5) - This is the last Year End Update for Sage 100 2017 2018 update 2 (6.00.2) Payroll 2018 update 5 (2.18.5) 2019 Update 0 (6.1.0) Payroll 2019 update 1 (2.19.1) If installing a new product update, new unlocking keys from Sage will be required.
- 28. eFiling and Reporting / Federal and State Tax Reporting Quarterly Tax Forms and W-2 Forms Interim Release Download (IRD) for 2019 must be installed prior to running W-2s Requires installation on workstation May prompt for download of new forms Must have an active Sage Business Care plan, internet connection and be on a supported version of Sage 100 ERP. (For Tax filing year 2019 the current supported Sage 100 ERP versions 2017, 2018 and 2019.) If installing a new product update, new unlocking keys from Sage will be required.
- 29. Quarterly Tax Forms Print Quarterly Tax Forms Go to Payroll > Period End Processing > eFiling and Reporting – or – Federal and State Tax Reporting Print the 941 & 941 Schedule B Federal tax forms (ID 27107): This is a quarterly form. These forms are printed on plain paper. a. Go to: Payroll > Period End > Federal eFiling and Reporting – Federal and State Tax Reporting. b. Select the following, and click Accept. Form ID = xxxx 941/Schedule B/941-V Report (xxxx=tax form year) Verify Company information. *Note: Company name, address, phone and Federal Tax ID are automatically populated from Company Maintenance, but can be changed Verify the Reporting Year and Quarter Click Accept Print applicable State tax forms (ID 52376): These forms are printed on plain paper. a. Go to: Payroll > Period End > Federal eFiling and Reporting – Federal and State Tax Reporting. b. Select the applicable State from drop down c. Highlight applicable State tax form Verify Company information. *Note: Company name, address, phone and Federal Tax ID are automatically populated from Company Maintenance, but can be changed Verify the Reporting Year and Quarter Click Accept 2017 2018 and 2019
- 30. Print or eFileW2/W3 forms At Calendar Year End Print or eFile W2/W3 forms Interim Release Download (IRD) for 2019 must be installed prior to running W-2s W2's should be printed from your live company. For Sage 100 Version 2017, they must be printed before year end processing is performed since all YTD data will be cleared. If a W2 needs to be reprinted after Year end processing, then it can be printed from your backup company. Go to: Payroll > Period End > Federal eFiling and Reporting / Federal and State Tax Reporting **Note: In order to access eFiling & Reporting/Federal and State Tax Reporting, you must have an active Sage Business Care plan, internet connection and be on a supported version of Sage 100 ERP. (For Tax filing year 2019 the current supported Sage 100 ERP versions 2017, 2018, and 2019.)
- 31. Print or eFile W2/W3 forms - Aatrix If printing W2 from Backup company, edit data to match live company; this is what will print on the W2. Note: If you are prompted to install a mandatory or an optional update, click Yes and then follow the on- screen instructions. You must install mandatory updates to continue processing, and you must install Automatic updates to maintain current forms and programs. Please don't be confused by the menu name “eFiling” in Sage 100 Version 2017; you are still able to print W2 and 1099 forms plus 330+ payroll tax forms for FREE to your printer. To see how easy it is, ask RKL for an eFiling and Reporting guide.
- 32. Perform Period End in Live company to close out quarter Make sure all Quarter & Year End Reports have been printed Validate W2's have been printed/eFiled if year end Validate a Backup Company of your Payroll has been created. (At a minimum create a copy of live company with Payroll, GL, and Common) Go to Payroll > Period End > Period End Processing 2017 2018/2019
- 33. Tax Table Updates – Sage 100 Version 2017 Update new Tax Tables before performing the 1st payroll of the new year. Go to Sage website and download new tax tables. Verify and Change as necessary the State Unemployment, Disability and local Tax Rate and Limits in Tax Table Maintenance for each of the states you process payroll, to reflect correct 2020 rate for each company.
- 34. Tax table updates – Sage 100 Version 2018 and 2019 Set up a user/email address in Payroll > Setup > Service Notification Maintenance. As tax updates become available throughout the year, you will receive an email with a link to download and install the current tax rates. The downloads include all local taxes in the United States. If no user is listed in Service Notification Maintenance, as tax rates change you will be prompted to download new tax rates when you log into Sage 100. PLEASE DO NOT DOWNLOAD OR INSTALL ANY TAX UPDATES UNTIL AFTER THE LAST 2019 PAYROLL HAS BEEN PROCESSED.
- 35. Payroll Year End considerations Version 2017: Timing to create year end backup copy after last payroll. No one in system so you can copy GL, CI and PR to archive company code 2020-Q1 Tax table update and 2019 Interim Release Downloads with be available approximately 12/23/2019. eFiling and Reporting/Federal and State Tax Reporting (Aatrix) year end update approximately 12/23/2019. You need to access eFiling and Reporting/Federal and State Tax Reporting to get the update. You must have an active Business Care plan with Sage, be on a supported version (including product updates), and have installed the IRD and the Aatrix update prior to processing W2’s or ACA reporting. When installing the IRD it will verify you are on the appropriate product update. Installation of the product update will require new unlocking keys provided by Sage.
- 36. Payroll Year End considerations (continued) ACA features must be setup and data loaded prior to processing ACA reporting. ACA Employer Information ACA Employee Information If you own Visual Integrator, data can be imported into the ACA files if necessary. Version 2017 only - ensure that Perpetual History is enabled in Payroll Options. Ensure that Employer ACA maintenance is accurate for each year. Have you processed your fringe benefits for the year? Have your processed an employer contribution deduction for reporting of ACA employer sponsored health care on the W-2?
- 37. Payroll Year End considerations (continued) Version 2017 (5.40.5) Retirement Reminder: the 2019 year end IRD and 2020-Q1 tax table update will be the last year end IRD and tax table update that will be provided for version 2017, please see Sage’s Supported Versions document: https://support.na.sage.com/selfservice/viewdocument.do?noCount=true&externalId=31477 &sliceId=1&isLoadPublishedVer=&docType=kc&docTypeID=DT_Article&stateId=16358&cmd= displayKC&dialogID=725559&ViewedDocsListHelper=com.kanisa.apps.common.BaseViewedD ocsListHelperImpl&openedFromSearchResults=true Sage End of Year Center: https://sagecity.na.sage.com/support_communities/sage100_erp/sage100-yearend
- 38. ACA ************** Please Read ************* This section of the guide is to assist with understanding some of the new IRS rules so that Sage Payroll can be setup properly, but it is not the official IRS guideline. Check with your Accountant to validate requirements for your company. Please also review the IRS website: http://www.irs.gov/Affordable-Care-Act/Employers/Questions-and-Answers-on-Employer- Shared-Responsibility-Provisions-Under-the-Affordable-Care-Act#Employers Affordable Care Act (ACA) will require employers with more than *50 employees or that are self- insured to report employee health insurance information to the IRS. *See IRS rules to determine if you qualify.
- 39. ACA - Forms
- 40. Test Are you considered a Large Employer? Your organization is an applicable large employer if you or other entities that must be combined together with your organization (for instance, other members of an aggregated group) employed an average of at least 50 full-time employees, including full-time equivalent employees, on business days during the preceding calendar year. For example, your 2019 employee count determines if you’ll be required to track and report employee and health coverage information in 2020.
- 41. ACA Setup and Filing ACA Employee Maintenance - Gather Information for the 1095C form
- 42. ACA – Monthly Detail Select the Offer of Coverage and Employee share. Check with your insurance provider to validate Offer of Coverage.
- 43. ACA – Covered Individuals List each person covered by Insurance and which months.
- 44. ACA Employer Maintenance - Gather information for the 1094C Form If less than 50 employees, the Employer Maintenance will not be updated unless you Check box to be included as Applicable.
- 45. ACA Applicable Large Employer Report If you are an Applicable Large Employer, then at the end of the year, you can run the "ACA Applicable Large Employer Report" to populate the Employees and hours by month in the Employer Maintenance - Monthly Detail.
- 46. Note The ACA Applicable Large Employer Report is offered as a self-help tool for your independent use. Sage cannot and does not guarantee the report's accuracy or applicability to your circumstances. To comply with the Affordable Care Act, hours of service must be reported by calendar month. Because hours worked are tracked by pay periods in Sage 100 ERP and pay periods may span more than one month, a calculation is performed to get an approximate monthly total. The total is an estimate and may not reflect the actual hours worked. For specific tax or legal advice, see a professional tax service provider or an attorney, as appropriate. ACA Applicable Large Employer Report (continued)
- 47. Create an Employer Contribution deduction for Employer-Sponsored Health Coverage The Affordable Care Act (ACA) requires employers to report the cost of coverage under an employer-sponsored group health plan. Reporting the cost of health care coverage on the Form W-2 does not mean that the coverage is taxable. The value of the employer's excludable contribution to health coverage continues to be excludable from an employee's income, and it is not taxable.
- 48. How to generate Forms 1094-C & 1095-C Aatrix year end update released on approximately December 23, 2019 will include the Forms 1094 & 1095. Note: A 1095 form will be generated for all employees who have information entered in the ACA Employee Maintenance > Monthly Detail and/or Covered Individuals screens Open Payroll, Period End, Federal eFiling & Reporting / Federal and State Tax Reporting After installing the Aatrix 2019 year end update the Forms 1094 & 1095 will be listed Additional Information: If you wish to import ACA information into Sage 100 using Visual Integrator module, please see article in Sage Knowledgebase: Where are the Affordable Care Act (ACA) Visual Integrator jobs located. If you have version 4.50 or 2013 installed and you are not able to upgrade to Sage 100 2014 or higher, you may use the ACA worksheet to gather your ACA information, which can be imported after the appropriate product update is released. Note: You must own the Visual Integrator module. Please see related article, ACA Reporting Worksheet for Sage 100 ERP .
- 49. Payroll EEO-1 Compliance If paying 100 or more employees: As of September 1, 2019 Component 2 Data is required to be reported Includes hours worked and pay information from W2 forms by race, ethnicity, and sex Payroll Version 2.19.4 includes the following fields: Ethnicity/Race Job Category
- 50. W-4 Forms – January 2020 The IRS has released a new W-4 form effective January 1, 2020. New form must be used by: All new employees starting January 1, 2020 or later All existing employee changes after January 1, 2020 Sage 100 Versions 2017 and lower will not support the additional fields necessary to correctly calculate federal withholding taxes Must manually calculate taxes using the IRS calculator: https://www.irs.gov/individuals/tax-withholding-estimator To upgrade Sage 100 version, please contact your RKL account manager. NOTE: Windows 7 and 2008R servers will no longer be supported by Sage 100 after January 1, 2020
- 51. Year End Resources RKL Support Support@rklesolutions.com Sage On-line Help Click on ? Icon to obtain help on any topic Sage City Year End Center https://sagecity.na.sage.com/p/yearend
- 52. Contact: Lindsey Palladino Customer Advocate-West Direct: 717.869.4333 lpalladino@rklesolutions.com Michelle Laudano Customer Advocate-East Direct: 717.869.4327 mlaudano@rklesolutions.com
- 54. Thank you and Happy Holidays! Contact us for pricing, compatibility and consulting needs of your business management solutions. Sales@rklesolutions.com 717.735.9109