Payroll Year End

Closing the year clears the yearly and quarterly accumulations on the Edit Employee Accumulations box. After the yearly accumulation fields are cleared, they are ready to receive transactions for the next year. You can still post a payroll in the next year without running the Close Year routine. The payroll transaction accumulations are held in the Next Quarter field until you run the Close Year routine. Run the Close Year routine prior to posting the first payroll in the second quarter of the new year. You can also use the Close Year routine to purge records from the history files. To purge this information, use the Purge History option.

Note: If you are running Sage DacEasy Payroll interfaced with Sage DacEasy Job Costing, be sure all Time Sheet entries from Job Costing are transferred to Payroll before you run the year-end routine in Sage DacEasy Payroll.

Prior to closing the year, it is recommended that you make backups of your data. It is especially important to make a backup before performing certain irreversible functions such as running year-end procedures.

Check for Tax Updates

Access the Sage Customer Portal to download or run the latest tax update for currently supported versions.

Note: If you have not yet registered for the Sage Customer Portal, select Sign Up at the bottom of the Welcome Guest page.

Optional Tax Deposit Procedures:

940 Tax Deposits
The 940 Tax Deposit routine maintains a record of your federal unemployment tax (FUTA) liabilities, deposits, and amount due for the 940-EZ form. You can also use this routine to print the 940 tax deposit checks. Be sure to post all transactions before recording your 940 tax deposits to verify all information is current.

941 Tax Deposits
The 941 Tax Deposit routine maintains a record of your annual federal tax liabilities, deposits, and amount due for the 941 form. You can also use this routine to print the 941 tax deposit checks. Be sure to post all transactions before recording your 941 tax deposits to verify all information is current.

State Tax Deposits
The State Tax Deposit routine maintains a record of your tax liabilities, deposits, and amount due for state withholding, state unemployment insurance (SUI), and state disability insurance (SDI). You can also use this routine to print the state tax deposit checks. Be sure to post all transactions before recording your state tax deposits to verify all information is current.

Local Tax Deposits
The Local Tax Deposit routine maintains a record of your tax liabilities, deposits, and amount due for each of your local taxes. You can also use this routine to print the local tax deposit checks. Be sure to post all transactions before recording your local tax deposits to verify all information is current.

Optional Reports:

Custom Reports
If you have created any custom reports pulling yearly accumulations, print the reports before running the Close Year routine.

W-2s
Print W-2s before you close the year. This option allows you to print continuous feed or laser W-2 forms in the format prescribed by the Internal Revenue Service. Note: The federal government periodically changes the format of many of the year-end reports, such as W-2s, during the year. If you know the form has changed since your last upgrade or purchase of Sage DacEasy Payroll, you need to purchase the Tax Update from Sage DacEasy to update the federal year-end forms. The Payroll Tax Update service is available in December of each year and ends in the following November. If you need further information, please contact the Sage DacEasy Sales department at 800-DAC-EASY. This area is accessed from Periodic and Year End.

W-3s
The W-3 form is a summary for the employer of the information printed on the W-2 forms. Note: The option to print this form appears automatically after you print the W-2 forms. This area is accessed from Periodic and Year End.

Magnetic Media
The federal government requires you to file W-2 forms in a magnetic media file if you have more than 250 employees. You must register with the Social Security Administration in order to submit a magnetic media file. Sage DacEasy prints W-2 forms to a disk file that meets the magnetic media file requirements set by the Social Security Administration. Sage DacEasy automatically includes your state records in the magnetic media file. If you are required to file magnetically with your state, you can copy the same file to another disk and send that file to your state's taxing authority. This area is accessed from Periodic and Year End.

In addition, Sage DacEasy allows you to include your state records in the magnetic media file if specified. If you are required to file magnetically with your state, you can copy the same file to another floppy disk and send that to your state's taxing authority. Check with your state taxing authority to confirm they accept MMREF-1 format.

1099s
Print 1099s before you close the year. This option allows you to print continuous-feed or laser 1099 forms in the format prescribed by the Internal Revenue Service. This area is accessed from Periodic and Year End.

Transaction History Report
This report is similar to the Payroll Register but includes only posted payroll transactions, whereas the Payroll Register includes only the unposted payroll transactions. Print this report and store it for archival purposes. This may be reviewed from the Reports menu option.

Code History Report
This report includes a detailed list of the codes activity in each payroll transaction. If you have added a code but have not posted a payroll transaction using the code, the code is not available for viewing on this report. This may be reviewed from the Reports menu option.

941
This report prints the federal tax return you must submit to the IRS at the end of every quarter. You need to print the 941 before closing the year. If you select Federal Form as the type, you have the option to print the form on plain paper. To print the form on plain paper, select the Plain Paper check box on the Report Layout dialog box. If you are printing the form on a preprinted form, do not select the Plain Paper option. This form is printed from Periodic and Quarter End.

Schedule B
The Schedule B prints a report of your tax liability on a daily basis. You must complete this schedule if you are required to deposit on a semiweekly basis or if your tax liability on any day is $100,000 or more. You must show tax liability, not deposits, here. If you are starting in the middle of a quarter, the amounts will be incorrect because the 941 file is updated during the posting routine. Therefore, you must manually enter the amounts according to the day. You need to print the Schedule B before closing the year. This form is printed from Periodic and Quarter End.

Close Month

Closing the month clears the monthly accumulations on the Edit Employee Accumulations dialog box only. After the monthly accumulations fields are cleared, they are ready to receive accumulations for the next month. Run the Month End routine prior to posting the first payroll of each month. This is not a required procedure prior to closing the year. This function may be accessed from Periodic and selecting Month End.

Closing the Year

Closing the year clears the quarterly and yearly accumulations on the Edit Employee Accumulations dialog box. After those accumulations fields are cleared, they are ready to receive accumulations for the next year. You can still post a payroll in the next year without running the Close Year routine. The payroll transaction accumulations for the next year are held in the Next Quarter field until you run the Close Year routine. You must run the Close Year routine prior to posting the first payroll in the second quarter of the new year. This routine is accessed from Periodic Year and selecting Close Year.