Closing Out the Year

With the introduction of multiyear general ledger functionality in version 19 of Sage 100 Contractor, year-end closings have become much more relaxed.  No longer do we have to worry about closing the general ledger before we can record any transactions relating to the new fiscal year, and no longer do we have to understand how Period 0 postings work.

However, let’s not get too relaxed….  The Payroll Year must still be closed and a 2015 Payroll Archive must still be created! Fortunately, this is not a terribly difficult or time consuming process, but you have to time it correctly.

In December

• Ensure that you have the latest version of the program, currently version 19.6.54, installed.
• Ensure that your employee names, addresses and social security numbers are up-to-date.
• Determine with your tax advisor or benefits administrator whether you will be required to file forms 1094-C and 1095-C to comply with the Affordable Care Act.  If so, ensure that the monthly data is present and up to date on the ACA Tab of the 5-2-1 Employees records.  Doing this before the Close Payroll Year process will help you avoid making entries twice.
• Run 5-3-7 Payroll Audit regularly and ensure that any audit errors are corrected.
• Be aware that you may receive information from payers of Third Party Sick Pay that can affect your payroll tax reporting.  Ensure that any notices received have been properly reflected in your payroll records.
• Determine with your tax advisor that all amounts that should be reported on W-2 forms have been included, including taxable vehicle allowances and certain taxable benefits for owners.  Also review which payroll calculation amounts may have to be reflected on the W-2 forms.

After the Last 2015 Payroll is Processed and Before Any 2016 Payroll Records are Entered

• Run 5-3-7 Payroll Audit and ensure that there are no audit errors.
• Make a complete backup of the current company’s data folder.
• Decide ahead of the closing how you will name the 2015 Payroll Archive folder.
• Decide ahead of the closing whether you want to remove employee records for workers that have left the company.
• Log into the current company as Supervisor with Exclusive Access.
• Run 5-3-8 Close Payroll Year and follow the prompts and instructions carefully. It’s really rather simple!

Remember – prepare your 4^th quarter payroll returns and your W-2 and W-3 forms from your 2015 Payroll Archive company.

Contact us at 480-471-5305 or walt@mathiesonconsulting.com for additional information or assistance with closing your payroll year.