Organizing Year End for Sage 100 Contractor

by Pam Schulz, Sage Certified Consultant

Before the year-end rush, spend a little time preparing.

Everyone using payroll records in Sage must archive the 2018 payroll files prior to creating any payroll records for the new year, 2019.

The actual archive process must be done within a certain time frame: after the last payroll for 2018, but before the first payroll records for the new year. (There is a separate “General Ledger” archive; however, because the timing of that archive is flexible, it is not discussed here.)

During January, W-2, 1099 forms and other tax reports will be required.

What to prepare NOW

Are you ordering tax forms? Sage 100 Contractor uses W2 (and 1099) forms that are known as “four-up” (four to a single page) — if you order or buy the most common forms at an office supply store you will be getting the wrong forms. Here are some choices to consider:

  • Order forms from Sage
  • Order from another source — make sure you get the correct forms
  • Use aatrix “full service” to print and send your forms for you- I have heard rave reviews about this!
  • Print to plain paper — this will help getting envelopes that fit

Prepare for 1099s

  • Review report 4-1-1-61; Vendor 1099 report. Here you see how much was paid to each vendor, their 1099 type, and their ID #. Clean this up now; here are some basic rules:
    • No one  should have a type of “undetermined” — if a vendor does not get a 1099 use the type for “No 1099” rather than “undetermined.”.
    • Anyone with a 1099 type that requires a form must have an ID #.
  • “Test run” your 1099 forms using aatrix at menu option 4-5; 1099 forms. If you have trouble loading aatrix, get this solved NOW. If aatrix shows “errors” in vendor IDs, or other data, fix it now.
  • Order forms, or get set up/enrolled for aatrix services – don’t wait.

Prepare for W2s

  • Run a payroll audit at menu option 5-3-7, and address all audit errors.
  • Test run the W2 forms at menu option 5-4-1. Aatrix will show errors such as duplicate Social Security numbers, missing addresses, etc- FIX YOUR DATA NOW.
  • Reconcile/Balance your 941 forms against the W3 totals. Create an excel worksheet to list the Wages, Tax, FICA wage and Medicare Wage from each quarter’s form 941. (This should also be done for your states.) Run the payroll reports for quarter 4- you can do this “now/early” if you like- the idea is to spot errors, not to produce a final report). Compare the totals with the information on the W3 form (or grid totals in the screen) created in your test W2 run. Now I a good time to file any needed forms 941x.
  • Order forms, or get setup/enrolled for aatrix services — don’t wait.

Prepare for ACA

You may need to file ACA reports (Affordable Care Act.)  Check with your advisers about this requirement.

  • Complete the employee information at menu option 5-2-1, Employees; there is a “tab” for the ACA information.
  • Run the informational reports for review at menu option 5-4-3, ACA reports.
  • Test run the reports that will be filed in aatrix at menu option 5-4-1, they are listed with the other Federal tax reports.

Prepare for the BIG NIGHT

Between your last payroll check of 2018 and your first payroll record in 2019, you must “archive” your payroll files. You will also “update” the new year’s files with new tax rates, and perhaps perform some employee maintenance in vacation and sick accruals. All of these tasks will be covered in future discussions, but for NOW get as much done as possible! More preparation = less stress!

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