How to complete payroll year-end processing

Before closing any modules, perform a complete backup your company data files. Retain this backup indefinitely as it may provide critical data for audit purposes. 

Payroll Tips:

• Enhanced Tax Reporting allows you to print payroll tax forms after closing the year. W-2s, 940s and 4th quarter 941 forms can be printed after closing the current payroll year
• Since the year-to-date totals reset in Sage BusinessWorks, reports such as the Company Totals Reports should be run prior to closing the year
• Although Sage BusinessWorks now retains five years of payroll history, the Payroll module does not retain the employee QTD and YTD totals after closing the year
• Contact an accountant or tax advisor for assistance regarding the taxable status of deductions or other pays
• Complete W-2s and close your payroll year-end prior to installing new payroll year tax updates (service packs)
• If you need to process a payroll for the new year before your tax reports are completed, it is okay to run payroll without the new tax table update. On the payroll after the update is installed percentage-based taxes will self-adjust
• Sage BusinessWorks provides an End of Year Checklist for Payroll. Review the checklist after completing the last payroll. To access the Checklist:
  1. From the Sage BusinessWorks Launcher select View and select Viewer and Modules.
  2. From the Modules menu, select Payroll.
  3. In the viewer, the Common Tasks for the module appear. At the bottom, there are three tabs: Common Tasks, All Tasks, and Checklists. Select the tab for Checklists.

For more information on the year-end process, see our Year End Tips.

Common questions:

How can I calculate a bonus check so it pays the employee a specific net amount?

• See How to process bonus checks
• See How to gross up a net value check

How do I add the employer paid health insurance to my employee W-2?

• See How to set up and report Employer Provided Health Coverage on the W-2
• See How to set up and process fringe benefits

I need to add auto allowance to my employee's W-2. How do I do this in Sage BusinessWorks?

• See How to set up other pays
• See How to process Fringe Benefits (Frequently Asked Questions)

What W-2 forms do I order to print in my Sage BusinessWorks?

• See What W-2 W-3 and 1099 forms do I order to work with my Sage BusinessWorks?

How do I process W-2 forms in Sage BusinessWorks?

• See Processing and printing W-2 forms
• See How to print W-3

How do I process and report Third Party Sick Pay on the employee W-2?

• See How to process Third Party Sick Pay when employer pays employer portion of FICA

For more informaiton on year-end processing visit our Year-end Center in the Community Hub.