End of Year Considerations

Transcription

1 Agvance End of Year Considerations Version 5.1 Important Document Includes updated instructions for Processing paper or electronic W-2 s Processing paper or electronic 1099 s Ending the fiscal year Ending the payroll year Ending the prepay season

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3 Contents End of Fiscal Year 1 End of Fiscal Year Checklist... 1 Grain... 1 Inventory... 1 General Ledger... 2 Patronage... 2 End of Fiscal Month 12 Detail... 2 Adjusting Entries... 5 End of Calendar Year 7 Grain... 7 Companies who do not end the fiscal year in December... 7 Companies who end the fiscal year in December... 8 Printing 1099 Information... 8 How to process printed 1099 s... 8 How to make an electronic 1099 file... 9 End of Payroll Year 11 End of Payroll Year Checklist Special Situations Addressing taxable fringe benefits on W-2 s Addressing tax-sheltered fringe benefits on W-2 s Employer Sponsored Health Coverage Print W-2 s How to Print W-2 forms How to make an electronic W-2 file Ending the Payroll Year Attendance End of Year Update Payroll Tax Tables Data Clean Up End of Prepay Season 19 Ending the Prepay Season checklist Reference Section s W-2 s End of Prepay Season Agvance End of Year Considerations Contents i

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5 End of Fiscal Year End of Fiscal Year Checklist Grain Inventory Checking the preference GL Posting Reports Create Reversing JE in New Year will cause reversing journal entries to be made for open and priced assemblies, in-transits, and grain bank in-transits in the new year and prevent the need to add manual reversing journal entries. This is found on the Reports tab at Grain / Setup / Preferences / Posting. Perform the Grain End of Year. This will clear units received, units shipped, local sales and adjustment totals in the Year column on the Commodities screen and will test for GL transactions that have not yet been posted. Grain / End of Periods / End of Year. If the Use Cost of Sales Override option is checked on the Merchandise tab at Grain / Setup / Grain Ledger Accounts: 1. Uncheck the Use Cost of Sales Override box 2. Enter the actual physical count for Units and Value in the Current Period boxes Beginning year balances can be updated in the current year by logging into the archived database, running the Grain Inventory report, and checking the box to do so. Review unprocessed transactions loaded blend tickets, loaded delivery tickets, and purchase receipts. These tickets will carry over to the new year, but this is a good time to address any lingering tickets that won t be invoiced later. If the inventory quantities need adjusted, correct the quantities to the physical counts by using the Inventory Adjustments function. This function is found at Accounting / Inventory / Inventory Adjustments, dated the last day of the fiscal year. Scrutinize cost figures. Any figures that are incorrect should be edited at the Hub / Utilities / Edit Product Pricing menu option. Run the Company-Owned Inventory Statement report to review the cost and value of the inventory. Once the inventory quantities and costs are correct, use the Post Inventory to GL function found at Accounting / GL / Post Inventory to GL, to adjust the inventory asset account figures on the balance sheet to the values shown on this report. Agvance End of Year Considerations End of Fiscal Year 1

6 General Ledger Enter all transactions for the year being closed. If the checkbook reconciliation area of the program is used, refresh the checkbook reconciliation area prior to ending the month. This is done by selecting the account at GL Checkbook Reconciliation (from the Accounting / G L / Checkbook Reconciliation menu option) and clicking the Refresh button. Follow the End of Month procedures in the Accounting section of the manual or the on-line help files. The program will archive the year s data and end the fiscal year as it closes the 12 th month. Patronage Make any necessary changes to the active/inactive patron status. Review and make changes to re-assignments. Verify all patrons have a valid tax ID number. Review patronage categories, including setup on inventory departments and grain commodities. End of Fiscal Month 12 Detail 1. To end the fiscal year, go to Accounting / End of Periods / Fiscal Month. 2. If the checkbook reconciliation area is used, refresh all activity in accounts to be reconciled before closing. Below is the reminder that will display before the End of Fiscal Year screen. To refresh, click OK at the reminder message, exit from the End of Year screen, and go to Accounting / General Ledger / Checkbook Reconciliation. Select the proper account and click the Refresh button. If multiple accounts are reconciled, repeat the refresh process for each account. If the accounts to be reconciled have been refreshed, click the OK button to bypass this message and continue with the year-end process. 3. If fields are entered on transactions (blend tickets, delivery tickets, invoices), the following message may appear. 2 End of Fiscal Year Agvance End of Year Considerations

7 Clicking Yes will proceed with the end of year. Clicking No will cancel the end of year process which gives the opportunity to go to Hub / Utilities / Transfer to Field History. 4. Select the background color for the prior year dataset. This will give a visual reminder to more easily identify when the archived data is being used. 5. Select the Archive Database name. This should be the year of the data being ended. If the correct year does not default, click the drop down arrow and select the correct year. 6. A scan will be done on general ledger accounts. If profit centers are being used on any general ledger account, then every general ledger account must have a profit center. Any account missing a profit center will be listed in a grid. A Print button is available to print a report of the accounts. Clicking OK closes the screen. A profit center must be selected on each of these accounts before the fiscal year end process can be completed. Agvance End of Year Considerations End of Fiscal Year 3

8 7. The data is archived (copied) as month 12 is ended. NOTE: This process can be lengthy depending on the size of the database. DO NOT end (ctrl-alt-delete) the process even if the program says it is not responding. Agvance will make a new directory called \FYAVXXXX where AV is the first two letters of the data directory and XXXX is the archive database name. 8. After the data is copied, the program will begin ending the year in the current year dataset. Following is a few of the details: Deletes o Voided and paid invoices and processed quick tickets o All payments o All inventory detail records o All purchase invoices o Processed and voided delivery tickets, purchase receipts, and purchase orders Deletes general journal entries 4 End of Fiscal Year Agvance End of Year Considerations

9 Zeroes all income and expense accounts and posts the difference into the Retained Earnings account set at Accounting / Setup / Preference / GL or if profit centers are used, the Retained Earnings account set on the profit centers, found at Accounting / Setup / Profit Centers. Clears month-end archived numbers for customers, vendors, inventory, and general ledger accounts and captures beginning year balances. 9. Some key document numbering can optionally be restarted. After this step, processing may begin in the new year. 10. The following message appears: 11. Logging back into Agvance opens the current year. This is a good time to perform some data clean up. Items (general ledger accounts, employees, customers, products, and vendors) that are no longer used can be deleted. Agvance verifies the item being deleted does not have any balance or activity. If a balance or activity exists, the delete will not be allowed. Adjusting Entries 1. Review the journal entries from the accountant. Verify all the general ledger accounts used in the entries exist in the current year dataset. 2. Log in to the prior year dataset. Verify all general ledger accounts exist in this dataset. Agvance End of Year Considerations End of Fiscal Year 5

10 3. Enter each journal entry dated the last day of the year, entering the accountant s adjusting entry number in the Ref/Check#. At the bottom of the screen, verify the correct Current Year is displayed. If the correct Current Year is not displayed, select it from the drop down list. 4. As the journal entry is saved, a message will ask if this journal entry should affect the current year data. Selecting Yes will update the beginning balances in the current year accordingly for each general ledger account affected. 5. Reprint any financial reports in that dataset to reflect the true end of year position. 6. Make an image of the archived dataset and store this image in a secure location. Warning: The accountant or auditor may give adjusting entries that affect the Accounts Receivable or Accounts Payable account. If journal entries are posted to these key accounts, the accounting check-ups will show out of balance. Instead of using the Accounts Receivable or Accounts Payable accounts on the journal entries, it is suggested to post the entry to an A/R Adjustment account or an A/P Adjustment account. These accounts can be added to the general ledger (in both years affected) if they do not already exist. In the current year, a customer or vendor transaction will need to be entered on the specific customer or vendor account, posting to the A/R Adjustment or A/P Adjustment account. Please call SSI Support with any questions about this procedure. 6 End of Fiscal Year Agvance End of Year Considerations

11 End of Calendar Year Grain The following considerations apply when a company is ending the December fiscal month. Companies who pay interest on Installment Sales/Deferred Payment settlements should include running the utility Update 1099 Paid Values when ending the month of December. This is found at Grain / Utilities / Update 1099 Interest Paid Values. Many customers want to start writing checks early in December to payout deferred payments or installment sale contracts that are due the first week of January. Note: Checking the Deferred Payment Period preference will allow settling from dispositions of deferred payment or installment sales with the settlement date into the future, but retain the deferred payment/installment sales units on the DPR as if they had not been settled. This preference is located on the Posting tab at Grain / Setup / Posting. Companies who process 1099s for box 3 and/or 6 should restore the Tax EOY.dat image to print 1099s from. The TaxEOY.dat is created when ending the month of December. Note: Companies whose fiscal year is also the calendar year can process 1099s for box 3 and/or 6 from the archived dataset. Companies who do not end the fiscal year in December For companies who do not end their fiscal year in December and use Agvance for processing 1099 s, there are a couple considerations that should be done prior to ending the fiscal month of December. Early in December, check the 1099 figures for accuracy. Run an AP 1099 Detail report for all 1099 types, found at Reports / Accounts Payable / AP Status. Also print the 1099 Summary report found at Reports / Accounts Payable / AP Status / Vendor Balances, selecting 1099 Summary in the Select Balance frame. After the last vendor checks for the year are processed and posted to the general ledger, print the 1099 s (at Accounting / End of Periods / Print EOY Tax Forms) on plain paper to check the final numbers. Customers using interest deductions in the Grain module should use the utility found at Grain / Utilities / Update 1099 Interest Paid Values to update the customer s 1099 amount for interest paid. Print the 1099 s on forms. Print the forms once for each copy. Optional: Make an image of the data directory (or a play dataset ) and back this up. When ending the month of December, the 1099 Paid YTD figures for all vendors will be zeroed out (whether it is the end of the fiscal year or not). Agvance End of Year Considerations End of Calendar Year 7

12 When ending the month of December, the 1099 Amount Paid to Date for all customers will be zeroed out (whether it is the end of the fiscal year or not). The following 1099 figures will be cleared out for all patrons when ending the month of December (whether it is the end of the fiscal year or not): 1099 Patr YTD$, 1099 Div YTD$, 1099 Int YTD$, 1099 NQ YTD$, Backup Withhold Patr, Backup Withhold Div, and Backup Withhold Int. Companies who end the fiscal year in December Companies who end their fiscal year at the end of December have the option to print 1099 s prior to ending their fiscal year, or printing them from the archived dataset. Early in December, check the 1099 figures for accuracy. Run an AP 1099 Detail report for all 1099 types, found at Reports / Accounts Payable / AP Status. Also print the 1099 Summary report found at Reports / Accounts Payable / AP Status / Vendor Balances, selecting 1099 Summary in the Select Balance frame. After the last vendor checks for the year are processed and posted to the general ledger, the 1099 s can be printed. These 1099 s could also be printed from the archived dataset after the fiscal year is ended. After all patronage, interest, and dividend checks for the year are processed and posted to the general ledger, 1099 s can be printed. Patronage 1099 s can also be printed from the archived dataset. Printing 1099 Information The Agvance program will maintain a 1099 Year to Date Paid figure for any vendor that is marked as a 1099 candidate. To maintain this number as the bills are entered or Quick Checks are processed, edit the vendor's 1099 Info tab, select the appropriate 1099 type, and enter the vendor s Federal Tax ID number. With this done, as A/P Bills or Quick Checks are processed for this vendor, the portion of the transaction to affect the 1099 total will be confirmed. For those required to file 1099 s electronically, an option to create an electronic file is available. To file electronically, a Transmitter Control Code (TCC) must be obtained from the IRS. Questions about filing electronically can be answered on the Internet at Note: The printing of the 1099 forms does no posting, therefore it is safe to print them multiple times for alignment testing. How to process printed 1099 s The Agvance program prints on a standard laser format for each of the 1099 types supported. These forms can be ordered directly from SSI. Because laser printers print one copy of a particular 1099 run at a time, print the forms multiple times to get all the necessary copies. 1. Go to Accounting / End of Periods / Print EOY Tax Forms / 1099 s to find the 1099 function. 2. Print the 1099 s on plain paper and compare to the forms to make sure the correct 1099 type is selected at the vendor screen, the alignment is correct, and the vendor 1099 total is accurate. This is important as alignment between laser printers can vary significantly. Note: For alignment adjustment, the Test Pattern button can be used to test the settings. The Top and Left Margins can be affected a ¼ inch by adding The 1099 forms will be packaged in separate sets, one part per set, based on your company s forms order. When the forms alignment is satisfactory, load the printer with one set of the 1099 forms. 4. At the 1099 screen, indicate the 1099 type being printed. Print them in the same manner as the plain paper copy. 5. Repeat steps above until all parts of the forms have been completed. 8 End of Calendar Year Agvance End of Year Considerations

13 If there are some 1099 s to print for vendors that are not in the vendor file, click the Vendor Not on File button, manually add the information, and print these 1099 s one at a time. These default to printing on the top form on the page. Depending on the type of 1099 selected, optionally choose to print on the middle or bottom form on the page. Note: Information entered using the Vendor Not on File option is only available for printed 1099 s. This information cannot be included in an electronic 1099 file. Note: Form 1096 does not print through Agvance at this time. It should be manually completed to include with the printed 1099 s. How to make an electronic 1099 file 1. Go to Accounting / End of Periods / Print EOY Tax Forms / 1099 s. 2. Choose File in the Output To frame. 3. Fill out the required information for the electronic file in the File Output area, and click the Write button. The resulting file will be named IRSTAX and be written to the specified Media Output Path. If errors occur while writing the file to disk, a message will appear giving the option to view the details of the errors so they can be corrected. After the corrections are completed, try making the 1099 file again. 4. This file can be sent electronically via the IRS web site, Agvance End of Year Considerations End of Calendar Year 9

14 See 1099 s on page 21 for a description of each option on this screen. 10 End of Calendar Year Agvance End of Year Considerations

15 End of Payroll Year End of Payroll Year Checklist Verify all paychecks including special situation checks, such as bonus and fringe benefit checks have been entered. Verify all attendance entries have been entered for the year. Verify the numbers are accurate by running the Employee Totals report twice once using the Period to Date / Year-to-Date option, and once using the By Check option entering the date range of January 1 st December 31 st. Although W-2 s can be printed from archived payroll data after ending the year, it is best to verify the numbers carefully before ending the payroll month of December, and therefore ending the payroll year. Ending the payroll year happens when the payroll month of December is ended. At the Accounting / End of Periods / Payroll Month menu option, select December for the payroll month to be closed. Select the background color for the archived payroll year dataset. The Archive Database name should be the year of the payroll information being archived. If the correct year does not default in to the screen, click the drop-down arrow and select it from the list. Agvance End of Year Considerations End of Payroll Year 11

16 Note: This process can be lengthy depending on the size of the database. Do NOT end (ctrl-alt-delete) the process even if the program says it is not responding. Agvance will make a new directory called \PYAVXXXX where AV is the first two letters of the data directory and XXXX is the year selected as the archive database name. After the data is copied, the program will end the payroll year in the current year dataset. Following are a few details: Clears employee totals for month, quarter, and year Deletes all payroll checks Deletes all processed time cards When the process finishes, the Payroll End of Month screen closes. To verify the payroll year has been ended, go to Accounting / Payroll / Edit a Paycheck. All payroll checks should have been deleted. Special Situations After the last payroll of the year, check to see if any special situation adjustments such as bonus checks or fringe benefit adjustments are necessary. If so, process these checks, post to G/L, and submit any necessary tax payments. Addressing taxable fringe benefits on W-2 s These situations might include personal use of company vehicle or life insurance on an individual that the company pays. The objective is to bring the value of that benefit into the Gross Wage Total so it is reflected on the employee s W-2. A zero dollar paycheck is created for each employee affected by one or more of these fringe benefits. This is our suggested procedure; please have your accountant review it. 12 End of Payroll Year Agvance End of Year Considerations

17 Please read through these instructions and call for clarification if necessary. 1. Verify a Fringe Benefit deduction exists at Setup / Preferences / Payroll. If it does not currently exist, add the deduction, setting the Default G/L Account to the salaries/wages expense account. 2. Edit the employees file. At the deduction tab, select the fringe benefit deduction in the first available deduction slot and verify the deduction s G/L account matches the gross wage G/L account for this employee. 3. Process the zero dollar paycheck from the Payroll / Process Hourly menu option regardless of how the checks are normally processed. Enter the value of the benefit in the Total column of the normal pay category for the employee. Click the Apply button to calculate the taxes. At the Deduction tab, zero out all voluntary deductions such as insurance, 401(k), or garnishments. Click the Change Deds button. At the Taxes tab, zero out any federal, state, and local taxes, but leave the amounts in the FICA and Medicare taxes. Click the Change Taxes button. Note the Net $ calculated after adjusting the taxes. The goal is to have the net amount of this check be zero. To do this, click the Deduction tab and enter the calculated net figure in the fringe benefit deduction field from Step 1 above. Click the Change Deds button. Edit the federal, state and local taxes to zero again. Make sure the net amount of the check is zero. Print the check on plain paper. There will be a warning about the amount of the check being zero, but the program will allow the save. 4. Post these checks to the general ledger in the same manner as a typical payroll. 5. Run the check register report for this fringe benefit payroll and make the appropriate 941 payment. Addressing tax-sheltered fringe benefits on W-2 s Certain types of fringe benefits such as some owner s insurance premiums may be tax-sheltered fringe benefits. If the accountant has advised that a fringe benefit is a tax-sheltered benefit, the following procedure is recommended. Please read through these instructions and call for clarification if necessary. 1. Verify a Tax-Sheltered Fringe Benefit deduction exists at Setup / Preferences / Payroll. If it does not currently exist, add the deduction, setting the Default G/L Account to the salaries/wages expense account. Mark the appropriate boxes in the Exempt From columns. In the example of an owner s health insurance premium, the FICA box would be marked, but no other boxes. If there are questions about which columns should be marked, check with the accountant or plan administrator. 2. Select the tax-sheltered fringe benefit on the Deduction tab of the affected employee s files. The general ledger account for the deduction should post to the regular salaries & wages account for the employee. 3. Process the zero dollar paycheck from the Payroll / Process Hourly menu option regardless of how the checks are normally processed. Enter the value of the benefit in the Total column of the normal pay category for the employee. Click the Apply button to calculate the taxes. At the Deduction tab, zero out all voluntary deductions such as insurance, 401(k), or garnishments. Enter the amount of the benefit in the Tax Sheltered Fringe Benefit deduction. Click the Change Deds button. At the Taxes tab, zero out any taxes that calculated. Click the Change Taxes button. Note the Net $ calculated after adjusting the taxes. The goal is to have the net amount of this check be zero. Print the check on plain paper. There will be a warning about the amount of the check being zero, but the program will allow the save to proceed. 4. Post these tax-sheltered fringe benefit checks to the general ledger in the same manner as a typical payroll. Agvance End of Year Considerations End of Payroll Year 13

18 5. Run the check register report for this fringe benefit payroll and make the appropriate 941 payment. Employer Sponsored Health Coverage Some companies are required to report Employer Sponsored Health Coverage on the W-2. Other companies fall within the government s transition relief and are not required to report, but accountants or auditors want the health coverage information added to the W-2 s. To report this amount on the W-2 s, it must be added to the employee file before processing the W-2 s. Use one of the two following methods to update the amounts on the employee files: Editing the employees individually 1. At File / Open / Employee, edit the employee. 2. Go to the Totals tab. At the top of the Totals tab, select Year to display the Employer Sponsored Health Coverage box. Enter the amount to be reported on the selected employee s W-2 in this box, and Save. Using the Batch Edit Employees utility This utility displays a group of selected employees in a grid format, similar to a spreadsheet. 1. The utility is found at Hub / Utilities / Admin Utilities, and then Accounting / Batch Edit Employees. 2. Select the employees to be edited by using the Select button. To select employees based on employee classifications, click the Filter button, and then the Cls button displays. 3. Once the employees are selected, the Employer Sponsored Health Coverage column displays. The default location for this column is the last column of the grid. **Note Optionally click the column heading and drag it closer to the employee name to make it easier to enter the data for the correct employees. Print W-2 s Although W-2 s can be printed from archived payroll data after ending the year, it is best to verify the numbers carefully before ending the payroll month of December, and therefore ending the payroll year. W-2 s can be printed on pre-printed forms or submitted electronically. How to Print W-2 forms The Agvance program prints on laser style W-2 s where there are two employees per page for the federal, state, and employer file copies, and one employee per page for the employee copy (all four employee copies print on one page). 1. Be certain that all paychecks have been printed for the calendar year including bonus checks and fringe benefit checks. For more information on processing fringe benefit checks, see Addressing taxable fringe benefits on W-2 s on page Run the Employee Totals report found at Reports / Payroll / Payroll Status / Employee Totals two different ways. First, run it with Period to Date selected in the Select Source frame, and Year to Date in the Select Period frame. Then, run the report a second time with By Check selected. Enter the date range for the entire year in the Select Range frame. Review the numbers carefully; these are the numbers that will appear on the W-2 s. The totals on these two reports should match. If the numbers do not match, contact SSI support for assistance. 3. At Accounting / End of Periods / Print EOY Tax Forms / W-2 s, on the Setup tab complete the necessary information for the W-2 s. Verify the Federal Employer ID # is correct. Top and Left Margins should default from last year. If these boxes are blank, enter.3 in each box as a starting point. These margins can be adjusted later. Select an option in the Print on what form box either 4-up for the employee copy or 2-up for the federal, state, or employer copies of the form. For the 2-up form, enter 1 for the starting control number if it did not default. In the Tax Year box, either select a saved year or New and enter the year. If any deductions should be reported in boxes 10, 12, or 14, enter the appropriate information in those boxes. If you are uncertain if a deduction should be reported in any of these boxes, please contact your accountant or your plan administrator 14 End of Payroll Year Agvance End of Year Considerations

19 for guidance. If the accountant or plan administrator advises a deduction to be entered in these boxes, he or she should also advise the correct prefix to be used. The W-3 can optionally be printed after the W-2 s by placing a checkmark in the Print W-3 Form box and completing the information for the W-3. See W-2 s on page 23 for a description of each option on this screen. Click the Preview W-2 s button. The employee information will be displayed on the Print/Preview tab, based on the information from the Setup tab. Scrolling to the right will allow certain items to be changed, such as being able to mark the Third Party Sick Pay box or splitting out tax for multiple states. Print a test pattern or W- 2 s on white paper. Hold the printout up against an actual form to verify the alignment. Save W-2 s at this point. This saved information will be held to make the electronic file or in the event that a W-2 would need to be reprinted. 4. When the figures are accurate and alignment is correct, load the forms into the printer and print the W-2 s as often as needed to get the laser forms printed. Indicate the form being printed (4-up for the employee copy or 2- up for the federal, state, and employer copies). Note: Margin settings may vary from the 4-up form to the 2-up form. Be sure to test the margins on each style before loading forms into the printer. Print the W-3 Form At the Print W-2 s screen, there is an option to print the W-3 form. If this option is selected, after the W-2 s print, a prompt to insert the W-3 into the printer will appear. Prior to printing on the form, it is strongly suggested to print on white paper to verify the margin settings. Once the correct margins are entered, the form can be inserted for printing. Note: W-3 form alignment can be tested by marking the Print W-3 Form option and clicking the Test Pattern button. After the test pattern of the W-2 prints, a question appears asking to print the W-3. How to make an electronic W-2 file 1. Be certain all paychecks have been entered for the calendar year including bonus checks and fringe benefit checks. For more information on processing fringe benefit checks, see Addressing taxable fringe benefits on W-2 s on page Run the Employee Totals report found at Reports / Payroll / Payroll Status / Employee Totals two different ways. First, run it with Period to Date selected in the Select Source frame, and Year to Date in the Select Period frame. Then, run the report a second time with By Check selected. Enter the date range for the entire year in the Select Range frame. Review the numbers carefully; these are the numbers that will appear on the W-2 s. The totals on these two reports should match. If the numbers do not match, contact SSI support for assistance. Agvance End of Year Considerations End of Payroll Year 15

20 3. At Accounting / End of Periods / Print EOY Tax Forms / W-2 s, complete the necessary information on the Setup tab for the W-2 s. Click the Preview W-2 s button. Make any necessary changes to the W-2 information. Click the Save W-2 s button at this point. The electronic file uses this saved information for the file created. 4. At the Electronic File tab, select the Tax Year that was saved in Step 3 above and complete the other information on the screen. Click the Create File button. 5. A file named W2REPORT will be placed in the Output File Path specified on the Setup screen. This file can be submitted to Social Security electronically through the website: Ending the Payroll Year If attendance tracking is used, all attendance information should be entered before ending the payroll year. This will archive the attendance records into the previous payroll year for future reference. Run the Employee Totals report found at Reports / Payroll / Payroll Status / Employee Totals two different ways. First run it with Period to Date selected in the Select Source frame, and Year to Date chosen in the Select Period frame. Then run the report a second time with By Check selected. Enter the date range for the entire year in the Select Range frame. Totals on these reports should match. If these reports do not match, contact SSI support for assistance. End the payroll month of December at Accounting / End of Periods / Payroll Month. This will archive the data so the payroll information can be accessed at a later time. W-2 s can be processed from this archived dataset if there wasn t time to process them earlier. In the current year data, run the Employee Totals report again using the Period to Date/Year to Date option. After ending the payroll year, all employees should have a zero balance. Also, go to Accounting / Payroll / Edit a Paycheck. There should be no paychecks displayed in the white box. Once the payroll tax tables are updated (see the Update Payroll Tax Tables section below), payroll checks for the new year can now be processed. If the fiscal month of December has not yet been closed, do not post the January paychecks to the general ledger. Attendance End of Year After ending the payroll year, balances should be reset at Accounting / Payroll / Attendance / Reset Balances before entering new attendance and payroll information. 16 End of Payroll Year Agvance End of Year Considerations

21 This process deletes all attendance activity. A new beginning of year balance entry is created in all attendance categories for the selected employees. There are options to carry forward any remaining balance OR set the balances to a specified amount. Update Payroll Tax Tables After ending the payroll year, make any revisions to the federal, state, or local taxes at Accounting / Setup / Payroll Tax Tables. The federal tables can be updated by going to Setup / Payroll Tax Tables and then clicking the Import Fed, FICA, Medicare Info from Web button. Once the federal tax tables have been updated, the following screen will appear: Agvance End of Year Considerations End of Payroll Year 17

22 Notice to users with multiple companies: This utility updates the federal tax tables in the company currently open. This process should be repeated in each company dataset that processes payroll. The above web-based import updates the Federal tables only. State tax tables will be posted on the Agvance Community website which is accessible from the Hub / Help menu or the Hub Shortcut Information button. State and local tables must be updated manually. If state and/or local tax rates changed, and assistance is needed making changes in Agvance, call SSI Support for assistance. Data Clean Up The beginning of a new payroll year is a good time to clean up the payroll data. Former employees can be deleted from File / Open / Employees. Pay categories and deductions that are no longer necessary can be deleted from Setup / Preferences / Payroll by marking the Delete checkbox in the grid and saving. Note: Only 1 pay category and 1 deduction category can be deleted at a time. Agvance verifies the pay category or deduction category is not being used before allowing the delete. 18 End of Payroll Year Agvance End of Year Considerations

23 End of Prepay Season Ending the Prepay Season checklist Before entering prepay bookings for the new season, the prepay season should be ended to clear out old booking information. Any remaining customer prepay balances will remain on their accounts. Run the Accounting Customer Checkup (the Red Cross button on the Accounting Reports menu). Any out of balances related to prepay or bookings must be corrected. Call SSI if assistance is needed. Settle any outstanding prepay balances for bookings that should not be carried forward into the new prepay season. This can be especially important if product specific bookings with special season prices were used since prices can change greatly from season to season. Make an image of the data from the Hub / Utilities / Make Database Image menu option. Run a Booking Status report, found at Reports / Accounts Receivable / Bookings, by Booking # range for both paid and unpaid bookings, and include All (filled and open). This is a complete report of all bookings that existed before ending the season. Go to Accounting / End of Periods / Prepay Season. Enter the appropriate criteria for customers, locations, booking dates, booking numbers, and booking expiration date ranges to determine the bookings to be deleted. Also select one or both of the Partially Invoiced or Not Invoiced options to determine the unpaid bookings to be deleted in the range selected above. Print the End of Prepay Season report which will show the bookings to be deleted based on the criteria entered. Check the End of Prepay Season report for accuracy. If the report appears correct, click Post to complete the End of Prepay Season. Rerun the Booking Status report for all bookings. Only prepaid bookings and unpaid bookings with a booking or expiration date, or booking number outside the range selected at the End of Prepay Season function should remain. Agvance End of Year Considerations End of Prepay Season 19

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25 Reference Section 1099 s Vendor / Customer 1099 s should be run before ending the fiscal month of December. An exception would be if the end of December is also the end of the fiscal year. If the fiscal year ends December 31 st, the 1099 forms could be processed from the archived dataset after December is closed s can be filed either electronically or on paper forms. To file electronically, a Transmitter Control Code (TCC) must be obtained from the IRS. Questions about filing electronically can be answered on the Internet at Agvance End of Year Considerations Reference Section 21

26 1099 Type select the type of 1099 s to be issued. Each type prints to a different government form. Get 1099 info from where select the location of the 1099 information from A/P Vendor information or from Patronage (an optional module). Federal Payer ID# enter the federal employer identification number to appear on the forms. Minimum Qualifying Amount vendors with the selected 1099 type chosen on their File / Open / Vendor / 1099 Info tab and an amount in their 1099 Paid YTD equal to or greater than the amount entered here will be included in the run. The qualifying dollar figure varies depending upon the style of Check with your accountant if there are any questions about the qualifying dollar figure. State Payer ID for printed 1099 s, this is the state-assigned ID. Print Account ID the Vendor or Customer ID can optionally be printed as the Account Number on the Select Vendors leaving this set to All will print a 1099 for all who qualify for the selected 1099 form type. Manually selecting will print 1099 s for the selected vendors. Combined Filer this checkbox indicates the company is a combined filer, filing federal and state taxes in one electronic file. Before combined filing can be done, a test file must be submitted and approved by the IRS. If the test 22 Reference Section Agvance End of Year Considerations

27 file is acceptable, the IRS will send a letter of approval and the Combined Filer option may then be used when creating the 1099 electronic file. Vendor Not On File if a 1099 should be printed for someone not established in the vendor file, this option will allow the name, address, Federal Tax ID number, and 1099 amount paid to be entered manually. This 1099 defaults to print on the top form, but can optionally print on lower forms. Output to Printer or File determine if the 1099 information will be printed on forms or saved to a file to be submitted electronically. File Output this section is used only if filing electronically. Media Output Path indicate the location where the 1099 file should be created. For example, if a 1099 folder existed on the c: drive, and inside the 1099 folder was a folder for each type of 1099 s that were being processed (Misc, Patr, Div, and Int), when processing the Miscellaneous 1099 s, the path would be c:\1099\misc\. File Type select from the following options: Original, Test, Replacement, or Correction to indicate the status of the file being sent. Contact Name enter the name of the person the government should contact if there are questions. Contact Phone enter the phone number of the contact. Contact enter the address of the contact. Tax Year enter the tax year the file represents. Prior Year Data Indicator check here if the data being sent is from the year prior to the one just closed. Transmitter Control Code enter the five-character alpha/numeric Transmitter Control Code (TCC) assigned by IRS/MCC. A TCC must be obtained to file data electronically. Payer Name Control Enter the first 5 letters of the legal company name. Print 4804 Worksheet prints a report that summarizes the information in the electronic file. Box 3 Grain Purchases this option is only accessible when printing the 1099-PATR using the Patronage module as the source. Marking this box prints the settled grain amount in Box 3. Box 6 Deduction this option is only accessible when printing the 1099-PATR using the Patronage module as the source. Marking this box enters an amount for the Domestic Production Activities Deduction for coop patronage. Print Address Address 1, Address 2, and Address 3 can be selected depending on which address lines are utilized by the company. Sort By select to sort the 1099 s by Name, ID, or Zip Code. Printer Output Top Margin the default is about 1/3 of an inch. It can be adjusted by adding or subtracting. In this area, 1 equals one inch, therefore adding.25 to the.3 will push the print down lower on the forms about another ¼ inch. Left Margin works in the same manner as the Top Margin. Note: There is no posting associated with the running of 1099 s. W-2 s W-2 forms can be generated at year end if the payroll portion of the program is used throughout the year. Contact SSI for supported W-2 forms. It is important to check employee end of year figures and the alignment of the printing before loading the forms and printing them. The W-2 function uses the employee Year totals found at Accounting / File / Open / Employee / Totals. These numbers can be reviewed by running the Employee Totals report, found at Reports / Payroll / Payroll Status / Employee Totals with Period to Date selected in the Select Source frame and Year to Date in the Select Period frame. Agvance End of Year Considerations Reference Section 23

28 End of Payroll Month for December archives the payroll data in another data directory and clears out the employee totals. Be certain to do one of two things: Run the W-2 s before closing the payroll month of December at Accounting / End of Periods / Payroll Month. Run the W-2 s from the archived payroll dataset (but make sure the numbers have been proved out prior to ending the payroll month of December). Setup Tab Location defaults to All which uses the company information from Hub / Setup / Company for the employer name and address on the W-2 s. Dept Code if a location is selected, the department code associated with the selected location displays. The employer name and address from the selected Location will print on the W-2 s. Federal Employer ID # the FEIN defaults from the company setup or can be manually entered. It must be entered here to print on the forms. Top Margin to help with form alignment that may vary from printer to printer, the printed text can be moved down the page in units of one inch (.25 is ¼ of an inch). Any decimal fraction of an inch can be used. Left Margin the text can be moved to the right by increasing the left margin in fractional units of an inch just like the top margin described above. Print on what form selects the form style to be printed. The 4UP form is the form given to the employee that has 4 W-2 s per page. The 2UP form is for the Social Security, State, and Employer copies that have 2 forms per page. Starting Control Number on the 2UP form, a starting control number is required. This is a numbering sequence for numbering the W-2 s. On the 4UP form, the starting control number is not available to be used. Tax Year New defaults into the drop-down selection box. If creating the file for a new year, enter the year in the box next to New. If the W-2 file has previously been saved, use the drop-down box to select the saved year. Box 10 if a Section 125 dependent care assistance program is to be reported in box 10, select the reimbursement deduction from the combo box. If you are not sure whether any amounts should be reported in box 10, check with your accountant. Multiply by Negative One if the dependent care reimbursement shows on the paychecks as a negative deduction, then this box should be marked. If the number shows as a positive number, this box should be unmarked. 24 Reference Section Agvance End of Year Considerations

29 Box 12a-12d used to report certain tax-sheltered plans. Using the federal government's W-2 instructions for this box, indicate the plan that qualifies your company for the tax-sheltered annuity (for example D for 401K). The Prefix must be entered as a capital letter. Enter the Prefix and select the deduction associated. Questions about which, if any, deductions should be in Box 12, or the correct prefix to use for the deduction should be directed to your accountant. Note: Employees participating in a tax-sheltered plan will see that deduction reflected in a reduced gross figure on the W-2. Box 14 this optional input is used to report any expense reimbursements made through payroll. Examples might include: Road Expense, Moving Expense, Union Dues, etc. If you choose to use this option, enter up to five characters to describe the reimbursement type and then select the deduction field used for that reimbursement. If you are unsure if a deduction should be reported in box 14, please check with your accountant. Print W-3 Form Control Number a number used for numbering the transmittal. Kind of Payer select the type of payer for the W-3 form. If 3 rd Party Sick Pay was paid to any employee, mark the 3 rd Party Sick Pay checkbox. Kind of Employer defaults to None Apply but can be changed to the other available options as necessary. Establishment Number use this box to identify separate establishments in your business. A separate W-3 may be filed with W-2 s for each establishment even if they all have the same EIN; or you may use a single W-3 for all W-2 s of the same type. Other EIN used this Year if any other EIN has been used when filing 941 reports, enter the other EIN used. 3 rd Party Sick Pay Box 13 if any employee(s) received third party sick pay enter the Third Party Sick Pay Recap in this area. Box 14 complete this box only if federal income tax was withheld from third-party payments of sick pay. Enter the total of the income tax withheld on the third party sick pay. Contact Information Person enter the name of the person for use by the Social Security Administration if any questions arise during processing. Phone #, , Fax # enter the information for the contact person listed above. Top Margin to help with form alignment that may vary from printer to printer, the printed text can be moved down the page in units of one inch (.25 is ¼ of an inch). Any decimal fraction of an inch can be used. Left Margin move the text to the right by increasing the left margin in fractional units of an inch like the top margin described above. Preview W-2 s loads the grid on the Preview/Print tab with the information for the W-2 s Agvance End of Year Considerations Reference Section 25

30 Preview / Print Tab The employee information displays based on the information entered on the Setup tab. Much of this information can be edited if necessary. If changes are made, it is important to click the Save W-2 s button for those changes to be retained. Tag All selects all employees in the grid to print W-2 s. Untag All deselects all employees. Test Pattern prints a test pattern for the W-2 s and for the W-3 if selected. Print W-2 s prints the W-2 forms based on the information saved in the Preview/Print grid. Save W-2 s saves the information in the grid. To utilize electronic filing, the file must be saved. Electronic File Tab Federal Emp. ID the Federal Employee ID number defaults from the company information, but can manually be entered if necessary. 26 Reference Section Agvance End of Year Considerations

31 User ID enter the User ID assigned to the employee who is attesting to the accuracy of this file. This is the User ID of the BSO Log In on the Social Security Administration s website. Tax Year select the tax year being filed. Output File Path select the path where the electronic file should be created. The filename created is W2REPORT and is an ASCII file. Company Name / Address / City / State / Zip defaults from the company setup information, but can be edited if necessary. Contact Name the name of the person to contact if there are questions regarding the filing. Contact the address of the contact person. Contact Phone# enter the phone number where the person named in the Contact Name can be reached. Ext. enter the phone extension number for the contact person, if applicable. State Tax ID enter the state tax number if an electronic file will be generated for the state. State electronic files are available for Georgia, Kansas, Minnesota, Nebraska, and Oregon. Total 3 rd Party Income Tax Withheld use if applicable. Form 944 Filer if notification was received from the IRS that a Form 944 should be filed instead of a Form 941, mark this checkbox. Print Validation Summary printing this summary of the W-2 file when it is created is recommended. File Type the Federal file is the file to be sent to the Social Security Administration. The states of Alabama, Georgia, Kansas, Minnesota, Nebraska, and Oregon are available to create state electronic files. Create File button generates the file. End of Prepay Season Prior to beginning a new prepay season, it is advised to use the End of Prepay season utility. This utility marks unpaid bookings as deleted based on a date range, expiration date range, or a booking number range. It also marks paid bookings that have been completely used as deleted. When the fiscal year is ended, any booking marked as deleted will be deleted in the new year but remain in the archived year. Agvance End of Year Considerations Reference Section 27

32 Select Customers All will scan all customers, or specific customers can be selected if necessary. Select Locations companies with multiple locations can filter to include specific booking locations. Select Range Date enter the booking date range Start and End to select bookings by the booking date. Book # enter the Starting and Ending booking numbers to be included in the scan. Expiration Date if expiration dates were entered on the bookings, the Start and End expiration dates can be entered to select the range of bookings to be included. Unpaid Booking Selection Partially Invoiced mark this option if unpaid bookings that have been partially used should be included in the delete. Not Invoiced this option allows unpaid bookings that were never invoiced to be included in the delete. Print/Preview selecting one of these options and clicking the OK button will Print or Preview a report that lists the bookings to be deleted based on the criteria entered on this screen. Post after reviewing the report created by the Print/Preview option, using the Post button marks the bookings shown on the report as deleted. 28 Reference Section Agvance End of Year Considerations