After-the-Fact Payroll and Payment Information
The following procedures may be required if you need to enter after-the-fact information before you print payroll forms and close the payroll year.
• See “After-the-Fact Payroll” on page 42.
• See “After-the-Fact 1099 Payment Information” on page 46.
After Closing the Payroll Year
You will need to update the employer's state unemployment (SUI ER) tax table/payroll formula and adjust new limits and rate percentages.
See “Update User-Maintained Tax Tables/Payroll Formulas to the New Payroll Year” on page 48.
Troubleshooting
The following procedures may be required if you encounter problems before and after payroll year-end.
• See “Troubleshooting Problems after Printing Employee W-2 Forms” on page 50.
• See “Troubleshooting Problems after Printing Vendor 1099 Forms” on page 59.
• See “Troubleshooting Payroll Tax Calculation Errors During Payroll Entry” on page 63.
If there is a procedure that you are not sure how to handle within Peachtree, for example, how to print fringe benefits in box 1 and box 12 of W-2s, then visit the Peachtree Knowledge Center at Peachtree’s Web site at www.peachtree.com. There are many frequently asked questions and procedures available at our Web site or in the Peachtree Online Help files. You can also find help from the online Peachtree community (http://community.peachtree.com). You will need to register but it is free.
Payroll Year-End Checklist
Step 1: Make sure your program and forms are up to date
Step 1: Make sure your program and forms are up to date
Before beginning payroll year-end procedures, you need to make sure you have the latest forms and product updates. To make sure you have the latest product update, run Check for Updates from the Services menu. For step-by-step instructions for this procedure, see “Checking for and Installing Online Tax Updates” on page 19. To see if there are changes to the federal payroll forms (941, 940, 1099, 1096, W-2, W-3), consult www.irs.gov.
If you subscribe to one of the payroll tax solutions for Peachtree
You should install the latest update, if you haven’t already done so.
This will ensure that you have accurate 941, 940, 1099, 1096, W-2, and W-3 forms for the current payroll year. In some cases, product updates involving tax regulations may be provided with the tax update.
The time when you install your update is very important. Your payroll tax solution will provide important updates to Peachtree-Maintained payroll tax tables, employee W-2 and vendor 1099 forms, and other maintenance changes for the current and upcoming payroll year.
Load/Update Payroll Tax Tables/Formulas
Peachtree-Maintained tax tables and payroll forms can be updated using your payroll tax solution (Peachtree Simple Payroll or Peachtree Select Payroll). The update will update tax information for federal, state, and some local taxes. It will also provide 941, 940, 1099, 1096, W-2, and W-3 form changes.
➤ When installing the January 2009 Peachtree Tax Update, follow the instructions included with the CD or online update. The update includes a setup program that will automatically install the new Peachtree-Maintained tax tables/formulas and payroll forms. It will also include a bulletin.chm file that describes all changes included on each update.
➤ FAS for Peachtree will be updated separately for federal tax depreciation charges when necessary if you subscribe to the Peachtree Fixed Assets Tax Service. Follow instructions on the update disk or online update.
For Release 2007 and 2008, tax updates must be installed on ALL computers that will be used to print tax forms. The tax forms are stored locally on each workstation.
If you are installing your payroll tax solution on a network and you print tax forms. . .
Please read Knowledge Base Article 21526 to avoid getting the error:
“There are no updates available at this time.” To find this article, go to www.peachtree.com.
Register your Payroll Tax Solution
To see if you are registered, simply select About Peachtree Accounting from the Help menu. On the left-hand side of the window, the last item should say Registered Tax Service: 2009.
If you subscribe to one of the payroll tax solutions for Peachtree, you must register with Peachtree. Registration is required each payroll year.
It ensures that you will receive current, accurate payroll tax formulas and forms.
You can register your update in several ways, but we highly recommend that you register from within your Peachtree product, following the instructions below.
If you are registered for the Tax Service, your registration year will appear here.
Note
Payroll Year-End Checklist
Step 1: Make sure your program and forms are up to date
To register the update from within Peachtree:
1 From Peachtree's Help menu, select Tax Service Registration.
2 Click the link for www.peachtree.com/taxregister.
You must have an internet connection for this and the following steps.
3 Follow the steps on the web page.
4 When you have finished entering your tax registration information, click OK to close this window.
You can also register your tax solution in the following ways:
• By visiting Peachtree's Web site at www.peachtree.com/
taxregister/. After completing a short questionnaire, you will be provided with a tax registration number.
• By calling Sage toll free at 1-800-718-1592. If you are located outside the United States, please call 770-492-6333. Please have your Peachtree serial number, as well as your name, company address, and telephone number available before speaking with a Peachtree Customer Service representative.
The Customer Service representative will then give you a tax registration number. This service is available Monday through Friday 8:30 A.M. to 8:30 P.M. eastern time.
Once you have your Tax Registration number, you can enter it as follows:
Click this link to register your tax service.
Note
1 From Peachtree's Help menu, select Tax Service Registration.
2 Enter your tax registration number.
For Release 2007, you must have Service Release 6 installed!
3 When you have finished entering your tax registration information, click OK to close this window.
If you do not subscribe to any payroll tax solution for Peachtree
You should check to make sure there are no changes to federal or state forms for the current year. Check www.irs.gov for federal forms changes and your state tax authority for any state forms changes, if applicable.
While it is unlikely that there will be actual tax calculation changes for the current year at the end of the year, you should make sure that your tax tables and formulas are correct prior to closing the year and printing year-end forms and reports.
Federal, state, and local tax calculations are set up in User-Maintained Payroll Tax Tables/Formulas for nonsubscribers. See “tax table, user-maintained, overview” in your Peachtree Help.
Peachtree’s support technicians will only be able to support customers who subscribe to one of the payroll tax solutions for Peachtree. If you do not subscribe and update your tax tables manually, you should refer to Peachtree’s online Help or contact a Peachtree Certified Consultant for assistance.
Enter your tax registration number here.
Note
Note
Payroll Year-End Checklist
Step 1: Make sure your program and forms are up to date
Checking for and Installing Online Tax Updates
Once you have purchased and registered your tax solution, you can set up Peachtree to receive and install tax updates online. To do so, follow these steps:
1 Open your company in Peachtree.
2 From the Services menu, select Check for Updates.
3 On the Peachtree Online Update window, check Remind me to check for updates and enter 15 for the number of days.
.
We recommend that you check for updates every five days during the month of December.
4 Select Check Now.
You must have an internet connection for this and the following steps. In addition, you must have your tax solution pre-registered to be notified that an update is available. To register your solution, see “Register your Payroll Tax Solution” on page 16.
5 When a tax update is available, it will be listed in the window, similar to the following.
Note
Note
6 Check the Tax Service Update and click Download.
7 When the download is complete, click OK.
8 Close Peachtree and all applications.
9 The installation program will start. Follow the steps for the installation.
10 On the Setup Complete window, make sure you check the box that allows you to view information about the update you just
downloaded. Then, click Finish.
Install the Latest Fixed Assets Tax Service Update
The fixed assets module will be updated separately, when necessary, for regulatory changes. For regulatory compliance, you must subscribe to the FAS for Peachtree Tax Service. To install updates, follow the instructions on the update CD.
The latest FAS for Peachtree Tax Service update must be installed before you perform the following procedures:
• Calculate Fixed Asset depreciation for the payroll and fiscal year you are about to close. This is needed to ensure accuracy of depreciation calculations for both the current and new calendar years. Please refer to the tax bulletin that accompanies your Fixed Assets Tax Service Update for detailed information on these changes.
For more information on subscribing to the service and loading updates, see “Peachtree Fixed Assets Tax Update Service” on page 2.
Payroll Year-End Checklist
Step 2: Verify Your State Unemployment Wage Limit and Percentage Rate
Step 2: Verify Your State Unemployment Wage Limit and Percentage Rate
It is very important to verify that your company's current employer state unemployment (Peachtree's SUI ER) wage percentage and limits are accurate before printing annual payroll tax reports and closing the payroll year. This ensures proper tax reporting. Employer state unemployment (SUI ER) percentage rates and wage limits can depend on your company location or type of business. Therefore, you maintain the SUI ER tax tables/payroll formulas and must update them each year. Updates in employer state unemployment percentage rates and wage limits are not covered by the Peachtree Payroll Tax Update Service.
Some “employee-paid” state unemployment tax table updates are included your payroll tax solution. The procedure below is only intended for employer-paid state unemployment tax tables (although it would work for employee-paid tax tables if you do not subscribe to any of the payroll tax solutions).
To verify that your state unemployment rates are correct, first locate your company's current state unemployment documents or contact your state unemployment tax authority. To check your state
unemployment wage base limit and percent in Peachtree, follow these steps:
Release 2008 and Earlier
1 From the File menu, select Payroll Tax Tables, then User-Maintained.
Verify that the LIMIT and PERCENT values are correct.
2 Select the current SUI ER tax table ID for your state in the User-Maintained tax table list (for example, GASUI ER 09).
3 In the Formula box, click twice; then locate the LIMIT= and PERCENT= lines. Below is an example of how the formula may appear.
LIMIT = 8500;
PERCENT = 3.00000;
TAXABLE_GROSS = YTD_LIMIT (ADJUSTED_GROSS, LIMIT);
ANSWER = -TAXABLE_GROSS * PERCENT%
If your state unemployment wage base limit and percentage are incorrect, you will need to edit the tax table formulas. You may need to make a General Journal entry to adjust the affected G/L account balances.
Note: When entering a PERCENT value, use at least two decimal places. For example, if your percentage rate is 3%, then enter PERCENT=3.00, if your percentage rate is 2.7%, then enter PERCENT=2.70.
4 If required, change the limit and percent displayed in the formula.
If you are unsure, check with your state unemployment authority to determine if your area has a new unemployment limit and percent.
5 Select Save, then Close to exit the window.
Release 2009 and Later
1 From the File menu, select Payroll Formulas, then User-Maintained.
Verify that the LIMIT and PERCENT values are correct.
Payroll Year-End Checklist
Step 3: Synchronize Direct Deposit Payroll Transactions
2 Select the current SUI ER tax table ID for your state in the User-Maintained tax table list (for example, GASUI ER 09).
3 In the Formula box, click twice; then locate the LIMIT= and PERCENT= lines. Below is an example of how the formula may appear.
LIMIT = 8500; "This value pulled from Taxinfo.dat"
PERCENT = 3.00000; "Secondary State Unemployment Rate: (%) entered by the user"
TAXABLE_GROSS = YTD_LIMIT (ADJUSTED_GROSS, LIMIT);
ANSWER = -TAXABLE_GROSS * PERCENT%
If your state unemployment wage base limit and percentage are incorrect, you will need to edit the tax table formulas. You may need to make a General Journal entry to adjust the affected G/L account balances.
Note: When entering a PERCENT value, use at least two decimal places. For example, if your percentage rate is 3%, then enter PERCENT=3.00, if your percentage rate is 2.7%, then enter PERCENT=2.70.
4 If required, change the limit and percent displayed in the formula.
If you are unsure, check with your state unemployment authority to determine if your area has a new unemployment limit and percent.
5 Select Save, then Close to exit the window.
Step 3: Synchronize Direct Deposit Payroll Transactions
If you subscribe to the Peachtree Direct Deposit Service, you need to synchronize direct deposit payroll transactions before you print payroll year-end reports and forms.
Direct deposit payroll entries are processed in the PeachSync Wizard - Direct Deposit Confirmation window, which appears once you have started synchronization from the previous PeachSync Wizard - Select Services window. The wizard begins by checking for direct deposit pre-notes and payroll transactions. Once pre-pre-notes and transactions are found for processing, the information will be displayed.
1 From the Services menu, select PeachSync Wizard. You can also get to the wizard through the Peachtree Direct Deposit Center.
2 In the PeachSync Wizard - Select Services window, select Peachtree Direct Deposit, and then Next.
The wizard checks for existing direct deposit information, after which the PeachSync Wizard - Direct Deposit Confirmation window appears.
3 View the transaction information, and make sure everything is correct.
4 Enter the PIN, which is a special security code you chose when you signed up for Peachtree Direct Deposit.
5 Click the Next button to begin sending the paychecks.
Before paychecks are sent, a pre-note is sent to verify bank account information. You must resync to view the approval for the pre-note that will be sent to you at a later time.
Once the pre-note approvals are in, you create your direct deposit paychecks and run the PeachSync wizard three banking business days prior to the pay date to process the direct deposit paychecks.
For Release 2009, you need only TWO banking days prior to the the pay date to process direct deposit paychecks.
Step 4: Print Payroll Year-End Reports and Forms Checklist
Below are some reports or forms you'll want to print. Place a check mark next to each completed task (if applicable).
________ Quarterly and Yearly Earnings Report—This report displays payroll earnings and withholdings by payroll period, payroll quarters, and payroll year. This is a record of all payroll earnings for the selected payroll year.
________ Payroll Tax Report—This can be used for paying the payroll taxes for your company. The tax reports that can be printed are: FICA EE, FICA ER, FUTA, MEDICARE, AND XXSUI ER (where XX represents your state code).
Note
Note
Payroll Year-End Checklist
Preparing Quarterly Payroll Reports and Forms
________ State Quarterly Forms—You do not need pre-printed forms; the Payroll Tax Form feature will print on plain paper.
________ 941 and 940 Forms—These forms are used for filing quarterly and annual payroll information with the federal government. The Payroll Tax Form feature will print on plain paper.
________ Employee W-2, Company W-3, and Vendor 1099 and 1096 Forms—You will need to print these forms prior to closing the payroll or fiscal year. When using the Payroll Tax Forms feature, you will need to obtain IRS-approved perforated paper W-2 forms.
Making Payroll Adjustments
After printing reports and forms, you may need to make adjustments.
It is important to make any required adjustments before printing final employee W-2 forms, or closing the current payroll year, because it is difficult to correct errors afterward. For more information, see “Make Payroll Adjustments” on page 35.
Preparing Quarterly Payroll Reports and Forms
The quarterly reports you might want to print are the Quarterly Earnings Report, the Employer Tax Reports, and Quarterly 941 forms.
Printing the Quarterly Earnings Report
The Quarterly Earnings report displays all paycheck information for each employee with subtotals for the selected quarter of the calendar year. Each payroll field is displayed with totals. These totals are included in the 941 Worksheet, W-2, and other payroll tax forms.
To print the Quarterly Earnings report
To do this... Go here
Print Quarterly Employee Earnings report See page 25 Print Quarterly Employer Payroll Tax
reports
See page 26
Print 941 forms See page 26
1 From the Reports or Reports and Forms menu (Release 2008 and later), select Payroll. The Select a Report (or Form) window appears.
2 In the Report list, select the Quarterly Earnings report. Then, select the Print icon. (To view the report onscreen, double-click the report in the report list.)
3 In the filter window, accept the default or choose which quarter to print in the Date drop-down list. Then, select OK to begin printing the report.
Printing Quarterly Employer Payroll Tax Reports
The Payroll Tax report displays each employee's gross pay, taxable (adjusted) gross, and the amount of tax levied for a specified type of payroll deduction--FICA, FUTA, MEDICARE, and so on. This report is mainly used for employer payroll taxes (for example, state
unemployment). Using the information on this report, you can prepare (most) state payroll tax forms.
To print the employer tax reports:
1 From the Reports or Reports and Forms menu, select Payroll. The Select a Report (or Form) window appears.
2 In the Report list, select Payroll Tax Report. Then, select Print or Preview/Display to display the report.
If you double-click the report in the report list, it displays on-screen instantly. To change the payroll tax, you must select the Options icon to display the Filter window.
3 In the filter window, enter or select the tax ID of the payroll tax you want the report to display. The list is populated with tax IDs for the earliest payroll year that you have open.
Note: Only tax tables with Taxable_Gross in their formulas will appear in this list, and they must also have the box Appears on Payroll Tax Menus checked.
4 Accept the default or choose which quarter to print. Then, select OK to begin printing the report.
Printing 941 Forms
Peachtree prints earnings and tax information for the company for the current quarter. Use the Payroll Tax Form feature to print on plain paper.
Payroll Year-End Checklist
Preparing Quarterly Payroll Reports and Forms
Before printing the form, you must set up the Advanced EIC and Nonqualified boxes on the W-2 form and must have payroll fields set up for FICA and MEDICARE. These items
Before printing the form, you must set up the Advanced EIC and Nonqualified boxes on the W-2 form and must have payroll fields set up for FICA and MEDICARE. These items