Year-End Guide Peachtree Simple Payroll and Peachtree Select Payroll

105  Download (0)

Full text

(1)
(2)
(3)

Registration and Customer Support Information

View Peachtree Products and Services www.peachtree.com

Register Peachtree Products: www.peachtree.com/register 1-800-388-4697 Outside United States: www.peachtree.com/register 770-492-6333 Purchase Customer Support Plans: www.peachtree.com/support 1-800-336-1420

Copyright

Information in this document is subject to change without notice. Company names and data used in examples herein are fictitious unless otherwise noted. No part of this document may be reproduced or transmitted in any form or by any means without the express written permission of Sage Software, Inc. © 1992-2008 Sage Software, Inc. All rights reserved.

Portions of the Peachtree First Accounting, Peachtree Pro Accounting, Peachtree Complete Accounting, Peachtree Premium Accounting and Peachtree Quantum applications, related products and services, and associated documentation were created by third parties and are hereby acknowledged as follows:

© 1995-2007 Aatrix Software, Inc. All rights reserved. © 2005 Access Softek, Inc. All rights reserved. © 2007 Adobe Systems Incorporated. All rights reserved. © 2000-2002 AMYUNI Consultants. All rights reserved. © 1999-2006 AMYUNI Technologies, Inc. All rights reserved. © 2007 The Apache Software Foundation. All rights reserved. © 2007 Business Objects SA. All rights reserved.

© 1998-2007 Developer Express Inc. All rights reserved. © 2001-2007 devSoft, Inc. All rights reserved.

© 1991-2007 FarPoint Technologies, Inc. All rights reserved. © 1994-2007 Inner Media, Inc. All rights reserved. © 2005 Innovision Corporation. All rights reserved. © 2002-2007 Macrovision Corporation. All rights reserved. © 2001-2007 Iron Mountain. All rights reserved. © 2007 Pervasive Software Inc. All Rights Reserved.

© 1994-2007 United Parcel Service of America, Inc. All rights reserved. © 1987-2007 ComponentOne LLC All rights reserved.

(4)

Trademarks

Sage, Sage Software, the Sage Software logo, Peachtree, Peachtree Software, the Peachtree logo, Peachtree Complete, Peachtree Direct Deposit, Peachtree First Accounting, Peachtree Passport, Peachtree Payroll Service, Peachtree Premium, Peachtree Today, Peachtree Web Accounting, Peachtree WebsiteTrader, Peachtree Web Transaction Center, Peachtree WebsiteCreator, WebsiteCreator Pro, ePeachtree, PeachSync, ACT!, Timeslips, TAL, DacEasy, FAS, MAS 90, MAS 200, "Your Business in Mind," "Accuracy. Control. Results," "Get The Insight Behind Your Numbers," and "Accounting Behind the Screens" are registered trademarks or trademarks of Sage Software, Inc. or its affiliated entities.

(5)
(6)

Table of Contents

Introduction and Getting Help . . . 1

What’s New This Year . . . 2

Peachtree Payroll Tax Solutions . . . 3

How to Subscribe to One of the Payroll Tax Solutions . . . .4

Peachtree Fixed Assets Tax Update Service . . . 4

Peachtree Checks and Forms . . . 5

Peachtree’s Internet Web Site . . . .6

Peachtree Technical Support . . . .7

Before You Contact Technical Support . . . .7

Peachtree Technical Support Information Sheet . . . .8

Print the Peachtree Technical Support Information Sheet . . . 8

Payroll Year-End Procedures . . . 11

When to Close the Payroll Year . . . .11

Determine the Two Open Payroll Years in Your Company . . . 11

Payroll Year-End Checklist . . . 13

Step 1: Make sure your program and forms are up to date . . . .15

If you subscribe to one of the payroll tax solutions for Peachtree. 15 If you do not subscribe to any payroll tax solution for Peachtree . 18 Install the Latest Fixed Assets Tax Service Update . . . .20

Step 2: Verify Your State Unemployment Wage Limit and Percentage Rate . . . .21

Release 2008 and Earlier . . . 21

Release 2009 and Later. . . 22

Step 3: Synchronize Direct Deposit Payroll Transactions . . . .23

Step 4: Print Payroll Year-End Reports and Forms . . . .24

Checklist . . . .24

Preparing Quarterly Payroll Reports and Forms . . . .25

Printing the Quarterly Earnings Report. . . 25

Printing Quarterly Employer Payroll Tax Reports . . . 26

Printing 941 Forms . . . 26

Preparing Annual Payroll Reports and Forms . . . .29

Printing the Payroll Exception Report . . . 29

Printing the Yearly Earnings Report . . . 31

Printing Employee W-2 Forms. . . 31

Printing Vendor 1099 Forms . . . 32

Printing Company 1096 Forms . . . 34

Printing the 940 Form . . . 35

Make Payroll Adjustments . . . .35

Step 5: Close Payroll Year . . . .36

Using the Year-End Wizard to Close the Payroll Year . . . .36

Before Starting the Wizard . . . 36

Starting the Year-End Wizard. . . 38

The Wizard Windows . . . 40

After-the-Fact Payroll . . . .42

Entering After-the-Fact Payroll Information for Employees. . . 43

(7)

Entering After-the-Fact Payment Information for 1099 Vendors. 46 Update User-Maintained Tax Tables/Payroll Formulas to the

New Payroll Year. . . 48

Update Employer State Unemployment (SUI ER) Tax Table/Payroll Formula . . . .48

Updating SUI ER Tax Tables Using the User-Maintained Tax Table/Payroll Formula Wizard . . . 49

Updating SUI ER Tax Tables/Payroll Formulas Manually. . . 49

Troubleshooting Payroll Year-End . . . 50

Troubleshooting Problems after Printing Employee W-2 Forms . . .50

No Amounts or Incorrect amounts are Printing on Employee W-2 Forms for Boxes 1, 3, 5, 16 or 18 . . . 51

Amounts are not Printing in the Correct Boxes on the Employee W-2 Form . . . 56

The W-2 Forms Print in Employee Social Security Number Order . . . 59

Troubleshooting Problems after Printing Vendor 1099 Forms . . . . .59

An Incorrect Payment Total is Printing on Your 1099 Form . . . . 59

1099 Forms are not Printing for a Vendor . . . 60

Incorrect Vendor Name and/or Address is Printing on the 1099 form . . . 62

The Payment Amounts are Printing in the Wrong Box on the 1099 Form. . . 62

Troubleshooting Payroll Tax Calculation Errors During Payroll Entry . . . .63

Common Reasons Peachtree Displays Payroll Tax Table/Payroll Formula Errors . . . 64

Troubleshooting Example . . . 65

General Ledger Year-End Procedures . . . 67

When to Close the Fiscal Year . . . .67

Determine the Two Open Fiscal Years in Your Company . . . 67

General Ledger Year-End Checklist . . . 69

Step 1: Complete All Transactions . . . .69

Step 2: Fixed Assets Year-End Procedures . . . .69

Installing the Latest Peachtree Fixed Assets Tax Update Service . . . .70

Closing Fixed Assets . . . .70

Calculate and Post Fixed Asset Depreciation Amounts for Each Accounting Period before Closing the Current Fiscal Year . . . 70

Step 3: Reconcile G/L Accounts . . . .72

Step 4: Printing Year-End Reports . . . .72

Checklist . . . .72

Step 5: Audit Reports and Make Adjustments . . . .73

Step 6: Close Fiscal Year . . . .74

Before Closing the Fiscal Year . . . .74

(8)

Closing the First of the Two Open Fiscal Years. . . 75

Purge Unnecessary Data . . . .75

Troubleshooting Fiscal Year End . . . 76

You Must Post and Print Before Closing. . . 76

Periods Not Updating When Closing Fiscal Year . . . 78

No Transactions Under Open After Fiscal Year Close . . . 80

Frequently Asked Year-End Questions . . . 83

How is Peachtree preparing for the increased call volume? . . . 83

What can I, as a Peachtree customer, do to improve my year-end call experience?. . . 83

What has happened thus far to ensure a smooth Year-End closing for Peachtree customers needing support? . . . 84

Will Peachtree provide e-mail support for Year End? . . . 84

Will Peachtree provide Live Chat Assistance support for Year End? . . . 84

Explanation of fields on the Federal W-2 form. . . 85

Explanation of fields on the Federal 941 form . . . 85

After installing my payroll tax solution update, I do not see the 2009 tax tables under File, Payroll Tax Tables/Formulas, Peachtree-Maintained. How do I correct this? . . . 90

(9)
(10)

1

• Introduction and Getting Help •

Overview

This guide will help manage year-end activities while using Peachtree. Depending on how your company data is set up, you may need to do the following:

Payroll Year-End Procedures—This may include printing yearly earnings and tax reports, printing employee W-2 and vendor 1099 and 1096 forms, and closing the payroll year (if necessary). For more information, see “Payroll Year-End Procedures” on page 11.

General Ledger Year-End Procedures—This may include making year-end adjustments, printing annual reports, running the Internal Accounting Review, and closing the fiscal year (if necessary). For more information, see “General Ledger Year-End Procedures” on page 67.

Purge Unnecessary Data (optional)—After closing payroll and fiscal years, you may want to purge unnecessary data in your Peachtree company. This may include removing old time and expense tickets, old quotes, closed purchase and sales orders, old transactions, account reconciliations,

(11)

What’s New This Year

Release 2009 now includes:

Vacation/Sick Time tab: You can use this tab in Maintain Employees to set up individual vacation and sick time amounts for employees. You can also specify a maximum number of accrued hours for each employee. This includes a new Vacation and Sick Time report.

Updated Payroll Setup: You can now use the Payroll Setup Wizard/Payroll Settings wizard to create a greater variety of deductions, such as retirement plans, insurance plans, and flexible spending accounts. In addition, Peachtree 2009 offers you the ability to manage additional company liabilities, such as several state training taxes, industrial insurance, and more. Withholding tab fields: You can now enter amounts for flex

spending, retirement plans, and catch-up contributions on the Withholding Info tab.

(12)

Peachtree Payroll Tax Solutions

Peachtree Payroll Tax Solutions

If you have already subscribed to one of the payroll tax solutions for Peachtree, thank you! As you know, using Peacthree Simple Payroll or Peachtree Select Payroll are fast, easy, and economical ways to help you stay compliant with ever-changing tax laws; and this year-end guide will help you manage your year-end activities, specifically those activities related to payroll.

If you haven't subscribed yet, you should consider doing so. With tax tables changing many times a year, nothing gives you more peace of mind than knowing you’re up-to-date with ever-changing tax laws. Our payroll tax solutions make it easier than ever to keep your Peachtree product updated with current tax information.

If you choose not to subscribe to any of the payroll tax solutions for Peachtree, you must research all applicable changes for your company and update your formulas and tables as necessary. Non-subscribers should update their User-Maintained tax tables for federal, state, and local taxes. For more information, look up tax tables,

user-maintained, overview in your online Peachtree Help index. The payroll tax solutions will make the latest changes to your Peachtree-Maintained payroll tax tables and tax forms, including changes to employee W-2 forms, company W-3 forms, vendor 1099 forms, and 1096 forms, necessary for 2008 reporting. In addition, there will be other maintenance changes for the current and new payroll year.

You'll get updates for the latest federal payroll tax regulations, plus coverage of tax law changes for two states of your choice. Additional states may be purchased, including all 50 states, Puerto Rico, and the Virgin Islands.

Changes for 941, 940, W-2, W-3, 1099, and 1096 printed forms are provided in the tax service.

(13)

How to Subscribe to One of the Payroll Tax

Solutions

The payroll tax solutions are available to registered users of the 2007, 2008, and 2009 releases of Peachtree products. Don't risk being uninformed about important regulatory changes. Reduce your exposure to costly penalties and interest; order your tax solution today. For more information or to subscribe to one of the payroll tax solutions, visit our Web site at www.peachtreepayroll.com. If you do not have Web access, call 1-800-336-1420 Monday through Friday, 8:30 A.M. to 5:30 P.M. eastern time.

Peachtree Fixed Assets Tax Update Service

If you are using FAS for Peachtree*, Peachtree offers an additional Fixed Assets Tax Update Service, which provides updates in asset calculations and depreciation limits based on current federal government regulations.

(14)

Peachtree Checks and Forms

How to Subscribe to One of the Payroll Tax Solutions

Peachtree Checks and Forms

You can save time and money with Peachtree's complete line of checks and forms. All of our checks and forms are compatible with Peachtree so you can be sure checks and forms will print out correctly. Choose from a wide selection of colors, styles, and customized options

all at low prices. Plus, Peachtree provides a choice of 8 type styles and over 50 standard logos. You'll also have peace of mind because your checks and forms have the latest tamper-resistant features; you can use them with confidence.

You can print W-3s, 940s, and 941 forms to plain paper; however, IRS regulations require that employee copies of Form W-2 be printed on perforated paper and individual filing instructions be given to each employee.

Supported forms do not include PR and US VI. Checks, Forms, and Other Products Peachtree Provides Save time and money with checks from Peachtree.

Payroll Checks

Accounts Payable Checks Multi-purpose Checks Direct Deposit Advice Forms

Let Peachtree print your invoices and purchase orders. Product Invoice

Service Invoice Statements

Purchase and Sales Orders Customer Quotes

Customize your forms for a professional image. Custom Forms

Pre-Inked Rubber Stamps Deposit Tickets & Envelopes

Tax Forms (1099, 1096; the 941 form will print to blank paper.)

(15)

For Your Security

Peachtree Checks have the latest tamper-evident features: Safety-Paper: Includes safety stain to indicate chemical

tampering.

Micor-Print Signature Line: Reads “Authorized Signature,” but appears as a broken line if reproduced.

High-Resolution Border: Loses detail if copied. Padlock Icon: Directs readers to back for checklist.

Security Checklist: All security features listed on the back of each check.

Security Screen: Back of each document displays a screen-back security seal.

Peachtree’s Internet Web Site

Sage provides updated information on all our various products and services on the Internet. Visit our Web site at www.peachtree.com. You must have access to the Internet to visit our Internet Web site. If you are using America Online, CompuServe, or other integrated service networks, access their respective Internet browsers to get to our Web site.

Knowledge Center

(16)

Peachtree Checks and Forms

Peachtree Technical Support

Peachtree Technical Support

If you require technical assistance with Peachtree, take a moment to read about various Customer Support options included in the Peachtree Products and Services brochure that came with your software package. Support information is also available in Peachtree Help. Search for “technical support” in the online Help index. Prior to obtaining technical support, we ask you to register your product. After registering your product, you will be provided information on how to receive technical support.

For more information on support plan memberships, call

1-800-336-1420.

Peachtree Customer Support information mentioned in this manual, the Peachtree Products and Services brochure, and Peachtree Help is subject to change without notice.

Before You Contact Technical Support

There are several options that you need to try before calling Peachtree Customer Support:

Register your Peachtree product, if you have not already done so.

Read the section in the Help or manual about the procedure you are doing.

Consider examining the technical tips and frequently asked questions Sage provides through our Knowledge Center available at the Peachtree’s Web site, www.peachtree.com. Attempt to duplicate the error in the sample company

provided with your software.

The Peachtree representative answering your call will need certain information to help you. To help the representative provide you with the best service, please do the following:

1 Be at your computer.

2 Have your manuals available (either printed or PDF copies).

3 Know the telephone number you have registered your product under or have your customer ID available.

4 Know the release and batch or build of your product (found under

(17)

5 Write down the steps you performed prior to the problem occurring.

6 Write down the exact error message(s) displayed on your screen.

7 Print the Technical Support Information Sheet.

If you are operating on a network, you will need to provide the type of network, the location of the Peachtree program (program path), and the location of your Peachtree data (data path).

If you are experiencing problems printing a report, form, or financial statement, you will need to know the type of printer and possibly the printer driver used. Note: For printing errors, consider printing to an alternate printer to help isolate the problem. Also, open the sample company and try printing the same report, form, or financial statement. This helps determine if the problem is specific to your company data.

Peachtree Technical Support Information Sheet

Before contacting Peachtree Customer Support, print the Technical Support Information Sheet. This important information can help Peachtree Customer Support technicians resolve your problems, address your comments, or forward your enhancement requests about Peachtree products and services.

Print the Peachtree Technical Support Information Sheet

1 Open Peachtree and your Peachtree company (if it is not already open).

2 From the Help menu, select Customer Support and Service, Technical Support Information. The Technical Support Information window appears.

3 Choose the type of request (Problem, Comment, Question, or Enhancement) by selecting the down arrow at the side of the Category entry box.

(18)

Peachtree Checks and Forms

Peachtree Technical Support Information Sheet

5 For complete system information, select the PAWxx.INI check box. Support technicians can use this information to help resolve your problem more quickly.

6 Select the Print button. In Release 2009, you can e-mail this form.

Your comments, and other information required by technical support, will print.

7 After the report prints, have the information available prior to contacting Peachtree Customer Support.

E-mail and chat support is available to customers with a support contract through the Peachtree Knowledge Center

(19)
(20)

2

• Payroll Year-End Procedures •

At the end of each payroll year, you should perform certain procedures to prepare to enter a new payroll year. These Year-End procedures include some of the following tasks:

printing annual reports to verify your payroll installing any tax updates, if you subscribe

printing or e-filing the 940 forms, 941 form(s), 2's, and W-3’s

closing the payroll year

To help with these tasks, we have created a Payroll Year-End Checklist that will guide you through the entire year-end process.

While the ultimate goal is to close the payroll year, you may be unsure as to when you should close the payroll year. So, before we get to the Payroll Year-End Checklist, let’s take a look at when you should close the payroll year.

When to Close the Payroll Year

Usually there is no need to close a payroll year exactly at the end of the calendar year. For example, if 2008 is the first of the two payroll years that you have open, then you do not have to close the 2008 payroll year until the end of 2009. In other words, if you want to enter transactions in 2009, you need to make sure that the 2007 payroll year is closed. Peachtree highly recommends that you wait to close the first payroll year until all payroll reports, W-2 data, and 1099 data are finalized. If there are mistakes in employee earnings or W-2 data, you have an opportunity to correct them. You should probably wait to close the first year until you have completed your tax returns for the year you’re closing.

Determine the Two Open Payroll Years in Your Company The current accounting period is displayed at the top center of the Business Status Center.

If you are not sure what accounting periods or payroll years are open in your Peachtree company, you can quickly find out.

(21)

If the open payroll tax years are 2008 and 2009, there is no hurry to close your 2008 payroll year after printing all year-end payroll forms and reports for 2008. In fact, you should wait until after the first quarter of 2009 to close the 2008 payroll year, to make sure no additional changes will be required.

(22)

Payroll Year-End Checklist

When to Close the Payroll Year

Payroll Year-End Checklist

If your company enters payroll transactions in Peachtree, it is important that you follow the year-end procedures in the order listed below.

1 Make sure your tax calculations and forms are up to date.

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. See “Step 1: Make sure your program and forms are up to date” on page 15. This will ensure that you have accurate 941, 940, 1099, 1096, W-2, and W-3 forms for the current payroll year. For customers using the Fixed Assets module, install the latest Fixed Assets Tax Service Update.

If you do not subscribe to one of the payroll tax solutions 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 changes and your state tax authority for any state forms changes, if applicable.

2 Verify that your state unemployment wage limit and percentage rates are correct.

See “Step 2: Verify Your State Unemployment Wage Limit and Percentage Rate” on page 21. This ensures that your

unemployment calculations for the current payroll year are accurate prior to printing payroll tax reports and forms.

3 If you use the Peachtree Direct Deposit service, synchronize direct deposit payroll transactions.

See “Step 3: Synchronize Direct Deposit Payroll Transactions” on page 23.

4 Print reports and forms needed for auditing, adjusting, or year-end closing purposes. Some reports cannot be printed after closing

the Payroll year.

See “Step 4: Print Payroll Year-End Reports and Forms” on page 24. This may include adjusting payroll withholdings, printing yearly earnings and tax reports, and printing employee W-2 and vendor 1099 and 1096 forms.

5 Close the current payroll year (may not be required).

(23)

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.

(24)

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.

(25)

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.

(26)

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.

(27)

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.

(28)

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

(29)

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.

(30)

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.

(31)

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.

(32)

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.

(33)

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

(34)

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

(35)

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

(36)

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 are set up in Employee Defaults. Before printing 941 or 941B forms, install the latest Peachtree Tax Update Service update to ensure that you have Peachtree forms that are in current compliance with government regulations. If you do not subscribe to any of the payroll tax solutions for Peachtree, check the IRS Web site to make sure the form didn’t change for the current year.

This procedure will print all appropriate forms.

1 Insert blank paper into your printer.

2 From the Reports menu, select Payroll (Release 2007); or select Reports and Forms, then Forms, Tax Forms (Release 2008 and later). The Select a Report (or Form) window opens.

3 Double-click Payroll Tax Forms.

4 Highlight 2008 941/Schedule B/941-V Report in the Available Forms box.

5 Select the filing period information.

6 Click OK and follow the steps on-screen to complete the process, supplying the correct information when asked.

Why the 941 report could disagree with the earnings reports

There could be instances when the 941 reports are correct and the earnings report would be incorrect.

This would be due to the differences in the calculation of Social Security or Medicare. The 941 report does not pull the Social Security or Medicare deductions that were actually entered. It calculates the amount based on the taxable earnings. This could cause rounding differences of a few cents. There are other situations where the Social Security or Medicare was not calculated correctly when the client entered a payroll check.

(37)

correctly:

This would occur if a check number is entered first and then an amount is manually entered into the “tips” box. (Or any other pretax amount that affects payroll taxes. The program will stop calculating.) In other words, the Social Security and Medicare would not be calculated again with “tips” included in the Adjusted-Gross.

This could also occur if at any point throughout the year the Adjusted Gross was set up incorrectly. Even if the Adjusted Gross is now set up correctly, all previous payroll entries would have to adjusted/corrected.

Also, when you start entering current payroll so that the employees can be paid. Then the previous month’s payroll entries are entered. After entering in the previous month’s payroll, an employee reached the Social Security limit. Peachtree would have been calculating Social Security on the current employee’s check since the system did not know of the previous month’s entries.

If the 941 is incorrect:

1 If it is indicated that the 941 is not reporting all earnings, check the employee records for any employee for whom the FIT calculation has been removed and an Amount has been entered on that line. If a calculation is not used, then the 941 has nothing on which to base its calculation of adjusted gross. The FIT calculation must be selected on all employee records prior to running the 941.

2 Verify that the Earnings report is totaling properly. Print the Quarterly Earnings report. Manually add the checks for each employee and see if the system is calculating properly. If not, change the accounting period to period 1. Make a backup of the data. After this is complete, refer to Knowledgebase Answer ID 378.

If you are unable to solve the problem, call Technical Support. Print the Quarterly Earnings Report and the 941 Form generated by Peachtree. You may need to fax or e-mail them to Technical Support. Error “Could not find (calculation name) when running 941”:

There is also a chance that a Sales Rep may be the issue. If the above resolutions fail, select Maintain, Employee/Sales Rep, select each Sales Rep, and change them to Employee. Enter the Withholding

(38)

Payroll Year-End Checklist

Preparing Annual Payroll Reports and Forms

Preparing Annual Payroll Reports and Forms

The annual payroll reports you might want to print include the exception report, the yearly earnings report, the 940 form, employee W-2 forms, and the company W-3 form.

Printing the Payroll Exception Report

The Exception Report helps you identify and correct employees with incorrect withholdings. Incorrect withholdings are often the result of manually calculated paychecks that were figured incorrectly. Also, Peachtree may make a rounding error in some cases (usually by a penny). This report shows the actual amount withheld (as entered in Peachtree) as opposed to the calculated amount withheld.

This report filters differently from other reports. First, you need to select Tax to Check from the drop-down list. This lists all EmployEE and EmployER payroll fields that require a calculation using taxable (adjusted) gross. Additional filters you can select are Employee ID, Employee Type, and whether the employees are active or inactive. To print or display the Payroll Exception report

1 From the Reports or Reports and Forms menu, select Payroll. The Select a Report (or Form) window appears.

2 In the reports list, select the Exception Report report. Then, select the Print icon to print the report or the Preview/Display icon to display the report.

3 In the filter window, enter or select the tax ID of the payroll tax you want to check.

To do this... Go here

Print Payroll Exception report to correct differences between calculated

withholdings and actual withholdings

See page 29

Print Yearly Earnings report See page 31

Print employee W-2 forms See page 31

Print vendor 1099 forms See page 32

(39)

4 Accept the default or choose which quarter to print. Then, select OK to begin displaying or printing the report.

For the tax selected and quarter filtered, the default Exception report displays:

Employee ID, Employee Name, Social Security Number, State: Employee information found in the General Tab of Maintain Employees window

Quarter: The quarter in which the payroll exception took place

Taxable Gross: Total taxable gross amount for the quarter Amount Withheld: Total amount actually withheld of filtered

payroll field

Calculated Amount: Total amount of payroll field recalculated Difference: The net change from Amount Withheld and

Calculated Amount

To adjust payroll taxes using the Exception report

You can choose to have Peachtree make correcting entries for you. We recommend you first display the report to examine the differences.

5 Once you are comfortable with the differences, select the Prepare Correcting Entries check box in the report's Filter window.

If the report is displayed on-screen, select the Options icon to display the Filter window.

Note: If you use the batch method of posting, and you decide to check the Prepare Correcting entries box, make sure you post Payroll before you continue.

6 Next, choose the Tax to adjust from the drop-down list.

This lists all EmployEE payroll fields available (even if they do not use a calculation). Notice that you cannot adjust to an EmployER payroll field. The Fed_Income field will typically be chosen.

(40)

Payroll Year-End Checklist

Preparing Annual Payroll Reports and Forms

8 Optionally, select additional filters such as Employee ID, Employee Type, and whether the employees are active or inactive.

9 Select OK to accept the filter and make the correcting entries.

The report will appear just as it did without selecting Prepare Correcting Entries. However, Peachtree made General Ledger entries in the background adjusting the taxes you selected. You can examine these entries by selecting Payroll Entry from the Tasks menu. Then, select the List/Open icon. An entry for the employee who is being adjusted appears. If there is an error, you can simply delete the transactions.

Printing the Yearly Earnings Report

The Yearly Earnings report displays all paycheck information for each employee with subtotals for each quarter of the calendar year. Each payroll field is displayed with quarterly and annual totals. These totals are included in the 941 Worksheet, W-2, and other payroll tax forms. To print the Yearly Earnings report

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 the Yearly Earnings report. Then, select the Print icon.

To display the report on-screen, simply double-click the report in the report list.

3 In the filter window, accept the default (This Year) or choose which quarter to print in the Date drop-down list. Then, select OK to begin printing the report.

Printing Employee W-2 Forms

You must print employee W-2 forms before closing the payroll year. To print on perforated plain paper use the Payroll Tax Forms feature. IRS-approved perforated paper W-2 forms can be purchased from Peachtree Forms or various office supply retailers.

(41)

If you do not subscribe to one of the payroll tax solutions: Before printing W-2s, check the IRS Web site (www.irs.gov) to make sure the format did not change this year.

This procedure will print all appropriate forms.

1 Insert perforated blank paper into your printer.

2 From the Reports menu, select Payroll (Release 2007); or select Reports & Forms, then Forms, Tax Forms (Release 2008 and later). The Select a Report (or Form) window opens.

3 Double-click Payroll Tax Forms.

4 Highlight 2008 W-2.

5 Select the appropriate values in the Select filing period area.

6 Click OK and follow the on-screen steps. You will have the

opportunity to check all information that will go on each W-2 form, including employee name, address, social security number, and all wages and deductions.

Printing Vendor 1099 Forms

Before closing the payroll year, you must print 1099 forms. Annual 1099 forms are required for independent contractors and vendors that your company has paid interest to for services on loan. Peachtree prints 1099 information on pre-printed 1099 forms, not blank paper. Federal 1099 forms can be purchased from Peachtree Forms (1-800-617-3224), government agencies, or various office-supply retailers. For more information, see Answer ID 494 in the Peachtree Knowledge base on the Internet.

Peachtree highly recommends that you first print vendor 1099 forms on plain paper to verify vendor payment totals and form alignment. The 1099 Vendor Report is a good tool to verify information as well.

(42)

Payroll Year-End Checklist

Preparing Annual Payroll Reports and Forms

To verify company information

Before printing the 1099 forms, you must verify that your company information is set up correctly.

➤ From the Maintain menu, select Company Information. In the Maintain Company Information window, ensure that your company's address and telephone number are entered correctly.

To print vendor 1099 forms

You must print your vendor 1099 forms before you close the payroll (calendar) year.

1 Insert blank, pre-printed 1099 forms into your printer. Peachtree only prints the 1099 Miscellaneous and the 1099 Interest forms.

2 From the Reports menu, select Accounts Payable (Release 2007); or from the Reports & Forms menu, select Forms, Tax Forms (Release 2008 and later). The Select a Report (or Form) window appears.

3 Scroll down through the report list and double-click the 1099 Forms folder. A list of 1099 forms appears. Double-click the desired form type to print.

Select either the 1099-INT Preprinted form or the 1099-MISC Preprinted form.

4 In the Filter window, enter or select a vendor ID range or accept the default of all vendors. Verify that the payroll year is correct. Then, select OK.

You can click the Adjust Limits button to adjust the lower limits, if necessary, for the various types of payments.

5 In the Print window, the default printer appears. If you want to print to a different printer, select one from the list. Otherwise, select OK to begin printing the forms.

If you get a message that there were no forms to print, you may not have vendors set up as 1099 type vendors or the 1099 vendors do not meet the minimum payment requirement.

To print multiple copies, repeat the above procedure. If you experience problems printing 1099 forms, see

“Troubleshooting Problems after Printing Vendor 1099 Forms” on

(43)

Printing Company 1096 Forms

After printing 1099 forms, you may also print a company 1096 form before you close the payroll year. Company vendor payments and other vendor information must be printed on a preprinted 1096 form, not blank paper. Federal 1096 forms can be purchased from Peachtree Forms (1-800-617-3224), government agencies, or various office supply retailers.

1 Insert a blank, pre-printed 1096 form into your printer.

2 From the Reports menu, select Accounts Payable (Release 2007); or from the Reports & Forms menu, select Forms, Tax Forms (Release 2008 and later). The Select a Report (or Form) window appears.

3 Scroll through the report list and double-click the 1096 Forms folder. Double-click the desired 1096 form to print.

4 Verify that the payroll year is correct. If you need to manually adjust lower limits, which are established by the federal government, click

Adjust Limits.

5 In the Filter window, enter a contact name. This name will appear in the Name of the person to contact box printed on the 1096 form. Then, select OK.

6 In the Print window, the default printer appears. If you want to print to a different printer, select one from the list. Otherwise, select OK to begin printing the form.

Printing the 940 Form

The Peachtree 940 form prints information for completing the annual Employer's Federal Unemployment (FUTA) Tax Return for the current calendar year. Peachtree is designed to print a portion of information required for this form to be completed. You will have to complete the remaining information manually before submitting the form to the government.

This procedure will print all appropriate forms.

1 Insert blank paper into your printer.

2 From the Reports menu, select Payroll (Release 2007); or select Reports & Forms, then Forms, Tax Forms (Release 2008 and later). The Select a Report (or Form) window opens.

(44)

Payroll Year-End Checklist

Make Payroll Adjustments

4 Highlight 2008 940.

5 Select the appropriate values in the Select filing period area.

6 Click OK and follow the on-screen steps. You will have the opportunity to check all information that will go on the 940 form.

Make Payroll Adjustments

If you need to make adjustments after printing payroll reports, you must enter a second adjusting paycheck. This will update the employee's earnings and W-2 information. When entering an adjusting paycheck, only include the payroll fields or G/L accounts that you need to change. Other payroll fields will contain zero amounts.

Peachtree highly recommends that you never delete an employee payroll transaction after paying an employee. If the paycheck was already printed and given to the employee and you need to change a deduction or addition amount, it could affect the check amount (net), which also impacts account reconciliation. Also, the employee now does not have an accurate record of his or her earnings.

When you print a second adjusting paycheck, the transaction provides a record for the employee and an audit trail for your company.

Step 5: Close Payroll Year

Peachtree refers to the payroll year as the calendar year in which payroll transactions take place. Peachtree keeps two years of payroll activity open at one time. Payroll years must be operated on a calendar basis for tax purposes. Closing the payroll year not only closes the payroll information, it also closes vendor 1099 information. Therefore, all payroll reports, payroll forms, and 1096 and 1099 forms must be printed before closing the payroll year.

Please follow the instructions below to close the payroll year. If you are unsure about when you should close the payroll year, go to “When to Close the Payroll Year” on page 11.

If your company's fiscal year matches the calendar year, you must close the payroll year prior to closing the fiscal year. To close the Chart of Accounts, vendor purchase records, and customer records, use Close Fiscal Year.

(45)

Using the Year-End Wizard to Close the Payroll

Year

The Peachtree Year-End Wizard walks you through the multi-step process of closing your company’s open fiscal and/or payroll tax year or years. At every point in the process, you know exactly what actions the wizard is taking and why.

In some cases, the wizard won’t be able to proceed because you haven’t met certain preconditions to year-end close. But it will tell you how to accomplish these tasks as well so that you can resume and complete the close process.

Before Starting the Wizard

Before you launch the wizard, there are a number of tasks you should perform. These include clearing the Waiting on Bill check box in the Purchases/Receive Inventory window for any outstanding vendor purchases, purging inactive transactions and records in the database, and printing any unprinted items such as payroll checks.

1 Before starting the wizard, you should clear the Waiting on Bill check box for any purchases that have not been billed yet and that will fall in the year that you are closing.

➤ Go to the Purchases\Receive Inventory window, and select the

Open toolbar button (List toolbar button if you are using

Release 2007 or higher). In the window that opens, the

Waiting? column will indicate any purchase invoices that

(46)

Payroll Year-End Checklist

Using the Year-End Wizard to Close the Payroll Year

For more information on the Waiting on Bill check box, look up “purchases, entering invoices” in the Peachtree Help index.

2 Also, you should purge inactive records before starting the wizard.

For more information about purging, look up Purge Wizard, overview in the Peachtree Help index.

3 Finally, you should print any unprinted items you know about, but you can start the wizard without having done so. As you proceed, the wizard will tell you what you need to do in each case and how to do it.

Open any invoices that are waiting on bills...

...then clear the Waiting

on Bill check

(47)

Starting the Year-End Wizard

Since the close process may take quite a while to complete, we recommend that you start the process at the end of your business day, making sure you leave the computer running. Also, you should make sure that all other applications are closed before you begin.

From the Tasks menu, select System, and then select Year-End

Wizard.

Depending on a variety of pre-existing conditions, you may see a message window before the first Year-End Wizard window appears. The following is an important message:

You would see this message if your two open fiscal years are 2008 and 2009 and you are attempting to close 2008 with your current system date falling within the first twelve open accounting periods. That is, the current system date is set for a day in 2008.

Since frequently there will be unposted transactions, purchases awaiting vendor bills, and other loose ends to tie up before the last accounting period of a given fiscal year, we strongly recommend that you wait to close until the last period of the year. However, if you still want to continue with year-end close, select the Yes button in the message window to start the Year-End Wizard. Select No to close the message window without starting the wizard.

(48)

Payroll Year-End Checklist

Using the Year-End Wizard to Close the Payroll Year

If there are no messages displayed or if you select Yes in a message window to launch the Year-End Wizard, the first of the wizard windows appears.

Read the introductory information; then click Next.

(49)

The Wizard Windows

While working in the wizard, you’ll see the following windows: Close Options: In this window the wizard asks you which

open years you want to close. You can close either the displayed fiscal year, the displayed payroll tax year, or both fiscal and payroll tax years. Select the option corresponding to the year or years you want to close.

When you select Next, the wizard will determine if you have any purchases still waiting on bills from vendors. If so, the Cannot Proceed window will appear, telling you that you must clear the Waiting on Bill from Vendor check box for each of the purchases before you can continue with year-end close. If you don't have any outstanding purchases but do have items such as invoices and payroll checks that haven't been printed yet, you will see the Unprinted Items window. It will list all items that still need to be printed. At this point, you can select Cancel to close the wizard and then print out these items, or you can select the Next button to continue without printing the items.

Print Fiscal Year-End Reports: Peachtree strongly

recommends that you print out all fiscal year-end reports; this will give your company a proper audit trail. All year-end reports are preselected in the table that appears at the center of the window. If there are any reports you don’t want to print, just clear the check box corresponding to that report. Then select the Print button, and Peachtree will print all selected reports.

If you want to print the reports separately instead of having Peachtree do it automatically, select the Cancel button, print the reports, and return to the wizard when finished.

Run the Internal Accounting Review (optional): Peachtree strongly recommends that you run the Internal Accounting Review. This review searches your company files for common transaction mistakes and transactions, or conditions that do not adhere to Generally Accepted Accounting Principles. Back Up Company Data: Before closing out the year, you

need to make sure there is at least one backup of your company data and customized forms. Click the Back Up button at the center of the window; then follow the on-screen instructions to complete the backup process. Note: You must make a backup from this window to continue. Clicking Cancel will close the Year-End Wizard.

(50)

Payroll Year-End Checklist

Using the Year-End Wizard to Close the Payroll Year

It’s best to have at least two backup copies of your company data, so make sure you create an additional copy or copies of the backup file the wizard has generated. Keep one file on hand so that you can retrieve old data or perform the year-end close process again in case you've made an oversight. For added security, store the second copy in some safe off-site location. New Open Fiscal Years: Here, you can review the

accounting periods in your current open fiscal year and/or next fiscal year. Just select the appropriate option button. If needed, you can change the date range of the accounting periods in your next fiscal year. However, since Peachtree automatically adjusts the dates of the accounting periods, it is generally not necessary to make changes to them yourself. Confirm Year-End Close: Before you proceed, make sure

that the dates to close, as displayed in the window, are correct. The window also displays the date ranges of your new open fiscal and payroll tax years following the close.

Begin Close-Year Process: You’re now ready to close the year. Select the Begin Close button. The Now Closing... progress bar at the bottom of the window will show you what percent of the close process is complete.

Note: Depending upon on the size of your company data files, this process may take several hours.

(51)

Congratulations! When you see this window, the chosen year or years are closed. The wizard displays again the years you have closed and your new open fiscal and payroll tax years. In addition, it tells you the date range of your company’s current accounting period. Click the Finished button to close the wizard.

Want to learn more about the Year-End Wizard windows?

Click the Help button in the individual window.

After closing the payroll year

You will need to update employer's state unemployment (SUI ER) tax table and adjust new limits and rate percentages. See “Update User-Maintained Tax Tables/Payroll Formulas to the New Payroll Year” on page 48.

After-the-Fact Payroll

(52)

Payroll Year-End Checklist

After-the-Fact Payroll

Before printing payroll and 1099 forms, install the latest Peachtree Payroll Tax Update Service. This ensures that your forms will be in compliance with current federal regulations. For example, before printing 2008 year-end tax forms, you must install the January 2009 Peachtree Payroll Tax Update Service.

Entering After-the-Fact Payroll Information for Employees Release 2008 and earlier

1 Verify the default information for your employee W-2 forms.

From the Maintain menu, select Default Information, then Employees. The Employee Defaults window appears. Select the General tab and click the W-2 button.

Verify that the appropriate payroll fields are assigned to each box on the W-2 form.

You may need to create additional formulas and deductions if the employee has deductions and such that are unique to that employee.

2 Set up the employee's record (if it is not already).

From the Maintain menu, select Employees/Sales Reps. The Maintain Employees/Sales Reps window appears.

Enter the information needed to establish a new employee record. Then, select Save to establish the employee record. Repeat the above procedure for each new employee.

3 Enter the 2008 payroll balances for each employee who needs an “after the fact” W-2. This information is to be entered on the individual's employee record.

From the Maintain menu, select Employees/Sales Reps. The Maintain Employees/Sales Reps window appears.

Enter or select the employee ID. Once this employee's record appears, select the (Employee) Beginning Balances button on the General tab.

Enter the last date of the current payroll year in the Date field of the first vacant column. For example, if you are printing 2008 after-the-fact W-2 forms, enter 12/31/08 in column 1. In the new year-end column, enter each payroll field's

year-to-date total for this one employee. For deductions, include a negative sign (-) at the beginning of each amount that is to be

Figure

Updating...

References

Related subjects :