December 2015 Newsletter

Sage released the 2016 version of Sage 100 on November 4. Enhancement highlights for this release are:

Affordable Care Act Compliance Updates

  •  Period End Processing changed to retain ACA records and terminated employees until Perpetual History is purged.
  •  Choice of which 1094 and 1095 forms to use when printing forms in Federal eFiling and Reporting.
  •  Enter values in the new Policy Origin Code field to print on Form 1095-B.
  •  Check boxes added for Form 1094-C: Qualifying Offer Method, Qualifying Offer Method Transition Relief, Section 4980H Transition Relief, and/or 98% Offer Method. 

Data Entry and Preference Settings

  •  Security changes so that users will only see the modules and/or menus they have access to in Role Maintenance.
  •  Favorites list will replace task lists.
  •  Theme maintenance will allow users to define font, color scheme, and grid settings. These can be assigned by company or by user. 
  •  Allow the selection of default, medium or large display resolution.
  •  Set the default zoom when you preview reports. 
  •  Expansion of customer PO # to 30 characters
  •  Extending item descriptions for Misc. and Special Items
  •  Memos in AR Repetitive Invoice Entry.
  •  Additional SO Quote to Order Types.
  •  New SO Option to define the default expiration date value for quotes.
  •  New SO Option to default the date when promoting a quote to an order.
  •  Ability to move documents between batches. 

Accounts Payable Enhancements

  •  The A/P Aged Invoice Report now includes an Electronic Payment Vendors field so you can specify whether Electronic Payment Vendors are included or excluded from the report or are the only vendors on the report.
  •  You can also choose whether the A/P Aged Invoice Report prints in landscape or in portrait with a new Print Condensed check box. 

And last, but not least, Sage has made the commitment to begin the movement of the last six legacy modules (Payroll, Time Card, Job Cost, Work Order, MRP and Fixed Assets) to the new framework. This will be a phased-in process that will be over the next few years.


PU = Product Update

  •  2016 
  •  2015 PU 3 (5.20.3.0) 
  •  2014 PU 7 (5.10.7.0) 
  •  2013 PU 9 (5.00.9.0) 

The following year-end updates are only compatible with the above versions and product updates

Year-end updates:

  • The 2016-Q1 Tax Table Update (TTU) and 2015 Interim Release Download (IRD) are scheduled to be available by download the week of December 21
  • The eFiling and Reporting (Aatrix) year-end update will be released by automatic update on December 18.  
  • The applicable Product Update, 2015 IRD and Aatrix year-end update must be installed before processing W2, ACA or 1099 forms for 2015.  The 2015 Year-End FAQ has more information. If you didn’t receive this at the Year-End Class or via email from PSI, let us know and we’ll send one to you.

By Ann Jenkins 

 

Your first step in year-end processing should be to make a backup of your company data. Year-end processing in the Payroll module can only be “reversed” by restoring from a backup, so be sure your backup is readable and kept in a safe, accessible location. We also recommend that you copy your 2015 payroll data to an archived company before closing your live payroll company.

 

Following are a few tips for W-2 processing:

  •  For the Dependent Care amounts to print on the W-2 form in Box 10, each employee’s amount must be manually entered into the Dependent Care box on the FED Tax Summary screen. These amounts can be retrieved by printing a Year to Date Deduction Report for the Dependent Care deduction code.
  •  Any year-end bonuses or fringe benefits (such as Life Insurance over $50,000 or the personal use of a company car) must be processed through Payroll data entry prior to printing W-2s and before closing your Payroll year. Since FICA and Medicare taxes must be withheld on these types of wages, processing is much easier if done with a regular payroll. Fringe benefits are non-cash benefits and, as such, have no additional dollar amount available from which to actually withhold the employee portion of FICA and Medicare taxes.
  •  Third Party Sick Pay must be included on the employee’s W-2 and on your Quarterly 941, so these transactions must also be processed through Payroll data entry prior to printing W-2s. When printing W-2s through the Federal eFiling option, there is a checkbox on the recap screen for sick pay on the employee record. 
  •  If including information to print in Box 14, be sure to include those Misc Earnings Codes on the first Aatrix screen.  
  •  If your company has a Pension Plan, verify that the Retirement Plan check box is checked on participating employees’ W-2s. If it is not checked and the employee has a Pension Plan deduction in Box 12, go to Employee Maintenance and check the Pension Plan/Profit Sharing check box on the Main tab.
  •  W-2 forms and year-end reports must be run and your Payroll year-end processing must be completed before beginning your first 2016 Payroll.  
  •  If you are not ready to print W-2s and must begin 2016 Payroll data entry, you can archive your 2015 Payroll data to a new company and close out your live 2015 Payroll for the year. You will be able to print your W-2 forms from the Federal eFiling Module after closing your Payroll for the year. Even if you are able to complete year-end processing before your first 2016 payroll, it is still recommended that you archive your 2015 payroll data to a copied company.  Please see the accompanying article for copying companies. 
  •  Any employees with a terminated status will be removed during period end processing. If you are planning to print W-2s in your live company after Period End Processing has been completed through the Federal eFiling and Reporting module, you will want to change your terminated employees’ statuses to Inactive, so that the system retains the employee payroll information for those employees in order to print W-2s. Or W-2s can be printed from your archived company through the Federal eFiling and Reporting module. We also recommend that you review your setting in Payroll options as to how many years are set to retain eFiling History. The default is 2 years. 

 

As of Sage 100 version 2014, the standard W2 and 1099 printing options are no longer available and all W2, 1099 and electronic filings are processed through the Federal eFiling and Reporting menu. Also included in the 2015 Year End Update are the 1095 forms for ACA Reporting. There is no cost to print these forms to plain paper. Additional fees only apply for forms or reports that are electronically filed through Aatrix.

The eFiling and Reporting module must be installed at each workstation that requires this functionality. Before processing your year-end forms, the 2015 Year End IRD and the Year End eFiling (Aatrix) update must be installed. The 2015 IRD will be available the week of December 21. The Aatrix year-end update will be released through the Automatic Update prompt in the eFiling and Reporting tasks on December 18 for supported versions. End users must be on a current Business Care plan in order to be able to download the Year-End IRD or the Tax Table Updates. 

If you are not required to file electronically and are filing paper returns to federal or state agencies, you will print your employee W-2s to plain blank perforated 4UP W-2 paper with or without the instructions on the back. The Federal W-2 and W-3 copies are approved for printing on plain paper and require no RED forms. The new 1095 forms can be printed to blank perforated 1095 paper or to plain paper and all other copies can be printed on plain paper.  

Federal 1099s and the 1096 Transmittal forms must be printed on the preprinted RED official paper. The Vendor copy of the 1099s are printed on the plain blank perforated 4UP paper with or without the backer instructions. The instructions for both the W-2 Employee copy and the 1099 Vendor copy can also be printed within the W-2 and 1099 process in the Federal eFiling and Reporting module on a separate piece of plain paper.  

Sage 100 allows up to 16 Box 12 codes. All of your Box 12 deduction codes must be assigned in Deduction Code Maintenance and all will come through to the W-2 Preparer Spreadsheet. If there are 5 Box 12 codes, then a second W-2 will be generated with only the extra Box 12 code and the employee/employer sections filled out. 

If filing electronically or if using Aatrix for the Complete eFiling Service, you will need to create an account at Aatrix. If you choose to have your employee W-2s made available online, you will be required to upload a list of employees and their email addresses.  

The Social Security Administration site and the State of Kansas Department of Revenue site also allow you to manually file your W-2 forms by keying in the W-2 data online. The ssa.gov site gives you the option to print your employee W-2 forms once the data is keyed in. You can get more information on this option at www.socialsecurity.gov/employer under Business Services Online.  

Year-end forms can be purchased online at Sage Checks and Forms, Deluxe or the office supply companies. Locally, we recommend Superior Office Supplies at (316) 942-5577.  If you need help with W-2 form printing or any year-end processing questions, give our office a call.  Additional Year-End information is available online at  the following link:
www.sagecity.na.sage.com.


2016 Tax Table changes are scheduled to be available the week of December 21 on the Sage Customer Portal for users on current subscription plans. Sage will also be updating the Tax Table Updates with late breaking changes as necessary each week throughout January. These Tax Table downloads are compatible with versions 2013 and newer only. Please note that versions 4.50 and older are no longer supported by Sage.    

Keep in mind that Federal and State Tax Table changes are global and affect all companies. The employer and employee FICA limits for 2016 will remain at the same $118,500 limit as 2015.   

Tax Table changes can also be done manually through the Payroll Setup menu in Tax Table Maintenance by using FED code at the State field. Once we receive the new tax tables we will email those to our payroll users.  

Don’t forget to change your Kansas Unemployment rate on the KS Tax Table screen. You should had received your Kansas 2016 unemployment experience rate notice in the mail in November along with a notice that the KS unemployment wage limit will increase to $14,000 for 2016. If you manually change your tables, be sure this limit is also changed. We do recommend that users download and install the Q1 2016 Tax Tables rather than manually key in changes. 


Use the copy feature in Company Maintenance on the Library Master Main menu to create an archive of your Payroll data for each company. 

1. In Library Master/Main/Company Maintenance, create a new company code for your archived company. In order to easily recognize the Payroll archived companies, it’s a good idea to include the last two digits of the year to be archived in the company code, i.e. P15.  

2. If you will be printing W-2s and/or electronically filing through Aatrix in the Federal eFiling and Reporting module from your copied company be sure to fill in all of the appropriate company information, including Federal and State Tax ID numbers.  

3. From this new company’s Company Maintenance screen, click on the Copy button (you will be asked to save the new company) and type in or select the Company Code of your current year’s live company in the Source Company field.  

4. From the list of installed modules select the modules you wish to copy to the new archive company and click Proceed. A prompt will verify that you do want to copy data for the modules you’ve selected.   

 Once the copy process is done, verify that you have a complete copy of your company’s data by previewing the Quarterly Tax Report in your live company and comparing the report to the same report in the archived company.  In order to help differentiate your copied company from your live company, you can enable company specific background colors in Library Master/Main/Company Maintenance on the Preferences tab. This helps users to know which company they are in.  


401K and Simple IRA limits for 2015 have increased. 403B limits are the same as the 401K limits.  If you need to update these, you can make the changes on each employee’s 401K Employee Deduction Code in Employee Maintenance or in Deduction Code Maintenance where there is an option to apply the change to only those employees already using that Deduction Code.

Plan

Annual Contribution Limit

Catch-up Contribution

401(k)

$18,000

$6,000

Simple IRA

$12,500

$3,000

If you have a Roth 401K, keep in mind the 401K limits apply to the combined Roth 401K and standard 401K deductions for each employee.


January 31

Deadline for supplying W-2 and 1095C forms to employees and 1099 forms to vendors.


February 28
Deadline for paper filing of W-2, 1095C and 1099 forms to the federal and state agencies.

March 31
Deadline for electronic filing of W-2, 1095C and 1099 to federal and state agencies. 

If you are required to file electronically to federal (250 or more forms) or state agencies (50 or more forms in Kansas), this must be done through Aatrix, the third party processor, within the Federal and State eFiling and Reporting module.  Pricing is based on employee count, but there is a minimum filing fee no matter how few employees.  A pricing screen within the W-2, 1099 and 1095 eFiling processing will automatically calculate your cost based on what options you select and how many employee or vendor forms you have. 

Since there are changes to the 2015 Electronic Filing formats for W-2s and for 1099s, there will be a Sage 2015 Year-End Interim Release Download (IRD) as well as a Year-End eFiling (Aatrix) update for the Accounts Payable and Payroll tax form changes.  The IRD should be available online the week of December 21 via the Sage Customer Portal. 

The filing deadline for 2015 Electronic Filing for W2 forms and 1099 forms is March 31, 2016.  

Note: This filing deadline is different than the filing deadline for paper returns, which is February 28, 2016.