Sage released its latest MAS 90 and 200 upgrade the end of October. This is the first version that Sage will not be automatically shipping media to the end users. It is available by download only at the Sage Software online support site. CDs are available upon request. There are specific instructions for the download process on the site, but our plan is to download this version prior to scheduled upgrades. For more information on the 4.5 version, visit our website at www.pskansas.com or Sage’s 4.5 website at www.SageMAS.com/45release.

In order to download upgrades and product updates, your company must be on a current subscription plan and have at least one contact with a current login to the Sage site. Contact PSI for more information.

PSI Innovations: December 2011

By Mary Mays

Protecting your data has always been extremely important, especially since businesses today depend so heavily on technology. There are so many reasons a good backup is mandatory. Data can be damaged by power spikes or equipment failure. A user could purge or accidentally delete data requiring a restore. A natural disaster could destroy your office. A good backup plan with offsite storage is an absolute must in order to protect your investment.

So, the good news is that if your server crashes and you can’t restore your MAS 90, MAS 200 or Genesis Pro data, Drive Savers can help. This company can recover almost any disk or RAID array in a pretty reasonable amount of time. Not always, but they are good. The bad news is that this service will cost you thousands of dollars!

Many companies advertise on-line backups and emphasize ‘continuous backup’ and ‘continuous data protection’. Is continuous backup a good idea? For databases like MAS 90, MAS 200 and Genesis Pro, a continuous backup is NEVER, EVER a good idea. Continuous backups can’t capture files correctly while users are working in the system. MAS 90 must have a point in time backup – a time where all the files in each of the modules are all at the same accounting point. This must be at a time when users are not processing, i.e. adding, deleting or updating information, or you will not have good backup files that can actually be restored. IT departments recommend these types of backups as a way to ensure no data is lost and this can work fine for single files like Word documents, spreadsheets, pictures or music files. However databases like MAS 90 or MAS 200 or Genesis Pro need to be backed up after hours, when users aren’t changing the data.

Companies have moved away from tape drives for backups and are now using RD1000 drives, DVD/rw, or USB flash drives for in house backup. The determining factor of what device to choose is based on how much data you need to protect. Businesses with less than 5 GB of data can back up to DVD/rw or USB Flash Drives. USB drives continue to decrease in price making them a great alternative to CD or DVD backup. If there is more than 10 GB of data, the RD1000 drive by Dell should be considered. It is a removable hard drive system that can be either internal or external and can be installed in a server or as an external unit connected via a USB port. The Dell RD1000 backs up eight times faster than DAT72 tape drives and media sizes are 160 GB to 1 TB. It is critical with any on-site backup that someone must check the backup and change the media daily and, to be fully protected in the event of a disaster at your office, someone has to take the media offsite every day or at least once per week.

Offsite backups are another option. One company we’ve had success with is i365 Cloud Backup services. EVault Saas automatically backs up desktop, laptop and server data from across your organization. Retention schedules can be configured and backups can be monitored via a web browser. MS Exchange, SQL, SharePoint and other mission critical data can also be included. Data is deduplicated, compressed, encrypted, and then transmitted to a vault in one of their top-tier data centers. With data deduplication only one unique instance of the data is actually retained with redundant data being replaced with a pointer to the unique data copy. Data is encrypted and stored in multiple data centers that are ISO and SAS 70 Type II certified, meaning that an audit occurred certifying the the data centers are secured by locks and biometric devices, are HIPPA and SOX compliant, have redundant power and are located in a weather safe building.

EVault Express Recovery Appliance, a companion product to i365’s Cloud Backup, is a pre-configured storage appliance that is installed as a local vault in your offices that then automatically replicates your local backups to a secure i365 data center. This option works well if you want something at your office as well as in the cloud. Some of our i365 users only use the cloud services; some use an RD1000 backup device in addition to the i365 cloud service.

Other solutions are available like Barracuda Backup Service and SonicWall CDP solution and we will cover those in our next newsletter.

It is imperative that a good daily backup solution be in place, that someone is monitoring it for accuracy and completion, and have backups offsite in the event of a disaster to insure that your data can be restored when needed. Please share this article with those making your backup decisions.

PSI Innovations: December 2011

In our last newsletter, we announced Sage’s plan for a branding change that impacts their North America products. On December 8, Sage began communicating this brand transition to customers. You may ask, “Why change brand names?” The purpose is to create a consistent brand identity across their major products and to provide a clear picture of the scope of the Sage product and services portfolio with a single brand presence.

What will be the new brand name or MAS 90 and MAS 200? Over the next year you will begin to see the following name changes:

This transition process will be rolled out through 2012 and we will keep you updated along the way.

PSI Innovations: December 2011

Sage has dropped support for MAS 90 and 200 versions 4.10 and older, so there will be no year-end or tax table updates available for those versions. There will be Year-End IRD’s (Interim Release Downloads) for Payroll W-2 printing and for Electronic Reporting for W2’s for 4.20 and newer versions. There are no changes to the 1099 reporting requirements, so there will not be an IRD for AP this year. The IRD’s do require your MAS 90 or 200 version to be at a specific product update level and have the previous year’s IRD installed.

Tax Table Updates and the IRD’s are expected to be available by download from the Sage Online Support site December 20, 2011. You will be required to have a login to the site to access these downloads. Due to last minute federal and state tax table changes, Sage will update these tax tables throughout January. Tax Tables can also be maintained manually and once the new federal tables are available we will email screen shots to our Payroll users.

The 2011 Payroll Year-End IRD will contain changes to support the Cost of Employer-sponsored health coverage reporting even though this reporting is not mandatory for employers until filing reports for 2012. The ability to use Code EE for Box 12 for Designated Roth Contributions under Governmental Section 457 is also included in this IRD. The Social Security Administration has modified the 2011 file format for W-2 Electronic Reporting, so you will be required to install the IRD for Electronic Reporting before creating your 2011 file. There is a new field to identify the kind of employer that you will be required to select from a drop down box on the Additional Information panel in the W-2 Electronic Reporting.

PSI Innovations: December 2011

By Ann Jenkins

The first step in Year-end processing should be to make a backup of your company data. Year-end processing in Payroll can only be “reversed” by restoring from a backup, so be sure the backup is readable and is kept in a safe, accessible location. We also recommend copying your 2011 payroll data to an archived company before closing your live payroll company. Following are a few tips:

• Dependent Care Benefits amounts for each employee must be manually entered into the Dependent Care box on the FED Tax Summary screen so these amounts will print on the W-2 form in Box 10. These amounts can be retrieved by printing a Deduction Report for the Dependent Care deduction code for the year.
• 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 or closing your Payroll year. These additional items are much easier to process with a regular payroll since FICA and Medicare must be withheld on these wages. 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 be done through Payroll data entry prior to printing W-2s. The Third Party Sick Pay check box on the employee W-2 must be manually checked.
• When printing your W-2s, be sure to enter the Box 12 code for your Pension Plan on the W-2 Form Printing screen - D for 401(k), E for 403B, S for Simple IRA, AA for Roth 401(k), BB for Roth 403B.
• 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-2s and year-end reports must be run and your Payroll yearend processing must be completed before beginning your first 2012 Payroll.
• If you are not ready to print W-2s and must begin 2012 Payroll data entry, you can archive your 2011 Payroll data to a new company, close out your live 2011 Payroll for the year, and run your W-2s and file electronically at a later date from the new company. Even if you are able to complete year-end processing before your first 2012 payroll, it is still recommended that you archive your 2011 payroll data in a copied company. The process used to copy company data is version dependent. Please see the accompanying article.
• The 2012 FICA wage limit will increase to $110,100. The 2011 limit is $106,800.

W-2 and 1099 forms can be purchased through Sage Software, Deluxe Check and at any of the office supply stores. If you prefer to purchase locally, we recommend Superior Computer Supply at 942-5577.

If you file electronically with the federal and state government, you can print your employee copies on the laser 4 per page form. Sage MAS 90 and 200 accommodates the 4 up forms, not the horizontal 4 per page forms. If you are not filing electronically, please note that the 4 per page will not give you a federal copy for the SSA or a state employer copy to file. Versions 4.3 and up also give you an eFiling option and the ability to utilize blank, perforated W-2 and 1099 forms, available from the Sage Software Forms Division.

The eFiling Service through Aatrix is offered on a transaction-fee basis of around $2 per employee to create and mail the employee forms along with filing your federal and state employer forms. For more information, go to www.aatrix.com.

The Social Security Administration site and the State of Kansas Department of Revenue site both allow you to manually file your W-2s by keying in the W-2 data online. The ssa.gov site also 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.

If you need help with W-2 form printing or any year-end processing questions, give our office a call.

PSI Innovations: December 2011

By Ann Jenkins

If you will be filing 250 or more federal W-2s or 1099s, you are required to file electronically. Please note: This means the actual number of W-2s, not the number of active employees. The State of Kansas requires employers who are filing 51 or more W-2s to file electronically. If you filed electronically to the federal government last year, you should receive an Electronic Filing packet from the federal government. All filers are required to have an assigned User ID (PIN) and password. This User ID is valid indefinitely, but your password must be changed yearly. Keep in mind the User ID is assigned to a specific person and if that person is no longer employed by your company or is no longer responsible for electronically filing, then the individual who will be doing the filing must get their own User ID. The SSA website is www.ssa.gov/employer and the phone number is 800-772-6270. The State of Kansas accepts the Federal EFW2 format for electronic filing.

If you did not file electronically last year, but will have 250 or more federal W-2s or 1099s to file this year, you will need to purchase the MAS 90 Electronic Reporting module and apply to file electronically with the Social Security Administration. Information on this can be found at the above website for W-2s and at the www.irs.gov website for 1099s. The W-2 Electronic File is submitted electronically online at the www.ssa.gov/employer at the Business Services Online site. Instructions are available at this site.

1099 Electronic Filing is done at the IRS site at FIRE – Filing Information Returns Electronically. New users are required to submit Form 4419, Application for Filing Returns with the IRS Electronically, to request authorization to file Information Returns with the IRS. This form should be submitted to the IRS at least 30 days before the due date of the returns for the current processing year. You will receive a TCC (Transmitter Control Code) once your application is processed. You will also need to create a FIRE account at the IRS site. With MAS 90 and 200 versions 4.2 and above, the links to the SSA and IRS filing sites are now a menu item in the Electronic Reporting module.

To file electronically with the State of Kansas you must have a user logon and password. Information and registration can be found at www.ksrevenue.org/kswebtax. Along with the electronic filing requirement for employers with 51 or more W-2s, the State of Kansas also requires that the KW-3 withholding reconciliation form be submitted online at this same site. Since the State of Kansas accepts the Federal EFW2 format, we recommend that those employers affected by the filing requirement change purchase the MAS 90 Electronic Reporting module. This module creates a W-2 report file that meets both Federal and State of Kansas filing requirements.

There are changes to the 2011 Electronic Filing formats for both W-2s and for 1099s, so there will be a Sage Yearend Interim Release Download for both of these programs which should be available online approximately Dec. 20.

The filing deadline for 2011 Electronic Filing for W-2s and 1099s is March 31, 2012. Note: this filing deadline is different than the filing deadline for paper returns, which is February 28, 2012.

PSI Innovations: December 2011

By Ann Jenkins

401(k) Limits
Following are the 2012 Annual Contribution Limits and the Catch-Up Contribution Limits for 401(k) and Simple IRA Plans. 403B limits are the same as the 401(k) limits. If you need to update these, you can make the changes on each employee’s 401(k) 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.

Filing Deadlines

January 31 – Deadline for supplying W-2s to employees and 1099s to vendors

February 28 – Deadline for paper filing of W-2s and 1099s to the federal and state agencies

March 31 – Deadline for electronic filing of W-2s and 1099s to federal and state agencies

PSI Innovations: December 2011

By Ann Jenkins

It is a simple task to create a new company in MAS 90 and MAS 200 and then to copy the data from an existing company into the new company. In Library Master/Main/Company Maintenance you will 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. If you will be printing W-2’s or creating your Electronic Reporting file from this company, be sure to fill in all of the appropriate company information, including Federal and State Tax ID numbers. From this new company’s Company Maintenance screen, click on the Copy button and type in or select the Company Code of your current year’s live company. You will be given a list of installed modules to select the modules you wish to copy to the new archive company.

After you’ve finished the copy process, be sure to change companies to the new company and verify that your Payroll data copied successfully. For your payroll archive company, select Common Information, General Ledger, and Payroll and Electronic Reporting if it is listed. Once Payroll is selected, GL and Common Information are required.

PSI Innovations: December 2011

By Ann Jenkins

2012 Tax Table changes will be available for download around December 20th on the Sage Online support page to 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 4.20 and newer only. Please note that versions 4.10 and older are no longer supported. Federal Tax Table changes are global and affect the FICA limit used when printing W-2s. If you are printing W-2s or creating your Electronic File in your copied company after installing 2012 Tax Tables, be sure to change the FICA Employee and Employer limits back to the 2011 limit of $106,800 and once W-2s and Electronic Filing is completed, these limits must be changed back.

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 them to our payroll users along with the EIC Tables if needed. The FICA employer and employee limits are changing for 2012 to $110,100. The 2% reduction of the Employee FICA rate is scheduled to expire at the end of 2011 and at this time it has not been determined if it will be extended.

At this time, there have been no changes announced to the Kansas withholding tax tables. Don’t forget to also change your Kansas Unemployment rate on the KS Tax Table screen. You should receive your Kansas 2012 unemployment experience rate notice in the mail prior to the end of 2011.

PSI Innovations: December 2011

By Gil Ponte

It is that time of year again. It probably seems like your last physical inventory count was just completed and now it’s time to do it all over again and everyone is probably dreading it. What can be done to improve this process?

A physical inventory count should be done as quickly and as accurately as possible. It’s a net value issue: quick and inaccurate may be less expensive, but will the auditors sign off on it or will you end up repeating the exercise making it more costly?

Points to keep in mind:

• Properly handled, physical inventory counts can be less painful.
• A physical inventory count is a process, not a project, and it should be planned accordingly.
• Proper planning and control are the keys to a successful physical inventory count.

Preparation
To start, there must be a person in charge of the actual physical count. That person’s first task is to review the company’s existing procedure for doing a physical inventory count. Without a procedure the chances of a successful count are minimal. Reviewing your procedure refreshes your staff’s recollection of how to actually do a physical inventory count and provides an opportunity to upgrade the procedure. You should look for any changes such as new bin locations, warehouses, or product lines.

Prior to beginning the physical count, the following tasks should be completed:

• The warehouse should be organized.
• Obsolete or unusable stock should be cleared out.
• All locations should be legibly and clearly identified.
• All material should be consolidated into as few locations as possible.
• All material should be correctly and clearly identified with both a part number and a description.
• All production activities should be scheduled down for the duration of the count. There should be no exceptions.
• All shipping and receiving should be suspended for the duration of the count. Customers and vendors should be notified of the suspension well in advance.

It’s always a good idea to create a backup before you begin your inventory count, again before you apply the physical inventory count changes and then a third time after the changes have been updated.

Counting inventories on a regular basis throughout the year…cycle counting… combined with a process for continuous improvement in inventory accuracy is the most reliable methodology for achieving accurate inventories.

If you need assistance with how the process works in MAS 90, please contact our office.

PSI Innovations: December 2011