Mastering Sage 100 Payroll: A Comprehensive Guide to Quarter-End and Year-End Processing

Payroll processing at the end of each quarter and year is a crucial activity for maintaining accurate financial records and ensuring compliance with various tax and employment laws. This guide covers everything you need to know, from understanding which reports are vital for reconciliation to executing period-end functions effectively.

Important Notice: Always prioritize data safety. Before you start any procedure, make sure to back up your data thoroughly. If you're unsure about any step, don't hesitate to consult an Ardent support specialist for assistance.

Remember, period-end and year-end processing are irreversible actions, so it's crucial to approach them with the utmost care and precision. Follow along as we guide you through each step, ensuring your Sage 100 Payroll processing is accurate and compliant. Let's get started!

Period-End Processing in Sage 100 Payroll

Period-end processing for Sage 100 Payroll is performed at the end of each quarter and at year end to prepare for the following period's payroll.

 

**** DO NOT manually change the quarter or year in Payroll Options. ****

 

During the quarter-end close, the system performs the following tasks:

  • Increments the current quarter in Payroll, Setup, Payroll Options.

  • Time off accrual values are updated based on settings in Payroll Options.

 

During the year-end close, the system performs the following tasks:

  •  Increments current year and quarter in Payroll, Setup, Payroll Options

  • Time off accrual values are updated based on settings in Payroll Options.

  • The field showing the employees' year-to-date direct deposit amount is cleared.

  • Terminated employee records are removed from the employee file if there is no history associated with the records.

  • For pension plan deductions, if the Reset Balance at Year End check box in Deduction Code Maintenance is selected, the deduction balance is reset to match the deduction goal amount. Otherwise, the goal is set to match the balance. (The deduction balance is calculated as the deduction goal less the accumulated deduction amount. If the balance is zero, the deduction is no longer applied.)

  • If an employee has no history for a deduction, the deduction is removed from the employee record.

  • If Calendar Year is selected in the Reset Time Off Based On field in Payroll Options, employees' unused time is carried over to the next year (up to the Carryover limit set in Employee Maintenance).

  • History records, including Time Track Entry history records, are purged if they are older than number of years for which Payroll history is retained. The number of years to retain history is set in Payroll Options.

TIP: Set up Paperless Office to save your Period End Payroll Reports. 

Reminder: Period-end / Year-end processing cannot be undone.

 

Period End Processing Checklist (Quarter End and Year End):

  • Set the Payroll module date to the quarter-ending date (for example 06/30/20).

  • Open Payroll, Reports, print each of the following reports, and verify that all checks and adjustments have been entered for the current quarter.

    • Quarterly Tax Report

    • Payroll Check History Report

    • Quarterly Pay Recap

    • Deduction Report (if applicable)

  • Open Payroll, Period End, and Period End Report Selection and select the reports that apply to your payroll.

  • Select Period End, Federal and State Tax Reporting.

    • Under Federal, select 941 Form and any applicable State payroll forms/reports

    • W-2 forms from within Federal eFiling and Reporting (If the fourth quarter [year-end] is being closed)

  • Reconcile your quarterly 941 forms to your W3 form

  • Back up your company data files onto a quarterly set of backup disks or tapes and/or make a Copy Company.

 

 

Should you have any questions about module closing in Sage 100 or need other support with managing your Sage 100, we at Ardent Consulting are at your service. Our team of experts is ready and eager to help you navigate your system challenges and optimize your business's potential. We prioritize your business’s health and are committed to supporting your journey every step of the way.

Doug Clark