Turn insight into action. - Chortek LLP

User Group

December 7th & 8th, 2016 Sage 100 | Sage 50 | Business Insights & Custom Office | Tax Update

ACCOUNTING & AUDIT | TAX & BUSINESS ADVISORS | TECHNOLOGY CONSULTING | MERGERS & ACQUISITIONS

Turn insight into action.

ACCOUNTING, AUDIT, TAX & CONSULTING | TECHNOLOGY CONSULTING | FORENSIC ACCOUNTING & LITIGATION SUPPORT | MERGERS & ACQUISITIONS

Sage User Group

December 7, 2016 – WaukeshaDecember 8, 2016 – Appleton


Agenda• 8:30 Introductions, Sage Update• Breakout 1 – (9:00 – 10:00)

– Room 1: Sage 100 ERP Year‐end Payroll W‐2s/1099s– Room 2: Sage 50 Year‐end W‐2s/1099s & What’s New‐APPLETON– Room 2: Technology Update 2016‐WAUKESHA

• Breakout 2 – (10:10 – 10:45) – Room 1: Sage 100 2016 Review/2017 What’s New– Room 2: Tax Update and Year‐end Tax Planning

• Breakout 3 – (10:55 – 11:55)– Room 1: Business Insights and Custom Office– Room 2: CyberSecurity

• 11:55 Wrap up / Lunch


IntroductionsBTC (Business Technology Consultants) Team:

Steve Krueger

Sue Wolf Debby Hanson

Chris Rowoldt Mark Booth

Gail Warren Debra Scheider

Accounting, Audit, Tax & Consulting:

Pat Wirth

Technology/Cybersecurity:

Michael Senkbeil

Sage Software:

Laura Hayes


Firm Overview | Technology

Grow with Sage: product roadmap – Sage 100

Manage every aspect of business

Customers for Life

• Payment Services• Payroll and Payroll

Services• Fixed Assets• Business Intelligence• Dashboards• Personalization• Assembly and

Production• Inventory and

Warehousing• Inventory Advisor• Purchasing• Invoicing and collections• Sage CRM

Payroll 2.0

Standard Expanded

Project management features

Streamlined workflows

Centralized time tracking

Customer requested enhancements

Job Cost module to framework

Job Costing 2.0

Sage 100c Manufacturing

QUOTE

CUSTOMIZE

ORDER

WORK TICKET

TIME & MATERIALS TRACKING

SCHEDULING

COSTING

Make to order / Custom manufacturing

Sage 100 / Sage 100cFeature delivery timeline1

2016.2 – Jun 2016 2017.0 – Oct 2016 2017.1 – Feb 2017 2017.2 – Jun 2017

Compliance

Conn

ectio

nsCu

stom

er ease

• Sage Inventory Advisor Basics

• 100c Manufacturing• Payments Center

(2015)• Sage CRM 7.3 SP2• Payroll tier

Enablement• Auto registration

• Multi‐bin warehousing

• Electronic Invoicing• Sage CRM SP3

• Payroll 2.0 preview• ACH Receipts with

Sage Payment Solutions

• Level 3 Commodity Code

• Windows / SQL Server 2016

• Sage Exchange Desktop 2.0

• Tax compliance

• Payroll 2.0 controlled release

• In‐product chat

• Global Search• Office 365 Mobile

Sales

• Office 365 Paperless Office

• Accounts Payable Automation

• Automated Payments setup

• Job Cost 2.0• Work Order 2.0

• Tech compliance • Tech compliance

2018.0 and beyond• Document

Management• Cloud Backup• Bank Statement

Automation• Seamless CRM• Payroll 2.0 live• Installation simplified• Inactivate warehouse• Light manufacturing

• Tech compliance• Tax compliance

1 Working plan, subject to change

• Tech compliance


New with Sage 100

• Sage 100 2017 released • Subscription Plans

– New and off‐plan subscription only on 1/1/17– Read only mode if subscription not renewed– Move from perpetual to subscription with no change in annual BusinessCare through 12/28/16

• Payroll Subscription plans on next renewal


Chortek Support

• Support Desk– “Tickets” your request, distributes to consultants– 877‐526‐8226– [email protected]

• Newsletters – bi‐monthly (Jan, March, May, July, Sept, November)– Special edition after Summit– http://www.chortek.com/resources/newsletter/


Connecting with Sage• Sage Summit

– www.sagesummit.com– 2017 – ?– 2016 – Chicago

• 18 clients and 44 individuals attended


Connecting with Sage• Sage City

– www.sagecity.na.sage.com– Sage 50, Sage 100, Sage CRM, etc.

• Customer Portal– https://customers.sagenorthamerica.com/.

• YouTube– Sage 100, Sage 50, Sage CRM, Sage Intelligence, etc.


New Documents from Chortek• Sage 100 for Distribution Companies

– http://www.chortek.com/wp‐content/uploads/2016/07/Sage‐100‐Distribution‐Industry.pdf

• Sage 100 for Manufacturing Companies– http://www.chortek.com/wp‐content/uploads/2016/08/Sage‐100‐Manufacturing‐Industry.pdf


User Group Materials• All materials and additional 2016 User Group Materials as directed by various presenters can be found at:

• www.Chortek.com/2016UserGroup• 2015 also available:• www.Chortek.com/2015UserGroup


Hot Topics• CRM

– www.sagecrm.com

• Sales Tax, Exemption Certificates– www.avalara.com

• Sage Alerts and Workflow– www.sageknowledgesync.com

• Bar Code –– www.scanforce.com and www.scanco.com


Hot Topics• Sage Inventory Advisor

– https://www.sage.com/us/sage‐inventory‐advisor

• Shipping– http://www.vtechnologies.com/integrated‐shipping‐software/

• Sage Intelligence– https://www.sageintelligence.com/

• Anytime Collect– www.anytimecollect.com


Agenda• 8:30 Introductions, Sage Update• Breakout 1 – (9:00 – 10:00)

– Room 1: Sage 100 ERP Year‐end Payroll W‐2s/1099s– Room 2: Sage 50 Year‐end W‐2s/1099s & What’s New‐APPLETON– Room 2: Technology Update 2016‐WAUKESHA

• Breakout 2 – (10:10 – 10:45) – Room 1: Sage 100 2016 Review/2017 What’s New– Room 2: Tax Update and Year‐end Tax Planning

• Breakout 3 – (10:55 – 11:55)– Room 1: Business Insights and Custom Office– Room 2: CyberSecurity

• 11:55 Wrap up / Lunch


Conclusion– Thank you for attending

– We always appreciate referrals to other companies you believe we can help

– Enjoy Lunch

Sage 50 Accounting 2016 Year-End Guide

Prepared by:

Debby Hanson

Chortek LLP

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SAGE 50 YEAR-END GUIDE TABLE OF CONTENTS

Title Page No Introduction ............................................................................................................ 3 Payroll Tax Service ............................................................................................... 4 Payroll Year-End Procedures Install Tax Tables ................................................................................ 5-8 Vendor 1099 Forms ......................................................................... 9-10 Setting Up Fringe Benefits .......................................................... 11-14 Recording Fringe Benefits .......................................................... 15-16 Verify W-2 Payroll Fields ............................................................ 17-18 Printing Reports/Forms .............................................................. 19-20 Backup Information ............................................................................. 21 Close Payroll Year ....................................................................................... 22-28 After Closing Payroll Year Changing State Unemployment Rates/Limits .................... 29-30 General Ledger Year-End Procedures Reconcile Accounts ............................................................................... 31 Complete Year-End Transactions ................................................... 31 Fixed Assets Entries ............................................................................. 31 Printing Reports ............................................................................. 32-33 Adjustments ............................................................................................ 33 Backup Information ............................................................................. 33 When to Close the Fiscal Year ...................................................................... 34 Purging Data ................................................................................................. 35-36

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Introduction: The information in this booklet is intended to help you with your Year-End accounting procedures. The focus of this presentation is only Year-End processing in accordance with Sage 50. If you have other questions or concerns regarding 1099’s, W-2’s, or other filing requirements specific to your company please call your accountant or business partner at Chortek LLP. This document provides information of a general nature; the illustrations contain estimates only. None of the information contained herein is intended as legal advice or an opinion relative to specific matters, facts, situations, or issues. Additional facts and information or future developments may affect the subjects addressed in this communication. The following information can also be found in Sage 50’s Year-End Guide which is included with your Sage 50 Tax Service or can be downloaded from Sage 50’s web site at: https://sagecity.na.sage.com/support_communities/sage50_accounting_us/sage50us-yearend/ This guide will assist you in managing your year-end activities while using Sage’s Sage 50 Accounting Software. Depending on how your company data is set up, you may need to do the following: ♦ Payroll Year-End Processing

This may include printing yearly earnings and tax reports, printing employee W-2’s and vendor 1099 forms, and closing the payroll year.

♦ General Ledger Year-End Processing

This may include making year-end adjustments, printing annual reports, and closing the prior fiscal year.

♦ Purge unnecessary data (optional)

After closing payroll and fiscal years, you may want to remove old, unnecessary data from your Sage 50 Accounting company. This may include removing old time and expense tickets, obsolete quotes, closed purchase and sales orders, old transactions, account reconciliations, reimbursable job expenses, and inactive records. We suggest creating an “archive” company prior to purging. This will allow you to keep your “live” company at an optimal size, yet retrieve purged information by simply switching to the archived company. If you own Sage 50 Premium Accounting or Quantum, an “Archive Company” feature is included in the software to assist you with this procedure. Please contact your Chortek LLP consultant for assistance with archiving your data.

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Sage 50 Payroll Tax Service The Sage Business Care Plans (Gold & Platinum) keeps your Sage 50 Accounting product up-to-date. The payroll subscription plan is a separate business care plan specifically for those users who own and use payroll. This subscription was instituted, by Sage in version 2015, and allows you the current payroll tax information. • Federal and state withholding tables are automatically updated • All updates are delivered via internet update unless you requested a CD when you signed up for the service (there is an additional charge to receive payroll updates via CD) • Changes for all state and federal tax forms are provided with the update. Note: If you need assistance downloading the update or would like to order a Business Care Plan, please contact your Chortek LLP consultant at (877) 526-8226. To verify that your tax service update is properly installed, go to Sage 50’s “Help Menu” and select “About Sage 50”. The version number should reflect the current payroll year (i.e. “2016”or “2017” for the coming year). The “Registered Tax Service” should also show the current or upcoming tax year. If either item is not correct issues with the payroll tax forms or payroll processing may occur. Contact your Chortek LLP consultant for assistance.

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Payroll Year-End Procedures and checklist If your company records payroll transactions in Sage 50 Accounting, it is important that you follow the year-end procedures in the order listed below. Place a check mark next to each completed task (if applicable). Install the latest Sage 50 update Before beginning payroll year-end procedures, install the Sage 50 any updates. The payroll update provides updates to global payroll tax tables, employee W-2 and vendor 1099 forms, and other maintenance changes for the current and new payroll year. The tax service will automatically download as a Sage 50 update to your computer. If your computer is not set to automatically check for updates you can manually check for updates by clicking on “Check for Updates” located on the “Services” menu. Additionally, under the Help / Sage 50 Subscription Updates there is an automated process to update your current Licenses.

NOTE: If you do not have internet access you will need to get a disk with the tax table update on media such as a CD. Contact your Chortek LLP consultant for assistance.

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Following, are the screens you will typically see when and installing any updates for Sage 50.

All users need to be out of Sage 50 before you can install an update. For further assistance contact your Chortek LLP consultant.

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When you choose to install the updates, you will see the following wizard, which will guide you through a three step process.

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After step three, the update will show the following window and a percent complete. Close the wizard after it’s finished.

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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. Sage 50 only prints 1099 information on pre-printed 1099 forms. You will need to purchase 1099 forms from a vendor. Chortek LLP can assist you with your form purchases

• 1099-MISC forms are used to report non-employee compensation paid of $600 or more in a calendar year.

• 1099-INT forms are used to report those vendors to whom you paid more

than $10 in interest a calendar year. We suggest printing these forms on plain paper to verify all information is correct and the form aligns correctly. Before a 1099 form will be printed for a vendor the vendor record must have a “1099 Type” assigned to it. This task is done through the “Maintain Vendors” window.

• From the Maintain Menu or when you view the Vendor List, select the vendor you need to print a 1099 for.

• At the “1099 Type” field select either Independent Contractor (to report non-employee compensation of $600 or more on the 1099-MISC form) or Interest (to report those vendors to whom you paid more then $10 in interest a year on the 1099 INT form).

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Print 1099/1096 Vendor Forms

• Processing of vendor 1099 and 1096 tax forms (Annual 1099 form) are required for independent contractors and vendors that your company has paid interest to for services on loan. You have the option to print 1099-MISC or 1099-INT forms.

Examples: o You might need to change the 1099 setting for paying rent or

reimbursing a 1099 vendor for supplies. A common situation is to pay rent to a 1099 vendor. To make sure this amount shows up as rent on the 1099 form, on the Vendor Defaults 1099 settings tab, simply find the rent expense account you use when paying rent to this vendor and change the 1099 setting to 1099-MISC, Box 1.

o Another common situation is paying a 1099 vendor for something that shouldn't be reported on the 1099 form, such as reimbursing the vendor for supplies. In this case, you should locate the GL account you use when paying the vendor for supplies (for instance, the Supplies Expense account) and change the 1099 setting for this account to none.

• Before printing 1099 forms, make sure you run the 1099 Vendor Report and

verify the information.

• To print the 1099’s, go to the Reports & Forms menu, select Forms, then Tax Forms. The Select a Report or Form window appears.

• Double-click either the 1099-INT Preprinted form for Interest vendor or the

1099-MISC Preprinted form for Independent Contractor.

• Verify that the year is correct. Then, select OK.

• Optional: As a test, print 1099 forms on plain paper to verify vendor payment totals and form alignment.

• After loading the preprinted 1099 form, select Print/E-mail.

• Note: To print multiple copies, repeat the above procedure.

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Enter any Employee taxable fringe benefits The IRS requires that fringe benefits be reported in Box 14 on the W-2 form. The most common fringe benefits are Personal Use of an Automobile (Auto Allowance) and Group Term Life Insurance. Please consult your accountant or payroll professional if you have any questions on fringe benefits. If the employer pays any employee portion of the taxes on the fringe benefit, the amount of tax paid by the employer must be treated as income paid to the employee. This is known as “grossing up” the fringe benefit. Often employers end up paying the employee’s portion of FICA and Medicare that is owed on a fringe benefit. This must be recorded as income to the employee. The following procedures also apply if the employer pays the employee’s state or federal withholding taxes on the fringe benefit. Follow these steps to record a taxable fringe benefit that is subject to Social Security & Medicare taxes:

Set up a Pay Level for the Fringe Benefit

• To set up a Fringe Benefit Pay Level select Default Information from the Maintain Menu and then click on Payroll Settings.

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At the Payroll Settings window click on Company Information, this will expand the section, allowing you to access the “Pay Types” setup.

At the “Pay Types” window add the appropriate Pay Levels and corresponding General Ledger account so that fringe benefit income can be recorded through payroll and reflected on an employee’s W-2 form.

Be sure to click the button to save the added “Pay Types”

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Set up an Employee Deduction for the Fringe Benefit

• Since the fringe benefit isn’t actual cash being paid to the employee, a deduction needs to be set up to offset the income being recorded in the pay cycle so that there will be no cash entered.

• To set up this deduction, go to “Default Information” on the Maintain

menu and then click on Employees.

• Go to the Employee Fields tab of the “Employee Defaults” window

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• Scroll to the bottom of the list and a new deduction code along with the appropriate General Ledger account. (Do not check any boxes or fill in an amount for “Fringe Benefit” deduction.

Assign the Fringe Pay Level to the appropriate employees.

• Salaried employees will have the fringe Pay Level available without any maintenance to the employee record. However, for the “Fringe” Pay Level to be available to hourly employees, a rate must be assigned in the employee’s record. Access the employee record through the Maintain menu, select the “Pay Info” tab, and assign $1.00/hr to the “Fringe” Pay Level.

Add the “Fringe” deduction code along with the appropriate G/L account. Do not fill in any other boxes for this type of deduction.

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Recording the Fringe Benefit through Sage 50 Payroll.

• Because fringe benefits are non-cash it is sometimes not possible or desirable for an employer to recoup from an employee the employee’s portion of taxes owed on fringe benefit. In such a case the value of the fringe benefit will need to be “Grossed Up” before it is recorded on the employee’s W-2. This usually occurs when the fringe benefit is subject to FICA and Medicare taxes. Not all fringe benefits are subject to payroll taxes. Consult your tax advisor or professional payroll consultant if you have further questions

• In “Payroll Entry” create a payroll check. In the “Fringe” pay level

enter the amount of the fringe benefit. If the fringe benefit is subject to Social Security (6.20%) & Medicare (1.45%) taxes divide the amount of the by 0.9235 before entering it. If the fringe is subject to Medicare tax only, divide fringe benefit amount by 0.9855 prior to entering the amount.

NOTE: If the employer is paying the Federal and/or State withholding for the employee, subtract the withholding percentage from 1 and divide the benefit by the result. This will give you the “grossed-up” fringe benefit

• In the fringe deduction field enter the original amount of the fringe

benefit. Do not record any other earnings or deductions on this entry. The entry should show $0 for the amount of the check. If there is a balance it is most likely due to rounding; adjust the entry to make it $0. You may choose to print the check for the employee’s personal records. NOTE: If you choose to print $0 checks they will print as voided checks, however, the check stub will reflect the accurate earnings and deductions resulting from the fringe benefit.

The following is an example of the payroll entry that will record a $1000 fringe benefit for an employee’s personal use of a company vehicle. Note that upon the initial entry all applicable taxes for the fringe benefit are calculated, resulting in a negative check. Because the employee will not be receiving any cash, taxes can’t be withheld. The tax fields will need to be edited. NOTE: If the fringe benefit had been recorded with other regular income, “Grossing Up” the fringe benefit would not be necessary because the taxes could be withheld from the employee’s gross pay.

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This illustration demonstrates how the fringe benefit payment should appear after the tax withholdings are edited. Note that the check is now for $0.00. The check can be printed and given to the employee for their personal record. The check will print and be recorded as a void check in the Sage 50 system.

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Verify the default information for printing payroll fields on the W-2 for is correct

Use the “Assign Tax Fields” function in the Payroll Settings screen to verify that the correct payroll information will print in the correct boxes of the W-2 form

• On the Maintain menu go to “Default Information” and select Payroll

Settings. The “Payroll Settings” window will open.

• Click on Taxes to access the “Assign Tax Fields” function

• Click on the button to see the fields that are assigned to the each box on the W-2 form

• Make sure the descriptions for the W-2 boxes match the payroll field names.

If they don’t click the arrow button to the right of the box and select the correct name from the drop-down list. The selected field and the amounts associated with it will then appear in that box on the W-2.

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• If you have a 401(k) program, include the correct code as well as the 401(k) payroll field name in Box 12.

• If you need to record fringe benefits on the W-2, click the arrow button to the

right of Box 14, and select the appropriate payroll field from the drop-down list. For 2010 the only fringe benefit that is required in Box 14 is personal use of auto. However, Box 14 can be used to report optional information such as union dues, health insurance premiums, educational assistance, etc. (For additional information on how to report taxable fringe benefits refer to the Reporting/Taxation of Fringe Benefits section of appendix A. For further clarifications, consult with your accountant or payroll professional.)

• If you don’t have a special deduction to record, leave “None” as the default.

Click the button to save your field assignments. Click the button to exit the Payroll settings window.

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Print Quarterly Payroll Reports

• Run the Quarterly Earnings Report: The Quarterly Earnings report displays all pay check 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 on the 941, and state quarterly forms.

• Run the Tax Liability Report: Use this report to compare what was calculated in Sage 50 versus what taxes were withheld. It includes subtotals for the 940 and 941 Federal tax forms as well as subtotals for State and Local taxes.

• Run the Payroll Tax Report: Use this report to review the payroll taxes for

your company. The tax reports that can be printed are: FICA EE, FICA ER, FUTA, MEDICARE, XXSUI ER, XXSDI, XXSSA (where XX represents your state code).

• Run the Payroll Exception Report: This report will allow you to identify

incorrect employee withholdings by comparing the calculated tax amount to the actual tax amount withheld on the employee payroll check.

NOTE: Only tax tables with Taxable Gross in their formula display in this list.

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Print payroll tax forms

The Sage 50 Payroll Tax Form Selector is integrated with an Aatrix tax forms program. The Aatrix software provides all the forms for state and federal payroll filings. The program also has an optional fee-based e-filing solution. Its main attribute is that it allows for the printing of all payroll forms on plain, regular paper. We do suggest purchasing a special perforated stock of paper with filing instructions printed on the back for the employee copies of W-2’s, but this is not required. (NOTE: Employees must be furnished filing instructions along with their W-2’s) Following are the forms you may need to file for year-end that are available in the Sage 50 Payroll Tax Form Selector. Federal Form 940 - Employer’s Annual Unemployment Tax Return Federal Form 941 - Employer’s Quarterly Federal Tax Return w/ Schedule B W2/W3 Forms – Employer, employee, SSA, and State copies

* Purchase 4 per page perforated forms for employee copies. (Plain front with instructions on the back)

W2 Electronic Consent – Required if electronically delivering employee W2

forms WI UCT 101 – State of Wisconsin Quarterly Unemployment Contribution Report WI WT-7 – Employer’s Annual Reconciliation of Wisconsin Income Tax Withheld from Wages report * Send along with state copies of W-2’s

Electronic Filing The IRS requires that companies with 250 or more employees throughout the year file Federal Copy A of employee W-2 and the W-3 form electronically. The number of W-2 forms you have includes all employees that were employed for the payroll year; not just the current active employees. Sage 50 Accounting can perform electronic filing for all payroll forms, however, the software does charge an extra fee for this service. The fee depends upon the type form being filed and the number of employees. For additional information on electronic filing please contact your Chortek LLP consultant.

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Make a complete backup of your company data onto disk or tape

It is very important that you backup your company data prior to closing the payroll year. Before closing the payroll or fiscal year we strongly recommend that you make a separate, complete backup of your company data. For these types of backups use a flash media device, CD, or DVD. Store your backup in a safe place, preferably off-site. Sage also offers an online backup service, which uploads a backup of your data to a secure server.

Another method of backing up your company data is by making a duplicate or “Archive” copy of your company. This duplicate company is accessible to you in Sage 50 for looking up historical information without having to perform a restore. Please contact your Chortek LLP consultant for assistance with this backup method.

• Sage 50 Premium and Sage 50 Quantum has an “Archive” feature within

the software that allows a user to create a “Read Only”, historical copy of a company. For information on this feature consult “Sage 50 Accounting Help” and search the keyword “Archive” or contact your Chortek LLP consultant for more information on this feature.

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Close the current payroll year (may not be required)

Sage 50 keeps two years of payroll activity open. 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 1099 forms must be printed for the year being closed before performing the closing process.

• The payroll year to be closed should be the year prior to year that is currently

ending. If this is the first year you are using Sage 50 you will not want to close a payroll year.

To determine if you need to close a payroll year, access the “Year-End Wizard”. The first screen of the wizard displays the open fiscal and open payroll years.

• Please note that once a payroll year is closed certain reports and tax forms for

that year will no longer be available for printing. This why it is critical that a backup or archive company be created prior to performing the closing process.

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Closing the Fiscal and/or Payroll Year Closing the Fiscal and Payroll year use exactly the same process. If possible, we recommend that both years be closed at the same time. If the payroll and fiscal year must be closed separately the payroll year will need to be closed first. Sage 50 will not allow the fiscal year to close unless the corresponding payroll year is closed. To access the year-end wizard: • Select Company or System from the left side of Sage 50’s main screen

depending on your version of Sage 50.

• Select Year End Wizard or Processing from the Data Maintenance menu

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• Clicking the Button will take you to the Year-End Wizard – Close options window. Here you will be able to select if you want to close the Fiscal and Payroll years at the same time or separately. It is recommended that you close the Fiscal and Payroll year together if possible.

• The button will take you to the Unprinted Items Warning window if you have unprinted items, such as W-2’s or 1099’s, for the year you are closing. If you do not have issues with unprinted items you will proceed to the Year-End Wizard – Reports window.

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• At the Year-End Wizard – Reports window, you will have one last opportunity to print reports of audit trail significance for the year that is being closed. PLEASE NOTE that the default setting is for these reports is to NOT print, which is a change from previous versions.

• The next screen allows you to run an “Internal Accounting Review”. It is

recommended that you run this feature simply for peace of mind. The Sage 50 Internal Accounting Review identifies common transaction mistakes or conditions that do not adhere to Generally Accepted Accounting Principles. These transactions can then be evaluated and changed if necessary.

• Click to proceed to the Year-End Wizard - Backup window. Sage 50 will not allow you to close the year without making a backup, even if you have already done so.

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o Select the Backup button in the middle of the window.

o Click on the button from the next window that opens. You will then have the option to change where the backup file is saved to. At this point you can save the data to a device or another area of the hard disk by changing the “Save in:” location field. However, be aware that the backup that is being created is a “compressed file” therefore it can only be restored using Sage 50’s restore utility.

o Click on Save to start the backup process. The software will tell you

how much data space is required for the backup. Click OK and the backup will be created.

o When the Backup is complete, click the button to continue with the Year-End Wizard

• The next window to be displayed is the “Year-End Wizard – Archive Company” window. This is an optional window and you can create an archived company (as well as the backup) or skip this step and click the

button.

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• The next window will ask you about the next fiscal year.

• The final window is the “Year-End Wizard – Begin Close” window. Be sure to

verify that all the information is correct on this screen.

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• Clicking the Begin Close button will activate the closing process. Carefully read the notes and warnings of this window. Select the Begin Close button to activate the closing process.

It is important that you never shut off your computer during the close year procedures. Also, the process may take some time, depending on your computer system, memory and size of data. It is recommended that you begin the process before leaving for lunch or the rest of the day so it will not interfere with your workday. It is also a good idea to disable any screen savers or power management while year-end is processing. NOTE: If for any reason the payroll year closed incorrectly, restore the backup of your company data.

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After Closing the Payroll Year After closing the payroll year you will need to add employer’s state unemployment tax table and adjust new limits and rate percentages. It is important to update your company’s current employer state unemployment wage percentage and limits before processing payroll in the new payroll year, or you will receive an error. Employer state unemployment percentage rates and wage limits can depend on your company location or type of business. Therefore, the SUI ER tax table is maintained on a company by company basis and must be manually changed each year. Updates in employer state unemployment percentage rate and wage limits are not covered by the Sage 50 Tax Service. 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 follow these steps:

• From the File menu, select Payroll Formulas, and then User-Maintained.

• Select the current SUI ER tax table ID for your state in the company tax table list (for example WISUI ER 16). The last two digits represent the payroll year the tax table applies to. Save this for the coming tax year by changing the last digit of the Tax ID field to the next sequential number and changing the Tax Name to include the last two digits of the next payroll year.

• In the formula box, locate the “LIMIT=” and “PERCENT=” lines.

o The figure on the following page is an example of what the formula

should display. If your state unemployment wage base limit and percentage are incorrect; you will need to edit the tax table formula.

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.

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• If required, change the limit and percent displayed in the formula.

o If you are unsure, check with your state unemployment authority to determine if your area has a new unemployment limit and percent.

• Select Save, then Close to exit the window.

Note: If there are additional Company tax tables, those will need to be adjusted in the same manner as the State Unemployment procedures listed above. The most common tables that require editing are retirement plan formulas such as 401K. For additional assistance contact your Chortek LLP consultant.

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GENERAL LEDGER YEAR-END PROCEDURES

Reconcile all G/L accounts for the fiscal year you intend to close

You cannot reconcile accounts (for example, checking or credit card accounts) if the bank statement is dated in a closed fiscal year. Therefore, it is recommended that these accounts be reconciled before closing the fiscal year.

Note: If you elect to not reconcile accounts using previous bank statements, the items will be available to clear in the new fiscal year. However, the account reconciliation will be difficult to manage and audit.

Complete all transactions for the fiscal year you intend to close

Before closing a fiscal year, all transactions must be completed for that year. Transactions dated in a closed fiscal year can no longer be edited or posted. You should make sure that any entries received from your accountant from their Year-End work have been posted for the year being closed.

Print Reports to keep a historical, hard copy of your accounting information

The following is a list of reports Chortek LLP recommends you print prior to closing the fiscal year. Keep these reports in a secure location. These reports will act as a hard copy of your historical accounting information; they may be helpful during an audit. NOTE: All reports in Sage 50 can be printed to a PDF file. In addition to, or instead of, printing physical source documents we recommend keeping an electronic copy of your reports.

Accounts Receivable

Sales Journal Cash Receipts Journal Customer Ledgers Customer Statements Aged Receivables Taxable/Exempt Sales Invoice Register

Accounts Payable

Check Register Aged Payables 1099 Forms.

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General Ledger G/L Trial Balance General Ledger General Journal

Financial Statements

Balance Sheet Cash Flow Income Statement

Payroll

Payroll Check Register Quarterly Earnings Report Yearly Earnings Report Payroll Tax Reports State Quarterly Report Forms Federal Form 940 Federal Form 941 W-2’s W-3

Inventory

Inventory Valuation Report Item Costing Report Inventory Unit Activity Report Inventory Profitability Report.

Jobs

Job Ledgers Job Profitability Report Job Register.

Audit reports and make adjustments (if needed)

Usually in the last accounting period of a fiscal year you need to make adjusting entries. These might include the following:

♦ Adjusting Entries from your accountant; account balances in the system

should match the accountant’s system ♦ Write off customer bad debts ♦ Reverse old outstanding checks by re-entering them back into the bank

account

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♦ Verify that fixed asset purchases and disposals have been properly recorded

♦ Record depreciation expenses ♦ Record a physical inventory count and compare to Sage 50 Accounting’s

quantity on hand Once the above adjustments have been made (if necessary), you are ready to begin closing the fiscal year. After you have made the necessary adjustments, reprint any affected reports so that you have a corrected copy. Make a Complete Backup of Your Company Data It is very important that you backup your company data prior to closing the fiscal year. Before closing the payroll or fiscal year, we recommend that you make a separate, complete backup of your company data. Store your backup in a safe place for long-term retention. Another method of backing up your company data is by making a duplicate copy of your company. This duplicate company is accessible to you in Sage 50 for looking up historical information without having to go through a restore process. Please contact your Chortek LLP consultant if you need assistance to creating a historical backup. Close the Current Fiscal year (may not be required) Sage 50 refers to the fiscal year as the year in which General Ledger transactions take place. Sage 50 keeps two years of General Ledger transaction activity open at one time. Each fiscal year has the same number of accounting periods, which you established when the company was set up. Fiscal years do not have to start at the beginning of the calendar year. For example, some companies may start their fiscal year July 1 and end it June 30. Sage 50 refers to the payroll year as the calendar year in which payroll transactions (earnings) take place. If your fiscal year is operated based on the calendar year (beginning January 1 and ending December 31), then you must close the payroll year first before closing the fiscal year. After closing a fiscal year, the transactions posted to the General Ledger in that year may be accessed, but may no longer be edited. Ending balances and some limited historic information is available on certain reports.

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When to Close the Fiscal Year Usually there is no need to close a fiscal year exactly at the end of the last accounting period. Sage 50 keeps two years of transaction activity open at one time. For example, if your fiscal year is based on 12 accounting periods, then period 13 is the “first” period of the second open fiscal year. Period 24 is the “last” period of the current fiscal year. Sage 50 recommends waiting to close the first fiscal year until near the end of the second fiscal year. Your current fiscal year should be Sage 50 Accounting’s second open fiscal year (for example periods 13-24). The first fiscal year (periods 1-12) holds the previous year’s transaction detail and allows you to make adjustments, if necessary. You cannot move forward until you close the first fiscal year. After closing the first fiscal year, period 13 becomes period 1. For example, if 2017 is the second of the two fiscal years, you must close the 2016 fiscal year in order to enter transactions for fiscal year 2018. If you are not sure what accounting periods or payroll years are open in your company you can quickly find out by clicking on the current accounting period displayed in the upper portion of Sage 50’s main screen.

If Using Batch Posting Before you close the fiscal year, if you are using batch posting mode, you need to post and print all journals and the Yearly General Ledger report. You should also print all open invoices, vendor and payroll checks, as well as backup all of your data. The program will prompt you to perform these functions. If you are using batch mode, the program will not let you continue a fiscal year close until all transactions are posted. Closing the Fiscal Year Closing the Fiscal and Payroll year use exactly the same process. It is recommended that both years be closed at the same time. However, if the years are closed separately the Payroll year must be closed first. Sage 50 will not allow the fiscal year to close unless the corresponding payroll year is closed. To access the Year-End Wizard: • Refer to pages 22-28 in this document for Year End procedures.

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PURGE UNNECESSARY DATA

Purging is the process of removing inactive customers, vendors, employees, job, quotes, invoices, and purchases from the records of a company. Purging reduces the size of the files of a company and frees valuable disk space for current and active data. In Sage 50 purging can be performed at any time Due to the complexity of the purging process, you will need to provide information on what is to be purged and the date through which the purge process is to be effective. To facilitate this process, and reduce the possibility of error, Sage 50 includes a Purge Wizard to assist you through the process. You may cancel at any time while you are using the Purge Wizard, but once you actually begin the purging process you cannot cancel it. It is extremely important to backup your company data before you begin purging. Note: The purging process can take a long time to complete. We recommend that you begin the process before leaving for lunch or at the end of the day so it will not interfere with your regular workday. Steps for Purging Data Sage 50’s purging process is a controlled system of deleting old records that the system no longer needs to maintain. Using the Purge Wizard, Sage 50 will ask for criteria and then go through a thorough process of seeing if individual records can be deleted based on the selected criteria and Sage 50’s standard set of rules. The purge process involves the following steps: From the Tasks menu, select System, then Purge Wizard. If you are operating on a network, all other users must exit Sage 50 before beginning the purge process. The “Welcome” window will provide you information about what data can be

purged. Once you have carefully read the information in this window, click Next to continue.

The Wizard will then prompt you to make a backup of the data.

• You must make a backup prior to purging data. If something happens during the purge process and your computer shuts down, your data will be lost and unrecoverable unless a backup is available to be restored.

• Click on the Backup button in the middle of the window, to have the wizard create the backup.

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Once the backup is complete, you will be at the “Old Transactions” window.

• At this window enter the date through which data should be purged. The Wizard will automatically assign the most recent date possible to purge through.

• This date can be changed to retain more history. • Also in this window, select the transaction types to be purged. You may choose to retain certain transactions, such as General

Journals, but select to purge others such as Accounts Payable and Receivables. Click Next to Proceed, once you have made your selections.

The next window is the “Account Reconciliation” window.

• If you use account reconciliation and an account needs to be reconciled before transactions can be purged from it, make sure it has a check mark next to it in this window. If you do not use the account reconciliation feature within Sage 50, mark “No, I do not use Account Reconciliation” at the top of the window.

• Click Next to proceed. The “Inactive Maintenance Records” window allows you to purge records such

as G/L accounts, vendors, and customers that are no longer used by the system. • In order for such records to purge, however, they must not be referenced

by any open transactions and must have a zero balance. • You are able to select the type of maintenance records to purge. • Once you have made your selections, click Next to proceed.

The “Summary of Options” window recaps the criteria you have selected for data

purge. Review this information to make sure it is correct. • If you would like to make any changes, simply click the Back button until

you return to the appropriate window. • Once you have verified that all the options are correct, click on the Begin

Purge button to start the purge process. Once the purge process has begun it can be safely stopped, but clicking the Stop

button on the “In Progress” window. • Please note that if the purge process is stopped, certain records will have

been deleted. The only way to recover such records is to restore the backup.

Once the purge is complete, click the Close button to close the Purge Wizard. There is a Purge Log text file that is created to record what the system has purged. If you have data that you believe should have been removed, when in fact it was saved, the Purge Log can be extremely valuable when troubleshooting. This file is found under the company data folder and is call Purge.txt.

Page 1 of 4

Financial Year-End Checklist Below are instructions to guide you through preparing your financial year-end information.

Step 1: Complete all transactions for the year

Before you run your final financial reports, all transactions must be completed for that year.

Step 2: Fixed Asset year-end procedures

The following information applies only if you are using Sage 50 Fixed Assets with Sage 50 Complete Accounting or higher.

Install the latest Sage 50 Fixed Assets Tax Update Service

Periodically, the IRS changes or modifies fixed asset regulations and depreciation limits for the calendar (tax) year. In addition, the form 4265 Depreciation and Amortization schedule changes each year. The Sage 50 Fixed Assets Tax Service provides updates for these changes to ensure compliance with the IRS.

Calculate and post fixed assets depreciation amounts

Deprecations must be calculated and posted to the General Ledger before closing the fiscal year in Sage 50. Final depreciation amounts for the current tax year must be included in the Sage 50 General Ledger and financial statements before closing the fiscal year.

Depreciation should be calculated in Sage 50 Fixed Assets every accounting period.

To calculate and post fixed asset depreciation amounts:

If you subscribe to the Sage 50 Fixed Assets Tax Update Service and have received an update, it must be installed before calculating the final Fixed Asset depreciation for the current tax year.

http://www.chortek.com/

SAGE 100

2016 Year-End Payroll and Accounts Payable Procedures

Prepared by:

Susan M. Wolf Chortek LLP

[email protected] (920) 968-0965

NOTE: This document provides information of a general nature; the illustrations contain estimates only. None of the information contained herein is intended as legal advice or an opinion relative to specific matters, facts, situations or issues. Additional facts and information or future developments may affect the subjects addressed in this communication.

PAYROLL YEAR-END PROCEDURES

PROCEDURES BEFORE YEAR END PROCESSING The following is a list of things to do before performing the last payroll of the year: Employee Maintenance: 1. Check that employee names and addresses are correct. 2. Make sure each employee's Social Security number is entered and is correct. 3. Check that all terminated employees have been marked as terminated in Sage 100. This will remove the employee after the year end processing is complete. 4. Check that the Pension/Profit Sharing box (Box 13) has been checked for all employees that participated in a 401k program. See Form W-2 Printing section for details. Final payroll (or earlier): 1. Enter taxable fringe benefits, including: - Personal Use of Auto (Box 14) - S-Corp 2% shareholder fringe benefits - Group Term Life Insurance > $50,000 (Box 12, Code C) 2. Add in third-party sick pay. 3. Verify that no one has had too much withheld under the 401k limits

($18,000 for 2016 and $24,000 for employees 50 years or older). Also verify that the 401k deduction code is set to “Reset Balance at Year End” in Deduction Code Maintenance.

4. Test Social Security taxes withheld for any employees over the limit

($118,500 for 2016). Things to do before year end processing:

1. Backup your Payroll data.

2. Copy payroll data to another Sage 100 company code for use in printing W-2s or quarterly/annual reports or keeping detailed history.

3. Change payroll system date to the period end date 12/31/2016.

COPYING DATA TO NEW SAGE 100 COMPANY CODE If you must run your first payroll for 2017 but have not been able to print W-2’s and close out the year for 2016, use the procedures below to copy the 2016 data over to another company code to finish the 2016 processing. These procedures are also helpful if you are unsure what Sage 100 will do and want to test it on a copy of your data without affecting your real data. The following procedures will allow you to make a duplicate copy of your data and store it in another company code in Sage 100.

1.) Go to Library Master/Main/Company Maintenance. 2.) Enter the company code of the company you want to copy to.

a. For example, if you are copying payroll and general ledger data files for 2016, you may wish to use P16 as the new company code (ie. P16 would be payroll for 2016).

b. Note: If you are copying payroll data to a new company code on a quarterly basis, you may want to use P61 (ie. P61, P62, P63, P64) as the company code (6 to represent year 2016 and 1 to represent quarter 1).

3.) Type in the Company Name. For example, “Sage 100 Payroll Data Files for 2016”, and press the Copy button.

4.) In the Source Company field, enter the company code that you want to copy from. This would normally be your active company code.

5.) A list of modules should appear for you to copy from. Select the appropriate data and forms that you want to copy. For example, if you were only copying payroll and general ledger data, you would select General Ledger Data, Payroll Data, and Payroll Forms (if applicable).

6.) At the “Copy All Data Files to Selected Company?” prompt, select Yes. 7.) Once the copying is completed, press Accept.

Additional Information: - Be sure to check the company name and address for accuracy before you print your

W-2’s from this new company. - If you have already changed the tax tables to the new rates and limits for 2017, you will

have to change the FICA limit back to the 2016 limit prior to printing the W-2’s. If this is not done, the FICA wages and FICA tax will show incorrectly on the W-2’s.

o Note: The tax tables are used by all companies. Each company does not have its own set of federal and state tax tables. Therefore, if you change a tax table in one company, it will change the tax table for all companies.

SAGE 100 PAYROLL REPORTS Suggested Reports to Print at Year-End: Quarterly Tax Report Payroll Check History Report Deduction Reports

PAYROLL RECONCILIATIONS Be sure to reconcile your gross wages to your taxable wages (ie. Federal, State, FICA, Medicare, Federal Unemployment and State Unemployment) each quarter and also at year-end.

FORM 941

If you are using Sage 100 version 2014 or above and have installed Federal and State eFiling and Reporting on your workstation, you also have the ability to print Form 941 (and other federal forms) directly from this program.

Social Security Rate and Wage Base: For 2016 and 2017, the social security rate is 6.2% for both the employee and the employer. The social security wage base is $118,500 for 2016 and $127,200 for 2017. 0.9% Medicare Surcharge: The employer is obligated to withhold an additional 0.9% Medicare tax on wages in excess of $200,000 (at the single threshold). This additional tax on wages is only imposed on the employee, not the employer. Effective 1/1/2013, the additional 0.9% tax on earned income is imposed on wages and self-employment earnings in excess of:

o $200,000 for single or head of household o $250,000 for married taxpayers filing joint o $125,000 for married taxpayers filing separately

Therefore, if you are married filing jointly, be aware that each spouse may be under $200,000 individually and therefore neither would have an additional tax for the Medicare surcharge withheld by their employer. But, if combined, your wages exceed $250,000 you may end up owing tax.

WISCONSIN WT-7:

ANNUAL STATE WITHHOLDING RECONCILIATION State of Wisconsin Requirements: The Wisconsin W-T-7 form must be completed electronically. If you are using Sage 100 version 2014 or above and have installed Federal and State eFiling and Reporting on your workstation, you have the ability to print or eFile the WT-7 form directly from this program. There is a fee associated with e-filing using this option.

The Form WT-7 is due by January 31st following the end of the year covered.

STATE UNEMPLOYMENT FORM UCT-101 If you are using Sage 100 version 2014 or above and have installed Federal and State eFiling and Reporting on your workstation, you have the ability to print or eFile the UCT-101 form directly from this program. The Quarterly Governmental Report (located under the Period End Processing menu) can be modified to be used for the state quarterly unemployment contribution/wage report. Wisconsin SUTA Limit for 2016 and 2017: The Wisconsin SUTA limit is $14,000 for both 2016 and 2017. Electronic Reporting - Department of Workforce Development (DWD): Employers with 25 or more employees in a quarter are required to file their Quarterly Wage Report on electronic media. Employers can file online via the Wisconsin DWD website at http://dwd.wisconsin.gov/uitax/. The wage upload files must be in one of three acceptable file formats.

FEDERAL UNEMPLOYMENT FORM 940

If you are using Sage 100 version 2014 or above and have installed Federal and State eFiling and Reporting on your workstation, you have the ability to print or eFile Form 940 and Schedule A directly from this program. FUTA Rate and Limit: Effective 7/1/11, the Federal unemployment rate was reduced from 6.2% to 6.0%. Employers will still receive the 5.4% credit for paying state unemployment on time, reducing the “normal” FUTA rate from .8% to .6% on wages paid up to the annual FUTA limit of $7,000.

REPORTING/TAXATION OF FRINGE BENEFITS

Taxable Fringe Benefits: Employer-provided non-cash taxable fringe benefits are subject to federal and state income, social security, Medicare and unemployment tax rules. The employer may choose to include these payments in payroll monthly, quarterly or yearly as long as they are reported by December 31st. When employers select the payment dates, they must report the taxes in the same period. If an employer pays federal income, social security or Medicare taxes on behalf of an employee, the amount paid by the employer is to be treated as taxable income also subject to federal income

and employment taxes. The taxable fringe benefit amount must be grossed up for applicable taxes. Third-Party Sick Pay: Sick pay paid to an employee by a third party, under an insurance arrangement, requires special treatment at year-end. Both the third-party administrator (TPA) and the employer report an employee’s social security and Medicare wages on their respective Forms 941.

Employers - W-2 Form - If an employee receives sick pay in the current calendar year from an insurance company, report the following on the employee’s W-2 form. Box 1 – Amount of taxable sick pay the employee must include in federal income Box 2 – Federal income tax withheld from the sick pay by the TPA Box 3 – Amount of taxable sick pay subject to employee social security tax Box 4 – Employee social security tax withheld by the TPA Box 5 – Amount of taxable sick pay subject to employee Medicare tax Box 6 – Employee Medicare tax withheld by the TPA Box 12 – Amount of any sick pay not included in income (reported in boxes 1, 3, 5, and 16) because the employee paid the premiums for the sick pay plan. Show this non-taxable portion with a Code J. Box 13 – Check the Third Party Sick Pay check box. Box 16 - Amount of taxable sick pay the employee must include in state income Box 17 – State income tax withheld from the sick pay by the TPA Employers - W-3 Form – Complete all boxes as the employer normally would. On the W-3 form, place in box 14 the total amount of income tax withheld by the TPA, even though the amounts are included in box 2. Employers - Form 941 – Report the taxable sick pay amount on lines 2, 5a and 5c and subtract the employee’s portion of FICA on line 8. If the TPA issued the W-2, do not include the wages and add the employer’s portion of the FICA on line 8. Employers – Form 940 – The employer, not the TPA, must prepare form 940 to report sick pay, along with other wages paid.

FORM W-2 PRINTING

Tax Filing Year 2013 was the last year Sage maintained and supported tax forms (W-2 and 941 Forms) within the standard Payroll and Electronic Reporting modules. All tax filings must utilize Sage 100 integration to the Federal and State eFiling and Reporting by Aatrix program. There is no cost to print to plain paper. Additional fees only apply for forms/reports that are actually electronically filed by Aatrix. If you are using Sage 100 version 2014 or above and have installed Federal and State eFiling and Reporting on your workstation, you have the ability to print or eFile your W-2s directly from this program. This program is designed to produce W-2s on blank, perforated W-2 stock for the

employee copies and on plain paper for the federal and state copies. Federal and State eFiling and Reporting supports 4-per-page laser W-2s. For a fee, you also have the option of eFiling the federal and state W-2 copies instead of printing them to plain paper and mailing them. When using the Complete eFile Sevice, Aatrix will also print and mail the employees W-2s for you. Also, in order to print W-2s at year-end, the 2016 Interim Release Download (IRD) will need to be loaded. The 2016 Interim Release Download (IRD) contains year-end program changes for Payroll, Accounts Payable and the eFiling and Reporting program. The IRD will be available for download from the Sage Customer Portal (https://customers.sagenorthamerica.com) the week of December 14th. The following Sage 100 versions will be supported: 2014 PU7, 2015 PU3, 2016 PU1 and 2017. You must make sure that you are on the required version of Sage 100 and that all the appropriate prior year’s IRDs have been installed before installing the 2016 IRD. Aatrix year-end update is scheduled to be released (by automatic download when accessing the eFiling & Reporting task within Sage 100) on December 12, 2016 for supported Sage 100 versions 2014 PU7, 2015 PU3, 2016 PU1 and 2017. W-2’s are printed after the last payroll, but before Year-End Processing. You need to complete Year-End Processing before running your first payroll in 2017. Therefore, if you are not able to print the W-2s before performing Year End Processing, copy the data to another company code before closing the payroll year. You can then use that new company to print your quarterly and annual reports including the W-2s. Wisconsin W-2 Requirements: Employers must submit all W-2s for Wisconsin employees to the Wisconsin Department of Revenue regardless of withholding. Those who did not withhold and are not required to register must use withholding number 036888888888801. Form WT2 (Paper W2 Transmittal Sheet) is no longer required to be completed and attached to the W-2 wage statements if you are preparing paper W-2s. New Federal Filing Deadline for 2016: Effective with the 2016 filing year, you must file the W-2 forms with the IRS by January 31st of the year following the calendar year to which the forms relate for both paper and electronic filings. Previously, the deadline to file W-2s with the IRS was February 28th if filing on paper (or March 31 if filing electronically). Electronic Filing of W-2s:

Federal Requirements: All filers of Form W-2 must file copy A (Federal Copy) via electronic reporting if they are filing 250 or more forms. State of Wisconsin Requirements: Effective January 1, 2009, employers with 50 or more of any one type of wage statement (W-2s) or information form (1099s) are required to file electronically with the state of Wisconsin. The previous threshold had been 250 or more forms. The due date to file the Wisconsin W-2s electronically is January 31st of the following year.

Complete instructions to e-file your W-2s can be found at http://www.revenue.wi.gov/pubs/co-001.pdf. Federal and State eFiling and Reporting - To file electronically in Sage 100, use the Federal and State eFiling and Reporting program bundled with Sage 100 version 2014 or higher. A fee will be charged per W-2 to electronically file your W-2s. To set up your e-file account, go to https://efile.aatrix.com. Q1 2017 Tax Table Update: The Q1 2017 Tax Table Update (TTU) will be available as a download from the Sage Customer Portal (https://customers.sagenorthamerica.com) the week of December 14th. If you have a version of Sage 100 below 2014, you will need to upgrade to the latest version of Sage 100 before applying the Tax Table Update. The following Sage 100 versions will be supported: 2014 PU7, 2015 PU3, 2016 PU1 and 2017. Sage recommends that you install the TTU from the server. Reporting of Cost of Employer-Sponsored Health Insurance Coverage: Beginning in 2012 and forward, the Affordable Care Act requires employers filing 250 or more W-2 forms for the previous calendar year (ie. 2015) to report the cost of coverage under an employer-sponsored group health plan on the current year W-2s (ie. 2016 W-2s). IRS Notice 2012-9 provided guidance for employers that were subject to this requirement and those that choose to voluntarily comply with it. Employers filing fewer than 250 W-2s for 2016 are not required to report the cost of coverage under an employer-sponsored group health plan on the 2016 W-2s. The cost of coverage under an employer-sponsored group health plan should be recorded in Box 12 with a code DD. The amount reported should include both the portion paid by the employer and the portion paid by the employee. The disclosed amount is informational only and the employee is not taxed on the amount. The purpose of the reporting requirement is to provide employees useful and comparable consumer information on the cost of their health care coverage. Health Savings Accounts (HSAs):

Report all employer HSA contributions along with any employee pre-tax deductions on Form W-2 in Box 12 with a code of W. The employer HSA contributions plus the employee deductions cannot exceed the HSA maximum contribution limits to qualify to be pre-tax.

Items to Note Regarding the 2016 W-2 Form: Box 12:

- Code W – Code W is used to report all employer HSA contributions along with any employee pre-tax deductions.

- Code AA – Code AA is used for Roth contributions to a section 401(k) plan. - Code BB – Code BB is used for Roth contributions under a section 403(b) salary

reduction agreement. - Code DD – Code DD is used for the cost of employer-sponsored health coverage. The

amount reported with Code DD is not taxable. Reporting of this code is required for employers filing 250 or more W-2s.

- Code EE – Designated Roth contributions under a governmental section 457(b) plan. Box 13 – Check Boxes:

- Retirement Plan Check Box – Check this box if the employee was an “active participant” in an employer’s retirement plan or if the employee actively participates in a collectively bargained union retirement plan. Do not check this box for contributions made to a nonqualified deferred compensation plan or a 457 plan. - “Active participant” is defined differently based upon the type of plan: Defined Benefit Plan – The box is checked to include all employees who are

eligible to participate even if they have not chosen to be an active participant in the plan.

Defined Contribution Plan – The box is checked only if the employee received allocation to their accounts in a plan year ending during the calendar year. Watch for allocations that are not made in the same year as contributions, especially employer matching contributions.

- Third Party Sick Pay – Mark this box if you are a third-party sick pay administrator filing a W-2 for an insured’s employee or an employer reporting sick pay payments made by a third party to an employee.

Box 14 – Other:

- The only required amount to be reported in this box is the personal use of auto fringe benefit. This benefit can be reported on the employee’s wage statement or on another stand-alone statement. Any other information the employer wants to report for the employee can go into this box. Examples include union dues, uniform payments, health insurance premiums, educational assistance, etc.

Printing W-2s via Federal eFiling and Reporting: From Sage 100, access Payroll>Period-End>Federal eFiling and Reporting:

You must be on a current maintenance plan with Sage Software in order to use this program.

Prints and/or electronically files W-3/W-2s, WT-7, 1094-B/1095-Bs and 1094-C/1095-Cs.

For detailed installation and processing instructions on eFiling and Reporting, go to the Sage Customer Portal (https://customers.sagenorthamerica.com) to access the “eFiling and Reporting Guide for Sage 100” document located under the Year End Processing Resources for Sage 100 page.

Efiling and Reporting W-2 Grid Data Entry Screen: The W-2 employee grid displays all of your W-2 relevant employee data in an Excel-like

grid with columns and rows of information. The columns in the W-2 employee grid correspond to the boxes on the W-2 forms.

The W-2 employee grid performs several data verification steps to ensure you have the correct W-2 information and to avoid rejections by Federal and state agencies.

Note: Information edited in the grid will not be saved back to Sage 100 data files.

Efiling and Reporting W-2 Forms Viewer: You can print your final copies from the viewer by clicking Print Final. If the selected form requires special paper stock, you will be prompted to load your

printer when clicking the Print Final button. For example, if you have selected to print your own W-2s, you will be prompted to load your blank 4-part perforated W-2 forms into the printer.

Once all steps have been completed, the eFile Login will appear for you to eFile your W-2s. You can setup an account (Enroll) with Aatrix at https://efile.aatrix.com to get a username and password allowing you to upload your W2s securely at year end.

FORM 1094-C/1095-C and 1094-B/1095-B PRINTING Form 1094-C/1095-C for Applicable Large Employers: Employers with 50 or more full-time employees (including full-time equivalent employees) in the previous calendar year are required to file Forms 1094-C and 1095-C to report the information about offers of health coverage and enrollment in health coverage for their employees.

Form 1094-C (Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns) must be used to report to the IRS summary information for each employer and to transmit Forms 1095-C to the IRS.

Form 1095-C (Employer-Provided Health Insurance Offer and Coverage) is used to report information about each employee.

A full-time employee is an employee who, for a calendar month, is employed an average of at least 30 hours of service per week with the employer. For this purpose, 130 service hours in a calendar month is treated as the monthly equivalent of at least 30 hours per week. An employer must complete information for all twelve months of the calendar year for any of its employees who were full-time employees for one or more months of the calendar year. An employer must furnish Form 1095-C to each of its full-time employees by January 31 (now extended to March 2, 2017) of the year following the year to which the form relates. The employer must file Forms 1094-C and 1095-C with the IRS by February 28 if filing on paper (or March 31 if filing electronically). Form 1094-B/1095-B for Small Employers with Self-Funded Insurance: Small employers do not have a filing requirement unless they provide self-funded insurance. Small employers who provide self-insured group health plans (and aren't subject to the employer shared responsibility provisions sponsoring self-insured group health plans) will use Forms 1094-B and 1095-B to report information about covered individuals. (Insurance carriers file form 1094-B and 1095-B also.)

Form 1094-B: Transmittal of Health Coverage Information Returns (Employer Summary)

Form 1095-B: Health Coverage (Employee Statement)

Filers of Form 1095-B must furnish a copy by January 31 (now extended to March 2, 2017) to the person identified as the “responsible individual” on the form. The return and transmittal form must be filed with the IRS on or before February 28 (March 31 if filed electronically) of the year following the calendar year of coverage. Electronic Filing of Forms 1094/1095: If you're required to file 250 or more information returns, you must file electronically. The 250-or-more requirement applies separately to each type of form. For example, if you must file 500

Forms 1095-B and 100 Forms 1095-C, you must file Forms 1095-B electronically, but you aren't required to file Forms 1095-C electronically.

IMPORTANT PERIOD END REMINDERS Year-end Processing must be completed prior to running the first payroll for the next year. If you need to run a payroll for the new year before closing out the current payroll year, copy your current year’s files to a new company code which can be used to generate the period-end reports and W-2s. 1. Set the Payroll System Date to the quarter ending date before beginning the year end process. 2. Back up the Payroll files before running year end close. 3. Select the reports you wish to print for the period end. It is recommended that you at least print the Quarterly Tax Report, Payroll Check History Report, and Deduction Reports if you have not already printed them. 4. Complete Period End Processing after all the selected reports have been printed.

IMPORTANT NEW YEAR REMINDERS Procedures to do before your first payroll of the new year. 1. Install the 2017 Q1 Tax Table Update. (Note: For 2017, the social security wage base will

increase to $127,200 and the social security rate will stay at 6.2% for both the employee and the employer. The Wisconsin SUTA limit will stay at $14,000 for 2017.)

2. Update the SUTA rate for your company in the state tax tables.

3. Update any deduction goals for 401k and any other applicable deductions ($18,000 for 401k

plans for 2017 and $24,000 for employees 50 years or older). You can use the Apply feature in Payroll Deduction Code Maintenance to update the rates and/or limits globally.

4. Change any tax withholding allowances for employees.

5. Check the benefit status of employees for possible increase to next levels.

ACCOUNTS PAYABLE YEAR-END PROCEDURES 1099 Filing Requirements: All 1099’s must be distributed to payees by January 31, 2017. If filing paper forms, Federal

copies of 1099s must be filed by February 28, 2017. You must also send a Form 1096 with each type of form as the transmittal document if you file paper forms. If filing electronically, Federal copies of 1099s must be filed by March 31, 2017.

NEW FOR 2016 – If the 1099-MISC includes an amount in Box 7, Non-Employee

Compensation (ie. payment for services), then the form must be filed with the IRS by January 31st for both paper and electronic filing. If there is no amount in Box 7, then there is no change to the filing deadline (ie. Rent is best example).

For Wisconsin 1099 filings, the due date depends on the type of payer (corporate or non-

corporate) and the type of payment being reported. The chart below summarizes the due dates for filing information returns with the Dept. of Revenue:

TYPE OF PAYMENT TYPE OF PAYER DUE DATE Rent or Royalty Non-corporate (individuals,

partnerships, estates, and trusts) February 28, 2017

Rent or Royalty Corporation March 15, 2017 Non-Wage Compensation All February 28, 2017

Filing 1099s Electronically: Federal Requirements: All filers of Forms 1099 must file copy A (Federal Copy) via electronic reporting if they are filing 250 or more of each specific form. The 250 threshold applies to each individual form by itself, not aggregated as in the past. State of Wisconsin Requirements: Effective January 1, 2009, employers with 50 or more of any one type of wage statement (W-2s) or information form (1099s) are required to file electronically with the state of Wisconsin. The previous threshold had been 250 or more forms. Federal and State eFiling and Reporting: Tax Filing Year 2013 was the last year Sage maintained and supported 1099 forms within the standard Accounts Payable module. All tax filings must utilize Sage 100 integration to the Form 1099 eFiling and Reporting by Aatrix program. If you are using Sage 100 version 2014 or above and have installed Federal and State eFiling and Reporting on your workstation, you have the ability to print or eFile your 1099s directly from this program. There is no cost to print forms. Additional fees only apply for forms that are actually electronically filed by Aatrix. To set up your e-file account, go to https://efile.aatrix.com. Reminder: After printing your 1099 forms to distribute at year end, you MUST say NO to clear 1099 information in order to retain the information for electronic filing.

The 2016 Interim Release Download (IRD): The 2016 Interim Release Download contains year-end program changes for Payroll, Accounts Payable and the eFiling and Reporting program. The IRD will be available for download from the Sage Customer Portal (https://customers.sagenorthamerica.com) the week of December 14th. The following Sage 100 versions will be supported: 2014 PU7, 2015 PU3, 2016 PU1 and 2017. You must make sure that you are on the required version of Sage 100 and that all the appropriate prior year’s IRDs have been installed before installing the 2016 IRD. Form 1099-MISC: Payers must submit all 1099-MISC forms to the Wisconsin Department of Revenue regardless of whether or not Wisconsin tax is withheld. Those who did not withhold and are not required to register must use withholding number 036888888888801. Setting Up a 1099 Vendor: Use the following steps to set up a 1099 vendor:

1. From Sage 100, access Accounts Payable>Main>Vendor Maintenance. 2. Under the Additional tab, enter in the 1099 Form information (Vendor Type, Default

Form, Taxpayer ID No., Default Box No.). 3. Click on the “1099 History” button from the additional tab in Vendor Maintenance. This

will update throughout the year from data entry or you can enter the amount manually.

Printing 1099 Forms via eFiling and Reporting: From Sage 100, access Accounts Payable>Reports>Form 1099 Efiling and Reporting:

You must be on a current maintenance plan with Sage Software in order to use this program.

Supports forms 1099-MISC, 1099-DIV, and 1099-INT. Prints and/or electronically files 1099s and 1096 to proper federal and state agencies. For detailed installation and processing instructions on eFiling and Reporting, go to

the Sage Customer Portal (https://customers.sagenorthamerica.com) to access the “eFiling and Reporting Guide for Sage 100” document located under the Year End Processing Resources for Sage 100 page.

Efiling and Reporting 1099 Grid Data Entry Screen: The 1099 vendor grid displays all of your 1099 relevant vendor data in an Excel-like grid

with columns and rows of information. The columns in the 1099 vendor grid correspond to the boxes on the 1099 forms.

The 1099 vendor grid performs several data verification steps to ensure you have the correct 1099 information and to avoid rejections by Federal and state agencies.

If duplicate TIN numbers are encountered, it will allow you to combine these rows into one row.

Note: Information edited in the grid will not be saved back to Sage 100 data files.

Efiling and Reporting 1099 Forms Viewer: You can print your Final copies from the viewer by clicking Print Final. If the selected form requires special paper stock, you will be prompted to load your

printer when clicking the Print Final button. For example, if you have selected to print your 1099s, you will be prompted to load your pre-printed 1099 forms into the printer.

Once all steps have been completed, the eFile Login will appear for you to eFile your 1099s. You can setup an account (Enroll) with Aatrix at https://efile.aatrix.com to get a username and password allowing you to upload your 1099s securely at year end.

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Refer to the Sage 50 Fixed Assets Tax Update Service bulletin that accompanies your update for detailed information on government changes to depreciation calculations and asset limits.

1. In Sage 50, go to Tasks, System and change your accounting period to the first accounting period of the current tax year.

2. Open Sage 50 Fixed Assets by either going to Tasks, Fixed Assets within Sage 50 or by clicking the Sage 50 Fixed Assets icon located on your desktop.

3. Make all necessary additions, changes, and dispositions of assets you have set up. 4. Go to File, Edit Company. On the Book Defaults page, verify that the Fiscal Year-End

is accurate. 5. To calculate depreciation, go to Depreciation, Depreciate and choose the Group,

Book, and month you will be depreciating through and choose Execute. Review the depreciation amounts for accuracy.

6. Once you have calculated depreciation, you can now post. Go to Depreciate, Post Depreciation. Select the appropriate Group, Book, Period Posting Date and Journal Entry Date. Click the Preview button to preview the journal entries. After reviewing the information, click the Post button to post the journal entries to Sage 50.

7. Repeat the above steps for each accounting period through the end of the tax year. 8. From the Fixed Assets Reports menu, select and print all reports needed for 2012 or

the year you are ending or about to close in Sage 50. 9. Once you have finished, make a backup of your Sage 50 Fixed Assets data. From

the File menu, choose Company Utilities, then select Backup Company. If prompted to close the current company, click Yes. On the Backup Companies window, select the company or companies you wish to backup from the list on the left. In the Save in box at the top, select the location where the Sage 50 Fixed Assets Backup file (.BBK) will be saved. Finally, enter a File name for the .BBK file, and click Backup.

Step 3: Reconcile General Ledger accounts to bank statements

You cannot reconcile accounts (for example, checking or credit card accounts) whose bank statements are dated in a closed fiscal year. Therefore, it is recommended that you reconcile these accounts prior to closing the fiscal year.

If you choose to not reconcile accounts using previous bank statements, the items will be available to clear in the new fiscal year. However, the account reconciliation will be difficult to manage and audit.


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Step 4: Print year-end reports to keep an historical copy of your information

Print reports to keep an historical hard copy of your accounting information (depending on your company requirements, not all these reports may be needed). These reports will act as a hard copy of your historical Sage 50 information; they can be helpful during audits.

List of recommended reports:

Accounts Receivable—Sales Journal, Cash Receipts Journal, Customer Ledgers, Customer Statements, Aged Receivables, Taxable/Exempt Sales, Invoice Register

Accounts Payable—Check Register, Aged Payables, Vendor Ledger, Purchase Order Journal, Purchase Journal, 1099 forms

General Ledger—General Ledger Trial Balance, General Journal, General Ledger report

Financial Statements—Balance Sheet, Income Statement, Cash Flow Statement

Payroll— Payroll Check Register, Quarterly Earnings Report, Yearly Earnings Report, Payroll Tax Reports, State Quarterly and Yearly Forms and Federal Forms (940, 941, W-2, and W-3).

Notes: The Payroll Reports cannot be printed for a closed payroll year.

Inventory—Inventory Valuation Report, Item Costing Report, Inventory Unit Activity Report, Inventory Profitability Report

Jobs—Job Ledgers, Job Profitability Report, Job Register

Step 5: Review reports and make adjustments as necessary

Usually in the last accounting period of a fiscal year, you need to make adjusting entries. These might include the following:

• Write off customer bad debts • Record old outstanding checks reentered into the bank account as miscellaneous

income


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• Verify that fixed-asset purchases and dispositions have been properly recorded • Record depreciation expenses • Record a physical inventory count and compare to Sage 50 quantity on hand • Manage outstanding notes payable and receivable items and recording- or adjusting-

interest expense or income

Once the above adjustments have been made (if necessary), you are ready to begin closing the fiscal year. The type of adjustment required depends on where in Sage 50 the correction needs to be made.

• General ledger adjustments are entered in the General Journal Entries window (Tasks > General Journal Entry)

• Inventory adjustments are entered in the Inventory Adjustments window (Tasks > Inventory Adjustments)

• Payroll adjustments can be made through Payroll Entry (Tasks > Payroll Entry)

• Accounts receivable adjustments can be made through Sales/Invoicing or Receipts (Tasks > Sales/Invoicing or Tasks > Receipts)

• Accounts payable adjustments can be made through Purchases or Payments (Tasks > Purchase Receive Inventory or Tasks > Payments)

After you have made the necessary adjustments, reprint any affected reports so that you have a correct copy.


Standard Deduction 2016 2017 * Payroll Taxes 2016 2017 *Single (S) 6,300 6,350 Maximum Earnings subject to Social Security Tax 118,500 127,200 Joint or Qualifying Widower (MFJ) 12,600 12,700 Social Security Rate of Tax ‐ Employee 6.20% 6.20%Head of Household (HOH) 9,300 9,350 Social Security Rate of Tax ‐ Self‐Employed 12.40% 12.40%Married Filing Separately (MFS) 6,300 6,350

Maximum Earnings subject to Medicare Tax No Limit No LimitMedicare Rate of Tax ‐ Employee 1.45% 1.45%Medicare Rate of Tax ‐ Self‐Employed 2.90% 2.90%

Retirement/Pension Plans

401(k) Maximum Exclusion 18,000 18,000 Additional Medicare Tax on earned income above $200,000 (S) or $250,000 (MFJ) 0.9% 0.9%

IRA Contribution Limit 5,500 5,500 Medicare Surtax on lesser of net investment income or Adjusted Gross Income in excess of $200,000 (S) or $250,000 (MFJ) 3.8% 3.8%

SIMPLE Contribution Limit 12,500 12,500 Estate and Gift Taxes

Catch‐up (Additional Amounts for those 50 or older): Estate Tax Credit Shelter Amount 5,450,000 5,490,000 401(k), 403(b) and 457 plans 6,000 6,000 Annual Gift Tax Exclusion Amount (per Donee) 14,000 14,000 Traditional and Roth IRAs 1,000 1,000 SIMPLE IRAs 3,000 3,000

Transportation (2017 not released yet)Business Mileage (cents/mile) 54.0¢ 54.0¢

Capital Gain Tax RateTaxpayer's Tax Bracket 10%‐15%: First‐Year Luxury Auto LimitsGeneral long‐term capital assets 0% 0% Excluding Bonus 3,160 3,160 Qualified Dividends 0% 0% Including Bonus 11,160 11,160

Taxpayer's Tax Bracket 25%‐35%: First‐Year Luxury Truck LimitsGeneral long‐term capital assets 15% 15% Excluding Bonus 3,560 3,560 Qualified Dividends 15% 15% Including Bonus 11,560 11,560

Taxpayer's Tax Bracket 39.6%: Weight Maximum for Vehicle Deduction 6000 lbs 6000 lbsGeneral long‐term capital assets 20% 20%Qualified Dividends 20% 20%

Section 179 Deduction (2017 not released yet)Federal Annual Qualifying Additions Limit 2,010,000 2,010,000

Health Savings Account (H.S.A) Federal Maximum Annual Deduction 500,000 500,000 Maximum Contribution ‐ Individual 3,350 3,400 SUVs and Trucks in excess of 6,000 lbs 25,000 25,000 Maximum Contribution ‐ Family 6,750 6,750 Wisconsin Annual Qualifying Addition Limit 2,010,000 2,010,000 Catch‐up (Additional Amount for those 55 and older) 1,000 1,000 Wisconsin Maximum Annual Deduction 500,000 500,000

*Chortek Quick Tax Facts have been updated as of November 29, 2016.

Quick Tax Facts

SOURCE: http://www.chortek.com/tax/ WWW.CHORTEK.COM | 262.522.8227

© Sage, Inc. All rights reserved. The Sage logo and the Sage product and service names mentioned herein are registered trademarks or trademarks of Sage, Inc., or its affiliated entities. All other trademarks are the property of their respective owners.

eFiling and Reporting Guide for Sage 100

Product: Sage 100 (formerly Sage MAS 90 and MAS 200)

Description:

This document contains a detailed overview of Sage 100 eFiling and Reporting feature in versions 2014 (5.10) and higher. The state and federal payroll and 1099 reporting allows you to complete over 330+ state and federal unemployment, withholding, and new-hire reports from the data produced by Sage 100 Payroll and Accounts Payable modules. This eliminates the need to create these reports and forms manually. Once completed, reviewed, and edited on screen, most forms can be printed on plain paper, signature ready to be mailed—or eFile in minutes. The interface is simple to understand and easy to use, making quarterly and annual reporting a snap.

Note: Information in this document pertains to Sage 100 Standard and Sage 100 Advanced. Although these programs have a common architecture, some of the features vary depending on the product implemented. References to Sage 100 apply to Sage 100 Standard, Sage 100 Advanced and Sage 100 Premium (Premium version is for A/P 1099s only), unless otherwise noted.

Updated On: 11/29/2016

eFiling and Reporting for Sage100

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Table of Contents

What is eFiling and Reporting ………………………………………………………………………………………………………….……. 3

Installing Federal and State eFiling and Reporting ...................................................................................... .5

How to Update eFiling and Reporting forms ......................................................................................... .…12

How to Reconcile Payroll Tax Forms & W2s ………………………………………….…………………………………….………...13

How to Print Payroll Tax Forms & Reports …………………………………………………………………………………………... 14

What forms do I use to print W2s, 1095s and 1099s? ……………………………………………………………..…………… 17

Additional Setup for Local Tax Codes ......................................................................................................... 20

Printing Amounts in Box 12 …………………………………………………………………………………………………………………. 22

How to Print W-2/W-3s ……………………………………………………………………………………………………………………….. 24

W-2 Test Drive ............................................................................................................................................ 25

Company Information ................................................................................................................................. 27

State and Local Tax items ........................................................................................................................... 28

W-3 Information ......................................................................................................................................... 30

Multiple Payroll Data Files .......................................................................................................................... 30

W-2 Grid Details .......................................................................................................................................... 31

Sort your W2 and 1099 forms………………………………………………………………………………………………….…………… 32

W-2 Printing and Filing Options ................................................................................................................ 34

CD Archive Delivery ..................................................................................................................................... 34

State Form Selection Screen ....................................................................................................................... 36

W-2 Control Numbers ................................................................................................................................. 36

eFiling and Reporting Amounts are Incorrect ............................................................................................. 49

Employee Totals Verification ...................................................................................................................... 50


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Payroll files for eFiling and Reporting ......................................................................................................... 51

How to Generate the ACA 1095/1094 forms .............................................................................................. 54

ACA Setup wizard ........................................................................................................................................ 54

ACA Preparer wizard ................................................................................................................................... 58

How to reconcile 1099 vendor amounts .................................................................................................... 71

How to print 1099-MISC, 1099-INT, 1099-DIV Forms ................................................................................. 72

1099 Printing and Filing Options ................................................................................................................. 80

1099 Forms Viewer ..................................................................................................................................... 81

Standard eFiling pricing ............................................................................................................................ 84

How to eFile Accounts Payable and Payroll forms ..................................................................................... 85

Viewing Forms Previously Printed, eFiled or Saved as Draft ...................................................................... 89

Who do I call for Support? .......................................................................................................................... 92

Knowledgebase Artciles …………………………………………………………………………………………………….………………... 93

= Action required = Helpful Tips & Reminders

Dark Blue underlined text are links to other sections within this guide, websites or applicable knowledgebase articles.

Throughout this guide KB IDs are referenced, to access them do the following:

1. Go to the Sage Support website at https://support.na.sage.com 2. In the search field, type the KB ID (i.e. 24210) and click Search button

https://support.na.sage.com/


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What is Federal & State eFiling and Reporting?

Federal and State eFiling and Reporting offers seamless integration with Sage 100

− Auto populated with Payroll & Accounts Payable data from an encrypted AUF (Aatrix Universal File)

− Eliminates the need to create tax reports and forms manually

It is easy to use

− Quick installation, activation & updates

− On-screen editing of the actual signature ready tax forms and reports

− No hassle eFiling option powered by Aatrix. To learn more about Aatrix, go to https://customer.aatrix.com/sage100

Approved signature ready Payroll forms/reports and A/P 1099/1096 (MISC, INT & DIV)

− 941, W2/W3, 1095/1094, 1099/1096, DE9, NYS 45, forms for all 50 states

− 330+ Approved State and Federal Forms and Reports

Don’t be confused by the menu name

- Most forms & reports accessed through any eFiling & Reporting menu tasks can be printed to plain paper for FREE

- eFile fees are only incurred when you choose the option to eFile forms processed using Aatrix

- All eFile fees are paid directly to Aatrix. For more details please see eFile pricing section in this document

https://customer.aatrix.com/sage100


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Installing Federal and State eFiling and Reporting (KB ID 18851)

Install from the Sage 100 Installation CD under Productivity Tools or Workstation Setup folder:

1. Using Windows Explorer, browse to where Sage 100 is installed and go to the …\MAS90\Wksetup folder

2. Right click on the Autorun.exe file and select Run as Administrator

3. Click Install Federal and State eFiling and Reporting

Review Installing Federal and State eFiling and Reporting section of the Installation and System Administrator’s Guide located in the Documentation section.

You must install Federal and State eFiling and Reporting on each individual Sage 100 workstation that needs access.

Do not install on Server. Exception to this rule is a Terminal Services environment where the server is used as a workstation.

Automatically installs to C:\Program Files\Common Files\Sage\Aatrix

An active Payroll Subscription plan or a Sage Business Care plan and Internet Connection is required.

Uninstall through Windows Add or Remove Programs (State/Federal eFiling and Reporting).


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In Sage 100 version 2014 and higher, if the workstation does not have eFiling and Reporting installed and the user selects one of the eFiling and Reporting tasks from within Payroll or Accounts Payable modules you receive the following prompts:

Click Yes and eFiling and Reporting client starts installing

Click Finish when completed.

Note: If you are unable to install, please see How to Install eFiling & Reporting section in this document.


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"You must install Federal and State eFiling and Reporting to access this task" (KB ID 21028)

After installation on a Windows 7 or if using Terminal Services to connect to a Windows 2008 Server, users may receive a message indicating the eFiling and Reporting has not been installed.

The additional Windows security, User Account Control (UAC) is blocking the eFiling application. User Account Control (or UAC) is included in Windows to help prevent unauthorized changes to your computer. UAC notifies you when changes are going to be made to your computer that requires administrator-level permission. These types of changes can affect the security of your computer or can affect settings for other people that use the computer.

To resolve the error:

Disable the (UAC) User Account Control. For more information see, http://windows.microsoft.com/en-US/windows7/Turn-User-Account-Control-on-or-off

Note: Sage cannot guarantee nor be responsible for the content of third party Internet sites. Contact that site's Webmaster with questions or problems.

• If error persists, uninstall eFiling and Reporting and reinstall with the UAC remaining off.

http://windows.microsoft.com/en-US/windows7/Turn-User-Account-Control-on-or-off


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How to Activate eFiling and Reporting (KB ID 18851)

Activation allows you to access eFiling and Reporting in normal mode. Activation requires an active Payroll Subscription plan or Sage Business Care plan and an internet connection. You will be prompted approximately every six months to activate. You will be prompted for activation accessing when accessing any of the following menu items:

Payroll > Period End > Federal or State eFiling and Reporting

Accounts Payable > Reports > Form 1099 eFiling and Reporting

Entitlement to Aatrix uses the Sage Advisor Update system to validate the customer account.

Click Ok to activate eFiling and Reporting.

“Accessing Entitlement data” screen briefly appears then eFiling Forms window opens if entitlement was successful


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“Demo” prints on tax forms (KB ID 20022)

For more details, click link to open knowledgebase article Unable to activate eFiling after installing updates or “Demo” prints on eFiling forms if eFiling and Reporting is not activated, 'Demo' or 'Expire Do Not File' will be printed on all documents.

If after installing required updates your application comes up in ‘Demo Mode’ AND you have an active Payroll subscription plan or Sage Business Care plan, it is most likely caused by a Registration mismatch.

We may have generated a new Sage 100 Customer Account Number, product Serial Number and Registration Key when we released Sage 100 2016, which will require you to update your Registration Information so that Federal and State eFiling and Reporting will activate and function properly. Your correct Customer Number, Serial Number and Registration Key can be found on the Sage Portal www.customers.sagenorthamerica.com or www.partners.sagenorthamerica.com

Important Warning: If you have 3rd party modifications installed, please contact the 3rd party developer before changing registration keys, installing any product update or installing the year end IRD update, to verify compatibility and that the modified program is not dependent on Sage product keys. To determine if you have any 3rd party mods installed, preview the Installed Modules Listing (located under the Library Master, Reports menu), look in the Developer column for anything other than Sage or Sage Software, Inc.

To access your registration information on the Sage portal, please do the following:

1. Login into Customer Portal 2. Click on Activation Codes menu and select Details 3. Select your applicable product from the drop down. 4. Locate the line that shows the Application description for SYSTEM SETUP

• Unlocking Key = User Key • Activation = Product Key

https://support.na.sage.com/selfservice/viewdocument.do?noCount=true&externalId=20022&sliceId=1&cmd=displayKC&dialogID=86200&docType=kc&isLoadPublishedVer=&stateId=86201&docTypeID=DT_Article&ViewedDocsListHelper=com.kanisa.apps.common.BaseViewedDocsListHelperImpl


http://www.customers.sagenorthamerica.com/

http://www.partners.sagenorthamerica.com/

https://customers.sagenorthamerica.com/


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Once you obtain your registration information, please do the following to update your Sage 100 registration keys:

1. Open Library Master, Setup, System Configuration 2. On the Registration tab, verify your registration information (Customer Number, User Key

and Product Key) matches exactly what shows on the portal. If it does not, click the Edit button.

3. After entering the correct information click the Activate button 4. Click Ok to prompt "Activation was successful" 5. Click Accept 6. Try activating eFiling & Reporting again, from either Payroll, Period End, Federal eFiling &

Reporting or Accounts Payable, Reports, 1099 eFiling & Reporting

Activation does not respond in Sage 100 Advanced (Sage MAS 200) (KB ID 21027)

Some users may experience eFiling and Reporting Activation not responding after clicking OK at the Verify Account Information window.

If you encounter this issue, the Sage 100 Advanced Application Server is running as a service with a user account that cannot see the activation file. This is typically caused when the Local System (System) account is used for the host service.

To resolve, change the logon for the Sage 100 Advanced Application Server service to a domain account. As a workaround, activate in Sage 100 Standard (MAS 90) mode. For more information, see the following Knowledgebase Articles:

• How to Run Sage 100 Advanced in Sage 100 Standard "MAS 90" mode (KB ID 21025)

• How to run Application Server or Host as a service for Sage 100 Advanced and Premium (KB ID 21026)


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Retaining eFile Check History (KB ID 53269)

Enter the number of years, from 2 through 99, to retain eFiling check history (file=PR_40). A minimum of 2 years must be entered to retain current and prior year history. eFiling check history that is past the number of years to retain is purged during year-end processing.

1. Open Payroll, Setup, Payroll Options 2. On the Main tab, verify the Years to retain eFiling History 3. Select Retain Perpetual History (This option is required to track hours for ACA ALE

Reporting) 4. Click Accept

Install year end updates Before processing/printing W2, 1095 (ACA) and 1099 forms you must first download & install the applicable product update, Year End IRD update and install the eFiling year end update.

After printing W2s and applicable annual payroll tax reports but before processing the new tax year’s payroll, you must install the new tax years Quarter 1 Tax Table Update (TTU).

Both of these updates are available for download on Sage Support website, log in to http://Support.NA.Sage.com and then click applicable links below.

• Sage 100: Download Portal (KB ID 23500) • IRD Downloads (KB ID 45892) • TTU Downloads (KB ID 45726)

http://support.na.sage.com/

https://support.na.sage.com/selfservice/viewdocument.do?noCount=true&externalId=23500&sliceId=1&cmd=displayKC&dialogID=193756&docType=kc&isLoadPublishedVer=&stateId=193757&docTypeID=DT_DOWNLOAD_1&ViewedDocsListHelper=com.kanisa.apps.common.BaseViewedDocsListHelperImpl

https://support.na.sage.com/selfservice/viewdocument.do?noCount=true&externalId=45892&sliceId=1&cmd=displayKC&dialogID=52674&docType=kc&isLoadPublishedVer=&stateId=52675&docTypeID=DT_DOWNLOAD_1&ViewedDocsListHelper=com.kanisa.apps.common.BaseViewedDocsListHelperImpl


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How to Update eFiling and Reporting forms (KB ID 18851)

IMPORTANT: You must install the applicable Product Update (or Sage 100 2017) and the Year End Interim Release Download (IRD) before processing & printing year end tax forms.

You will be prompted at least once every quarter to update the forms - (20% of Tax forms change quarterly)

Mandatory Quarterly Updates are available March 20th, June 20th, September 20th and December 20th* (*Year End updates are included in the December update)

All reports are automatically updated with on screen selections

Program fixes are delivered through automatic updates

*Dates subject to change

If the eFiling & Reporting has just been installed and has not updated for the previous quarter(s), click Yes when the prompt below displays:

If you have already updated the prior quarter(s), the following prompt will display for any future updates. Click Automatic Update to install the update.


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"Unable to download new updater." or "Updater 2: Unable to download new updater" occurs when installing an eFiling update (KB ID 20525)

Occasionally during an Automatic update, one of the above errors will be received. In order to resolve the error and install the update, perform the one or more of the following resolutions:

• Internet Options o Add the web address for https://www.sagemas.aatrix.com to your trusted

websites in Internet Options on the Security tab. o On the Privacy tab, click on Sites button and allow the following websites:

aatrix.com aatrixforms.exe updater.exe updater2.exe

• Verify firewall settings

o The Aatrix Forms Updater uses standard HTTP port 80 to access the site http://updates.aatrix.com

o Aatrix Forms uses the following programs to access the Internet For Updating using http on port 80 to http://updates.aatrix.com aatrixforms.exe updater.exe updater2.exe

• Manually download & install the update

o Go to https://www.aatrix.com/partners/sage100/ o Under the Quarterly Updates section, click the Sage 100 link o Click to Save As the MAS90.exe file to your workstation desktop o Right click the MAS90.exe file and select Run as Administrator o Click Yes at prompt “The setup will perform an upgrade of ‘State/Federal eFiling

and Reporting’ Do you want to continue?” o Relaunch Federal or State eFiling and Reporting; click Automatic Update if

prompted for an update

• For specific technical requirements & further information for Aatrix updates o Go to http://aatrix.com/updateshome/techinfo/ o Go to http://aatrix.com/updateshome

https://www.sagemas.aatrix.com/

http://updates.aatrix.com/

http://updates.aatrix.com/

https://www.aatrix.com/partners/sage100/

http://aatrix.com/updateshome/techinfo/

http://aatrix.com/updateshome/


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How to Reconcile Payroll Tax Forms & W2s (KB ID 56085)

Before closing the quarter or year we recommend printing (at the minimum) the following reports to assist in reconciling your Payroll Tax Forms & W2s:

• Quarterly Tax Report (Payroll>Reports menu) (KB ID 26733) • Quarterly Governmental Report (Payroll > Period End menu) (KB ID 49696) • Deduction Reports (Payroll>Reports menu) (KB ID 49698) • Employee Verification Report (Payroll > Period End menu) (KB ID 26175)

For more details see KB ID 19504 or click link How to Process Quarter/Year end in Payroll Or visit Sage 100 Year End Center on Sage City and Payroll Year End Checklist

TIP! See KB ID 49809 - How to Setup Paperless Office to save your Period/Year-End Reports in Sage 100

Reconciling Forms 941 and Form W-3

Per the IRS Form 941 Instructions http://www.irs.gov/pub/irs-pdf/i941.pdf

The IRS matches amounts reported on your four quarterly Forms 941 with Form W-2 amounts totaled on your yearly Form W-3, Transmittal of Wage and Tax Statements. If the amounts do not agree, you may be contacted by the IRS or the Social Security Administration (SSA). The following amounts are reconciled:

• Federal income tax withholding (941-line 3, W3-box 2) • Social security wages (941-line 5a column 1, W3-box 3) • Social security tips (941-line 5b column 1, W3-box 7) • Medicare wages and tips (941-line 5c column 1, W3-box 5)

For more information, see section 12 of Pub. 15 (Circular E) and the Instructions for Schedule D (Form 941) on the IRS website at www.IRS.gov

TIP! For more details and to help you reconcile, download the 941_W3 Worksheet found attached to KB ID 56085 - How to Reconcile Payroll Tax forms & Reports


http://sagecity.na.sage.com/support_communities/sage100_erp/sage100-yearend/

https://sagecity.na.sage.com/support_communities/sage100_erp/sage100-yearend/w/yearend_articles/235.payroll-ap-1099-year-end-checklist



http://www.irs.gov/pub/irs-pdf/i941.pdf

http://www.irs.gov/



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How to Print Payroll Tax Forms & Reports (KB ID 52376) Note: The steps below use the CA DE9 form as the example but the same basic steps apply to all Federal & State payroll tax forms, with the exception of processing W2s, 1095s and 1099s.

TIP! See related knowledgebase article, How to Print 941 & Schedule B form (KB ID 27107)

1. Open Payroll, Period End, select Federal or State eFiling and Reporting 2. Select applicable State from drop down list 3. Highlight the applicable form/report 4. Verify the correct Year and Quarter are selected 5. Verify Company Information

• Your company information including Federal ID #, automatically populates from Company Maintenance (Library Master > Main menu) but can be changed in this window if needed.

6. Click Accept button

If this is the first time you have accessed eFiling & Reporting or a change was made to your company information or tax ID number, the Company Setup wizard will display, please see Company Information section.

If there are mandatory fields that are not stored within the Sage 100 database, you will receive the prompt below indicating that fields displayed in RED must be completed before continuing:

http://agente.finesse.na.sage.com/desktop/container/?locale=en_US#https://support.na.sage.com/selfservice/viewdocument.do?noCount=true&externalId=27107&sliceId=1&cmd=displayKC&dialogID=41664&docType=kc&isLoadPublishedVer=&stateId=41665&docTypeID=DT_Article&ViewedDocsListHelper=com.kanisa.apps.common.BaseViewedDocsListHe


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TIP! After entering required information in a red field press TAB to jump to the next red field.

Your current step is noted at the top of the Form Viewer. Fields that are highlighted in blue can be edited within the form.

Information edited in the form viewer will not be saved back to Sage 100 data files.

Once all steps are completed, a prompt displays to ‘Double Check’ or ‘Agree’. ‘Double Check’ will return you to the form viewer. Upon choosing ‘Agree’, a copy of the report is saved into History. You are then prompted to print a copy for your records.


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After printing a copy of the form for your records, the form or report can then be printed on plain paper or eFiled for a fee. For more information on eFiling, see the How to eFile Accounts Payable and Payroll forms section of this document.


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What forms do I use to print W2s, 1095s and 1099s? (KB ID 52202)

Sage 100 includes "print and sign" tax forms functionality for payroll tax forms using eFiling & Reporting. This feature eliminates the need for some preprinted forms — allowing you to print on plain paper instead. However, IRS regulations require that employee copies of Form W-2 (Copies B, C, and 2) and Form 1099 (except Copy A) be printed on perforated paper and individual filing instructions be given to each employee (IRS Publication 1141 Sec. 2.05 and 2.19 and IRS Publication 1179 Sec. 4.5.3). Sage Checks and Forms offer these plain paper forms in the required perforated format.

NOTE: At this time Aatrix only supports printing W2s and/or 1099s 4 per page.

W2/W3 forms

• Employee W2 (Copy B, C and 2-Copy 2s) = Blank 4 part perforated with Employee notice on back (Sage Forms part # LW2BLANK4 or LW2BK4DWS)

• Federal W2 (Copy A) (prints 2 employees per sheet) = Print to Plain Paper (The Federal W2-SSA copy cannot be printed on perforated paper)

• Federal W3 = Print to Plain Paper (The Federal W3-SSA copy cannot be printed on perforated paper)

o The Federal Copy A & W3 forms do not need to be printed on pre-printed forms with red ink, please see Additional Information at the end of this section.

• State - Copy 1 (prints 4 employees per sheet) = system will prompt you to print to Blank 4 part perforated but please contact individual State agency for specific W2 printing/perforation requirements

• Employer W2 (Copy D) (prints 4 employees per sheet) = Print to Plain Paper or Blank 4 part perforated

ACA - 1095 forms

• Employee 1095-B - Blank Full page w/instructions on back (Sage Forms #L1095BBLK) • Employee 1095-C - Blank Full page w/instructions on back (Sage Forms #L1095CBLK)

** Forms 1094 and 1095 Federal & Employer copies can be to plain paper

**Note: When using eFiling and Reporting to print ACA 1095 forms, Aatrix has designed their form templates on both of the 1095 forms to print the employee's address in alignment with the existing W2 envelope, to help reduce costs.


http://www.irs.gov/pub/irs-pdf/p1141.pdf



http://www.sagechecks.com/estore/Tax-Forms/W-2s-and-W-3s/LW2BLANK4/prod1740201_prd.p?navAction=jump&networkId=Sage

http://www.sagechecks.com/estore/Tax-Forms/W-2s-and-W-3s/LW-2BK4DWS/prod1740210_prd.p?navAction=jump&networkId=Sage

http://www.sagechecks.com/estore/Sage-100-(MAS90/MAS200)/2014-(5.1)-and-later-w/E-filing-/Laser-1095-B-Blank-w/Instructions/prod3000135_prd.p

http://www.sagechecks.com/estore/Sage-100-(MAS90/MAS200)/2014-(5.1)-and-later-w/E-filing-/Laser-1095-C-Blank-w/Instructions/prod3000136_prd.p


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1099/1096 forms

• Recipient 1099 (Federal, 2-Copy 2's and Copy B) = Blank 4 part perforated form (Sage Forms part # L99BLANK4 or L99BK4DWS)

o Note: The recipient notice is not printed on the backs of these blank forms; you will need to print the recipient instructions to plain paper from within 1099 eFiling viewer screen.

• Federal 1099 (Copy A)** = Copy A must be printed on official preprinted federal forms RED ink. Please contact Sage Forms for specific part # applicable to the type of 1099 forms you will be printing (MISC,INT or DIV)

• Federal 1096 Form** = 1096 Form must be printed on official preprinted federal forms RED ink. Please contact Sage Forms for specific part # applicable to the type of 1099 forms you will be printing (MISC,INT or DIV)

• Payer 1099 (Copy C) (prints 4 recipients per sheet) = Print to Plain Paper or Blank 4 part perforated

• State 1099 (prints 4 recipients per sheet) = system will prompt you to print to Blank 4 part perforated but please contact individual State agency for specific 1099 printing/perforation requirements. Some states do not require 1099s to be filed.

• State 1096 = Print to plain paper but please contact individual State agency for specific 1096 printing/perforation requirements. Some states do not require 1096 form.

Sage Forms Division provides approved 2016 IRS forms and they are the only forms we guarantee to be 100% compatible with Sage 100 integration with eFiling and Reporting.

All of these forms can be ordered from Sage Checks & Forms, please visit http://www.sagechecks.com and select Tax Forms or call them at 800-617-3224

http://www.sagechecks.com/estore/Tax-Forms/1099s-and-1096s/L99BLANK4/prod1740197_prd.p?navAction=jump&networkId=Sage

http://www.sagechecks.com/estore/Tax-Forms/1099s-and-1096s/L99BK4DWS/prod1740207_prd.p?navAction=jump&networkId=Sage

http://www.sagechecks.com/


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Additional Information for Federal Copy A and W3 forms:

The Federal W2 Copy A and W3 forms that print from within the Federal eFiling & Reporting (Aatrix) program have been certified for submission on plain paper by the IRS. The boxes are not required to be printed in red ink on computer-generated forms. You can identify the approved form by looking for the numbers 0000/1048 under the year on the W2 form and in the Employers email address box on the W3 form.

W2 Form: W3 Form:

Additional Setup for Local Tax Codes (KB ID 20895)

Additional setup is required in order for Local tax wages & taxes to show in W2 Boxes 18, 19 and 20. Select the applicable Local Tax Code Description in Tax Table Maintenance. Note: Require Local Tax Reporting must first be selected in Payroll Options.

1. Open Payroll, Setup, Tax Table Maintenance 2. Select State from look up, press TAB 3. Select applicable local code from look up or type a unique user defined 3 character local tax

code, press TAB 4. In the Local Tax Code Description field, select the applicable Tax Description from drop

down list o If the local tax description is not listed, select LOCAL WITHHOLDING TAX (xxxx) from

drop down list. TIP: There will be a 4 digit number in parenthesis after each description, this number is an internal number used by Aatrix only.

o Important note: You must select a local tax description from drop down list, in order for Local Tax amounts to populate into tax forms, see KB ID 20895 for more details.

5. Click Accept


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Note: Only local withholding wages and tax will be automatically populated on the W-2.

Other Local Taxes (KB ID 20899)

Other Local Tax amounts now populate in Box 14 of the W2 form, when a Local Tax Code is setup with both a Local Withholding Tax and Other Local Tax.

If you only have the Other Local Tax setup and you need the wage and tax amounts to print on W2 in Boxes 18 & 19, you must add the column and manually enter data into the W2 Preparer grid. Perform the following:


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To manually add the amounts and edit descriptions in W2 Box 18 and Box 19:

1. In W2/1099 Preparer, select Edit and click Add State. Select the Locality column. 2. In the State & Local tax items window, click Add Locality. 3. Select State from the list. Enter the text to print on the W-2 in the Custom Locality Name. 4. Select Tax Type from the list. 5. Click OK. 6. Click Proceed. 7. Manually enter the Locality Wages and Tax Amounts in Box 18 and Box 19. 8. Complete W2/1099 Preparer.

If the Other Local Tax amounts can or need to be included in Box 14, please see Box 14 section in this document.

Printing Amounts in Box 12 (KB ID 21032)

1. Open Payroll, Setup, Deduction Code Maintenance, 2. Select from look up or create a two character user defined Deduction Code & Description 3. Type the applicable Box 12 code in the Box 12 Label field

• For list of Box 12 codes, please visit www.IRS.gov 4. Click Accept

Note: Once setup, the Box 12 codes will automatically populate into W2 preparer grid. If two or more deduction codes use the same Box 12 code, the amounts will be added together & the total sum will print on W2 form. Up to 16 different Box 12 codes will automatically populate into W2 grid.

VERY IMPORTANT! All applicable Box 12 code must be saved in Deduction Code Maintenance before closing year end, in order for the PR_41 file to be updated correctly.

http://www.irs.gov/


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Printing Amounts in Box 14 (KB ID 18867)

Other Local Tax amounts will populate in Box 14 of the W2 form, when a Local Tax Code is setup with both a Local Withholding Tax and Other Local Tax.

Enter or select from lookup up to two earnings codes and two deduction codes for which to print year-to-date earnings and deductions information. The related earnings/deduction information will print in Box 14 on the W-2 forms for all selected employees. Note: If you have more than 2 Misc Earnings &/or deductions please see section, How to import into W2 Preparer Grid, in this document

Note: If you reprint W-2 forms at a later time, you must enter the same earnings/deduction codes to print the same information on the forms.

To change Box 14 description labels on the W-2:

The columns will display in the grid as DedCode1, DedCode2, EarnCode1 and EarnCode2

1. In the W2 grid, right click on the applicable Box 14 Column description noted above and select Rename


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2. Type the Description you would like to print on the W-2 Note: only the first 10 characters will print

3. Click Ok

How to Print W-2/W-3s (KB ID 26818)

1. Open Payroll, Period End, Federal eFiling and Reporting. 2. Select xxxx W-2/W-3 form (xxxx=Tax Year) 3. Verify the correct Year is entered 4. Verify Company Information

• Your company information including Federal ID #, auto populates from Company Maintenance (Library Master > Main menu) but can be changed in this window if needed

5. Select the Kind of Employer: • Federal Government if your company is a federal government business type. • State and Local Government if your company is state or local government business

type • Tax Exempt if your company is a tax exempt business type • State and Local Tax Exempt if your company is a state or local tax exempt business

type


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• None Apply if this option does not apply to your company. 6. In order for Misc Earnings & Deduction Codes to automatically print in Box 14, they need to

be selected in this screen. For more information see the Printing Amounts in Box 14 section in this document.

7. Click Accept button

Note: If the 4 digit year in the front of some tax forms descriptions is not correct or is missing, select the form and click Accept and then click Automatic Update. Note: 2016 W2/W3 forms will be released in Aatrix’s year end automatic update, on December 12th.

W-2 Test Drive

The W-2 Test Drive feature allows you to take a “test drive” of the W-2 process without actually saving any data. This will allow you to become more familiar with the process before actually filing. You will only be displayed this dialog if you have not processed any W-2 filings for the current filing year.

If you select to run the W-2/W-3 Wizard in test drive, you will not be able to save any of the information as a draft or a history to be used again.


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TIP! If you need more details on ANY screen from within the setup wizard or ANY

window/grid within eFiling & Reporting, click the at the top right corner.

Verify Federal Employer ID Number The number displayed here will be used on all forms. If the number is incorrect, click the Cancel button to close the W-2 Setup Wizard. Then you must verify the correct and same exact FEIN is in entered into Company Maintenance, Tax Table Maintenance (FED record) and in eFiling & Reporting main window.


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Company Information

The company information screen displays all of the information that relates to your company and is used to display in the forms. The Contact name, phone and address can be entered on this screen to populate those fields on your forms.

Tax Preparer Type

The tax preparer dialog displays for you to indicate whether you are filing for your own company or if you are a filing as a paid Tax Preparer for another company. If you have 10 or more companies, Batch Filing will allow you upload several filings and then access the eFiling website when you are ready to transmit them to the appropriate agencies. For more information, click the link within the wizard window or visit http://aatrix.com/batchefiling

http://aatrix.com/batchefiling


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State and Local Tax items (KB ID 40509)

The state and local tax items dialog is used to display all the state and local tax that you have defined in your payroll as well as the corresponding account numbers for state and local tax.

Note: If the local code(s) are not listed. Please confirm you have selected an applicable local code description from the dropdown list in Tax Table Maintenance. For more information please see the Additional Setup for Local Taxes section of this document.

If your State Unemployment or Disability Tax Account Number differs from your State Withholding Company Tax Id Number in Tax Table Maintenance, you will be prompted to change it here. The Tax Account Numbers entered here will be retained for future filings in the Company Information. Please note the Company Tax Id Number in Tax Table Maintenance will not be changed.


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Tip! If your Tax account number format is not listed, click the button to select additional account formats.

Data Verification

There are five questions you must answer Yes or No, which allows for the data verification process in the W-2 employee grid to become dynamic based on your answers.

Important: If you select Yes to the question #4, “Do you have any employees who elected to only receive W2 forms electronically?”, please see W2 Electronic Consent section in this guide for specific requirements.


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NOTE: The data verification dialogue will only appear if you are working on a new filing and not opening the Grid to make changes to a work in progress.

W-3 Information

The W-3 information screen only displays when you are processing W-2 forms and allows you to indicate information related to your company that displays on the Federal W-3 form. The Kind of Payer & Kind of Employer must be selected on this screen. The Control Number, Third-party sick page, Establishment Number, Other EIN and Business terminated this year checkbox are all optional selections. If any of this information needs to be on your company’s W-3, make your selection here.

Multiple Payroll Data Files (KB ID 26156)

The multiple payroll data file merge feature is used for companies or tax preparers that keep separate databases for employees working under the same Federal EIN (Employer Identification Number).Some examples of these are separate departments, divisions, company names under the same EIN, branches, etc.

This feature allows you to bring in two or more data files and merge them together so all the information is combined when you are printing or eFiling your W-2 forms. Note:

TIP! This feature is now available for all payroll tax forms that are using the same Federal EIN.

If you select the radio button option for “Yes, I use multiple payroll data files for this EIN”, you will be taken to the multiple payroll data files merge tool after the company setup wizard is complete. For more


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information click the help icon in the wizard window or see KB ID 26156 - How to merge Multiple Data files in eFiling & Reporting

W-2 Grid Details

The W-2 employee grid displays all of your W-2 relevant employee data in an Excel like grid with columns and rows of information. The columns in the W-2 employee grid correspond to the boxes on the W-2 forms. The W-2 employee grid performs several data verification steps in the grid to ensure you have the correct W-2 information and to avoid rejections by Federal and state agencies. The verification step is noted at the top of the grid. The first step is to Verify Employee Information. The remaining steps will vary depending on your selection at the Data Verification screen. Click Next Step button at the top to proceed through each step.

Tip! The totals now appear at the top of each column, which will populate the W3 form. You should use these totals to match to your Payroll report produced out of Sage 100 (i.e. Quarterly Tax Report – YTD amounts), see How to Reconcile Payroll reports & W2s section in this guide.

Tip! Any information edited in this grid will not be saved back to your Sage 100 data files.


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W2 and 1099 SORT FIELD: (KB ID 56668) The “Sort Field” located in Employee Maintenance is now pulled into W2 grid in the “Sort Text” field.

The “Sort” field located in Vendor Maintenance > Additional tab is now pulled into 1099 grid the the “Sort Text” field

In the W2 grid or 1099 grid, Right click on the Sort Text column heading and click Sort rows by “Sort Text”


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W-2 Printing and Filing Options

Once you have completed the steps in the W-2 Preparer, you are able to select your processing options. You can select to eFile or print your own W-2s or a combination of both. If selecting Other Options and Print my Employee W-2s, you will need to use blank perforated 4 per page W-2 forms. These forms should have a blank front and the Notice to Employees preprinted on the back of the form. These forms can be purchased from Sage Forms Division at 800-538-5514.

Review before purchasing tax forms, What forms do I use (or order) to print W2, 1095s and 1099s? (KB ID 52202)

CD Archive Delivery

If you have selected to eFile the complete service you also have the option of purchasing a CD that will be mailed to either the taxpayer or tax preparer. The CD will contain a Password Protected PDF of each copy of the forms that will be eFiled on behalf of the company.




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State Selection Screen

If you selected to process your state copies in the printing and processing screen and you have more than one state in the employee grid, you will be displayed the state selection screen.

All of the states that you have in your employee grid will be selected by default in the dialog but you have the option to not processing certain states by un-checking the box beside the state abbreviation. NOTE: Not all states require W-2s to be processed and sent to them, you will only see the states that are required in the state selection screen.


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State Form Selection Screen

Some states have more than one reconciliation form and you need to select which one applies to your company. If one or more states that you are processing have more than one reconciliation form you will be displayed a state form selection screen for you to select which form applies to your company.

For example, Arizona has two reconciliation forms. If you are a quarterly payer you must submit the A1-R report with your W-2s but if you are an annual payer you must submit the A1-APR with your W-2s or 1099s.

If you are not sure what forms applies to your company please check with your state agency.

W-2 Control Numbers

If you selected to use W-2 control numbers during the company setup wizard a dialog will appear. On this dialog you can select if you want your control numbers starting with a number and/or the states with the first three letters of the employees’ last name. You can select to have the control numbers by the employee's ID number that was displayed in the W-2 employee grid. Or you might have changed your mind and decided that you no longer want to print control numbers.

Once you have selected one of the three options click the Next button.


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Divider Sheets

Divider sheets are only available if you have selected a processing option that includes printing one part or all of your W-2s. Divider sheets are extra sheets that print in between your different W-2 forms and provide some extra information on what to do with the forms and helps to keep all of your forms separated.

The divider sheets do not actually display in the Forms Viewer and will automatically print to your printer if you select to use divider sheets.


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Below is an example of the information that prints on the divider sheet for the Federal W-2 copy:

Filing Instructions for: 2016 Federal W-2 and W-3 Forms For: <Company Name> Form Description: Copy A of Forms W-2 including W-3 Where to File:

File Copy A of W-2s and W-3 with the Social Security

What to Sign: Sign the W-3 form before mailing. The W-3 will print after the Federal W-2’s forms.

Action List

The action list appears right before your forms are displayed in the Forms Viewer. The action list allows you to confirm all of your processing options to make sure that all the forms that you selected to eFile or Print will be display correctly.

You should make sure to review this action list for accuracy to make sure all of your states and local forms appear. The eFile Center will not receive any forms that are not displayed on the action list.

Click the Print button if you want to have a copy of the action list for your records. Once you confirm that your processing options are correct, click the Next button.


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W-2 Forms Viewer

You have completed all the steps in preparing to process your forms. The forms will now be displayed in the Forms Viewer. The processing step is indicated at the top of the viewer as displayed below. You can print your Final copies from the viewer by clicking Print Final. You proceed to the next form by clicking Next Step.

If the selected form requires special paper stock, you will be prompted to load your printer when clicking the Print Final button. For example, if you have selected to print your own W-2s you will be prompted to load your 4 part perforated W-2 forms into your printer. Once all steps have been completed, the eFile Login will appear. For more information on the eFile process, see How to eFile Accounts Payable and Payroll forms section of this document.


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For more details, see What forms do I use to print W2, section of this guide.


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How to import data into W2 preparer grid: (KB ID 53636)

You can import into any column in W2 grid that does not have a mini grid (i.e. State Wages

1. In W2/1099 Preparer grid, right click and select Insert 2. When prompted to name the column leave all fields blank and click Ok 3. Click on the dropdown arrow next to the <unassigned> column you just inserted and select

Import CSV file to this column 4. Select your CSV file to import

• The .CSV file must include the employees social security number (include the dashes, i.e. 555-55-5555) and only the amount to be imported into that specific column

• Only employees that have amounts to be imported into the column need to be included in your CSV file

5. Click Yes, to the prompt, “the number of cells to be imported into the Preparer does not match the number of existing cells. Would you like to continue?”

6. Click OK, if the prompt, "X of the entries in import file were not posted because the correct SSN could not be found in the grid" displays and you have confirmed this is correct.

7. Click drop down arrow next to <unassigned> column and select applicable Box # 8. In the W2 grid, right click in the blank field under the Box # and select Rename 9. Type the Description you would like to print on the W-2

Note: only the first 10 characters will print 10. Click OK


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Populating the Employee E-mail Address in the Electronic Delivery Column Note: Employees email address are not required, you may manually enter or import the employees’ email address into the W2/1099 Preparer grid or print them out an access letter on how they can access their W2s online. To set up the employee's e-mail address to automatically populate into W2/1099 preparer grid you will need to do the following: In Paperless Office module: 1. From Paperless Office Setup menu select Options. Check the Forms checkbox. 2. From Paperless Office Setup menu select Form Maintenance. Complete the following: a. Company Code b. Module Code (P/R) c. Document (Direct Deposit Stub) d. PDF Directory e. Override Password/Confirm Password

In Payroll module: 1. From Payroll Setup menu select Payroll Options. On the Direct Deposit tab select

Require Direct Deposit checkbox. 2. From the Payroll Main menu select Employee Maintenance. Select applicable employee

no from lookup, select the Direct Deposit checkbox and then click the Direct Deposit button.

3. On the Direct Deposits window click the Paperless button. 4. On the Paperless Office Delivery Options window, complete the following: a. PDF Document Password b. E-mail Address (for employee). Note: After setting up the e-mail address for an employee, if that employee is not usually

paid by Direct Deposit you may deselect the Direct Deposit checkbox on the Main tab in Employee Maintenance. The e-mail address entered will be retained. You will need to perform the Payroll steps 2 through 4 for each employee you want to set up with an E-mail address.

For more detailed information on processing Electronic W2s and Federal Guidelines, please see eFiling Help files or KB ID 26182 – How to email W2s To access eFiling help:

1. From within the W2/1099 Preparer grid, click Help, Preparer Help 2. Click Search tab, and search for Electronic W-2s (eW-2)


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W2 & 1095 Electronic Consent (KB ID 26182)

IMPORTANT NOTE: Per Federal guidelines, if an employee chooses to receive an Electronic W2 or Electronic 1095, you must have them sign a consent form. You can receive an employee's consent on paper or electronically. Aatrix provides you with forms "Electronic W-2 Consent” and “Electronic 1095 Consent” forms that are available in the Report Selection Window. These forms contains specific information that the IRS requires you to provide your employees.

To acknowledge and keep track that you received a signed W2 Electronic Consent &/or 1095 Electronic Consent Form from your employee and they chose to only receive their W2 &/or 1095 electronically, do the following:

Selecting this option will determine whether the employee receives an electronic or paper W-2 &/or 1095 form.

1. Open Payroll, Main, Employee Maintenance 2. Select applicable Employee No from lookup 3. Click Wages tab, click Tax Status button 4. Select the W2 Electronic Consent Signed &/or the 1095 Electronic Consent Signed box 5. Click Ok, then click Accept

o Note: Selecting either of these options will also select the Electronic Only field in the W2/1099 &/or 1095 Preparer windows, when processing W2s &/or 1095s using Federal eFiling and Reporting.


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Online W2 Wizard

The Online W-2 Wizard is a tool that allows you to email employee’s access to their online W-2s, edit/update employee email addresses, and print or email existing online W-2 passwords.

After the W-2 forms are eFiled, the Online W-2 Wizard will appear. On the introduction screen, there are 3 options:

1. Email Employee Access Letters 2. Print Employee Access Letters 3. Return Later

The employee/recipient email selection screen lists all of the employees/recipients that were submitted. If there are any employees/recipients who have opted-in to receive online W-2s/1099s only, they will be highlighted in yellow. In this dialog, simply select the employees/recipients to email their access letters, and make sure they have a valid email address. Change or add an email address directly in this screen


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The next screen asks for an email address. Online W-2 access letters are sent directly from the email address entered to avoid employee's/recipient's not recognizing an outside address, or have it blocked by spam filters. Enter the email address, then click Next.

The Online W-2/1099 Wizard then attempts to identify the email settings. If using a web-based email, a screen will ask for the password. If using an email application, like Outlook, and the Online W-2 Wizard cannot find it, a screen will ask for the server settings.


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Next, the Online W-2 Wizard will attempt to send a test email to the address entered. A dialog will ask if the test email was received.

If the test email was not received, remember that it may take several minutes to receive the email.

If certain that the email will not be delivered, click No and a dialog will ask for the email server information again.

After indicating that you received the test email, a screen will ask to enter the contact name. This name is used on the access letters for the employees/recipients to contact with issues or questions. Then click Next.


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The next screen will verify that the emails are ready to be sent and the email address they will be sent from. If ready for the emails to be sent, make sure the Send Emails from this address radio button is selected, then click Next.

Click the Send Now button. The Online W-2/1099 Wizard will then send the emails to the employees/recipients. The progress will be displayed on screen. Once the emails have been sent, a confirmation under the Progress text will say Complete. Click Next to continue.

Then choose if you are finished with Online W-2s/1099s, or select to print access letters.


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Once finished, the final screen will remind you that you can always return later to the Online W-2 Wizard to obtain passwords or email/print access letters by opening the W-2 forms in the accounting software and selecting eW-2 Password Lookup on the W-2 History Options screen.

For more detailed information on the Online W-2 Wizard, see eFiling Help files To access eFiling help:

1. From within the W2/1099 Preparer grid, click Help, Preparer Help 2. On the Contents tab, expand Online W-2/1099 Wizard


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***Missing*** displays on Reports and Forms

This issue should no longer exist after installing the following versions/product updates, if the employee who is set as terminated but has records in PR_40 file they are not removed from PR1 file:

• 2016 or higher • 2015 PU3 or higher • 2014 PU7

Terminated Employees display ***MISSING*** as employee first and last name. During Payroll Year End Processing, any employees set to a Terminated status in Employee Maintenance are purged. The terminated employee's constant information displays as ***MISSING*** on eFiling and reporting forms and reports.

To display the employee’s constant information, perform one of the following:

Manually enter the employees data in the W2/1099 Preparer

Reenter the employee in Employee Maintenance using the same employee number

Restore from backup prior to closing the year and set the employee to Inactive

eFiling and Reporting Amounts are Incorrect


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If the conversion upgrade from versions 4.20 & lower upgrading to versions 4.30 & higher was performed after the first payroll in the current quarter was processed, some values might be placed in the wrong boxes on some forms. The amounts will need to be edited manually in the eFiling & Reporting forms viewer.

The following quarter's information should be correct since payroll for the entire quarter has been processed in versions 4.40 or higher.

If any amounts are incorrect you can manually change amounts in any blue or red field directly in the Form Viewer.

Please click link for more details, on editing employee eFiling Check History

Employee Totals Verification (KB ID 26175)

Available on the Payroll > Period End menu, this report lists employees with discrepancies, and employee totals that differ from check totals. Review this report before printing W-2 forms to verify the correct information is reported.

• Check Total column = Tax Summary in Employee Maintenance (PR3xxx.soa file) (xxx=Company Code)

• Employee Total column = eFiling record (PR_40xxx.soa file)

For more information on using this report, please see How to use the Employee Totals Verification Report (KB ID=26175)


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Payroll files for eFiling and Reporting

The files that store payroll information used for eFiling and Reporting.

PR_40 - PR Federal/State eFiling and Reporting

− Holds check history for eFiling & Reporting per settings in Payroll Options Years to Retain eFiling Check History

− During conversion to Version 4.30 or above, quarter to date and year to date information is copied from PR3 (Employee Tax Summary) to PR_40 to start the data history

PR_41 - Federal W-2 eFiling Summary

- Allows printing of W-2s after Year End Closing for eFiling and Reporting.

PR_41 gets populated the following 2 ways:

1. During the year if you are in eFiling and Reporting select the W2s and click Proceed 2. During Year End processing (update from year end processing will overwrite the file if you

have done step #1) PR_41 is populated with data from PR1 file (data entered in the following fields in Employee Maintenance> Tax Summary; Allocated Tips, Fringe Benefits, Nonqualified and Dependent Care) and from the PR4 file up to 16 deductions that have Box 12 codes defined as well as up to 2 Misc types of earnings and 2 standard deductions that would populate Box 14.

− IMPORTANT NOTES:

Terminated employees are no longer removed from PR1 file during year-end

processing if the employee has records in PR_40 file All applicable Box 12 codes must be entered in Deduction Code Maintenance prior

to processing year end.


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Editing eFiling Check History Data (KB ID 26902) If you must edit employee(s) eFiling Check History, please follow steps below:

Important Warning: Make a backup or copy company before using this utility to edit the PR_40 file. We recommend you contact Sage Support or your Business Partner for assistance using this utility.

1. Click File, Run and type syzcon and click Ok 2. Type: run "PRWSNA" and press ENTER 3. Read the warning prompt and click Ok 4. Select the Employee No from lookup and manually enter the applicable check date that

needs to be corrected. There is not a look up field for check date; you must know exact check date. This will help in preventing user from inadvertently selecting the wrong record. TIP! You can find the check dates in Employee Maintenance, on the Checks tab.

5. Double click the applicable record to be modified or highlight and click Edit Entry button.

TIP! Initially records list Federal records first then in State alpha order. If the employee has multiple checks listed for same check date; click the Seq column to sort by Sequence number, because each check usually has more than one record for each check (Federal & at least one State). This is helpful to ensure you have changed all the applicable records associated with that same check.


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6. Make necessary changes and click Accept NOTE: depending on what information is being changed, multiple records (Federal, State or Local) may need to be changed per check.


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How to Generate the ACA 1095/1094 forms

The following steps presume you have completed the ACA setup steps outlined in knowledgebase article, How to Setup Affordable Care Act (ACA) in Sage 100

You must have a supported version & product update installed and also install the Aatrix year end automatic update released on December 20, 2015 in order to have the 1095/1094 forms available.

Note: A 1095 form will be generated for all employees who have information entered in the ACA Employee Maintenance > Monthly Detail and/or Covered Individuals screens

1. Open Payroll, Period End, Federal eFiling & Reporting 2. Select 2016 1095/1094-C or 2016 1095/1094-B

• Note: The 1094/1095 "B" forms will only be available in Sage 100 versions 2014 and higher.

3. Click Accept

For details on which forms to use when printing the 1095/1094 forms, see ACA 1095 forms section in this guide.

ACA Setup wizard

The ACA Test Drive feature allows you to take a “test drive” of the ACA process without actually saving any data. This will allow you to become more familiar with the process before actually filing. You will only be displayed this dialog if you have not processed any ACA filings for the current filing year.

If you select to run the 1095/1094 Wizard in test drive, you will not be able to save any of the information as a draft or a history to be used again.




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Applicable information is automatically populated from ACA Employer Maintenance. NOTE: You will need to manually fill in the Contact first and last name as well as the Contact phone number as these are required fields.

If


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If you have selected in ACA Employer Maintenance that you are a Designated Government Entity (DGE) the option will automatically be selected, but can be changed here.

If applicable, this information will be automatically populated from ACA Employer Maintenance, but can be changed here.

Choose if you would like to truncate the Employee’s social security number on the employee copy of the 1095 form. Note: all social security numbers will display on screen. Truncation is applied on printed copies only.


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See Multiple Payroll Data Files section in this guide for more details.


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1095/1094 “C” forms Preparer wizard Step 1 of 5: Employer Information Information populated automatically from ACA Employer Maintenance and ACA ALE Report

TIPS! • Any changes made while in the 1094/1095 preparers will not be saved back in your data

in Sage 100 • Additional help is available when you hovering headers, errors and other new ACA

terms. • Click Edit > Update Company Setup to review and/or edit company information,

including DGE and masking/truncation options.


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Step 2 of 5: Employee Contact Information Information populated automatically from ACA Employee Maintenance window

NOTES:

• ”Plan Start Month” field is optional for tax year 2016 • “GROUP ID” is the “SORT FIELD” in Employee Maintenance. To sort in the top left grid right

click on GROUP ID and select Sort rows by “GROUP ID”. Note sorting can be done the same way for any column.


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• You can import Employee information into ACA Preparer grid, for more details see Import_CSV_File section of this guide

Step 3 of 5: Employee Covered Individuals Information populated automatically from ACA Employee Maintenance > Covered Individuals window

Step 4 of 5: Employee Electronic Delivery Information populated automatically from Employee Maintenance > Tax Status 1095 Electronic Consent


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Step 5 of 5: Employee Coverage Information populated automatically from ACA Employee Maintenance > Monthly Detail

If you made any additions or deletions to the employee list, you will receive this prompt asking if you wish to modify you Full-Time or Total Employee Counts.

If you also choose to use Aatrix W2 “Complete” eFile service, you can save 50% on your ACA Reporting costs, for more details visit www.aatrix.com/info/aca or call Aatrix at 800-426-0854

http://www.aatrix.com/info/aca


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After clicking Next, the 1095/1094 forms viewer (same as the W2 forms viewer) will open.


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You have completed all the steps in preparing to process your 1095/1094 forms. The forms will now be displayed in the Forms Viewer. The processing step (page navigation arrows) are indicated at the top left of the viewer as displayed below. You proceed to the next form by clicking Next Step. You can print your Final copies from the viewer by clicking Print Final.

1095/1094-C Forms Viewer

If you purchased the 1095-C forms from Sage you can click Next Step. If not select to Print Final


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Employer 1095-C forms should be printed to plain paper

Employee 1095 forms should be printed to pre-printed 1095 form you ordered because of the required pre-printed instructions on the back.


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1095/1094 “B” forms Preparer wizard

All ACA setup wizard screens are the same as the 1095-C form, with the exception of the following 2 windows.

If you selected to Complete Part III with OCP information provided in next screen the following screen will open:


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Step 1 of 4: Employee Contact Information Information populated automatically from ACA Employee Maintenance window

Step 2 of 4: Policy Origin Code Information populated automatically from ACA Employer Maintenance (in Sage 100 versions 2013 and higher only)


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Step 3 of 4: Employee Covered Individuals Information populated automatically from ACA Employee Maintenance > Covered Individuals window

Step 4 of 4: Employee Electronic Delivery Information populated automatically from Employee Maintenance > Tax Status 1095 Electronic Consent


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After clicking Next, the 1095/1094 forms viewer (same as the W2 forms viewer) will open.

1095/1094-B Forms Viewer

You have completed all the steps in preparing to process your 1095/1094 forms. The forms will now be displayed in the Forms Viewer. The processing step (page navigation arrows) are indicated at the top left of the viewer as displayed below. You proceed to the next form by clicking Next Step. You can print your Final copies from the viewer by clicking Print Final.

Federal 1094 forms should be printed to plain paper


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Federal 1095 forms should be printed to plain paper

Employee 1095 forms should be printed to pre-printed 1095 form you ordered, because of the required pre-printed instructions on the back.


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If you purchased the 1095-B forms from Sage forms, you can click Next Step. If not select to Print Final

Employer 1095 forms should be printed to plain paper


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How to reconcile 1099 vendor amounts (KB ID 49774) Use the Payment History Report to reconcile the 1099 amounts to the 1099 eFiling and Reporting or the 1099 Vendor History.

1. Open Accounts Payable, Main, Reports, Payment History Report 2. Select Vendor Number from drop down for Sort Report By 3. Select one of the Selection Criteria:

o By Period = Fiscal Year & Period Range for applicable 1099 calendar year o By Date: Starting and Ending Date for applicable 1099 calendar year

4. Select Print 1099 Vendors Only o Note: This field is available only if the 1099 Reporting check box is selected in A/P

Options 5. Use the Selection Field to run the 1099 for a specific vendor or all vendors 6. Click Print or Preview

Although the 1099 form payment history is recorded for each vendor, you must produce and retain supporting reports that include detailed 1099 payment information for audit purposes.

Before printing 1099 forms, if you retain invoices for the full calendar year, print the Accounts Payable Trial Balance Report for paid invoices and print the 1099 information for the calendar year. You can fill the report to support the 1099 forms sent to vendors.

If you do not retain the paid invoices for the full calendar year, print the Accounts Payable Trial Balance report just before closing each month. On the Accounts Payable Trial Balance report, print paid invoices and 1099 information. You can fill the report for each month to support the 1099 forms that are sent to vendors at year end.

If the Payment History Report shows a different amount comparing to what is on the 1099 eFiling and Reporting, run Check History Report to confirm all Checks, Electronic Payment Checks, Manual Checks and Reversals are correctly entered and posted to the correct fiscal year. If a Check date was posted to the wrong year, a reversal must be done to correct the check date. If the Payment History Report and Check History Report are correct, the Vendor 1099 History must be corrected.

To correct Vendor 1099 amounts, do the following:

1. Open Modules, Accounts Payable, Main, Vendor Maintenance. 2. In the Vendor No. field, enter a vendor. 3. Click the Additional tab. 4. Click 1099 History. 5. Select the 1099 Form Type and Calendar Year. 6. Correct the figures as needed. 7. Click OK and Accept.


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How to print 1099-MISC, 1099-INT, 1099-DIV Forms (KB ID 31381)

From the Accounts Payable, Reports menu, click Form1099 eFiling and Reporting. Select or enter the following and click the Accept button:

o 1099 Form Type

o Vendor Type to Print

o Minimum YTD Payment

o 1099 Calendar Year

NOTE: Company Information, including Federal ID No, auto populates from Company Maintenance (Library Master > Main), but can be manually changed in this window.

IMPORTANT TIP! If you plan on using the merge multiple company data files and the companies use the same vendors (same EIN) do not enter a minimum YTD payment amount because it would be a combined total. Example: If you set $600 as minimum YTD payment and company #1 paid a vendor $250 and company #2 paid same vendor $350, neither would pull into


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grid because each individual company did not meet minimum YTD amount but the combined total of both company’s did meet the minimum YTD payment requirement.

1099 Test Drive

The 1099 Test Drive feature allows you to take a “test drive” of the 1099 process without actually saving any data. This will allow you to become more familiar with the process before actually filing. You will only be displayed this dialog if you have not processed any 1099 filings for the current filing year.

If you select to run the 1099/1096 Wizard in test drive, you will not be able to save any of the information as a draft or a history to be used again.


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Verify the Payer TIN The number displayed here will be used on all forms. If the number is incorrect, click the Cancel button to close the 1099 Setup Wizard and correct the number in Company Maintenance.

Payer Information

The payer information screen displays all of the information that relates to your company and is used to display in the forms you are reporting. Data that is not stored in the Sage 100 database such as the Transfer Agent will need to be entered here.


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Tax Preparer Type

The tax preparer dialog displays for you to indicate whether you are filing for your own company or if you are a filing as a paid Tax Preparer for another company. Batch Filing will allow you upload several filings and then access the eFiling website when you are ready to transmit them to the appropriate agencies. For more information, select the ‘Click here to learn more’ link or visit https://efile.aatrix.com/.

Recipient Identification Number Choose option to truncate Recipient Identification Number (RINs).

• SSNs, ITINs and ATINs only display last 4 digits of all printed recipient copies • Does not apply to EINs

https://efile.aatrix.com/


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Merge Multiple 1099 Data Files

The multiple 1099 data file merge feature is used for companies or tax preparers that keep separate databases, working under the same Federal EIN (Employer Identification Number). Some examples of these are separate departments, divisions, company names under the same EIN, branches, etc.

This feature allows you to bring in two or more data files and merge them together so all the information is combined when you are printing or eFiling your 1099 forms.

NOTE: As of tax filing year 2012, this feature is now available for all eFiling forms using the same Federal EIN.

If you select the radio button option for “Yes, I use multiple 1099 data files for this EIN”, you will be taken to the multiple payroll data files merge tool after the company setup wizard is complete. For more information click the help icon on this screen or see How to merge Multiple Data files in eFiling & Reporting (KB ID=26156)


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1099 Preparer

Once you have completed the wizard, the 1099 Preparer is launched and you are guided through verifying the 1099 data. Similar to the W-2 Preparer, the 1099 recipient grid performs several data verification steps in the grid to ensure you have the correct 1099 information and to avoid rejections by Federal and state agencies. After verifying all information in each step click Next Step

Tip! Information edited in 1099 Preparer will not be saved back to Sage 100 data files.


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1099 Printing and Filing Options

After verifying information in the W2/1099 Preparer, 1099 the Pricing and Filing Options are displayed. You can select to eFile or print your own 1099s or a combination of both. If you are printing your own, you will need to purchase blank perforated 4 per page 1099 forms.

NOTE: that the IRS requires that the Federal Copy A and 1096 forms must be printed on the red preprinted forms when mailing the 1099s. These forms can be purchased from Sage Forms Division at 800-538-5514.

TIP! Please click link to review before purchasing tax forms, What forms do I use (or order) to print W2, 1095s and 1099s? (KB ID 52202)




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1099 Forms Viewer After selecting 1099 Printing and Filing Options, you are presented with similar screens as in the W-2 Printing and Filing such the option to order a CD Archive, print Divider Sheets and the Action List. For more information on those options, see the topics in the W-2 section of this document. Once completed, the forms viewer will display with your selected forms. If any form requires special paper stock, you will be prompted to load your printer with the appropriate form when clicking the Print Final button.


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You will need to print Recipient copies to 4-part perforated paper, see 1099 forms section in this guide

You will need to print the recipient instructions to be included with your Recipient 1099 form copies


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Standard eFiling pricing https://partner.aatrix.com/sage100

Unemployment, Withholding and New Hire – $7.95/form* Forms with Employee List – Unemployment & New Hire – $7.95 plus 0.25 per employee*

W-2 eFiling pricing

Online W-2 eFile Service $0.99/employee* - W-2s are eFiled to the appropriate State and Federal agencies. Employees are provided W-2s electronically only via a secure website allowing for immediate access.

Complete W-2 filing service is available for $1.99* per employee o Employee W-2s printed, and mailed by the eFile Center. This also includes electronic

W-2s for employees. o eFile Federal W-2s and W-3 o eFile State W-2s and required reconciliation form. *eFile supported Localities. o Print Employer copies

ACA eFiling pricing

Complete ACA filing service is available for $1.99* per employee Employee 1095-C/Bs Mailed Employee 1095-C/Bs Hosted Online Federal 1095-c/Bs & 1094-C/B Filed to IRS

ACA Filed with W2 Complete eFIle Service is available for $.99* per employee

1099 eFiling pricing http://aatrix.com/1099-efiling-service/more-information/

Federal & State 1099 eFile Service $0.99/recipient* - eFiled to Federal and State agencies Complete 1099 filing service is available for $1.99* per recipient

o Recipient 1099s printed, and mailed by the eFile Center. This also includes electronic 1099s for employees

o eFile Federal 1099s and 1096 o eFile State 1099s and required reconciliation forms o Print Payer copies

* Prices subject to change Unlimited eFiling Package Pricing for Sage Customers Current package pricing can be found at https://partner.aatrix.com/sage100 or Call Aatrix Sales team at 800-426-0854.

https://partner.aatrix.com/sage100

http://aatrix.com/1099-efiling-service/more-information/



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How to eFile Accounts Payable and Payroll forms

The eFiling process is powered by Aatrix. When the eFile option is selected, the login screen below displays. One-time enrollment is required. Enrollment can be accessed from within Sage 100 or directly at https://sage100.aatrix.com/pages/Public/PublicMAS026.aspx Note: There is no charge for creating an account.

When the Login button is clicked, User Information is displayed. If any of this information is incorrect, you can click the Click here link to access Aatrix's website

https://sage100.aatrix.com/pages/Public/PublicMAS026.aspx


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After you have verified the information and clicked Continue, the Pricing screen displays. The pricing displayed is specific to this filing.

The next screen allows you to choose the W-2 submission dates. This allows you to indicate when you would like your Employee, Fed and State W-2s to be mailed. This screen automatically defaults the employee copies to be mailed on the earliest possible date. The Federal and State copies are defaulted on the last possible date so that you can make free and easy corrections if necessary.

IMPORTANT! Once the Federal part of the filing has been processed, you will have to complete W2-C’s for an additional charge.


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Next the payment screen displays. Aatrix will only accept major credit cards for eFiling charges.

The confirmation screen displays details of the filing including the taxpayer information. No charges will be charged to the credit card until you hit the Submit button.


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When the eFiling process is complete, an email confirmation is sent and this next screen displays your AFID or Aatrix Filing Identifier. This number is assigned to the filing for tracking purposes. You will need the AFID number, if for any reason you need to contact Aatrix regarding this filing.

Login to Aatrix eFile Center https://sage100.aatrix.com/pages/security/loginenterusername.aspx?v=MAS026 to view, track and access eFiled reports by client:

https://sage100.aatrix.com/pages/security/loginenterusername.aspx?v=MAS026


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Deleting Filings

If there is an error with your filing and the status of the filing is open, it can be deleted:

Note: You will receive a confirmation email of your filing deletion request.


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Viewing Forms Previously Printed, eFiled or Saved as Draft (KB ID 37617)

In Accounts Payable, select History from the Form type dropdown in Form1099 eFiling & Reporting and click Accept.

In Payroll, select Existing Reports in Federal or State eFiling & Reporting and click Accept.


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Saved history files are encrypted and can only be accessed through Sage 100. Select the applicable form and click appropriate button to View/Print, Edit or Remove.

You can also access the Company Setup Wizard by clicking Setup button.

If Details section says “Click View for details..”, after clicking View/Print the following window will open. In this Past Actions window, you will see specific details of all actions included when printing W2/W3’s.


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Who do I call for Support?

For questions regarding the Payroll and Accounts Payable data automatically populated on the forms, contact Sage 100 Customer Support at 800-854-3415 (M-F 6am - 5pm PST)

For questions regarding forms that have already been eFiled or in the process of being eFiled, contact Aatrix eFile Support at 701-746-6814 (M-F 8am – 5pm CST) or email [email protected] with your EIN or AFID in the subject line. Live chat is also available at under the Help section at sage100.aatrix.com

For questions regarding Aatrix enrollment, billing or pricing visit https://partner.aatrix.com/sage100 or call 800-426-0854.

Additional Resources

Sage Support Portal: www.Support.NA.Sage.com – Knowledgebase articles & downloads

Sage University: www.SageU.com – Anytime Learning courses TIP! Search Sage 100 eFiling or Sage 100 Period and Year End

Sage City Year End Center: http://sagecity.na.sage.com/yearend/ - Click Sage 100 to access Interactive Year End Checklist, Year End videos, and much more!

mailto:[email protected]

http://sage100.aatrix.com/


http://www.support.na.sage.com/

http://www.sageu.com/

http://sagecity.na.sage.com/yearend/


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Knowledgebase Articles

Please reference the following Knowledgebase (KB) articles via the Sage Support website at https://support.na.sage.com or click links below, for more information.

KB ID: 18851 How to install, activate, update, and uninstall eFiling and Reporting

KB ID: 20022 Unable to activate eFiling after installing updates or “Demo” prints on eFiling forms

KB ID: 26182 How to email W2s and acknowledge W2 Electronic Consent form

KB ID: 27107 How to Print 941 & Schedule B form

KB ID: 62495 How to setup ACA (Affordable Care Act) in Sage 100

KB ID: 19289 How to report Employer-Sponsored Health Care coverage on the W2 form

KB ID: 26156 How to Merge Payroll Data Files in eFiling & Reporting

KB ID: 52376 How to print Federal and State Tax Forms

KB ID: 49809 How to Setup Paperless Office to save your Period/Year-End Reports in Sage 100

KB ID: 56085 How to Reconcile Payroll Tax forms & Reports

KB ID: 24123 How to Set up and Process Fringe Benefits

KB ID: 40509 How to enter or change State & Local Tax ID #'s on Payroll Tax Reporting Forms

KB ID: 25696 How to assign & print Pennsylvania PSD codes

KB ID: 49810 Year End processing resources for Sage 100

KB ID: 31378 How to Reprint or Submit a Corrected 1099 form

KB ID: 26338 How to Print Child and Dependent Care in Box 10 on W2 form

KB ID: 56598 How to Print Foreign Addresses on W2 and 1099 forms

https://support.na.sage.com/




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Federal State StateWithholding Withholding FICA (a) Medicare Unemployment (c )

Regular Wages Yes Yes Yes Yes Yes

Fringe Benefits:Personal Use of Company Auto Yes Yes Yes Yes YesGroup Life Insurance (in excess of $50,000) Yes Yes Yes Yes NoDisability Insurance Yes Yes Yes Yes YesS‐Corporation Shareholder Group Life (all premiums) Yes Yes Yes Yes NoS‐Corporation Shareholder Health Premiums (d) Yes Yes No No No

Cafeteria Plan (Section 125) Deferrals (*) and Pre‐Tax Health Premiums No No No No No401(k)/SIMPLE/SEP Deferral No No Yes Yes Yes

Health Savings Account (H S A): Employee HSA Contribution Yes Yes Yes Yes Yes Employee HSA Contribution via Section 125 Plan (e) No No No No No Employer HSA Contribution on behalf of Employee No No No No No Employer HSA Contribution on behalf of 2 % S Corporation Shareholder Yes Yes No No No

Note (a) > Yes‐ On first $118,500 for 2016 and $127,200 for 2017Note (b) > Yes‐ On first $ 7,000 for 2016 and 2017.Note (c ) > Yes‐ On first $ 14,000 for 2016 and 2017 (Wisconsin)Note (d) > This is applicable to all family members via attribution rules.Note (e) > Excludes S‐Corporation 2% or more shareholder as they are not eligible to partcipate in a Section 125 Cafeteria Plan, nor their spouse or children

Quick Payroll Facts

No

No

No

No

YesNoYesNo

Yes

No

Yes

Subject to

FederalUnemployment (b)

Yes

WWW.CHORTEK.COM | 262.522.8227


Technology Update 2016

Steve Krueger, [email protected]

Mike Senkbeil, MCSE, GCFA, CISSP, CISA | [email protected]


Firm Overview | Technology


Technology Update 2016 - Agenda

• Software Tools– Sales/CRM

– Customers

– Vendors

– Inventory

– Shipping/Receiving

– Job/Project Costing

– Reporting

– Dashboard/BI

– Taxes

– Lean Office

– Selecting a New System

– Cloud/SaaS


Technology Update 2016 - Agenda

• Infrastructure/Cloud/Hosting

• Mobility

• Security Improvement/Risk Reduction


Software Tools: Sales

• CRM = Customer Relationship Management– ACT! / GoldMine / Telemagic– Sage CRM– Sales Logix– Microsoft CRM– Sugar CRM– Salesforce.com

• What can it do?– Manage existing customers– Manage prospects (nurture marketing)– Manage marketing and sales campaigns

• Salesperson commission /incentive plans


Software Tools: Customers

• Reduce customer related expenses– Delivery of invoices, statements, order acknowledgements (email)– Days outstanding for receivables

– Change terms, require deposits, finance charges– ACH AR

• Customer contact/promote your business– Email– Newsletter– Website– Promotions– Social Medica (FaceBook, Twitter, LinkedIn, YouTube, etc)

• Customer Self Service– Web ‐ Information, Orders, Status, Shipping Status– Education – product information

• Remote/Mobile Sales & Service– Sales/Service on the road


Software Tools: Vendors

• Purchase history – negotiate discounts/terms– freight

• Email purchase orders• EDI

– Not just big box retailers

• ACH AP – reduce check printing and mailing costs

• Positive Pay– Reduce external fraud risk


Software Tools: Inventory

• Reorder advice/predictive ordering• Purchase orders from sales orders

– Know what to ship after receipt of goods

• Manage inventory levels by actual usage– Seasonal inventory

• Automate physical inventory– Verses manual sheets

• Bar coding/Warehouse Automation– Picking– Receiving– Physical Inventory– Sales Quotes/Orders/Invoices


Software Tools: Shipping/Receiving

• Shipping– Starship

• Integrated with UPS and Fed Ex, etc.• Links tracking number, shipping charges, etc. back to invoice

• Bar coding– Picking – right item– Receiving – validation to purchase order

• Speed of receipt entry• Turn around and ship to customer


Software Tools: Job/Project Costing

• Job Costing– Estimate verses Actual– Material/labor/burden/overhead– Work in Process

• Time and Billing– Recording time/remotely– Billing for services/budget reporting

• Service– Time and Material– Service contracts/preventative maintenance– Warranty work– Mobile/In the Field processing


Software Tools: Reporting

• Management reports– Dashboard– Push verses pull – Alerts

• Financials– Cash Flow Reporting– Distribution of financials to external users/owners– Budgeting/Comparatives– Excel based reporting tools

• Shift to paperless– Electronic Forms (PO, Invoice, Statement, etc)– Records retention– Incoming documents


Software Tools: Dashboards, Business Intelligence

• Profitability – Products and Customers• Collections and Credit decisions• Productivity – staff/machines• Future work (booked and projected)• Inventory – JIT, missed opportunity value• Sales people – who’s selling profitable / collectable work• What are you not aware of that can generate profit?


Software Tools: Taxes

• Payroll – W2’s and quarterly reports• Sales Tax – calculation, exemptions, filing• Other state and federal forms


Software Tools: Lean Office

• Efficiency• Paperless – no print and file • Electronic forms – no print, fold, stuff, mail• Customer Service ‐ CRM• Doing more with less• Question why we do it that way


Software Tools: Selecting a New System

• Create your team• Define your current processes and needs• RFI to potential vendors• Demo for best fit vendors• Negotiate cost of ownership (hardware, software, training, ongoing maintenance)

• Implementation planning/change management


Software Tools: Selecting a New System

• How to Select a New Business Management System – from Chortek

• www.ctsguides.com– Accounting, Manufacturing, Construction, Medical

• Brown Smith Wallace – www.software4distributors.com– www.software4manufacturers.com

• www.capterra.com– Good for vertical/niche searches

• The Big Four (Microsoft, Sage, Infor and Epicor)


Software Tools: Cloud/SaaS

• Cloud/SaaS– Intacct– NetSuite– Acumatica

• No upgrades• Minimize infrastructure (servers, remote access, etc)• Annual Costs can be significant• Great for financials – generally weak for distribution and

manufacturing


Infrastructure/Cloud

• Virtualization– Proven technology

• VMWare

• Citrix

• Microsoft

– Save money on hardware

– Ease future software upgrades


Infrastructure/Cloud

• Cloud – Risk vs. reward

– Well suited for software as a service (SaaS)• Spam filtering

• Email hosting

• Web site hosting

• Other “stand alone” applications

– Challenging to use to “get rid of all servers”

– Security concerns


Mobility


Mobility

• Compute anywhere? – Still not reality– Connectivity still a key challenge when mobile

• Syncing technologies are fading away as connectivity improves

• Web‐based VPN technology– One time passwords are important


Mobile Security

• Lost Devices?

– Find My iPhone

– Android Device Manager

– Where’s My Droid?

– IOS7 Activation Lock


Mobile Security

• Business Mobile Security– Policy enforcement– Bring Your Own Device (BYOD)– Cloud versus on‐premise– Mobile Device Management (MDM)

• AirWatch• MobileIron• Good Technology

– Risk vs. Cost: Competing Priorities


Security/Risk Reduction

• Backup/Disaster Recovery– Tape is obsolete– Onsite appliance + offsite datacenter is the standard– Virtualization feature

• Virus/Malware protection– Leading tool: ESET

• Spam, email filtering– Leading tool: Appriver



• Technology‐related policies– Usage policy– Security policy– Retention policy

• Policy enforcement/monitoring tools– Firewall content filters– Spector 360– One‐time passwords– Drive encryption

• BitLocker, TruCrypt



• Multi‐factor authentication– One time passwords

– Keyfobs plus password

• Cybersecurity Program– Annual assessment

– Annual plan for improvement of controls

– Phishing tests, education

ACCOUNTING & AUDIT | TAX SERVICES & STRATEGIES | TECHNOLOGY CONSULTING | BUSINESS ADVISORS, MERGERS & ACQUISITIONS

Tax Update 2016Looking Beyond the Numbers


Presentation Goals• Business Tax Planning Opportunities• Recap Repair Regulations• Multi State Considerations• Affordable Care Act• Identity Theft• Tax Filing Due Date Changes• New Overtime Laws• Business Owner Tax Planning


Business Tax Planning Opportunities

Are you taking advantage of these tax saving strategies?


General Tax Planning Strategies: • Business:

• Shift Profits? What are the C‐corp tax brackets going to be in 2017?• Cash‐basis Profits ‐ Defer Income/Accelerate Expenses• Tax Bracket Optimization with SH’s ‐What are the individual tax

brackets going to be in 2017?

• Shareholders:• Pay Bonuses and Shareholder Loan Interest to >50% Shareholders

Prior to Fiscal Year‐End• Watch Reasonable Compensation Issues


Trump Tax Proposals

• Reduce individual tax rates, and top rate from 39.6% to 33%.• Eliminate alternative minimum tax (AMT)• Repeal 3.8% investment income tax• Flat 15% tax on pass‐through entity “retained” profits• 15% tax rate on C‐corp profits• Double the Section 179 write‐off to $1M• Manufacturing industry new investment deduction


Planning Opportunity: Section 179 Depreciation

• Expense up to $500,000 of new or used property • On expenditures up to $2,500,000 (phase‐out)

• “Permanent” until further notice• Indexed for inflation in $10,000 increments • Has ranged from $125,000 to $500,000 in the last 10 years (started out at $25,000 limit).

• Allowed for Tax / AMT / WI purposes


Planning Opportunity: Bonus Depreciation

• 50% Bonus Depreciation Allowed for Tax Years 2015 ‐2017.

• Bonus Depreciation will phase‐out in 2018 & 2019.• 2016 – 50% Bonus Depreciation• 2017 – 50% Bonus Depreciation• 2018 – 40% Bonus Depreciation• 2019 – 30% Bonus Depreciation• 2020 – 0%

• Bonus is NOT allowed for Wisconsin Purposes


Example – S179 Only• Facts:

– Company Income of $750,000– Purchase new or used machinery for $490,000– 7 year useful life

• Result: Using S179, expense entire $490,000 in the year of purchase

• Business has income available to take S179• Total cost of machinery is under $500,000 expense threshold

• Federal = AMT = Wisconsin


Example – S179 & 50% Bonus• Facts

– Company Income of $3,000,000 – Purchase NEWmachinery for $1,900,000– 7 year useful life

• Result:– Bonus is available in a profit or loss situation and the machinery is new

– S179 is available because total acquisitions do not exceed $2 million and the business has income


S179 & 50% BonusNew Equipment $1,900,000

Less: S179 Expense (500,000) $500,000

Remaining Depreciable Base $1,400,000


50% Bonus .5

Bonus Depreciation Allowed $700,000 $700,000

Remaining Depreciable Base $700,000

1st Year Depreciation % .1429

Normal 1st Year Depreciation $100,030 $100,030

Total Depreciation $1,300,030

68% Depreciation Deduction = $455,000 tax savings in Year 1


Example – 50% Bonus Only• Facts

– Company Income of $3,000,000 – Purchase NEWmachinery for $5,000,000– 7 year useful life

• Result:– Bonus is available in a profit or loss situation and the machinery is new

– S179 is not available due to total acquisitions >$2 million


50% Bonus DepreciationNew Equipment $5,000,000

50% Bonus .5

Bonus Depreciation Allowed $2,500,000 $2,500,000


1st Year Depreciation % .1429

Normal 1st Year Depreciation $357,250 $357,250

Total Depreciation $2,857,250

57% Depreciation Deduction = $1,000,000 tax savings in Year 1


R&D Tax CreditQualified Research Expenditures (QRE) include:

• Rule of Thumb:• 10% of QRE = Tax Credit• $100,000 QRE’s = $10,000 of tax savings

Wages Supplies Contractors


R&D Tax Credit – New 2016• Start‐up Provision

• Gross receipts <$5 million• Up to $250,000 credit available to offset payroll tax

• AMT Turn‐off• Gross receipts <$50 million• Allows businesses to claim R&D credit against their alternative minimum tax


Examples of Qualifying R&D Activities• Developing an innovative product• Engineering and designing a new product• Designing product alternatives• Evaluating product alternatives• Introducing significant modifications to concept or design• Designing, constructing and testing preproduction models• Experimenting with new technology• Engineering activity to advance the product’s design to point of manufacture


Examples of Industries

Manufacturing

Software

Engineering

Other:Brewing

AgricultureWaste Management

Construction


Transportation Company• Purchases are Exempt from Sales Tax

• Trucks & Trailers• Repairs• Accessories

• 3 Major Components• Vehicles must be licensed as a truck• Treated as “for hire” carriers• Used exclusively for this activity – carries inventory


Transportation Company Savings

Annual Expenditures

Replacement Cost of Trucks $240,000

Repairs to Fleet $80,000

Total Qualified Expenditures $320,000

Sales Tax Rate 5.50%

Annual Benefit – Sales Tax Avoided $17,600


Recap Repair Regulations & WI Changes


Repair & Capitalization Regulations• Required to capitalize expenditures over $2,500 or $5,000 with audited financial statements (increased from $500 in 2015)

• Capitalize building repairs (excluding routine maintenance) if cumulatively over $10,000 for the year.


What 3 expenditures qualify as sales tax exempt within a transportation company?


Multi‐State Activities

Do you have tax implications in any other states?


Multi‐state Activities• Do you have ‘Nexus’?

• Nexus is known as having substantial presence and is the determining factor of whether an out of state business selling products into a state is liable for tax in the other state.


State Tax Nexus

• Certain activities might cause nexus for sales and use tax, income tax, franchise tax or other business taxes

• Self‐audit to determine exposure • Consult with a tax advisor before completing any nexus questionnaires received from another state

• Work with states under voluntary disclosure programs to minimize interest/penalties, and shorten audit period


Wisconsin Incentive Updates• WI Manufacturing and Agriculture Tax Credit

• Wisconsin based mfg activities (must be classified as a manufacturer)• 7.5% credit on profits from qualified manufacturing activities (top

rates are 7.65% to 7.9%) ‐ so basically no tax on WI mfg. profits• Credit is included in income in following year

• Non Qualifying Activities• Film Production• Constructing Real Estate• Sale of Food & Beverage• Engineering or Architectural Services

• Federal allows Domestic Production Activities Deduction = 9% of qualified manufacturing income (more broad)


WI Manufacturing Credit

• 2013 – 1.88% Credit• 2014 – 3.75% Credit• 2015 – 5.03% Credit

• 2016 – 7.5% Credit Effective Tax Rate = .4%


Affordable Care Act


ACA Employer Filing Requirements

• Applicable Large Employers (ALE) • 50 or more Full‐Time Equivalents (more than 130 hours/month) based on 2015 counts

• Must file Form 1094‐C/1095‐C for 2016 • Significant Penalties for not filing

• Small Employers• No Form filing requirement for 2016 UNLESS self‐funded

• Insurance Carrier files Form 1094‐B/1095‐B


ACAForm Requirements & Deadlines

• Form 1094: Employer Summary & Transmittal Form• Used to report employer summary to the IRS• Must be filed with IRS by February 28 (3/31 if filed electronically)

• Form 1095: Employee Statement• Used to report employee‐specific and covered individual information

• Must be filed with IRS by February 28 (3/31 if filed electronically)• Form 1095 Employee Statement – must be provided to employees by January 31 – NOW EXTENDED TO MARCH 2, 2017


New Due Dates for W‐2 & 1099‐MISC• Form W‐2

• NEW – must be filed with IRS by January 31 for both paper and electronic filing

• Must be furnished to employee by January 31 – no change

• 1099‐MISC, Box 7 Nonemployee Compensation• NEW – if 1099‐MISC includes an amount in Box 7, (payment for services)

it must be filed with IRS by January 31 for both paper and electronic filing• If there is no amount included in Box 7 – no change to filing deadline

(rents is best example)


New Overtime Laws

• Starting December 1, 2016!!• Requires any employee who does not meet certain criteria to be paid time and a

half for hours in excess of 40 in a workweek• Exemption Tests: must meet all 3 to be exempt

• Salary Test – salary in excess of $47,476 annually or $913/week• Salary Base Test – receives concrete salary that cannot be changed, even if

mistake is made• Duties Test – Executive, Administrative, Computer or Professional Role

• Blue collar workers, police officers, fire fighters, etc. – must be paid overtime!• Doctors, lawyers and teachers are exempt from OT, regardless of salary.• See DOL Guidance in Folder


Duties Test• Executive – Managing enterprise or customarily recognized

department, regularly direct work of at least two FT employees, input or ability to hire and fire employees.

• Administrative – perform office or non‐manual work directly related to management or general business, including exercise of discretion and independent judgment

• Learned Professional – perform work requiring advanced knowledge, intellectual in nature, consistent exercise of discretion and judgment


Tax Filing Due Date Changes

Calendar Year 2016 Before Law Change After Law Changes

Form ReturnType

OriginalDue Date

Extended Due Date

OriginalDue Date

ExtendedDue Date

1120 Corporation March 15 September 15 April 15 September 15 1120S S Corporation March 15 September 15 March 15 September 15 1065 Partnership April 15 September 15 March 15 September 15 1040 Individual April 15 October 15 April 15 October 15 1041 Fiduciary April 15 September 15 April 15 September 30 990

NonProfit

May 15

August 15 & November 15

May 15

November 15

FinCen 114

Foreign Account Reporting

June 30

April 15

October 15

5500

Benefit Plan

July 31

September 15

July 31

November 15



Tax Identity Theft

• File early to avoid Tax ID Theft• Protect your personal information• If you become a victim of identity theft

• File a complaint• Place a fraud alert with major credit bureaus• Respond to any IRS compliance notice received• Paper file your tax return with Form 14039 Identity Theft Affidavit

• Tax ID Theft actually decreased for 2015 tax returns• Minimize overpayments to avoid delays in receiving refunds


What is the new due date for filing Form W‐2 with the IRS?


Business OwnerTax Planning


Owner/Business Integrated Planning

• Coordinate individual taxable income with Company’s taxable income to achieve lowest combined tax rates, giving consideration for payroll taxes

• Hire family members, especially children, to grow their Roth IRAs based on having earned income

– Company deducts and saves income taxes, kids have no tax liability

• Maximize retirement plan contributions/review plan design• S‐corporations – balance owner compensation between wages and profit

distributions– Payroll tax savings– Reasonable compensation issue


Additional Taxes• .9% Tax on Earned Income

• Imposed on wages and self‐employment earnings

• 3.8% Tax on Net Investment Income• Generally Includes: interest, dividends, annuities, rents, passive income and

capital gains • Investment expenses and related income tax are deducted in arriving at net

investment income

• Imposed on Taxpayers with Income in Excess of:• $250,000 for married taxpayers filing joint• $200,000 for single or head of household


Watch Out for AMT!• Additional tax imposed on taxpayers with high income who claim certain

tax benefits

• Examples of AMT Preference Items: • Real Estate Tax• Accelerated Depreciation• Employee Business Expenses• Certain Muni income from Private Activity Bonds


Capital Gains and Losses

• Harvest 2016 capital losses• Sell stock at losses to offset capital gains• Reduce AGI below surcharge thresholds

• Harvest 2016 capital gains• Maximize income up to the surcharge thresholds• Maximize the 0% tax bracket


2016 Tax Rates• No Change in Top Tax Bracket (39.6%)

• LTCG tax rate is at 20% for highest income bracket

• Qualified dividends tax rate also at 20% for highest income bracket

• Phase‐outs of Itemized Deductions and Personal Exemptions


2016 Tax Rates

2016 Single Filer 2016 Joint Filer 2015 2016

$0 ‐ $9,275 $0 ‐ $18,550 10% 10%

$9,276 ‐ $37,650 $18,551 ‐ $75,300 15% 15%

$37,651 ‐ $91,150 $75,301 ‐ $151,900 25% 25%

$91,151 ‐ $190,150 $151,901 ‐ $231,450 28% 28%

$190,151 ‐ $413,350 $231,451 ‐ $413,350 33% 33%

$413,351 ‐ $415,050 $413,351 ‐ $466,950 35% 35%

Over $415,050 Over $466,950 39.6% 39.6%


2016 Wisconsin Tax Planning• Pay projected WI tax due by 12/31/16 – watch out for AMT!

• Pay at least $2,500 of real estate taxes for $300 tax credit• Fund Wisconsin approved college savings plans

• $3,100 deduction for WI (and the future investment income avoids the Medicare surcharge for federal!)

• Excess contributions can be carried forward to future tax years until all amounts invested have been deducted from WI taxable income

• Track Wisconsin use tax on internet purchases



Thank You!

Patrick Wirth, Tax [email protected]

262.522.8227


Sage 100 ERPDecember 2016

Mark Booth Gail [email protected] [email protected](262) 522‐8244 (262) 522‐8263


Agenda

• Sage 100 ERP–Version 2016–Version 2017

• Sage 100c


Over a dozen user enhancements

BATCH DATA ENTRYNew “Transfer Documents” from one batch to another

EASIER PERSONALIZATION

EXPANDED CHECK NUMBER FIELD

COMMON ITEMSExtended descriptions for miscellaneous items and charges

DEFAULT QUOTE EXPIRE DATE

SALES ORDER Expanded customer purchase order number

SALES ORDER Additional order types when promoting a quote

ACCOUNTS PAYABLE• Include electronic

payment vendors• Exclude electronic

payment vendors• Only print electronic

vendors TASK SCHEDULER

ADDITIONAL AUDIT FIELDS

Extended SMTP Passwords

Schedule report generation or Visual Integrator imports during non-peak hours

ACCOUNTS RECEIVABLEInvoice specific memos

FLEXIBLE REASON CODES

Over a dozen user enhancements


Sage 100 ERP 2016 – Global Enhancements

• New Product Key required for Payroll• New User Interface• Themes for Desktop and Task Windows• Extended Item Descriptions (Misc., Special and Charge items)• User Settings Window• Expanded Customer Purchase Order Field (to 30 characters)• New Fields added to History Tables (right click‐System Info)

– Created By– Date Created– Time Created

• Transfer Document to Different Batch• Extended Item Description for All Items

Global Enhancements


Sage 100 ERP 2016 – Accounts Payable/Accounts Receivable

ACCOUNTS PAYABLE:• Electronic Payment Vendor Option for Aged Invoice Report• Larger Font Size Option for Aged Invoice Report• 1099 Reporting

– Electronic Consent Signed– FATCA: Foreign Account Tax Compliance Act

ACCOUNTS RECEIVABLE:• Reference Memos in Repetitive Invoice Entry• Larger Font Size Option for Aged Invoice Report

Accounts Payable/Accounts Receivable


Sage 100 ERP 2016 – Sales Order

Sales Order:• Default Expiration Date for Quotes• Additional Options when Promoting Quotes• Use Default Order Date when Promoting Quotes

Purchase Order:• Expanded Customer Purchase Order Field (to 30

characters)

Sales Order/Purchase Order


Sage 100 ERP 2016 ‐ Payroll

PAYROLL:• Sage Payroll Services Integration

– Upload General Ledger account numbers/bank codes– Download payroll transactions into Transaction Journal Entry

• Sage 100 Direct Deposit:offered through Sage Payroll Services• No longer need to transmit ACH file to bank• Less information is required in Direct Deposit Interface

• Updates for ACA Employer Maintenance

Payroll


Sage 100c

A premium offer, with a new modernized user interface and other compliance & usability enhancements requested by customers available with a subscription plan.

• Offers all the 2016 release enhancements plus a modernized user interface

• Improved navigation, customizable desktop themes, and more


New look of Sage 100c 2016


Sage 100c Business Insights Dashboard 100c Business Insights Dashboard


Sage 100c


• Material Requirements Planning

Build/Buy/Partner 06

• Work Order• Job Cost

Planned Projects 05

• Payroll 2.0• Timecard

Current Project 04

• Sage Fixed Assets Link

Recent Modules 03

• General Ledger, Accts Payable, Accts Receivable, Bank Rec

• Inventory Management, Purchase Order, Sales Order, Return Merchant Authorization, CRM

• Bill of Materials

Core Modules 02

• Business Object Interface• Customizer• Upgrade survivable modifications• MS SQL Option

Architecture and Schema 01

Sage 100c framework Sage 100c Framework


Sage 100 / Sage 100cFeature delivery timeline1

2016.2 – Jun 2016 2017.0 – Oct 2016 2017.1 – Feb 2017 2017.2 – Jun 2017

Compliance

Conn

ectio

nsCu

stom

er ease

• Sage Inventory Advisor Basics

• 100c Manufacturing• Payments Center

(2015)• Sage CRM 7.3 SP2• Payroll tier

Enablement• Auto registration

• Multi‐bin warehousing

• Electronic Invoicing• Sage CRM SP3

• Payroll 2.0 preview• ACH Receipts with

Sage Payment Solutions

• Level 3 Commodity Code

• Windows / SQL Server 2016

• Sage Exchange Desktop 2.0

• Tax compliance

• Payroll 2.0 controlled release

• In‐product chat

• Global Search• Office 365 Mobile

Sales

• Office 365 Paperless Office

• Accounts Payable Automation

• Automated Payments setup

• Job Cost 2.0• Work Order 2.0

• Tech compliance • Tech compliance

2018.0 and beyond• Document

Management• Cloud Backup• Bank Statement

Automation• Seamless CRM• Payroll 2.0 live• Installation simplified• Inactivate warehouse• Light manufacturing

• Tech compliance• Tax compliance

1 Working plan, subject to change

• Tech compliance

Sage 100 / Sage 100c Feature delivery timeline


Sage 100 2017


Accounts Payable automation

• Eliminate lost invoices

• Automate approvals

• Automate coding and PO matching

• Maximize early payment discounts

• Minimize late payments

• Improved cash flow

• Timely disbursements

Accounts Payable Automation





Payroll tier enablement

• Different pricing for install base and new customers

• Payroll purchases on or before 4/15/2016 and transition as “Existing Payroll Customer”

• Customers on two or three year terms must renew payroll by April 30, 2017

• Tier movement permitted; annual commitment paid monthly

• Up front fee of $2,500 USD applies to all customers new to payroll

• Promotional discounts available on “up front fee” ‐ 5%, 10%, 15%, 20%, 25%, 30%, 40%, 50%, 75%, and 100%

• CA pricing available for Sage 300; conversion rate 1.25

• LAC rates available for Sage 300• CA payroll is still charged as a flat fee• C‐line payroll is based on tier• April renewals stay perpetual

TierMax. # of Employees New to Payroll Existing Payroll customers*

1 10 $ 650 $ 550 2 25 $ 750 $ 600 3 50 $ 850 $ 800 4 75 $ 1,000 $ 1,000 5 100 $ 1,200 $ 1,100 6 150 $ 1,500 $ 1,200 7 200 $ 1,750 $ 1,200 8 250 $ 2,000 $ 1,200 9 300 $ 2,250 $ 1,200 10 350 $ 2,500 $ 1,200 11 400 $ 2,750 $ 1,200 12 500 $ 3,000 $ 1,200 13 Unlimited $ 4,000 $ 1,200

• Customers on plan with U.S. payroll for Sage 100/300 prior to 4/15/2016.

Annual pricingSage 100 and Sage 300 Payroll (U.S Dollars)

Thirteen tier structure based on active employee count in payroll

software.Customers transition at renewal date.

Payroll Tier enablement


Business InsightsDashboard, Explorer, and Reporter


Dashboard, Explorer, Reporter• Dashboard

– Quick access to key business information in a high‐level, attractive graphical format

• Explorer– Grid interface that spans multiple data elements in one view– Choose from predefined views for SO, AR, GL, AP, BOM, IM, PO

• Reporter– Pre‐designed reports available straight out of the box– Quickly customize to get exactly the information your business needs

to see


Business Insights Dashboard• Snapshot view of critical business data• Automatic data refreshing• Quick and easy access through the Sage 100 desktop• Choose the information you want to see• Graphical Format• Extensive Drill Down Capabilities• Customizable

– I.e. variable pie chart graphs and their table elements can display sales for your top 5, 10, or 20 customers, depending on what is most appropriate for your company


Setting up Sage 100 Dashboard Options & Wizard

• Business Insights Dashboard Demo


Business Insights DashboardBusiness Insights Dashboard features an HTML‐based, customizable start page and the following key reports:

• Accounts Payable Analysis• Accounts Receivable Analysis• Balance Sheet Details• Budget Comparisons• Cash Expectations• Cash Flow Predictions• Cash Requirements• Expenses• Income and Balance Sheet• Income Statement Details

• Key Ratios• Purchases• Revenue• Sales• Sales by Product Line• Top Customers• Top Items• Top Vendors• Work Force Statistics


Business Insights Explorer• Easily organize, analyze/query Sage data• Predefined views of commonly used data• Quick‐click charts• Drill down capabilities• Role‐based access to critical system information• Export data to a variety of output types


Business Insights Explorer Demo


Business Insights Reporter

• Predesigned reports you can customize to get exactly the information needed

• Calculated fields are easily created• Design your layout for everything from a quick status snapshot to a presentation‐quality report


Business Insights Reporter Demo


Questions?


Thank You!

Chris [email protected]

262.522.8254

CUSTOM OFFICE AND ADVANCE LOOKUP ENGINE USER GROUP DECEMBER 2016

CUSTOM OFFICE USER DEFINE FIELD

Mark Booth

How to create a new user defined field in Customer Maintenance and flow to Invoice History. This field will move to the Order entry process, the form, the invoicing, the journal and finally the Invoice History.

We will create a new field “UPS ACCOUNT” to be stored and maintained at the Customer.

The following must be considered when defining a new user defined field:

1. Determine where the field will be created, i.e. module A/R, S/O etc. 2. Define the name for your UDF without “spaces”. 3. Define the length of the UDF field. 4. Determine if the field will be a multi‐line, check‐box, list box or drop box control type. 5. Determine if the field will be a string, number or date data type.

Now we are ready to create our field.

The steps below will guide you through this process.

1. Custom Office >Main Menu. 2. User Defined Field and Table Maintenance task is used to create your new user defined field/(s).


3. Double click Accounts Receivable to expand the module, and list all tables. Scroll down and right click AR Customer Master and select edit fields.


4. Click the green button to add your new field.


5. Enter the field name “UPSACCOUNT” and hit enter. Edit the description if desired and click OK.


6. The next window allows you to set your Control Type and Data Type.

7. Since this field will be a multi‐line string and the length of 10, I can go ahead and click OK. This will save my new field, however it’s not added to the table as yet.


8. Click OK and the screenshot below appears to update your new field to the data dictionary.


9. Click OK to start the update process.

10. To verify your new UDF column open crystal report, select the SOTAMAS90 database, login and

select AR Customer table. Scroll down and verify the last column.


ADDING THE NEW FIELD TO THE PANEL.

Now let us add this new field to the panel or task in Customer Maintenance. 1. Custom Office> Main > Customizer Selection

2. Double click Accounts Receivable and scroll to Customer Maintenance. Double click Customer Maintenance, scroll down and right click DMAIN [Customer Maintenance]. Select edit panel.


I recommend you create an initial panel with your user login and company, then copy to all user once you have the panel working correctly.


3. Create a new panel for the user login and company, and click OK.

4. Right click the panel below, highlight main in the folder tab and click Go to Panel.


5. You will can now add your field where you find empty space to do so.


6. Click the save button to save changes to the panel, then click the ‘x’ to close the panel. Close

your Customizer Selection window also, now access Accounts Receivable>Customer Maintenance to view the new field.


Advance Lookup Engine (ALE)

ALE’s are used to make lookups and search easier anywhere there is a lookup. It also provides the flexibility to easily export your custom lookup to excel for additional manipulation.

Two ways to create new lookups are:

1. Library Master> User Lookup Wizard. This would be a global lookup for users or group / company combination.

2. Select the AR Customer List from the Lookup and click new.



3. Select the company code and user code to define the lookup for and click next.


4. Add additional columns to the select columns, modify the column order then click next.

5. Click next to select the default filter, change the default search column and default search option then click finish.


6. Now review in Customer Maintenance.

The Second method would be individual / user specific. This is done from the individual task with a lookup.


1. Customer Maintenance Click the lookup button.


2. Click the custom button at the bottom left of the screen.


3. Type a description for the new lookup, and check the default view if this will become your default. Click Next


4. Add additional columns to select columns, and modify order of columns. Click next.


5. Click next to skip filter, and change default search column and default search option. Click finish.

ACCOUNTING & AUDITING | TAX COMPLIANCE & STRATEGY | TECHNOLOGY CONSULTING | BUSINESS ADVISORY

Cybersecurity for BusinessesMike Senkbeil CISSP, CISAPartner, Chortek LLPEmail: [email protected]: 262-522-8248Twitter: @michaelsenkbeil


• Agenda:– Why are you here?

– How do cyber attacks happen?

– What can I do to protect my business?

• Questions are welcome during the presentation


Who is Chortek LLP?

MERGERS & ACQUISITIONS

TECHNOLOGY CONSULTING

ACCOUNTING, AUDIT &

CONSULTING

TAX COMPLIANCE & ADVISORY SERVICES

accounting

budgeting

financial auditing

ERP implementation & support

cybersecurity consulting

monitoring, maintenance, management

CRM implementation & support

vendor management, IT advisory consulting

data backup and disaster preparedness

financial forecasting

buyer side advisory

seller side advisory

strategic planning

business valuations

recapitalization

operational review

cost segregation studies

succession planning

estate & gift planning

tax planning

transportation leasing companies

multi‐state

R&D tax credit

internal control evaluations

succession planning

due diligence

business & individual

outsourced IT support

interim CFO/controller


“Anthem is warning consumers about its huge data breach”

3/6/15, LA Times

Why are you here?


“How Russians Hacked the

White House” 4/8/15, CNN

Why are you here?


Office of Personnel Management hacked, 21.5 million identities stolen,

China suspected as perpetrator 7/9/15, OPM

Why are you here?


“Hack of the Century” at Sony Pictures

7/1/15, Fortune

Why are you here?


Why are you here?


Sony Pictures

Erased:3,262 out of 6,797 PCs837 out of 1,555 servers

Disclosed:47,426 social security numbers

Why are you here?


“$46.7 million stolen from Ubiquiti Networks via social engineering fraud”

8/7/15, NBC News

Why are you here?


“T‐Mobile Customers’ Info Breached After Experian Hack”

10/1/15, CNN

Why are you here?


Why are you here?

$17,000 ransom paid to hackers by hospital

2/15/16


Why are you here?

Local small business, clients of Chortek:

• $97,000 stolen from 12 person company

• Controller fired for falling for phishing scam

• Weekly spear phishing “close calls” reported

• “Spoofed” email fraud: $140,000 personal loss and stress‐induced health problems


Survey says…

Have you or your clients/customers been affected by a data breach or hack in the

past 2 years?



How does this happen?

Consumers have lots of risk protection.


How does this happen?

Businesses do not.


The old adversary


The new adversary


The new adversary


The new adversary


The new adversary


The new adversary


The new adversary


Phishing


Phishing


Phishing, not Fishing? … “Phreaking”


Spear Phishing


Spear Phishing


Spoofing


Spoofing


Hacked Email Risks

(krebsonsecurity.com)


Survey says…

When was the last time you changed your network login password?


Email-based Social Engineering Trends

We’ve moved from:

Emails from “Nigerian Princes” to the individualto

Emails from the hacker to the bank (typically consumer)

to

Emails from the hacker to employees (typically commercial)


Social Engineering Trends

We’ve moved from:

Hackers logging in to send ACH themselvesto

Hackers emailing employees to have them send wires


Social Engineering


What should I do?


“You can do nothing, and you’re at 100% risk.

Or you can do a lot and you can get the risk down

to 10% to 15%.”

James LewisSenior Fellow

Center for Strategic and International Studies

What should I do?


What should I do?

Don’t believe everything you read

on the Internet.

Abraham Lincoln


What should I do?

Bad: weak password


What should I do?

Good: strong password


What should I do?

Better: strong pass phrase


Survey says…

Where do you store your passwords?


Social Engineering: Email Safety

Better: long and strong password, randomly generated


What should I do?

Best: multifactor authentication


What should I do?

Something you know + Something you have = Access granted

Best: multifactor authentication


What should I do?

Beware non‐secure WiFi:

Man‐in‐the‐middle


What should I do?

Good Maintenance = Good Security

Annual average number of security fixes:

Microsoft: 250Adobe: 200Apple: 430


What should I do?

Curated patch managementvs.


What should I do?

Social Engineering: Top 101. Don’t trust, do verify requests for information

2. Don’t Treat an email alone as verification of sender identity

3. Watch out for slight misspellings in email domains

4. Watch out for unexpected reply emails

5. Never share account information via email


What should I do?

Social Engineering: Top 106. Treat email as a “postcard” – not secure

7. Use phone for verification

8. Never share passwords

9. Treat links or attachments in emails as high risk

10. Don’t click on links directly, type in main site address and navigate from there


Phishing

VirusPrivacyCybersecurity

DDOS

SPF

Intellectual Property Theft

Security Program

Reliable

Exploit

Zombie

MFA

Policy Enforcement

Mitigation

Vulnerability Scan

AES

Hacker

Prevention

Eavesdrop

DNS

ACL

Authenticate

Zero Day

Defense

NIST

Ingress FilterHTTPS

Incident Response

BCP

WEP

Stateful Packet InspectionSocial Engineering

Penetration TestingBrute Force

Patch Management

Malware

Spear Phishing

Security Awareness

Confidentiality

Attack Vector

Encryption

TTL

DMZ

ERMAsset

CERTIDS

Keylogger

Firewall Trojan

TokensTCP

ThreatRisk

Authenticity

Integrity

Usage Policy Man‐in‐the‐m

iddle

Denial of Servicecertificates DRP

WPAAttack

BIA

Spoofing

Egress Filter CRCSpeedCOOP

PCI

802.11

Availability

HashSegmentation

Connections

Analysis

ReliablePKI

PKI

Monitoring

Risk Assessment

EAP

DNSVPN

UDP

TLS

UDP

SSL

ARP


Survey says…

Do you have a cybersecurity program at your business?


Cybersecurity Program

Establish a “Cybersecurity Program”– Should be a normal, ongoing business process– Annual assessment, review– Pick 3 controls

• Choose highest impact, lowest cost• Set a deadline for implementation


Cybersecurity Assessment: Process

• Initial conference– Meet to review the framework and identify interviewees– Plan transfer of network documentation– Schedule next meetings

• Controls Review Meeting– Meet with IT contact(s), managers– Review/discuss current/target controls

• Report Review Meeting– Review Risk Profiles– Discuss and plan recommended controls





NIST Cybersecurity Framework

Released: 2014

Control Categories: 5

Subcontrols: 98





Review: Doing “a lot” to lower risk…

• Establish a “Cybersecurity Program”– Should be a normal, ongoing business process– Annual assessment, review– Included in Chortek Managed Network Service Plus

• Pick 3 controls– Choose highest impact, lowest cost– Set a deadline for implementation

• Include user education in your program• Document technology and security policies


Questions?

Michael SenkbeilEmail: [email protected]

Phone: 262‐522‐8248

Twitter: @michaelsenkbeil