2014 Year-End Procedures Guide for Sage 300 Trade …cdn.na.sage.com/SageMail/...YE_Procedures_Guide.pdf · l Electronicfilingcantakeuptotwodays,andactivityontheAatrixwebsitewillbeheavyinthelast

Sage 300 Trade Specialty(Formerly Sage Timberline Enterprise)2014 Year-End Procedures Guide

This is a publication of Sage Software, Inc.

Copyright © 2014 Sage Software, Inc. All rights reserved.

Sage, the Sage logos, and the Sage product and service names mentioned herein are registeredtrademarks or trademarks of Sage Software, Inc. or its affiliated entities. All other trademarks are theproperty of their respective owners.

Your use of this document and the Sage product(s) described herein is governed by the terms andconditions of the Sage End User License Agreement (“EULA”) or other agreement that is provided with orincluded in the Sage product. Nothing in this document supplements, modifies or amends those terms andconditions. Except as expressly stated in those terms and conditions, the information in this document isprovided by Sage “AS IS” and Sage disclaims all express, implied or statutory warranties of any kind,including but not limited to the warranties of merchantability, fitness for a particular purpose or ofnoninfringement. No implied license is granted to you under any Sage intellectual property or trade secretright. Sage reserves the right to revise, supplement or remove information in this document at any timewithout notice to you or others.

Last updated: December 24, 2014

Contents

Chapter 1: Introduction and Preparation 1Supported versions 1

2014 Year-end update is required for Payroll 1

Tax forms and eFiling 1

Preparation for tax forms 2

Forms Update 4

Chapter 2: Closing the December Accounting Period 6Preparation 6

Closing the financial year 7

Closing the December accounting period 7

Frequently asked questions: accounting periods 8

Chapter 3: Closing the Payroll Year 10Payroll close year checklist 10

Payroll new year checklist 11

Running the final payroll 11

Selecting settings for retaining year-to-date totals 12

Running the close year task in Payroll 13

Preparing for the first payroll in 2015 13

Tracking information for the reporting requirements of the Affordable Care Act 14

Maintaining the files 15

Frequently asked questions: Payroll 18

Chapter 4: Producing W-2 Forms 23W-2 forms checklist 23

Determining the number of W-2 forms (optional) 24

Options for producing theW-2 forms 24

Ordering forms (optional) 25

Creating or modifying yourW-2 templates 26

Generating theW-2 forms 27

Sage 300 Trade Specialty Year-EndGuide Page iii

Frequently asked questions: W-2 forms 42

Chapter 5: Quarterly Reporting 45Federal Form 941 45

State quarterly forms 48

Chapter 6: Producing 1099 Forms 521099 forms checklist 52

Specifying your tax numbers 53

Setting up vendors to receive 1099 forms 53

Finalizing the calendar year 53

Viewing and correcting 1099 totals 54

Options for producing the 1099 forms 54

Ordering 1099 forms (optional) 55

Generating the 1099 forms 56

Using the 1099 SetupWizard 57

Merging the data files 62

Verifying recipients 64

Selecting eFiling and printing options 65

Frequently asked questions: 1099 forms 66

Chapter 7: Backing Up Your Data 68Performing the backup 69

Chapter 8: Further Assistance 71Online help 71

Getting help with year-end issues 71

Training 72

Index 73

Contents

Sage 300 Trade Specialty Year-EndGuide Page iv

Chapter 1: Introduction andPreparationThis 2014 Year-End Procedures Guideis designed to be a helpful tool to manage your company's year-endprocesses for Sage 300 Trade Specialty. In this guide, you will find answers to frequently-asked questionsas well as recommended year-end procedures.

Supported versionsFor the 2014 year-end release, we are supporting Sage 300 Trade Specialty version 13.4.

2014 Year-end update is required for PayrollIf you use the Sage Timberline Enterprise Payroll application, youmust install the 2014 year-end updatebefore processing any 2015 checks in order for the new taxes to calculate correctly.Perform the followingsteps before processing the first payroll in 2015:

1 Install the 2014 year-end software update

2 Download 2015 Payroll taxes

Tax forms and eFilingSage 300 Trade Specialtyis integrated with Aatrix Software, a third-party software program that handlestax reporting. Aatrix generates state and federal reports using information extracted from Sage TimberlineEnterprise Payroll and the Sage 300 Trade Specialty Accounts Payablemodule. In Aatrix, you canelectronically file ("eFile") yourW-2 forms and 1099 forms. You can also print andmail the forms yourselfusing forms you have purchased or you can have Aatrix print andmail theW-2 forms.

To learnmore about Aatrix, their services, and the fees, visithttps://partner.aatrix.com/index.php/sage300tradespecialty.

NOTES:

l Youmust have an Internet connection to eFile with Aatrix.

l Youmay need tomanually adjust some settings in third-party firewalls to ensure you receive theAatrix form updates. For additional information, log on to the KnowledgeBase and search for thearticle titled "How do I configuremy Firewall or Proxy Server so I can download and install eFileand Reporting Updates?"

l You can save forms in progress, and then come back to work on them at any time.

l Modifications youmake to forms and information in Sage 300 Trade Specialty are reflected inAatrix forms. However, changes that youmake to forms and information in Aatrix are not writtenback to Sage 300 Trade Specialty.

Sage 300 Trade Specialty Year-EndGuide Page 1

https://partner.aatrix.com/index.php/sage300tradespecialty

https://support.na.sage.com/selfservice/microsites/msbrowse.do?UMBrowseSelection=SG_SAGE300TS_1

l Electronic filing can take up to two days, and activity on the Aatrix website will be heavy in the lastdays of themonth, so schedule accordingly. For a complete schedule of filing deadlines, log on tothe knowledgebase and search for the article titled "When do I have to submit my W-2s or 1099s toAatrix so they are eFiled on time?"

l Weuse a variety of terms for your tax ID number in the software and in this manual. These includeFederal Employer Identification Number (FEIN), Employer Identification Number (EIN), andTaxpayer Identification Number (TIN).

Preparation for tax formsIf you plan to print the 1099 forms, order the 1099 form stock; see page 55.

If you use Sage Timberline Enterprise Payroll:

n Determine the number of W-2 forms; see page 24.

n Create or modify theW-2 templates; see page 26.

n If you plan to print theW-2 forms, order the forms; see page 25.

Aatrix EnrollmentIf you plan to eFile any of your tax forms, youmust enroll with Aatrix. If you have not already created anaccount with Aatrix, you can enroll any time before you begin. You will be prompted to enroll when youattempt to eFile your forms.

1 Access Aatrix by visiting https://efile.aatrix.com/

2 Click [Enroll] to create your Aatrix account.

Chapter 1: Introduction and Preparation



https://efile.aatrix.com/

3 Enter the following information for your Aatrix account, and then click [Save Changes].

p The username and password that you want to use

p Your filer type (filing for company or third-part Tax Preparer)

p Sage 300 Trade Specialty for Accounting Package

p Your contact information (name, email address, and phone)

p Your company EIN or account number

p Your company name and address

p The employee/recipient count

TIP: If you want to receive automatic reminders of important events on your mobile device, add yourmobile information and select theClick here to accept SMS/Text alerts from Aatrix check box.

4 Log into Aatrix by entering your password and clicking [Continue].

5 Select your security question and image, and then click [Continue].

6 Read the enrollment information, and then click [Continue].

7 On theHome page of your account page, click theCompanies tab.

8 If you plan to file reports in addition toW-2 and 1099 forms, print the authorization form:

a Click [print eFile authorization form].

b Print the PDF.

c Verify that your company and contact information is correct.

d Sign and date the form.

e Fax the Aatrix eFile Authorization Form to Aatrix.

9 Select the states where you need to file tax forms:

a Click [update filing states].

b Select the check box before each state where your company files taxes.

c Click [Save Changes].

10 If desired, make any other changes on this or the other tabs.

11 When finished, click [Log Out].

12 Remember to sign and fax your Aatrix eFile Authorization Form to Aatrix at 701-772-2105. Aatrix willsend you an email with your Aatrix Filing ID (AFID).

After your Aatrix enrollment is complete, you can select the option to eFile any of your completed forms.



Forms UpdateYoumay receive a prompt to update tax forms when you open the eFile and Reportingwindow fromPayroll or Accounts Payable. To ensure you are always in compliance with the latest federal or statemandated changes, select [Automatic Update].

NOTE: Youmay need tomanually adjust some settings in third-party firewalls to ensure you receivethe Aatrix form updates. For additional information, search the knowledgebase for "How do Iconfiguremy Firewall or Proxy Server so I can download and install eFile and Reporting Updates?"

Aatrix provides updates on the 20th of eachmonth associated with the end of a quarter. For example, forthe fourth quarter of the year, Aatrix will ask to update on the 20th of December.

Aatrix continually updates all forms with any changes such as calculations, rates, or filing dates tomeetcompliance standards. If you have expired forms or if an updated version of Aatrix is available, you willreceive a prompt to perform an update when you open Aatrix.

To perform the update:

1 In the Forms Update window, select one of the following options:

p If your computer is connected to the Internet, click [Automatic Update].

p If your computer is not connected to the Internet, click [Download Update] to display instructionsabout downloading the updated forms to a computer with Internet access and then transfer them tothe computer where your software is installed.

p If your service plan has expired, you can click [Continue Expired]. You are still able to retrieve,review, and print copies of the forms you need for your records but you are not able to file the forms.An EXPIRED watermark appears on the report printouts and the eFile command is also unavailable.



https://customers.sagenorthamerica.com/irj/portal/anonymous/login

2 If you clicked [Automatic Update], Aatrix lists the forms that need to be updated. Click [Next] to beginthe forms update.

3 After Aatrix updates the files, it displays "Update Complete" in the Aatrix Update Clientwindow. Click[Close].



Chapter 2: Closing the DecemberAccounting PeriodAt the end of the calendar year, you can close the accounting period that includes December 31. Thisprevents the posting of additional payments in 2014, which affects the 1099 amounts.

Themethod to use depends on your company's financial year.

n If your company's financial year is the same as the calendar year, close the financial year.

n If your company's financial year is not the same as the calendar year, close the accounting period thatincludes December 31.

NOTE: Youmust have feature permissions for your role in Sage System Administration to closeaccounting periods and close the financial year.

PreparationBefore closing the accounting period or the financial year:

p Review the account category of eachGeneral Ledger account so the total earnings amount will becorrect. In General Ledger, you can view this information in the Transactionsworkspace. If theaccount category is not visible in the upper-right paneGL account list, right-click the column heading,select Field Chooser from the shortcut menu, select the check box in front of Account category,and click [Done]. (If an income statement account is incorrectly set up as an asset or liabilityaccount, or if a balance sheet account is incorrectly set up as an income, expense, or cost account,the earnings calculation will be incorrect.)

p Verify that the retained earnings accounts are set up correctly. In General Ledger, select Setup >Default Accounts, click theBalance sheet tab, and verify that there is a retained earnings account.Then, select Setup > Chart of Accounts, click the button for each balance sheet entity, andverify that it has a retained earnings account associated with it in the hierarchy.

p Make sure that there are no transactions in the suspense account for the accounting period. For moreinformation, see “How do I reassign the transactions from a suspense account to the correct GeneralLedger account?” on page 8.

p Make sure that all pending transactions for the accounting period have been posted. For moreinformation, see “How do I clear pending transactions?” on page 8.

p Reconcile Accounts Payable, Accounts Receivable, and JobManagement with the General Ledgerfor that accounting period. For more information, access the online help in thesemodules and locatethe reconciliation topic in theContents pane.

p Back up your data. Sage 300 Trade Specialty information is stored in a SQL database. See “Backingup SQL Server databases” on page 69 for backup instructions.


Closing the financial yearIf your company's financial year is the same as the calendar year, close the financial year:

NOTE: You cannot close your financial year if any prior accounting periods are still open. Performyour normal accounting period closing procedure for any prior open accounting periods.

1 Generate the end of the year reports. Youmay want to print the Trial Balance, Profit and Loss, BalanceSheet, and any other financial statements required for your business.

2 Back up your data; see “Backing up SQL Server databases” on page 69.

3 In General Ledger, select Tasks > Close Year.

4 In theClose Yearwindow, fix any problems displayed.

5 Click [Start] in the toolbar.

6 When you see the prompt to verify the accounting periods for the financial year, click [Yes].

7 In theManage Accounting Periodswindow, verify that the first period of the new financial year isOpen.

NOTE: Youmay also want to print a new Trial Balance report and verify the totals on the report beforeposting any transactions for the new year.

Closing the December accounting periodIf your company's financial year is not the same as the calendar year, close the accounting period thatincludes December 31. To close an accounting period that is not the last period of your company'sfinancial year:

1 Back up your data; see “Backing up SQL Server databases” on page 69.

2 In General Ledger, select Tasks > Manage Accounting Periods.

3 On the This financial year tab of theManage Accounting Periodswindow, select the openaccounting period to be closed.

4 Click [Change period status].

5 In theClose General Ledger Periodwindow, verify the period number and then click [OK].

Chapter 2: Closing the December Accounting Period


Frequently asked questions: accounting periodsHow do I reassign the transactions from a suspense account to the correct GeneralLedger account?

You cannot close an accounting period if you have transactions in a suspense account for the sameperiod.

A transaction is placed in a suspense account when:

n It is associated with an account that does not exist and the account cannot be created at the time ofposting.

n It is associated with an account that does not allow posting, such as a group account.

n It is associated with an accounting period that is locked.

n It is posted directly to a suspense account.

To reassign transactions from a suspense account to the correct General Ledger accounts:

1 In General Ledger, select Tasks > Manage Suspense Accounts.

2 In theManage Suspense Accountswindow, select the transaction to reassign by selecting the checkbox before that transaction in the grid.

NOTE: You can select multiple check boxes when you want all of those transactions to be reassignedto the sameGeneral Ledger account.

3 Select the correct General Ledger account forPost the transaction to in the lower area of the window.Youmay be able to determine this by viewing the Target account for that transaction.

4 Click [Post] in the toolbar.

How do I clear pending transactions?

You cannot close an accounting period if you have pending General Ledger transactions for the sameperiod.

Transactions have a status of Pendingwhen:

p General Ledger transactions were entered in theEnter Transactionswindow or imported AND PostGL transactions automatically is not selected on theOptions tab of theGeneral Ledger Settingswindow.

p General Ledger transactions were created in another module, such as Accounts Payable, AND PostSub-Ledger transactions automatically is not selected on theOptions tab of theGeneral LedgerSettingswindow.

To post pending GL transactions:

1 In General Ledger, select Tasks > Post Pending Transactions.

2 In thePost Pending Transactionswindow, review and select the batch of transactions to post byselecting the check box before the batch in the grid.

3 Click [Post] in the toolbar.



After I close the financial year, can I post prior year adjusting entries that myaccountant sends me?

You can select Tasks > Enter Prior Year Transactions to enter and post a batch of debit and credittransactions directly to the General Ledger for the prior financial year.

NOTE: You cannot post prior year transactions in the subledgers, such as Accounts Payable. Prioryear transactions are only made through theGeneral Ledger.



Chapter 3: Closing the Payroll YearIf you have Sage Timberline Enterprise Payroll, follow the instructions in this chapter to run the final payrolland close the year in the Payroll module.

NOTE: Payroll is an optional module within Sage 300 Trade Specialty. If you do not use the Payrollmodule, skip this chapter.

You can produce theW-2 forms, as described in Chapter 4, before or after closing the Payroll year. Youcan also print quarterly reports and forms for the fourth quarter either before or after you close the year.

CAUTION: Although you can enter time for the new year, do not process payroll for 2015 until afteryou close the Payroll year, install the 2014 year-end update, and install the 2015 tax updates.

Payroll close year checklistThis checklist provides a recommended sequence of steps. Your actual sequencemay vary, dependingon your organization's process.

Task Comments

□ Run the final payroll and post payroll checks for 2014. See page 11.

□ Select settings for retaining year-to-date totals for any pays,fringes, or deductions.

See page 12.

□ Reconcile Payroll by running reports in Payroll andGeneral Ledgerto confirm the totals for the year are correct.

See the "ReconcilingPayroll to General Ledger"Help topic.

□ Back up the Payroll information, which is stored in a Pervasivedatabase.

See page 70.

□ Run the close year task in Payroll. See page 13.

□ Archive 2014 checks, if desired. See page 15.

□ Move terminated employees, if desired. See page 16.

□ Compact master and transaction files, if desired. See page 17.

□ Install the year-end update. See the software noticeand Knowledgebase articlefor download andinstallation instructions.


Payroll new year checklistAfter you close the Payroll year, perform these steps before processing the first payroll checks for 2015.

Task Comments

□ Prepare for the new year by downloading and installing the taxupdates for 2015.

See page 13.

□ Enter and update your company's experience ratings and limits forstate disability insurance (SDI) and state unemployment insurance(SUI) taxes.

See the "Setting up ratesfor specific state taxes"help topic.

□ Enter time for employees or checks. See the "Entering time"help topic.

□ Process the first payroll for 2015. See the "About processingpayroll" help topic.

□ In 2015, start tracking information to comply with the reportingrequirements of the Affordable Care Act (ACA).

See page 14.

Running the final payrollProcess and print the final payroll for checks dated and paid in 2014.

1 In Payroll, select Tasks > Process Payroll, make your selections, and click [Start]. For moreinformation, see the "About processing payroll" topic in the Payroll Help.

2 Select Tasks > Print Checks, make your selections, and click [Start]. For more information, see the"Printing checks" topic in the Payroll Help.

3 (Optional) If you entered time in Payroll and the pay period extends beyond 12-31-2014, you can createGeneral Ledger and JobManagement accrual entries for the earnings expense portion of the timeentered. For information about the generating the accruals, see the “Generating Accrual Entries” topic inthe Payroll Help.

NOTE: The accrual entries give you a clearer picture of year-end costs andmay be a part of yourreconciliation process at year-end. They do not affect theW-2 totals. In accordance with IRSguidelines, Payroll files are updated by check date rather than period-end date.

4 Post payroll checks for the current year by selecting Tasks > Post Checks. For more information, seethe "Posting checks" topic in the Payroll Help.

Chapter 3: Closing the Payroll Year


Selecting settings for retaining year-to-date totalsBefore closing the year in Payroll, decide whether you need to retain year-to-date totals for any pays,fringes, or deductions.

For example, youmay want to retain totals for accrued vacation time or employee loans that have not beenpaid in full. When you retain year-to-date totals, the retained amounts become the accumulated totals inthe employee setup for the new Payroll year.

To retain year-to-date totals:

1 Review the setting for pays:

a In Payroll, select Setup > Pays.

b Type thePay ID (or click [List], select a pay ID, and Click [OK]).

c Press TAB twice.

d Select theRetain YTD totals at close year check box, if it is not already selected.

e Click [Save].

f Click [Next] to review or edit the next pay ID.

g Repeat steps 1c - 1f for all pays.

h When finished, click [Close].

2 Review the setting for deductions:

a Select Setup > Deductions.

b Type theDeduction ID (or click [List], select a pay ID, and Click [OK]).

c Repeat steps 1c - 1g to review or edit each deduction.

3 Review the setting for fringes:

a Select Setup > Fringes.

b Type the Fringe ID (or click [List], select a pay ID, and Click [OK]).

c Repeat steps 1c -1g to review or edit each fringe.



Running the close year task in PayrollTo close the payroll year:

1 Back up your data. Payroll information is stored in a Pervasive database; see page 70 for backupinstructions.

NOTE: We recommend that you back up your entire database, creating an annual archive beforeclosing the Payroll year. This archive can be used for restoring data or for reporting purposes.

2 Select Tasks > Close Year. For more information, see the "Closing the year" topic in the Payroll Help.This task:

p Clears theMTD, QTD, and YTD totals in the Payroll master file.

p Moves employee totals to the prior period.

p Changes theCurrent Month in thePR Settingswindow to January and changes theYear end dateto 12-31-2015.

3 Download and install the 2014 year-end update.

Preparing for the first payroll in 2015Before processing the first payroll for 2015:

1 Ensure you perform theClose Year task in Payroll to reset all employee year-to-date amounts to zero.

2 Verify that the year-end date is 2015.

3 Download and install the 2015 tax updates.

a In Payroll, log on with Network Administrator rights.

b Select Tools > Download Taxes to download the tax updates for 2015.

CAUTION: Before performing the next step, youmust have completely finished check processingfor 2014 and closed the payroll year. Since payroll calculations are based on year-to-date totals, ifyou did not close 2014 prior to processing 2015 payroll, your pays, taxes, fringes, and deductionsmay not calculate correctly. For example, an employeemay havemet the limit for a tax in 2014 so itdoes not calculate. If you updated taxes too early, you should restore prior payroll taxes using Tools> File Tools.

c Select Tools > Update Taxes to update the taxes in Payroll with the files that you downloaded.

NOTE: This updates the federal and state tax rates for employees. However, you are responsible forentering and updating your company experience ratings and limits for state disability insurance (SDI)and state unemployment insurance (SUI) taxes. For information, see the "Setting up rates forspecific state taxes" topic in the Payroll Help.



Tracking information for the reporting requirements of theAffordable Care ActIn 2015, there are new reporting requirements concerning health care coverage to ensure compliance withthe Affordable Care Act (ACA). If your company qualifies as an applicable large employer, your companymay be required to file two additional tax forms:

p Form 1094-C Transmittal of Employer-Provided Health InsuranceOffer and Coverage InformationReturnsOne form for your company.This form lists the number of full-time employees and total number of employees eachmonth. It alsoincludes additional information if your company is amember of an Aggregated ALE (Applicable LargeEmployer) Group.

p Form 1095-C Employer-Provided Health InsuranceOffer and CoverageOne form for every full-time employee.This form indicates if minimum essential health insurance was offered by the company to theemployee and family, the employee share of the lowest-cost coverage, and who was covered (if theemployee enrolled in an employer self-insured plan).

NOTE: If the health insurance plan your company offered employees was not a self-insured plan, theissuer of the plan will also send form 1095-B to the employees with their coverage information.

To review information about the ACA requirements, find out if your company qualifies as an applicablelarge employer, and determine if you need to report employee healthcare coverage, see the InternalRevenue Service website. Youmay also want to contact your tax advisor for assistance with the ACArequirements.

Starting in January, track the required information in spreadsheets if your company qualifies as anapplicable large employer. You can then use Aatrix in early 2016 to enter the 2015 information into the1094-C and 1095-C forms and then eFile the forms.

p For employees, track the following information by month:

l If the employee is exempt from ACA reporting (if they are the owner, relative of the owner, or a"seasonal" employee), is a full-time employee, or is a part-time employee.

l The code for the type of health care coverage your company offered the employee.

l Themonthly premium amount for self coverage for the basic plan, if offered to the employee.

l The safe harbor code (if applicable) or the employment status/enrollment status code for theemployee.

p If your company offered a self-insured health plan and the employee enrolled in the plan, track thefollowing information:

l Individuals covered

l Their social security numbers or dates of birth

l Themonths covered by the health plan



p For part-time employees, track the hours worked per month to determine the number of full-timeequivalent employees per month. Because pay periods can include parts of twomonths and the ACAis based on hours per month, you need to determine the hours worked eachmonth for each part-timeemployee.

Maintaining the filesAfter processing theW-2 forms, you can perform the following file maintenance activities if desired:

n Archive 2014 payroll checks

n Move terminated employees out of the payroll file

n Compact the payroll files

Archiving 2014 payroll checks (optional)You canmove checks to a current or history file. This keeps your historical checks separate from yourcurrent checks. It also decreases the size of your data file and decreases processing time. After thechecks are transferred to history, they can still be accessed for reporting purposes but you cannot movethem back to the current status.

NOTE: This process may be lengthy, depending on the size of your files and your system. Pleaseallow sufficient time to complete this process.

To archive the checks:

1 Make a backup of your Payroll files; see “Backing up Pervasive databases” on page 70.

2 Select File > Company Settings > PR Settings.

3 In thePR Settingswindow, select theRetain distributions in history check box if you want to retainburden and daily distributions, and then click [OK].

4 Move checks from your Current.prt file to a History.prt file or to another Current.prt file in a 2014 backupfolder:

a Select Tools > Move > Checks > Current to History.

b In theMove Checks Current to History - Print Selectionwindow, click [Conditions].

c In theAdd Conditionwindow, select Check Date for Field, select Less than forOperator, andtype 01-01-2015 forValue, so the condition is Check Date LT 01-01-2015. This ensures that youmove only the checks from 2014 and earlier.

d Click [Start].



Moving terminated employees (optional)You canmove employees that were terminated in 2014 from the Payroll master file that will be used for2015. This reduces the size of the Payroll master file and increases processing speed.

CAUTION: If you need to generateW-2 forms for the terminated employees, do not move them untilafter you generate theW-2 forms.

1 Make a backup of your Payroll files; see “Backing up Pervasive databases” on page 70.

2 Select Tools > Move > Employees.

3 Select themaster file names or destination folder name:

p If you use namedmaster files, specify the name of themaster file to transfer from and the name ofthemaster file to transfer to.

p If you do not use namedmaster files, specify the name of the folder where you want to create a newmaster.prm file with the employees youmove.

4 Click [Open]. If a Payroll master file does not exist in the destination folder, you are asked to createone.

5 In theMove Employeeswindow, select one of the following options:

p Tomove all terminated employees, select theMove only terminated employees check box andskip to step 8.

p To choose the employees tomove, clear theMove only terminated employees check box and theneither select a range of employees (step 6) or set up a conditional statement (step 7).

NOTE: If you do not use conditions or ranges or if you use a single condition, all employees will bemoved.

6 Tomove specific employees:

a Click [Ranges].

b In the list, highlight the individual employee or employees tomove.

c Click [OK].

d Skip to step 8.

7 To set up a conditional statement for moving employees:

a Click [Conditions].

b Set up the first condition (employee termination date later than 1901) by selecting Termination Dateunder Field, selectingGreater than underOperator, typing 01-01-1901 underValue, and thenclicking [OK].

c In theCondition Selectionwindow, click [Add].

d Set up the second condition (employee termination date on or before 12/31/2014) by selectingAND atthe top, selecting Termination Date under Field, selecting Less or equal to underOperator, typing12-31-2014 underValue, and then clicking [OK].

e In theCondition Selectionwindow, click [OK].

8 In theMove Employeeswindow, click [Start].



9 After youmove the terminated employees, review the journal to verify that the correct information wasmoved.

TIP: You can also useMove Employees to move seasonal employees, rehires, etc., back to youroriginal folder forW-2 reporting purposes.

10 If you want to view or access terminated employee records in the archive data folder (for example, ifyou need to run reports or move an employee record back to your live data), create a new company inthe data folder location then copy system files from your live data to the archive data folder location:

a Create a new company by selecting File > New Company.

b TypePR 2012 for the new company in theCompany name box.

c In theData folder path name box, click [Browse] and browse to the location of your archive datafolder.

d Click [OK] to create the new company.

e Use File Tools to copy the following files from your live data to your archive data folder location:

l system.prs

l tax.prx

Compacting Payroll files (optional)After successfully performing year-end procedures andmoving checks and terminated employees, youcan compact your Payroll master file and current transaction files.

Compacting reduces the amount of space the file occupies and automatically checks the file forcorruption. Using a compacted file can shorten the sorting times for reports, speed formulas calculations,andminimize the amount of space used when backing up. Since files remain the same size wheninformation is removed, consider compacting files any time data is deleted or transferred.

CAUTION: You should only use this procedure on data stored on the local drive of the computer.Using File Doctor over a network can severely damage the data. Sage is not responsible for damagecaused to your data as a result of using File Doctor over a network.

To compact files on the server:

1 Back up your data files; see “Backing up Pervasive databases” on page 70.

2 Verify the amount of available disk space on the drive where the files to compact are located. Theavailable disk spacemust be twice the size of the files you are compacting.

3 SelectMain > Tools > File Doctor.

4 Click [Yes] to the question about your files being backed up.

5 In the File Doctorwindow in the Tasks section, select theCompact good files check box.

6 In the Files list, select the files that you want to compact.

7 Click [Start] to compact the files and print a report.



Frequently asked questions: PayrollHow do I set up bonus pays or supplemental wages to be taxed at a specific rate?

Supplemental wages are pays included on an employee's check that should have a flat federal and statewithholding tax rate. For example, youmay want year-end bonus pay to have a flat 25% federalwithholding tax rate.

To set up withholding for supplemental wages for a check:

1 In Payroll, select Setup > Pays.

2 In thePay Setupwindow:

a Type the new Pay ID, type theDescription, and then press TAB.

b ForPay type, select Other.

c Select theSupplemental check box.

d Click [Save] and then click [Close].

3 Select Setup > Taxes > Tax Rates.


a Select the appropriate federal or state Tax ID (which is associated with theWithholding tax type),and then press TAB,

b ForSupplemental Rate, type either a percentage or a formula ID.

c Click [Save] and then click [Close].

TIP: Formore information, see “About supplemental wages” in the Payroll help.

How do I set up a vehicle reimbursement?

You can set up a reimbursement payment for expenses incurred by an employee that are not taxablewages, such as amileage or gasoline reimbursement.

1 In Payroll, select Setup > Pays.


a Type the new Pay ID, type theDescription, and then press TAB.

b ForPay type, select Reimbursement. (Notice that the items in the window change.)

c Enter the applicable information for the reimbursement, such as the calculationmethod.

d Click [Save] and then click [Close].

3 Customize this pay for the employee in theEmployee Setup - Payswindow.

TIP: Formore information, see “Setting up reimbursement pays” in the Payroll help.



How do I set up third-party sick or disability pay in Payroll?

NOTE: Consult your tax advisor on the effects of third-party sick and disability wages on yourgovernment reports. Youmust manually adjust the 941 Schedule B to include these amounts. If youcannot enter checks for third-party sick pay and disability wages before you close the year and enterthe new year's payroll, you will need to issue checks for a prior year.

UseOption A to set up third-party sick pay or disability wages when the following is true:

n A third-party insurance carrier is responsible for payment of disability wages, withholding and employeeMedicare (MED), and Social Security (SOC) taxes, but is not responsible for issuing theW-2 forms atyear-end.

n The employer is responsible for the employer portion of MED, SOC, FUTA for the first six months, andany unemployment (SUI) taxes.

n TheW-2must reflect the employee’s disability wages and FICA withheld.

UseOption B to set up third-party sick pay or disability wages when the following is true:

n A third-party insurance carrier is responsible for payment of withholding and the employeeMedicare(MED), and Social Security (SOC) taxes as well as issuance of theW-2 form to report this information.

n The third-party transfers the employer portion of the SOC andMED tax liability to the employer.

n This is only a liability to the employer and should not be included on the employees existing tax totals.

Option A for sick or disability pay1 Create a new pay ID called INSUR PAY.

a In Payroll, select Setup > Pays.

b Type INSUR PAY as the new Pay ID, type theDescription, and then press TAB.

c ForPay type, select Other.

d Select the In/Out check box.

e ForCalc method, select Flat amt.

f Click [Deduct] and enter the credit account. Use the sameGeneral Ledger account for bothPay(expense) and In/Out deduction (liability).

g Click [OK], click [Save], and then click [Close].

2 Create a new deduction ID calledWASH.

a Select Setup > Deductions.

b TypeWASH as the new Deduction ID, type theDescription, and then press TAB.

c ForDeduction Type, select Normal.

d For Liability account, use the sameGeneral Ledger liability account as the employee FICA taxes.

e ForCalc method, select Flat amt.

f Click [Save], and then click [Close].



3 Set up the employee as a third-party sick pay recipient.

a Select Setup > Employees.

b Enter the employee ID of the employee whomust report third-party sick pay on his/herW-2 form, andthen press the TAB key twice.

c Click theMisc Info tab.

d Select the 3rd party sick check box.

e Click [Save].

f Repeat steps 3b through 3e for each employee whomust report third-party sick pay on his/herW-2form.

g Click [Close].

4 Enter amanual check for the third-party pay amount.

a Select Tasks > Enter Checks.

b In theEnter Checks - Optionswindow, click [OK].

c In theEnter Checkswindow, click [List], select the employee, and click [OK].

d Type the period end date, and press TAB twice.

e In the upper grid, type INSUR PAY in thePay ID column, and type the amount of disability wagespaid by the insurance carrier in theAmount column.

f Click [Process], clear theCheck check box, and then click [OK].

g Click [Tax]. Select each tax amount not associated with the check, and change it to $0.00.

h Confirm that the calculations for MED and SOC match the amounts the insurance carrier paid. Theemployer portion should be the same.

i Click [Deduct]. On a new entry line, enter theWASH deduction with a negative amount equal to theemployee’s tax amount. This results in a zero net check.

j Click [Process], clear theCheck check box, and then click [OK]. (This is necessary after you alterthe check.)

k Click [Manual]. Enter the check number and check date (which determines which period the checkposts to in Payroll).

l Click [Accept check].

m Repeat steps 4b through 4k for each employee who receives third-party sick pay.

n Click [Finish].When you post the check, theWASH deduction automatically creates an entry so the employee FICAportion does not go to General Ledger as a liability. The employer taxes due are the only amounts thataffect General Ledger.



Option B for sick or disability pay

Use this option to create a journal entry in General Ledger to post the liability to General Ledger. To have arecord of the tax amounts paid on behalf of an employee in Payroll, complete the following steps:

1 Create a new tax ID called INSUR PAY.

a In Payroll, select Setup > Taxes > Tax Rates.

b Type INSUR PAY as the new Tax ID, type theDescription, and then press TAB.

c Select Federal for Tax level, FICA/SDI for Tax type, andNo table for Table type.

d Select theEmployer Tax check box.

e Enter the liability (credit) account and expense (debit) account.

f Click [Save], and then click [Close].

2 Enter amanual check for the third-party pay amount:

a Select Tasks > Enter Checks.

b In theEnter Checks - Optionswindow, click [OK].

c In theEnter Checkswindow, click [List], select the employee, and click [OK].

d Type the period end date, and press TAB twice.

e Click [Tax], then click [Emplr Tax].

f In the lower-left grid, type INSUR PAY in theEmplr Tax column and type the employer amount ofFICA, FUTA, or SUI due in theAmount column. Do not enter earnings on the check.

g Click [Process], clear theCheck check box, and then click [OK].

h Click [Manual], type the check number and check date (which determines which period the checkposts to in Payroll), and then click [OK].

i Click [Accept check].

j Repeat steps 2c through 2i for each employee who receives third-party sick pay.

k Click [Finish].When you post the check, the tax liability amount affects General Ledger.

Do I have to generate W-2 forms before I close the year in Payroll?

No. You can generateW-2 forms before or after you have closed the Payroll year. When you generate theW-2 forms, you select the year for the forms.



Can I process payroll for the new year before printing W-2 forms?

You can generate 2014W-2 forms before or after closing the 2014 Payroll year. Before you can processpayroll for 2015, youmust have:

n Closed the 2014 Payroll year.

n Verified that all 2014 Payroll amounts aremoved to the “Prior Year” columns.

n Updated taxes for 2015.

n Downloaded and installed the 2014 year-end update.

Do I need to close the month before I close the year in Payroll?

You need to close all months before December. If your current data folder month is December, selectTasks > Close Year, since December is the last month of the year.

How do I delete terminated employees from the Payroll master file at the end of theyear?

After you produce theW-2 forms, move terminated employees to a different master file, as described onpage 16.

How can I void and reissue a check from the previous year?

You cannot void checks from a previous year after closing it. Therefore, DO NOT close the year until alladjustments have beenmade.

I just downloaded the 2015 tax changes. When should I update them?

Download 2015 tax changes and runUpdate Taxes after you complete the last payroll for 2014 but beforeyou process checks for the first 2015 payroll. AlthoughUpdate Taxes updates most tax tables, you stillmay need to change local tax tables and unemployment rates and limits.

When I ran Payroll > Tools > Update Taxes, I got an error message that reads "New.prxnot found." What does it mean?

This message usually means that you have already runUpdate Taxes or you have not yet downloaded thenew tax files. The New.prx file is installed during theDownload Taxes process and is deleted after youselect Update Taxes.

How can I verify that my taxes updated?

Access the Payroll Tax Release Notes by selectingHelp > Documents, choosing the release notes, andclicking [Open]. This document lists the taxes that were changed and the effective date of the change. InPayroll, select Setup > Taxes > Tax Rates, enter the tax ID of one the taxes that changed, and notice theeffective date. If the effective date in the window matches the effective date documented in the releasenotes, the taxes were updated.See the software notice and Knowledgebase article for download and installation instructions.



Chapter 4: Producing W-2 FormsIn January, your company needs to print theW-2 forms for your employees. The forms show the taxablewages earned by the employees during the previous calendar year. If you have Sage Timberline EnterprisePayroll, follow the instructions in this chapter to produce these forms.

IMPORTANT: If you aremailing employee copies of W-2 forms, they must be postmarked byJanuary 31. If you have Aatrix mail the copies or electronically file (eFile), we recommend that youprocess the forms in Aatrix no later than January 28 because activity on the Aatrix website will beheavy in the last days of themonth. Log on to the KnowledgeBase and search for the article titled"When do I have to submit my W-2s or 1099s to Aatrix so they are eFiled on time?" for informationabout state filing deadlines.

Before producing theW-2 forms, all 2014 payroll checks must be posted. Youmay also want to close thePayroll year, as described in Chapter 3, but you can produce theW-2 forms before or after closing thePayroll year.

CAUTION: Although you can enter time for the new year, do not process payroll for 2015 until afteryou close the Payroll year, install the 2014 year-end update, and install the 2015 tax updates.

W-2 forms checklist

Task Comments

□ Calculate the number of W-2 forms, if desired. See page 24.

□ Decide if you want to print or eFile theW-2 forms. See page 24.

□ If you plan to print theW-2 forms, order the forms. See page 25.

□ Set up or modify yourW-2 template, such as for 401K deductions.Aatrix uses these settings to print yourW-2 forms.

See page 26.

□ Back up the Payroll information, which is stored in a Pervasivedatabase.

See page 70.

□ GenerateW-2 forms for printing or eFiling. See page 27.



Determining the number of W-2 forms (optional)

Employee W-2s1 In Payroll, select Tasks > Federal eFiling and Reporting.

2 Select the appropriate form.

3 Complete the wizard screens to advance to theW2/1099 Preparer grid.

4 From the Viewmenu, selectW-3/W-2 Report.

5 The number of forms appears below Total number of Forms W-2.

State Forms

NOTE: This is only required if you will not eFile StateW-2s.

1 In Payroll, select Tasks > Federal eFiling and Reporting.

2 Select the appropriate form. If offered, test-drive the process for all employees.

3 Complete the wizard screens andW-2/1099 Preparer grid to advance to theW-2 Printing and Filingoptions.

4 Under theOther Options list, select Print State W-2s and Reconciliation Forms only.

5 Select all states for which you will submit printedW-2s.

6 Proceed through the wizard and total the number of pages that appears in the top left of the window foreach state.

Options for producing the W-2 formsSage 300 Trade Specialty is integrated with Aatrix software to produce yourW-2 tax forms. You have thefollowing options for producing theW-2 forms:

n Aatrix electronically files theW-2 forms with federal and state agencies. Aatrix provides the employeecopies online on a secure website.

n Aatrix electronically files theW-2 forms with federal and state agencies. Aatrix prints andmails theW-2forms to employees.

n Aatrix electronically files theW-2 forms with federal and state agencies. You print the employee copieson preprintedW-2 forms andmail them to employees.

n You print all W-2 forms. You thenmail them to the federal government, state agencies, and recipients.

NOTE: Youmust electronically file with federal and some state agencies if you have 250 or moreW-2 forms.

For more information on federal form printing requirements, log on to the KnowledgeBase and search forthe article titled "Which forms should I order?"

For information about Aatrix fees, visit https://partner.aatrix.com/index.php/sage300tradespecialty.

Chapter 4: ProducingW-2 Forms




Ordering forms (optional)Order the correct forms to load in your printer. These forms must meet the layout required by the eFilingand reporting service provided by Aatrix. Log on to the KnowledgeBase and search for the article titled"Which forms do I order?" for more information about government form printing requirements.

Order your forms from Sage CRE Forms to guarantee compliance with the new requirements. Sage CREForms can be reached at:

Phone: 800-760-7929Fax: 503-454-1826Email: [email protected]: www.sagecreforms.biz

Use the information in the following table to select the correct paper or form to use.

Government forms Paper/forms to use

FederalW-2 forms (if printed andmailed)

Plain paper with black ink*

FederalW-3 forms (if printed andmailed)

Plain paper with black ink*

State and localW-2 forms (if printedandmailed)

Blank perforated paper 4-upW-2 paper

EmployeeW-2 forms Blank perforated paper 4-upW-2 paper (can have thenotice/instructions printed on the back)**

W-2 instructions for employees** Blank paper**

Copies ofW-2 andW-3 forms foryour records

Blank paper

* For more information, log on to the KnowledgeBase and search for the article titled "TheW-2 andW-3 forthe Social Security Administration is not red."

** If the notice/instructions are not printed on the back of the employeeW-2 forms, you can print them onplain paper and provide them to the employees.




http://www.sagecreforms.biz/


Creating or modifying your W-2 templatesTomeet government reporting requirements, you can control the information that prints on theW-2 form.You canmodify the standardW-2 form already designed for you, or you can create an entirely new one.

NOTE: Formore information about W-2 forms, see "ModifyingW-2 forms" in Payroll Help.

To create or modify aW-2 form:

1 In Payroll, select Tools > Modify Forms > W-2 Forms.

2 Choose or create a form:

p To select an existing form, click [List], select the form, and click [OK].

p To create a new W-2 form, enter a form code and description for a new form.

3 Press TAB andmake selections on theControls tab:

a ForEmployee minimum, type theminimum amount of taxable withholding that the employeemusthave for theW-2 form to be printed. For example, if you enter 0.01, the software does not generate aW-2 form for an employee with zero taxable withholdings. If you enter 0.00, the software generates aW-2 form for all employees. Select the federal and state employer IDs.

4 Click theAmounts tab. Most of the required information for theW-2 form is automatically filled in foryou in tax boxes 1 through 6.



5 If you need to report additional information, use tax boxes 7 through 14.

p To add any other pays, deductions, or fringes, select the appropriate tax box, click [Pays],[Deducts], or [Fringes], select the desired item, and then click [OK]. See the Payroll Help for moreinformation.

p To add or change tax information, select the appropriate tax box, click [Formulas], select a formula,and click [OK].

6 Click [Save] and then click [Close].

Generating the W-2 formsThis section walks you through the steps to generateW-2 forms in preparation for eFiling or printing yourforms using Aatrix services.

Before You Beginn Back up the Payroll information, which is stored in a Pervasive database. See page 70 for moreinformation.

n Make any desired changes to theW-2 form templates, as described on page 26. Aatrix uses thesetemplates to generate theW-2 forms.

TIP: If you do not want to generate forms for employees with zero taxable withholdings, set theEmployee minimum amount to .01 in theModify W-2 Formswindow; see page 26 for moreinformation.



NOTES:

l Changes youmake in Aatrix are not written back to Sage Timberline Enterprise Payroll.

l Since eFiling can take up to two days, schedule accordingly.

Special situations in Payroll

For themost commonworkflows, your Payroll data appears automatically in Aatrix. If you have thefollowing situations, you will need tomake adjustments.

n Multiple Payroll tax IDs: You can groupmultiple Payroll tax ID's as described on page 28.

n Local tax settings: You can link local taxes to tax descriptions during setup, as described on page 31.

n Ohio School Districts: If you generateW-2 forms for the state of Ohio, link eachOhio School Districtyou need to report in the Link Managerwindow as described on page 23.

n Multiple local taxes: You can set upmultiple taxes in theState and Local Taxeswindow. See page 33.

n Multiple FEINs: Youmay have two or more Federal Employer Identification Numbers (FEINs) but onlyone Payroll master file. See page 32.

n Third-party sick pay: If you have any employees who had federal income tax withheld on third-party sickpay, select the Third-party sick pay check box in theW-3 Information window and enter the incometax amount withheld.

n Multiple Payroll master files: You canmergemultiple payroll data files, as described on page 36.

n New Jersey Private Family Leave and Disability Insurance: Because the state of New Jersey hasspecial reporting requirements, if you generateW-2 forms for the state of New Jersey, ensure you setup your software tomeet these requirements, as described on page 39.

Creating a tax group to link multiple tax ratesIf you want to combine two or more tax rates (such as a local and a state tax rate), create a new Aatrix taxgroup by combining two or more tax ID's.

1 In Payroll, select Tasks > Federal eFile and Reporting.

2 In the Federal e-File and Reportingwindow, click [Link Aatrix Tax Types] to open the Link AatrixTax Typeswindow.



3 In the Link Aatrix Tax Types to PR Tax Rates window, click (theAdd New button) to create thenew tax group.

4 Enter the following information in the Link Aatrix Tax Types to PR Tax Rates window:

a ForGroup ID, type a name (nomore than 20 characters) for the new tax group.

b ForGroup Description, type a description (nomore than 60 characters) for the new Aatrix tax group.

Use this description to help identify the tax group and its purpose later. For example, if you combineKansas City resident and non-resident taxes, you can type "Kansas City resident and non-residenttaxes" in the description.

c ForState, select the first state containing the tax ID or IDs that you want to assign or group.

The available Aatrix tax codes associated with the state you select appear in the Tax Descriptionlist.

d For Tax Description, select the Aatrix tax description. If it does not appear, you can select LocalWitholding.



e ForEmployer ID, Type your employer ID number.

f W-2Description displays a description corresponding with your selection in the Tax Description box(step 4b). If you selected Local Withholding for Tax Description, type theW-2 description that youwant to appear on the resultingW-2 form.

g Select your desired subject-to calculationmethod.

p Sum All Subject-To Amounts: When you select this option, Sage Timberline Enterprise Payrollsends to Aatrix the sum of the subject-to amounts for all tax ID's in theAvailable Rates list.

For example, if you select New York City Resident withholding (NYCR) and New York City Non-Resident withholding (NYCN) from theAvailable Rates list, and each has a subject-to amount of$10,000 and $12,000 respectively, the total subject-to amount reported to Aatrix for the tax group is$22,000.

p Use Highest Subject-to Amount: When you select this option, Sage Timberline Enterprise Payrollsends to Aatrix the highest subject-to amount for all tax ID's you select from theAvailable Rateslist.

Using the preceding example, the subject-to amount sent to Aatrix for the tax group is $12,000.

h Select one or more tax rates from the Available Rates list and add them to theSelected Rates list.

Payroll adds together all tax rates in theSelected Rates list and reports them to Aatrix along with thesubject-to amount. The resulting tax rate, subject-to amount, andW-2 description appear on theW-2form.

i Click [Save] to save the new tax group.

j If desired, click [Report] to print a report displaying the tax group setup information for your records.

5 Repeat step 4 for each tax group you want to create.

Selecting the report and linking descriptions to taxes1 In Payroll, select Tasks > Federal eFile and Reporting.If you receive a prompt to update tax forms, select [Automatic Update] to ensure you have the latestupdates so you are in compliance with the latest federal or state mandated changes.If your software is set up to usemultiple Payroll master files, you will be prompted to select the one youwant to work with now. (You have the option tomerge Payroll master files in a later step; see page 36.)

2 In the Federal eFile and Reportingwindow:

p If this is the first time you opened the window this year, select theW-2/W-3 report and select the yearor period.

p If you previously saved a draft of a report that you want to use, click [History] and select it from thelist.



3 If you need to assign local or state taxes for the states where your company works, click [Link AatrixTax Types] and follow the steps in “Creating a tax group to link multiple tax rates” on page 28.

4 In the Federal eFile and Reportingwindow, click [Next].

5 In theW-2 Format Selectionwindow, select theW-2 format you want to use for this report and click[Next].

NOTE: TheW-2 Format Selectionwindow does not appear if you only have oneW-2 format.

6 In theEmployees to Processwindow, select the check box before the employees that you want toinclude, and then click [Next].

NOTE: You can select multiple employees frommultiples states.

7 In theGenerate Federal Reportwindow, read the instructions, and then click [Generate].This opens the AatrixW-2 Setup Wizard.

NOTE: If you have already set up yourW-2 report, you will not see the wizard.



Using the Aatrix W-2 Setup WizardThe first time you generate aW-2, this wizard opens to help you set up your report.

1 Select one of the processing options, and then click [Next]. Youmay want to select "test drive" mode torun through the process first. To process the final forms, select No thanks, start processing my W-2/W-3s.

NOTE: In test drivemode, no information is saved after you print your forms. Do not use the test drivemode when processing your final W-2 run.

2 Verify yourCompany FEIN (Federal Employer Identification Number), and then click [Next].

TIP: If you need to change your FEIN, in Payroll, select Setup > Taxes > Tax Groups, select Federalfor Tax level, make the correction forEmployer ID, and click [Close].

NOTE: If you havemore than one FEIN, but only one Payroll Master file, you can select whichemployees to include for each FEIN. Repeat the process in this section for each FEIN you will use tofileW-2 forms.

3 In theCompany Informationwindow, verify that all information is correct, enter missing information,and then click [Next]. This information will be included on theW-2 forms.



TIP: Click (the Help button) for detailed information about what to enter in this window.

NOTE: You can open theCompany Informationwindow later if you need tomake changes to yourinformation at a later time by either:

l Clicking [Setup] in the existingReports window.

l SelectingEdit > Update Company Information in the Forms Viewer orW-2 grid.

4 In the Tax Preparer Typewindow, select one of the following roles, and then click [Next].

p Owner or employee filing for your company

p Third-party, paid tax preparer filing for one or more companies.

NOTE: If you select the second option, a window appears in which you can enter your tax preparer TINand other information for inclusion on the final form.

5 In theState & Local Tax Itemswindow, make any necessary changes to the state and local taxes thatneed to be reported on theW-2 forms, and then click [Next].

p To change an existing tax item, select it, click [Edit], make the change in the Tax Item window, andclick [OK].

p To remove a tax item that you do not want to include on theW-2 form, select it and click [Remove].

p To add a tax item, click [Add] in either the state or local area, make selections in the Tax Itemwindow, and click [OK].

TIP: Click (the Help button) for information about the selections.



6 In theMultiple Payroll Data Fileswindow, select whether you use a single payroll data file or multiplefiles, and then click [Next].

NOTE: If you usemultiple files, you will select the data files to merge in a later step (on page 36). Thepayroll data is merged for the report but the original data files are not affected by this process.

7 In theData Verificationwindow, answer the questions, and then click [Next]. The answers affect whatappears in theW-2/1099 Preparer grid, which you use to verify your data in a later step.

TIP: Click (the Help button) for more detailed information about each question.



8 In theW-3 Informationwindow, make the desired selections, and then click [Next].

TIP: Click (the Help button) for more detailed information about what to enter in this window.



9 If you are in test drivemode, click OK in the information window.You then either see theMultiple Payroll Data Fileswindow, which is described in the followingsection, or theVerify Employee Information grid, which is described on page 38.

Merging multiple Payroll data filesIf you selected the option to usemultiple payroll data files (in Step 6 on page 34), you now select whichfiles to merge. If you have a single payroll data file, skip to “Verifying employee information,” on page 38.

NOTE: Copies of your Payroll data aremerged for the report. Your original data files are not affectedby this process.

1 In theMultiple Payroll Data Fileswindow, select whether to merge Payroll data files. This feature isused for companies or tax preparers who keep separate databases for employees working under thesame FEIN (Federal Employer Identification Number). For example, youmay have separatedepartments, divisions, or company names under the same FEIN.

2 Click [Save] (to select the payroll data file you currently have open), enter a name for the data file, andclick [OK].

3 Click [Close] to close theMultiple Payroll Data Fileswindow.

4 Select Tasks > Federal Reporting > Federal eFile and Reporting, and select another Payrollmaster file when prompted.



5 Run through the setup wizard using the same information you entered for the first master file.

6 In theMultiple Payroll Data Fileswindow, click [Save] to add the new payroll data file to the list.

7 Repeat Steps 4, 5, and 6 until you have included all the payroll data files required for processing.

8 In the grid near the bottom of the window, select the check mark before the payroll data files that youwant to include, and then click [Merge] to combine the data files.You then see theVerify Employee Information grid, which is described in the next section.



NOTE: You can continue to add data files to the list andmerge them at any time. Each time youmerge, a new worksheet is created. If you createmultiple reports, youmust be cautious to use thecorrect report when eFiling.

Verifying employee informationThe grid in theW-2/1099 Preparerwindow displays employee information in rows and columns. Thecolumns in the grid correspond to the boxes on theW-2 forms.

During each step of the verification process, you can review, make corrections, and add information to thecells highlighted in yellow. Missing or incorrect information is indicated with a red cell. The informationrequired at each step is based on your answers to the questions in theData Verificationwindow (Step 7on page 34)

To add additional columns to the grid, right-click a column head, select Insert, enter the name for thecolumn and default text, and click [OK]. Click the drop-down list in the column header and select a boxnumber and description.

Click (the Help button) for a full description of the grid functions.

1 Verify and correct the employee names and addresses that are highlighted.A red cell in the grid contains an error. Youmust correct the errors before you can continue.

NOTE: Any changes youmake in this grid are not written back to your Payroll database. Youmust alsocorrect the data within Payroll.After verifying/correcting the employee information, click [Next Step].

2 Verify the information in the right-hand side of the grid is correct, including state wages (Box 16) andstate tax withheld (Box 17).The state wages are calculated based on the detail records from your Payroll data. Tomake changes,click in the cell, make the correct ion theEdit State Detail recordswindow, and click [OK].



3 If your company does work in New Jersey, youmay need to link the New Jersey Employee data forNew Jersey Private Family Leave and/or Private Disability Leave Insurance amounts, as described inthe next section (on page 39).

4 After verifying/correcting the employees' state information, click [Next Step].

Linking New Jersey private family leave and disability leave insurance amounts

Employee data for New Jersey Private Family Leave and/or Private Disability Leave Insurance appears inthe grid as an undefined column. Youmust link it toBox 14 in order to display it correctly on theW-2 form.

NOTE: The option to link to NJ private family leave insurance withholding or NJ private disabilitywithholding only appears if you have NJ selected as a state in the company setup wizard.

1 Click the drop-down arrow on the column header and select Box 14 > Other > Private Family Leaveor Private Disability Insurance.

2 When prompted, enter the plan number.The column then automatically displays as FLI orDI, depending on your selection.



NOTE: After you complete the rest of theW-2 employee grid and generate a form, the information willdisplay in box 14 of theW-2 forms.

3 After verifying/correcting the employees' state information, click [Next Step].

Selecting filing options and generating the forms1 In theW-2 Printing and Filing Optionswindow, select the desired printing or eFile options.

2 Click [Next] and follow the on-screen instructions.

NOTES:l Some states havemore than oneW-3 reconciliation form and you need to select which ones applyto your company. If you are not sure which forms apply to your company, check with your stateagency or tax advisor.

l If a state does not appear in the list in this window, that state does not require aW-2 form.

3 In theReview Datawindow, review the list of the forms that will be generated. If a form is missing, click[Back] and change your selections. Click [Next] when you are ready to generate the forms.



4 Review each form on your screen.

a If any boxes are outlined in red, make corrections.

b Click [Print Copy] to print a copy for your records.

TIP: Formore information on federal form printing requirements, log on to the KnowledgeBase andsearch for the article titled "which forms should I order?" If you need to order forms, see page 25 forinformation.

c Click [Next Step] to go to the next form.

5 After you verify all of the forms, click [Agree] in the [Verify Report Complete] window.

6 When you are connected to the secure Aatrix website, follow the on-screen instructions to completeyour transaction in Aatrix.

TIP: If you eFile theW-2 forms, you select a date range for submitting the forms to the government.We recommend that you select the latest date available (late January) so you have time tomakecorrections to theW-2 forms before they are submitted. Corrections made prior to the form beingsubmitted to the government are free of charge. However, if you have tomake a change after theforms are submitted, youmust send corrected forms, as described in the next section. Aatrix willcharge you for eFiling the corrected forms.

Correcting W-2 forms (creating W-2C forms)If you already submitted theW-2 forms to the government and need tomake changes, youmust submitW-2C forms. Aatrix will charge you for eFiling the corrected forms. (Aatrix does not print W-2C forms.)

1 In Payroll, select Tasks > Federal eFile and Reporting.




2 Select Saved reports, and then click [Next].

3 In theView or Edit Saved Reportswindow, verify or select your Federal ID number, and then click[Open].

4 In theView or Edit Saved Reportswindow, select theW-2 form that needs to be corrected, and thenclick [Edit].

5 Select Correct Completed W-2s, and then click [Next].

6 In theW-2/1099 Preparerwindow, manually enter the correct amounts in the appropriate boxes foreach employee requiring aW-2C form. Changed amounts appear in blue. Only the forms withcorrections will be printed or eFiled.

7 In theCorrection Optionswindow, select Yes for each entity that requires aW2-C form, and then click[Continue].

8 Follow the prompts to generate theW2-C forms.

Frequently asked questions: W-2 formsWhat do I need to know about eFiling my W-2 forms?

You can eFile yourW-2 forms using the Aatrix software. Visit efile.aatrix.com for more information.

Do I need to order W-2 forms if I plan to eFile?

No, it is not necessary to order forms if you are eFiling, provided that you choose the "complete" e-filingservice. Aatrix provides the electronic documentation required. However, if you do not choose thecomplete service—for example, you file federal and state forms only—youmust still orderW-2 employeeforms.

How much does it cost to eFile?

You can save time and perhaps money (considering the costs of forms, labor, and postage) using eFilingthrough Aatrix. For information about fees, visit partner.aatrix.com/index.php/sage300tradespecialty.

How do I calculate the number of W-2 forms to order?

TheW-2 Count report, as described on page 24, shows the number of forms that will be generated. Thisreport is especially helpful if you plan to print theW-2 forms, so you can order the correct number of forms.

Do I need to download and install the year-end software update before processing W-2forms?

Yes. Due to 2015 federal tax changes, the year-end updatemust be installed prior to processing your firstpayroll of 2015 for taxes to calculate correctly.

Do I have to generate W-2 forms before I close the year in Payroll?

You can generate theW-2 forms either before or after you close the payroll year. If you generateW-2 formsbefore you close the year, do not generate any more payroll checks for 2014 since those amounts were notincluded in theW-2 amounts.



http://efile.aatrix.com/

http://partner.aatrix.com/index.php/sage300tradespecialty

Do I have to generate W-2 forms before I process payroll checks for the new year?

You do not have to generate the 2014W-2 forms before processing payroll checks for 2015. However, youmust close the 2014 payroll year, update the 2015 taxes, and install the year-end software update beforeprocessing 2015 payroll checks; see page 13 for more information.

Will the period-end date of my last payroll affect my W-2 forms?

Payroll totals are always updated by the check date. BecauseW-2 forms should only include the amountpaid during the year, any checks dated January 2015 or later are not included on the 2014W-2 forms. Forexample, if the period end date is 12/31/2014 but the check date is 1/1/2015, this check amount is notincluded in the employee totals for 2014.

I have two federal tax IDs but only one master file. How can I print two sets of W-2forms?

First, select Setup > Taxes > Tax Groups, and then enter both employer tax IDs for the federal tax level.

Then, create two separateW-2 forms. To set up a new W-2 form, select Tools > Modify Forms > W-2Forms, and then select eitherEmployer ID 1 orEmployer ID 2 for Federal employer ID on theControls tab.

When you generate theW-2 forms, select the appropriateW-2 form and select the range of employeespaid under the federal tax ID associated with the selectedW-2 form.

If I have multiple Payroll master files, should I move all my employees into one Payrollmaster file to generate W-2 forms?

You do not need tomove the employees. In Aatrix, you indicate that you usemultiple payroll data files, andthen select the files. Aatrix creates amerged file to generate theW-2 forms. (Aatrix does not alter theoriginal Payroll master files.)

If I have multiple localities per state, what do I need to do?

You can link multiple Payroll tax ID's to an Aatrix tax code by creating a new tax group. For moreinformation, see “Creating a tax group to link multiple tax rates” on page 28.

How do I add a 401(k) deduction to the W-2 form?1 In Payroll, select Tools > Modify Forms > W-2 Forms.

2 Select theW-2 form and press TAB.

3 Click theAmounts tab.

4 Place your cursor after 12a, 12b, 12c, or 12d and then type the appropriateW-2 code for the deduction.For example, D represents the amount of elective deferrals to a 401(k) cash or deferred arrangement.See “About box 12 onW-2 forms” in the Payroll help for the list of codes.

5 Press TAB, click [Deducts], select 401K Deduction or the deduction associated with the code, andthen click [OK].

6 Click [Save], and then click [Close].



How do I mark the Retirement Plan and Third-Party Sick Pay boxes on the W-2 form?1 In Payroll, select Setup > Employees.

2 On theMisc Info tab, select theRetirement plan check box, and select the 3rd party sick check box.

3 Click [Save], and then click [Close].

I need to combine more than one tax, pay, fringe, or deduction in a single box on theW-2. What formula can I use in the W-2 amount field?

The record needed to pull the associated field is denoted in angle brackets (<#>). For example, the fieldYTD Tax <Employee Tax> will be found on the employee tax record.

NOTE: You can group local taxes in Payroll by selecting Tasks > Federal eFile and Reporting >[Link Aatrix tax types]. See “Creating a tax group to link multiple tax rates” on page 28 for moreinformation.

n Lookup YTD earnings:

LOOKUP(YTD Pay<Employee Pay>, Employee<Employee>, 3, "BONUS") + LOOKUP(YTDPay, Employee, 3, "BONUS2"

"BONUS" and "BONUS2" represent actual pay IDs. The "3" represents the Pay Type (1 = Regular, 2 =Overtime, 3 = Other, 4 = Reimbursement, 5 = Accrual).

How do I suppress generating W-2 forms for employees with zero YTD taxable?

Modify yourW-2 template:

1 In Payroll, select Tools > Modify Forms > W-2 Forms.

2 Select yourW-2 form and press TAB twice.

3 Type 0.01 forEmployee minimum.

4 Click [Close].

When you generate the federal W-2 forms, theW-2 program looks for FWH YTD taxable, MED YTDtaxable, and SOC YTD taxable greater than or equal to $0.01 (on the employee tax record) to determinewhether to print aW-2 form for that employee. If you generate stateW-2 forms, the program looks forxxSWH YTD taxable (xx represents the state) greater than or equal to $0.01.

Why is nothing printing on my W-2 forms?

Confirm that you have selected the correct year to print in theGenerate W-2swindow.

How do I correct a W-2 after it has already been filed?

Use the steps outlined in “CorrectingW-2 forms (creatingW-2C forms)” on page 41 to print or eFile aW-2C. A W-2must have already been generated for this option to be available.

NOTE: When eFiling aW-2 we recommend you file your employee, federal and stateW-2s as closeto the due date as possible on theChoose W-2 Submission Dateswindow. Corrections made totheW-2s prior to this date are free of charge. Corrections made to theW-2 after it has been filedrequire aW-2C and are charged the same rate per filing as the original W-2.



Chapter 5: Quarterly ReportingYou can process the following state and federal Payroll quarterly forms using Aatrix:

l Federal Form 941

l State quarterly forms

Federal Form 941Aatrix provides the ability to print or electronically file Form 941.

Processing the federal form1 In Payroll, select Tasks > Federal eFile and Reporting.If you receive a prompt to update tax forms, select [Automatic Update] to ensure you have the latestupdates so you are in compliance with the latest federal or state mandated changes. For moreinformation, see page 4.If you previously saved a report, the system displays two choices.

l If you want to create a new report, select New report and click [Next >].

l If you want to use a saved report, select Saved reports, click [Next >], verify your FederalID number, click [Open], select the desired report in theOpen Reportwindow, and click [Edit].

2 In the Federal eFile and Reportingwindow, select the 2014 941/Schedule B/941-V Report for thecurrent year.

3 Select the appropriate period and year for the form, and then click [Next >].

4 In theEmployees to Process list, select the check box next to each employee you want included inthe report, clear the check box next to each employee you want excluded from the report, and then click[Next >].


NOTE: Only the selected employees that have earnings in the quarter are included in the totals forForm 941. You do not need to clear the check boxes in front of the employees that had no earnings; theyare automatically excluded.

TIP: You can select a range of employees by holding down the SHIFT key as you scroll through thelist. You can alsomakemultiple selections in the list by holding down the CTRL key as youmake yourselections.

5 In theGenerate Federal Reportwindow, read the instructions, and then click [Generate].

6 If this is your first time using the Federal eFile and Reporting Aatrix tasks, follow the steps in theCompany SetupWizard. See page 32 for more information.

Printing or electronically filing the federal formAfter generating your quarterly form, Aatrix guides you through the process for printing or electronicallyfiling your Form 941. Follow the steps in the yellow-shaded area near the top of the report window.

1 In theReview/Edit step, fill in the required fields, which are highlighted in red. You can alsomakechanges to the fields highlighted in blue.

2 If you are required to submit Schedule B (of Form 941), click the green arrow tomove to page 2 andselect theYou were a semiweekly depositor check box.

Chapter 5: Quarterly Reporting


3 After entering the required information, you can click to save the changes or click to printthe form for review.

4 Click .

5 In theVerify Report Complete window, either:

p Click [Double Check] to return to the report form.

p Click [Agree] to continue.

6 In theMy Copy step, print a copy of the form for your records by clicking , making selections inthe Print window, and clicking [OK],

NOTE: Do not file this copy; it is the unofficial copy for your records only.

7 Click [Next Step].

8 In the Filing Optionswindow, select your desired filingmethod:

p eFile: Click to electronically file the quarterly report with federal authorities. There is a fee for thisoption.

If you have not yet registered with Aatrix, click Forgot your login? to set up an account.

p Print: Click to print the quarterly report if you plan tomail it.



9 Follow the on-screen instructions to print your report or log in to send it electronically.

A copy of the completed form is now accessible in your history. For information on how to access history,log on to the KnowledgeBase and search for the article titled “How can I view, edit or reprint Aatrix forms Ihave already generated?”

State quarterly formsAatrix also provides the ability to print or electronically file quarterly reports for all 50 States.

Processing the state forms1 In Payroll, select Tasks > State eFile and Reporting.If you receive a prompt to update tax forms, select [Automatic Update] to ensure you have the latestupdates so you are in compliance with the latest federal or state mandated changes. For moreinformation, see page 4.If you previously saved a report, the system displays two choices.

l If you want to create a new report, select New report and click [Next].

l If you want to use a saved report, select Saved reports, click [Next], verify your FederalID number, click [Open], select the desired report in theOpen Reportwindow, and click [Edit].

2 In the Federal eFile and Reporting window, select the state for which you are producing quarterlyreports forState Selection.




3 Select the report you want to generate, the reporting period, and year, and then click [Next >].

4 In theEmployees to Process list, select the check box next to each employee you want included inthe report, clear the check box next to each employee you want excluded from the report, and then click[Next].

NOTE: Only the selected employees that have earnings in the quarter are included in the totals for thestate quarterly report. You do not need to clear the check boxes in front of the employees that had noearnings; they are automatically excluded.

TIP: You can select a range of employees by holding down the SHIFT key as you scroll through thelist. You can alsomakemultiple selections in the list by holding down the CTRL key as youmake yourselections.

5 In theGenerate State Reportwindow, read the instructions, and then click [Generate].

6 If this is your first time using theState eFile and Reporting or Federal eFile and Reporting Aatrixtasks, follow the steps of theCompany Setup Wizard at the prompt.

Printing or electronically filing the state formsAfter processing your quarterly form, Aatrix guides you through the process for printing or electronicallyfiling your state quarterly report. Follow the steps in the yellow-shaded area near the top of the reportwindow.

1 In theReview/Edit step, fill in the required fields, which are highlighted in red. You can alsomakechanges to the fields highlighted in blue.



2 After entering the required information, you can click to save the changes or click to printthe form for review.

3 Click .

4 In the Verify Report Completewindow, either:

p Click [Double Check] to return to the report form.

p Click [Agree] to continue.

5 In theMy Copy step, print a copy of the form for your records by clicking , making selections inthe Print window, and clicking [OK],

NOTE: Do not file this copy; it is the unofficial copy for your records only.

6 Click [Next Step].



7 In the Filing Optionswindow, click the button next to your desired filingmethod:

p eFile: Click to electronically file the quarterly report with state authorities. There is a fee for thisoption.

If you have not yet registered with Aatrix, click Forgot your login? to set up an account.

p Print: Click to print the report if you want to mail it.

8 Follow the on-screen instructions to print your report or log in to send it electronically.

A copy of the completed form is now accessible in your history. For information on how to access history,log on to the KnowledgeBase and search for the article titled “How can I view, edit or reprint Aatrix forms Ihave already generated?”




Chapter 6: Producing 1099 FormsIn January, your company needs to print the 1099 forms for certain vendors, such as subcontractors,located in the United States. The forms show the payments made to the vendors during the previouscalendar year.

Follow the instructions in this chapter to produce these forms.

Before producing the 1099 forms, all 2014 payments to these vendors must be processed. Youmay alsowant to close the December 2014 accounting period, as described in Chapter 2.

1099 forms checklist

Task Comments

□ Check your company's tax numbers. See page 53.

□ Check that vendors are set up to receive 1099 forms. See page 53.

□ Finalize the calendar year. See page 53.

□ View and correct the 1099 totals. See page 54.

□ Decide if you want to print or eFile the 1099 forms. See page 54.

□ If you plan to print the 1099 forms, order the forms. See page 55.

□ Generate the 1099 forms. See page 56.


Specifying your tax numbersIf you have not done so already, enter your company's tax registration number and Federal ID.

The tax registration number is set at the database level:

1 In Configuration and Tools, select Database > Details.

2 Type the correct number for Tax registration number.

3 Click [Save].

The Federal ID is set for the fiscal entity:

1 In General Ledger, select Setup > Chart of Accounts.

2 Select the fiscal entity (the company or department) in the hierarchy.

3 Click the Fiscal settings tab.

4 Type the correct number for Federal ID.

5 Click [Save].

Setting up vendors to receive 1099 formsFor those vendors that need to receive 1099 forms, make sure that their 1099 information has been set up.To set up this information for a vendor:

1 In Accounts Payable, select Setup > Vendors.

2 In theVendorwindow, select the desired vendor in theVendor list.

3 Click the 1099 settings tab.

4 Select theVendor receives a Form 1099 check box and select the type of 1099 form.

NOTE: If payments to a vendor need to be distributed tomore than one 1099 form type, youmust setup a separate vendor for each 1099 form type.

5 Type the correct tax number forRecipient's identification number and the correct name forRecipient’s name.

6 Click [Save] to save the changes to the vendor's information.When payments aremade to the vendor, Accounts Payable automatically increments the 1099 amountfor the year associated with the payment date.

Finalizing the calendar yearBecause the 1099 form reports the amount paid to a vendor for a calendar year, which in this case is 2014:

1 Make sure that all payments to be included in the 1099 total have been processed with an accountingperiod in 2014.

2 If desired, close the accounting period that includes December 31, as described in Chapter 2. Thisprevents the posting of additional payments in 2014.

Chapter 6: Producing 1099 Forms


Viewing and correcting 1099 totalsBefore generating the 1099 forms, view the 1099 totals to verify that they are correct.

1 In Accounts Payable, select Reports > 1099 Preparation Report.

2 In theCriteria Valueswindow, select theReporting Year.

3 ForVendor, either:

p Select All if you want to include all vendors in the report.

p Select ln and then select the check mark before the vendors that you want to include in the report.

4 If desired, make other report criteria selections.

5 Click [OK] to generate the report and display it on your screen.

If you need to change the 1099 amount for a vendor (such as to adjust for an opening balance amount orpayment to the wrong year):

1 Select Setup > Vendors.

2 In theVendorwindow, select the desired vendor in theVendor list.

3 Click the 1099 settings tab.

4 Click [Entity totals].

5 In the 1099 Totalswindow, locate the correct year, locate the fiscal entity that made the payments,make the change to the 1099 amount column, and then click [Save].

NOTE: Youmust have security permissions to edit the 1099 amounts.

Options for producing the 1099 formsSage 300 Trade Specialty is integrated with Aatrix software to produce your 1099 tax forms. You have thefollowing options for producing the 1099 forms:

n Aatrix electronically files the 1099 forms with federal and state agencies. Aatrix prints andmails the1099 forms to recipients.

n Aatrix electronically files the 1099 forms with federal and state agencies. You print the recipient copiesandmail them to recipients.

n You print all 1099 forms. You thenmail them to the federal government, state agencies, and recipients.

NOTE: Youmust electronically file if you have 250 or more 1099 forms.

Log on to the KnowledgeBase and search for the article titled "Which forms do I order?" for moreinformation about government form printing requirements.

For information about Aatrix fees, visit https://partner.aatrix.com/index.php/sage300tradespecialty.

NOTE: If your Federal ID is a non-US number, you cannot electronically file through Aatrix.





Ordering 1099 forms (optional)Order the correct forms to load in your printer. These forms must meet the layout required by the eFilingand reporting service provided by Aatrix. For additional information, log on to the KnowledgeBase andsearch for the article titled "Which forms do I order?" for more information about the forms.

Order your forms from Sage CRE Forms to guarantee compliance with the new requirements. Sage CREForms can be reached at:

Phone: 800-760-7929Fax: 503-454-1826Email: [email protected]: www.sagecreforms.biz

Use the information in the following table to select the correct paper or form to use.

Government forms Paper/forms to use

Federal 1099-DIV, 1099-INT, or 1099-MISC forms (if printedandmailed)

Pre-printed red ink 1099form

Federal 1096 forms (if printed andmailed) Pre-printed red ink 1096form

Recipient 1099-DIV, 1099-INT, or 1099-MISC forms Blank perforated 4-up 1099paper

1099 instructions for recipients Blank paper

Copies of Federal 1099-DIV, 1099-INT, or 1099-MISC formsfor your records

Blank paper

Copies of Federal 1096 forms for your records Blank paper

Copies of 1099 payer forms for your records Blank perforated 4-up 1099paper




http://www.sagecreforms.biz/

Generating the 1099 formsYou start the generation process in Sage 300 Trade Specialty, which is integrated with Aatrix software toproduce your 1099 tax forms.

IMPORTANT: For each Federal Employer Identification Number (FEIN), you are allowed to file onlyonce per vendor for each 1099 form type.

If you will be performingmultiple 1099 runs of any type (including DIV, INT, or MISC) using the same FEINin Accounts Payable, be sure to select "Yes, I use multiple 1099 data files for this (EIN)" in the 1099Setup Wizard.

You can combine Accounts Payable 1099-INT data files into one form.

To Generate 1099 forms1 In Sage 300 Trade Specialty, access the Accounts Payablemodule.

2 Select Tasks > Generate 1099s.

3 In theGenerate 1099swindow, select the fiscal entity for which you want to generate 1099 forms,select the 1099 form type, and select the year.

4 By default, 1099s with an amount greater than $600 are generated for Aatrix. You can change thisamount, if desired. To generate all forms, change the amount to 0.

5 Click [Generate].

6 Follow the steps in the Aatrix software to generate the 1099 forms. A separate form is generated foreach vendor that uses the selected form and received payments from the selected fiscal entity.

NOTE: For information about generating the 1099 forms in Aatrix, click (the help button) to accessthe Aatrix help system.

TIP: If you eFile the 1099 forms, you select a date range for filing. If you select to file in late January,you have time tomake corrections to the vendor amounts before filing. If you have tomake a changeafter the forms are filed, corrected forms must be sent; Aatrix will charge you for eFiling the correctedforms.



Using the 1099 Setup WizardNOTE: For information about windows in the 1099 SetupWizard, click (the help button) toaccess the Aatrix help system.

1 In the 1099 Setup wizard, select whether to test drive the system or generate reports for printing oreFiling, and then click [Next]. Youmay find it useful to run through the process in "test drive" modebefore printing your final forms.

NOTE: If you select test drivemode, theWizard does not save the information. Do not use testdrivemode to process your final 1099 run.

2 Verify your Taxpayer Identification Number (TIN), which is the Federal ID Number from the Form 1099(USA) window, and then click [Next].



3 In thePayer Informationwindow, verify that the information is correct, enter any missing information,and then click [Next].



NOTE: If you need tomake changes to this information at a later time, you can access thePayerInformationwindow:

p When you are in the existingReportswindow, click [Setup].

p When you are in the Forms Viewer or 1099 grid, select Edit > Update Company Information.

4 In the Tax Preparer Typewindow, select whether you are preparing the report for your company or youare a third-party, paid tax preparer, and then click [Next].

NOTE: If you select the second option, the Third-Party Preparer Informationwindow appears foryou to enter your tax preparer TIN and other information for inclusion on the final report.



5 In theState & Local Tax Itemswindow, assign the correct tax account number and add all state andlocal taxes that need to be reported on your 1099 forms, and then click [Next]. If you already completeda federal or state tax form, the items may be already filled in.

p Click [Add] to add a new tax item to the state or local grid. Click (the help button) for moreinformation about the formats.

p Click [Edit] to change the tax item selected in the state or local grid.

p Click [Remove] to delete the tax item selected in the state or local grid so it is not included on the1099 forms.



6 In theMultiple 1099 Data Fileswindow select whether you need tomergemultiple 1099 data files forthis report, and then click [Next].Select No if you will file a 1099 form from a single Accounts Payable data file only. You can then skip to“Verifying recipients” on page 64.Select Yes if you want to mergemultiple Accounts Payable data files.Continue with the steps in “Merging the data files,” on page 62.



Merging the data filesIf you selected the option to usemultiple 1099 data files (in Step 6 on page 61), you now select which filesto merge. If you have a single 1099 data file, skip to “Verifying recipients” on page 64.

NOTE: Copies of your accounting data aremerged for the report. Your original Sage 300 TradeSpecialty data files are not affected by this process.

1 In theMultiple 1099 Data Fileswindow, click [Save] to add the current data file to the list.



2 In theSave 1099 Data Filewindow, enter a name for this file, and then click [OK].The file is listed in the grid near the bottom of theMultiple 1099 Data Fileswindow.



3 If you need to add additional files to bemerged:

a Click [Close] to exit theMultiple 1099 Data Fileswindow.

b To add another Accounts Payable data file for this form, repeat the steps to process the data and usethe 1099 Setup wizard (starting on page 57).

4 If the grid near the bottom of theMultiple 1099 Data Fileswindow includes all files that need to bemerged for this form, select the check box before each of the files, and then click [Merge].The software combines copies of the data and then displays the information in the 1099 Preparer gridfor you to verify.

Verifying recipientsTheW-2/1099 Preparerwindow displays information in a grid. The columns in the grid correspond to theboxes on the form. Verify information highlighted for each step. Missing or incorrect information isindicated with a red cell.

For information about this window, click (the help button) to access the Aatrix help system.

1 Verify or correct the recipients' taxpayer IDs, and then click Next Step to proceed through the grid.

NOTE: Any changes youmake in this grid do not correct your accounting data. Youmust correct thedata within Sage 300 Trade Specialty for the changes to be permanent.



2 If the recipient's TIN is also their Federal Tax Identification Number (FEIN), select the check box in theTIN Flag column, and then click Next Step.

3 Verify or correct the recipients' names and addresses, and then click Next Step.

4 Verify or correct the income boxes (such as the amount of rents, interest, or other amounts withheld),and then click Next Step.

5 Verify or enter the filing state, and then click Next Step.The 1099 Printing and Filing Optionswindow opens.

Selecting eFiling and printing optionsThe 1099 Printing and Filing Optionswindow displays your options for eFiling and printing the 1099forms as well as the associated costs, if any.



1 Select the desired option(s), and then click [Next].

2 Follow the on-screen instructions to review and print the forms. Even if you choose to eFile, print copiesof the forms for your office records.

TIP: For information about ordering forms for printing, see page 55.

Frequently asked questions: 1099 formsWhy doesn’t a particular vendor appear when I generate 1099 forms?

Verify the vendor is set up to receive 1099 forms. Open the vendor (select Setup > Vendors), click the1099 setting tab, and verify that theVendor receives a Form 1099 check box is selected for that vendor.In the table at the bottom of the tab, verify that there is an amount for 1099 amount paid for the year.

I have a vendor who did not have the 1099 box selected. Can I select it now to include itwhen I generate 1099 forms?

Yes. The 1099 amount paid totals are accumulated for each vendor regardless of whether theVendorreceives a Form 1099 check box is selected. You can select the check box to include the vendor at anytime before you generate the 1099 forms.



How do I set up a vendor to receive two different types of 1099 forms?

Only one 1099 form type is allowed per vendor code. For a vendor to receivemore than one type of 1099,set up a different vendor code for each from type. On the 1099 setting tab of each vendor, select the typeof 1099 form for Form type.

How does the 1099 amount calculate for an invoice with payments in two differentyears?

The 1099 amount is based on the amount paid during the year, not the amount invoiced during the year. Forexample, if a vendor has only one invoice for $1,000 that you enter in 2014, you print a check to the vendorfor $900 in 2014, and print a second check for $100 in 2015, the 1099 setting tab for the vendor displays:

n $900 for the 1099 amount paid for 2014.

n $100 for the 1099 amount paid for 2015.

What do I do if the government cannot verify a vendor with the name and federal IDused on the 1099 form?

The government may have a different name for the vendor. Youmay be using the vendor’s DBA nameinstead of the recipient name. Tomake corrections:

1 Confirm with the vendor the correct number and name to use for government reporting.

2 In Accounts Payable, select Setup > Vendors.

3 Click the 1099 setting tab.

4 Type the correct number forRecipient's identification number and the correct name forRecipient’sname.

5 Click [OK] to save your corrections.

Can I post January 2015 invoices and generate 1099s for 2014 later?

Because 1099s are based on payments (such as checks and electronic payments) not invoices, entering2015 invoices does not affect the 1099 amounts for 2014.

When can I print Accounts Payable checks for 2015?

You can print Accounts Payable checks for 2015 at any time. As long as the date of the check is in 2015, itdoes not affect your 2014 vendor totals for 1099s.

The 1099 totals are incorrect. How do I correct the 1099 amounts for my vendors?

The vendor totals are automatically updated when payments are processed. If the 1099 amount for avendor is incorrect and all payments were posted, you canmanually adjust the totals in the 1099 Totalswindow in Accounts Payable (if you have security permissions). For details, see "If you need to changethe 1099 amount for a vendor."

CAUTION: Although you can change the 1099 totals in Aatrix after you generate the 1099 forms,those changes are not written back to your Sage 300 Trade Specialty database.



Chapter 7: Backing Up Your DataBacking up your data regularly is a critical component of disaster-recovery planning. You can lose databecause of power outages, hardware failures, natural disasters, malicious acts, andmany other causes.When planning a backup strategy, ask yourself "How much business information can I afford to lose?"

Work with your certified consultant and information technology professionals to implement a backupschedule that protects you from catastrophic loss. Consider each of these factors:

n Types of backups

n Frequency of backups

n Storage location for backupmedia

n Testing and recovery

We recommend that you create full backups of your data instead of differential or incremental backups.We do not support restoration from differential or incremental backups.

Timing of backupsIn addition to regularly scheduled backups, perform backups immediately prior to and immediatelyfollowing significant events such as:

n Month-end or year-end processing

n Software upgrades

Storage locations for backup mediaStore backups on different physical media than their original location. If you lose data because of diskfailure, a backup stored on the same disk will not be any more accessible than the original data.

Periodically, media containing a full backup should be transferred to a separate, secure physical locationsuch as a safety deposit box or a secure data storage andmanagement company. Media stored on-sitecan be restored in the case of hardware failure—but in the case of a natural disaster, youmight have toretrieve off-site media. Many companies store periodic full backups in a different geographic region toprotect from regional disasters.

Testing and recoveryEvery viable backup planmust include restoring full backups to a test environment on a regular basis. Untilyou have tested a particular backup set, you don’t know for certain that the files were not corrupted, lost,skipped, or otherwise rendered unusable. If any of these conditions exist, youmight as well not have abackup at all. An inaccessible or unusable backup does not protect your business.

As part of your regular backup schedule, restore backups to a testing environment and run data checkssuch as reports. If your restored data does not meet your standards, you need to find the cause of theproblem, fix it, and run another backup before your disaster-recovery plan can be considered effective.


Performing the backupYou should back up your databases and related folders at the same time so that the information issynchronized.

Folders to include in a backupBack up the folders containing the following data:

n Sage 300 Trade Specialty data, which is stored in SQL Server database files. This includes theSAAConfiguration database. See page 69.

n Sage Timberline Enterprise Payroll data, which is stored in a Pervasive database, if you use the optionalPayroll module. See page 70.

n TheDocuments and Settings\All Users\Application Data\Sage folder.

n TheAttachment andSpool folders associated with your Sage 300 Trade Specialty databases.

Backing up SQL Server databasesMost of your Sage 300 Trade Specialty data is stored in SQL Server database files. These are the .mdfand .ldf files in the default SQL data location. The SAAConfiguration database should be backed up withyour other Sage 300 Trade Specialty data. This is a SQL Server database that the system uses to storechanges to system administrators or company database configurations.

NOTE: You canmodify these steps as needed based on your company’s internal requirements andsystem configuration.

To back up a SQL Server database:

1 When the scheduled backup time arrives, ensure that all users are disconnected from Sage 300 TradeSpecialty.

a In Sage System Administration, go to License Administration and click theActive Users tab tosee the list of active users. Ask each of the users listed on this tab to log out of the software.

b Click Restrict Logon. (This prevents new connections to any Sage 300 Trade Specialty database,but it does not close existing connections.)

2 Start SQL Server Management Studio (Start > Programs > Microsoft SQL Server > SQL ServerManagement Studio) and connect to the server that hosts the database you want to back up.

3 ExpandDatabases under the SQL Server instance.

4 Right-click the database and select Tasks > Back Up.

5 Select the options for the backup. For information on the options, click [Help].

6 Click [OK] to begin the backup process.

7 After the backup is complete, repeat this process for all databases that you need to back up, includingthe SAAConfiguration database.

Chapter 7: Backing Up Your Data


8 When you are finished, in Sage System Administration, click Allow logon to allow users back in to thesoftware.

Backing up Pervasive databasesIf you have the optional Payroll module, the payroll data is stored in a Pervasive database. Back up yourPervasive and SQL Server databases at the same time to keep them synchronized.

To back up the Payroll database:

1 In Payroll, select Tools > File Tools. (File Tools is a utility included with Payroll.)

2 Select Backup, and then click [Next].

3 Click Add Folder, select your company data folder (which will be in the Timberline Office/Data folder),and click [OK].

4 Click [Next].

5 ForDestination, click [Browse], select the location where you want to save the backup file, and click[OK].

6 ForArchive name, type a name for the new archive file.

7 Click [Next] to start the process, and continue clicking [Next] to complete the wizard.

8 When the process is complete, click [Finish].

Backing up other important foldersAlong with the database files, back up the following folders at the same time by using your preferredbackup application. (These folders are not included in SQL Server or Pervasive backups.)

n TheDocuments and Settings\All Users\Application Data\Sage folder, which contains additionalSage 300 Trade Specialty information.

n TheAttachment andSpool folders.

NOTE: To locate these folders for each database, in System Administration, select the database andclick Database Properties.


Chapter 7: Backing Up Your Data

Chapter 8: Further AssistanceOnline helpEach Sage 300 Trade Specialty module includes online help, which provides answers to your questionsabout procedures as well as items in the windows.

To access the online help in the Sage 300 Trade Specialty software, either:

n In a window, click (the help button) or press F1 to display the help topic for that window.

n In the Desktop, select Help > Search for help on, and then choose the desiredmodule.

To aid you in finding the information you need, the online help for eachmodule includes the followingpanes:

n Contents pane with links to the help topics.

n Index pane with keywords that link to help topics related to that keyword.

n Search pane, where you can type text and click [Search] to locate that text in the help topics.

For more information about using the online help, see the Sage 300 Trade Specialty Desktop help; (in theDesktop, select Help > Sage 300 Trade Specialty Desktop Help).

Getting help with year-end issues

Technical assistance at year endDuring year end, it can be hard to reach a customer support analyst at the Sage Customer Support CallCenter as quickly as you need. We recommend utilizing your software’s in-product Help system orviewing the product documentation first to answer your technical questions.

When you need additional assistance, refer to the How do I get technical support for Sage 300 TradeSpecialty? article to determine what service works best for you.

Upgrading your service planIf your service plan does not provide online or telephone customer support and you would like to add orupgrade a service plan, please call 800-858-7098.


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TrainingSage University offers online and classroom training sessions to help you get themost out of your Sage300 Trade Specialty software. To access Sage University, either:

n From the Sage 300 Trade Specialty Desktop, select Help > Sage 300 Trade Specialty on the Web> Sage Software University.

n From your browser, visit www.sageu.com.

Chapter 8: Further Assistance


http://sageu.com/

Index1

1099 forms

FAQs 66

generating 56

options for producing 54

ordering 55

vendor does not appear 66

vendor names and federal IDs 67

vendor settings 53

1099 totals 54

4401(k) deductions 43

AAatrix 1

1099 forms 56

account types 6

accounting periods

closing 6

FAQs 8

accounts

retained earnings 6

Accounts Payable

checks for new year 67

closing the year 6

adjusting prior years 9

Application Data\Sage folder 70

archiving checks 15

Attachment folder 70

Bbacking up

other important folders 70

pervasive databases 70

SQL Server databases 69

backups

folders 69

storage locations 68

testing and recovery 68

timing 68

bonus pays 18

Ccalendar year

closing accounting 7

closing payroll 10

checks

archiving 15

voiding and reissuing 22

checks for new year

for employees 13


for vendors 67

closing

December accounting period 7

financial year 7

payroll year 13

closing periods 6

combining

tax, pay, fringe, or deduction 44

compacting payroll files 17

company

Federal ID 53

FEIN forW-2 forms 32

Tax registration number 53

correcting 1099 totals 54

costs of eFiling

1099 forms 54

W-2 forms 42

creatingW-2 templates 26

Ddata

backing up 68

data files

merging forW-2 forms 36

December accounting period

closing 7

deductions

401(k) 43

combining onW-2 form 44

retaining year-to-date totals 12

downloading tax updates 13

EeFiling 1

1099 forms 54

costs for 1099 forms 54

costs forW-2 forms 42

eFiling options

W-2 forms 40

employees

minimum amount forW-2 form 26

moving terminated 16

suppressingW-2 forms 44

verifying information 38

Employees to Process window 31

FFAQs

1099 forms 66

accounting periods 8

payroll 18

W-2 forms 42

Federal eFile and Reporting window 30

federal IDs

company 53

vendors 67

federal tax IDs

multiple 43

file tools in Payroll 70


files

compacting payroll 17

final payroll 11

financial year

closing 7

first payroll of year

preparation 13

formulas

combining tax, pay, fringe, ordeduction 44

fringes



GGenerate Federal Report window 31

generating

1099 forms 56

W-2 forms 27, 40

Hhelp 71

Iinvoice paid in two years 67

invoices for new year 67

Llinking tax rates 28

local taxes

onW-2 forms 33

Mmerging payroll files 36

minimum amount forW-2 form 26

modifyingW-2 templates 26

moving

prior year checks 15

terminated employees 16

multiple federal tax IDs 43

multiple payroll files 36

Nnames and federal IDs for vendors 67

New Jersy private disability leave taxes 39

New Jersy private family leave taxes 39

new.prx not found error 22

Oordering

1099 forms 55

W-2 forms 25

Ppayments

two years 67

payroll

closing the year 10, 13

FAQs 18

final in calendar year 11

pays

bonus 18




third-party sick 19

periods

closing 6

pervasive databases

backing up 70

posting

final payroll checks for year 11

invoices for new year 67

transactions 8

printing options

1099 forms 54

W-2 forms 40

prior year adjustments 9

Rrecovering backups 68

reimbursement

vehicle 18

reissuing checks 22

retained earnings accounts 6


retirement plans 44

SSage CRE Forms

1099 forms 55

W-2 forms 25

Sage university 72

software versions 1

Spool folder 70

SQL Server database backups 69

state taxes

onW-2 forms 33

state wages and taxes withheld 38

supplemental wages 18

supported versions 1

suspense transactions 8

Ttax forms

2099 forms 52

using Aatrix 1

W-2 forms 23

tax groups

linking tax rates 28

Tax registration number 53

tax updates

downloading 13

taxes


New Jersey private leave 39

verifying that updated 22

terminated employees 16

testing backups 68

third-party sick pay 19, 44

training 72


transactions

posting 8

suspense 8

Uupdating taxes 13

Vvehicle reimbursement 18

vendors

names and federal IDs 67

settings for 1099 forms 53

two 1099 form types 67

verifying

accounts 6

employee information 38

taxes updated 22

versions 1

viewing

1099 totals 54

employee information 38

voiding checks 22

WW-2Count report 24

W-2 Format Selection window 31

W-2 forms

401(k) deductions 43

calculating number 24

eFiling option 40

employeeminimum amount 44

FAQs 42

generating 27, 40

multiple federal tax IDs 43

options for producing 24

ordering 25

printing option 40

retirement plan box 44

setup wizard 32

state and local taxes 33

templates 26

third-party sick pay box 44

W-2 SetupWizard 32

W-2 templates

modifying 26

W-3 Information window 35

wages

supplemental 18

Yyear-to-date totals

retaining 12

Zzero YTD taxable 44
