The Ledger : PY end-of-year

AP and PY End-of-Year Support Roundtables

Jennifer Maroney — Thu, 12 Nov 2009 17:01:00 GMT

It's been a year since you last created your W-2s and 1099s. Do you need a refresher or are you new to the process? If you have any questions about end-of-year for AP or PY, make sure you attend one of our end-of-year Support Roundtable sessions.

The Accounts Payable End-of-Year Support Roundtable will provide an overview of the end-of-year process, including running end-of-year reports, setting up vendors to track 1099 activity, creating 1099 forms, making 1099 adjustments, and a question-and-answer period at the end of each section. Here are the session dates:

Thursday, December 10 from 2:00 to 3:30 p.m. ET
Wednesday, January 6 from 2:00 to 3:30 p.m. ET

There are only 150 "seats" available for each session so don't delay, register today!

The Payroll End-of-Year Support Roundtable will provide an overview of the end-of-year process, including running end-of-year reports, creating W-2 forms through Aatrix, making W-2 adjustments, and a question-and-answer period at the end of each section. Here are the session dates:

Wednesday, December 9 from 2:00 to 4:00 p.m. ET
Friday, January 8 from 2:00 to 4:00 p.m. ET

There are only 65 "seats" available for each session so so don't delay, register today!

The Great and Powerful Wizard

Jennifer Maroney — Tue, 10 Nov 2009 20:23:00 GMT

Amounts? And Information? And Tax Forms. Oh my! Don't feel like the Scarecrow when it comes to correcting your 1099s and W-2s. Go see [speaking in a booming voice into a microphone] the great and powerful Wizard of 1099s and W-2s for help.

Our brand new 1099 and W-2 Wizards are easy-to-use interactive help pages to take you step-by-step through the process of correcting all information and box amounts on 1099 and W-2 forms. They even have examples and screen shots! It's almost like having a Support analyst right there in your office helping you make the correction.

To use the wizards, simply open the 1099 Wizard or W-2 Wizard, hover over the box to adjust, click, and follow the steps. It's that easy!

Have you used the 1099 or W-2 Wizard? Share your experiences and feedback by leaving a comment. Talk to you soon!

Payroll Post Notes: One-Time Calculations

Jennifer Maroney — Mon, 20 Apr 2009 14:03:00 GMT

Every couple of months we see a spike in calls about how to create a one-time check. OK so the question is not "How do I print a one-time check," it usually has to do with paying employees a bonus, reimbursement for expenses, or paying them for a calculation error. Whatever the reason, the process is always the same.

First, create the new pay type in Configuration. The rate selected and the number of pay types needed depends on the reason for the check. Here are a few scenarios for an employee bonus:

If all employees will receive the same amount, select Fixed amount and enter the total amount.
If all employees will receive the same percentage of pay, select Percentage of gross and enter the appropriate percentage.
If different groups of employees will receive a specific amount, create a different pay type for each group.
If all employees will receive different amounts, select Fixed amount and enter the total amount that most of the employees will receive. When adding the pay type to the employee records using Create Group Assignments, you can manually update each employee amount on the Assignment Grid tab.

On the Schedule tab of the pay type, mark the Pay only in periods with specific end dates option. If the one-time calculation's pay date falls on the same date as the regular payroll calculation, the software will calculate both pay types together. If the other scheduled pay(s) are already calculated, only the one-time pay will be calculated.

Now you're ready to add the pay type to employee records. There are two options depending on the number of employees. If you only have a dozen or so employees, I'd recommend manually adding the pay type, but if you have a large number of employees, save yourself time by using Create Group Assignments.

Okay, you made it through the hard part. At this point all you have to do is create calculations and print the checks or EFTs; a process I am sure you are all familiar with . If you would like step-by-step instructions, take a look at KB solution BB244550.

Talk to you soon!

Payroll Post Notes: Demo Watermark Prints on W-2s

Jennifer Maroney — Thu, 08 Jan 2009 11:55:00 GMT

Are you trying to print your W-2s through Aatrix and see a watermark that says Demo Do Not File? Not to worry. This watermark just means that your Aatrix forms have not been registered yet. Follow these simple steps to request your registration code and register your forms:

Create a case, including your organization's EIN, to request a registration code.
Once you receive the registration code, access the registration screen by previewing a tax report and then either:

Click Register on the demonstration mode warning screen.

Select Help, Registration from the menu bar.

On the State and Federal Tax Reports Registration screen, enter the registration code and click Enter.
Click Done to complete the registration.

Remember, your registration is valid for one year. You will receive a reminder to renew in the last quarter of your registration.

Talk to you soon!

Payroll Post Notes: Print and eFile W-2s

Jennifer Maroney — Tue, 06 Jan 2009 19:06:00 GMT

Okay you're in the home stretch. You've made your corrections, reconciled your 941s, and verified all employee information. All that's left is to print and eFile your W-2s. In Payroll 7, you print and eFile your W-2s through Aatrix.

Remember, based on the number of employees, some employers are required to file their reports on magnetic media; however, the IRS encourages all employers to file electronically. Check out Social Security Online if you have any question about filing specifications.

The first thing you need to do is register your Aatrix forms, if you have not already done so. Your registration will be valid for one year, so keep in mind that you will need to reregister each year to process your W-2s. Once you've registered you're ready to print and eFile. Since the process is quite lengthy, please check out the Tax Reports section of The Financial Edge Mail Guide for the entire process or BB237440 to print W-2s and BB237177 to eFile W-2s.

You must eFile at least two days before the state or federal deadline to allow for Aatrix processing, so make sure you plan accordingly.

That's it, you're done! Now take a deep breath, have a drink , and be happy you didn't wait 'til January 29 to start the process. Talk to you soon!

Payroll Post Notes: Create Tax Tables

Jennifer Maroney — Fri, 02 Jan 2009 12:01:00 GMT

When you install the end-of-year patch, the federal and state tax table files are updated automatically based on changes submitted to Blackbaud before November 30. Before you calculate payroll for 2009, you must create updated tax tables. When you create the tax table, the rates default based on the updated values in the tax table file. Follow these steps to create the new tax tables:

In Configuration, click Taxes.
Select Federal or State from the Tax Type drop-down list.
Click New Tax.
Enter an effective date.
Complete the description and other required fields.
Click GL Distribution on each tab to enter withholding, liability, and expense accounts.
Click OK and then click Save and Close.

I strongly recommend you compare your tax tables to the annual tables of the Circular E before calculating payroll since tax changes can be made after November 30. This will save you the headache of having to delete and recreate calculations for all employees because there was an error in the table.

Talk to you soon!

Payroll Post Notes: Prepare Your Pay Schedules

Jennifer Maroney — Thu, 18 Dec 2008 12:30:00 GMT

We have talked a lot lately about preparing to process W-2s, but there are other things you need to do too. One of the most important non-tax end-of-year tasks is to create next year's pay schedule. This quick process will save you lots of headaches calculating Payroll in January and ensure all pay types, benefits, and deductions will calculate correctly for 2009.

I strongly recommend using the same schedule ID for consecutive years so the default schedule on employee records updates automatically. Then, when you calculate the first payroll of the new year, you will be prompted to update the compensation type's schedule. Make sure you click Yes to the prompt. The compensation type schedule will then be updated based on the default employee schedule.
Note: If you calculate attendance based on pay period, you must use the same schedule ID for each payroll year.

You have two options to create the new pay schedule:

If your pay frequency is bi-weekly, ensure you enter the correct number of pay periods because each year can contain more than the default 26 periods. For example, if in 2009 your period end date falls on Thursday, your bi-weekly schedule will have 27 periods. Ensure your schedule includes all period end dates before saving and using the schedule. To correct a bi-weekly schedule used in a calculation, refer to Knowledgebase solution BB322598.

Stay tuned for more end-of-year stuff. Talk to you soon!

Payroll Post Notes: Payroll Tax or W-2 Adjustments

Jennifer Maroney — Tue, 16 Dec 2008 11:05:00 GMT

In the Verify Employee Information post, we discussed how to verify the information on your W-2s, but what do you do if a box value is incorrect? Well, that's what I wanted to talk to you about today.

If you find the error before the employee receives the check, void the check, delete the calculation, correct the tax settings, and recalculate payroll. However, if you find the error after the employee receives the check, you must either make an adjustment on the employee's next check or make the correction using an historic entry.

Determine the type and amount of the adjustment and correct the source of the error:
1. Determine what to adjust and by how much. Use the following items to determine if you need to adjust any amounts:
  - Payroll Register
  - W-2s
2. Check the pay types, benefits, and deductions in Configuration and on the employee's record to determine where the problem originated.
3. If applicable, correct the pay types, benefits, and deductions in Configuration or on the employee's record.

Create the records for the adjustment:

Create the non-cash benefit in Configuration. The description should indicate this record is used for an adjustment.
For example: ADJ-FEDERAL, ADJ-SUTA, ADJ-NO FLAGS.

Here is a table of common tax adjustments to help with the process:

Adjustment:	Non-Cash Benefit Positive Amount	Non-Cash Benefit Negative Amount	Adjustment	Next Check or Historical Check?	Solution Number
Increase Social Security (FICA) withholding	Social Security tax: Withhold tax	None	Gross subject to Social Security (FICA)	Next payroll check	BB318902
Increase Social Security (FICA) taxable wages	Social Security tax: Report earnings only - no withholding	None	Gross subject to Social Security (FICA)	Either	BB351986
Decrease Social Security (FICA) withholding	None	Social Security tax: Report earnings only - no withholding	Gross subject to Social Security (FICA)	Next payroll check	BB318902
Decrease Social Security (FICA) taxable wages	None	Social Security tax: Report earnings only - no withholding	Gross subject to Social Security (FICA)	Either	BB351986
Increase Federal taxable wages	Federal: Report earnings only - no withholding or Withhold tax	None	Gross subject to Federal	Either	BB318905
Decrease Federal taxable wages	None	Federal: Report earnings only - no withholding or Withhold tax	Gross subject to Federal	Either	BB318905
Increase SUTA tax withholdings	SUTA: Subject to SUTA	None	Gross subject to SUTA	Next Payroll Check	BB318906
Increase W-2 Box 9, 10, 11, 12, or 14	Mark the Include amounts for this benefit in W-2 box checkbox and select the appropriate box number (9, 10, 11, 12, or 14)	None	Amount of increase	Either	BB318907
Decrease W-2 Box 9, 10, 11, 12, or 14	None	Mark the Include amounts for this benefit in W-2 box checkbox and select the appropriate box number (9, 10, 11, 12, or 14)	Amount of decrease	Either	BB318907
Increase Federal tax withholding	None	None	Amount of increase	Next Payroll check	BB264842
Decrease Federal tax withholding	None	None	Amount of decrease	Either	BB264842

Correct the employee's record:
You can adjust an employee's taxes by either creating an historic entry or correcting it in the next paycheck, depending on the circumstances. You can use historic entries to make end-of-year adjustments before printing W-2 forms. If the adjustment needs to affect the employee's net wages and withholding, the General Ledger accounts, or the employer taxes, correct it on the next paycheck.
Note: Historic entries do not affect General Ledger.

Talk to you soon!

Payroll Post Notes: Verify Your W-2 Information

Jennifer Maroney — Mon, 15 Dec 2008 16:09:00 GMT

So far, we've talked about several things you can do to help limit tax season stress. Another thing you can do is print test copies of your W-2 to verify the information. If you do anything prior to printing your W-2s, make sure you run test copies first. Compare the information on the W-2 to reports and records in the system to ensure accuracy.

Here's how to verify each W-2 box:

Adjusted Gross Wage Report
- Box 1 (Wages, tips, other compensation)
- Box 3 (Social security wages)
- Box 5 (Medicare wages and tips)
- Box 16 (State wages, tips, etc.)
- Box 18 (Local wages, tips, etc.)

Deduction Profile
- Box 2 (Federal income tax withheld)
- Box 4 (Social security tax withheld)
- Box 6 (Medicare tax withheld)
- Box 9 (Advance EIC payment)
- Box 10 (Dependent care benefits)
- Box 11 (Nonqualified plans)
- Box 12 (See instructions for box 12)
- Box 17 (State income tax)
- Box 19 (Local income tax)

Employee record, Tax Settings tab, W-2 option
- Box 13 (Statutory employee | Retirement plan | Third-party sick pay)
- Box 14 (Other)

Employee record, Tax Settings tab, State Income Tax Settings
- Box 15 (State | Employer's state ID number)

Configuration, Tax Tables, Local Taxes
- Box 20 (Locality name)

Configuration, General
- Box b (Employer identification no. (EIN))
- Box c (Employer's name, address, and ZIP code)

Employee record
- Box d (Employee's social security no.)
- Box e (Employee's name, address, and ZIP code)

Stay tuned for more end-of-year tips. Talk to you soon!

Payroll Post Notes: Verify Employee Information

Jennifer Maroney — Fri, 12 Dec 2008 11:26:00 GMT

In the Reconcile Your Payroll Taxes Before the End of the Year post, I mentioned there are steps you can take before you print your W-2s to avoid headaches. In this post, I'd like to give you another helpful tip for a less stressful tax season.

After you reconcile your 941 report, have your employees verify their personal information. This seems like a simple step, but it will avoid a line of employees at your door, or lots of emails, telling you their names are misspelled or addresses are incorrect on W-2s. Verifying employee biographical information will also ensure your records are up-to-date and save you from having to reprint forms, which will save you money too .

The easiest way to handle this verification task is to print an Employee Profile Report and mark the option to page break after each each employee, and then simply hand them out. Employees can make needed corrections or initial them if they are correct, and then turn them back in. By having employees initial their copies, you can keep track of which employees have not verified their info. Here's how to create the report:

In Reports, Profile and Statistical Reports, highlight Employee Profile Report and click New.
On the General tab, mark the boxes for the sections and details to show on the report.
On the Filters tab, define the appropriate filters.
On the Format tab, highlight Sort, and mark the Page break on each new Employee Name checkbox.
Click Preview.

Stay tuned for more end-of-year help. Talk to you soon!

Payroll Post Notes: Reconcile Your Payroll Taxes Before the End of the Year

Jennifer Maroney — Thu, 11 Dec 2008 15:33:00 GMT

Tax season is never a fun relaxing time whether you are an employer preparing W-2s or an employee filing your taxes. I can't help with filing your individual taxes, but I can help save you a headache or two when preparing your W-2s. My key advice...don't wait until January 26 (the last week in January) to start the process. If you do, good luck with Murphy's Law . Another step you can take is to reconcile your 4th quarter 941 tax report. This can be done before the end of the year and will help ensure smooth W-2 processing in January.

Oh, one quick thing about reconciliation before we get to the good stuff. If you don't reconcile regularly, add this important step to your policies and procedures manual. OK, let's get started.

The first step, of course, is to create a 941 Tax Report. Now that you have the report, refer to the table below to reconcile each line.

941 Line Number	Report Name	Report Options	Reconciliation Process
Line 1	Payroll Register	On the General tab, select to include paid calculations. Select <Specific date> for Payment date and enter the date range used on the 941 report. Mark the Create an output query of checkbox and select Employees.	In Query, open the query created from the Payroll Register. Select the Results tab to view the number of employees.
Line 2	Adjusted Gross Wage Report	On the General tab, select to include paid calculations. Select <Specific date> for Payment date and enter the date range used on the 941 report.	Verify the Federal Withholding (Federal W/H) Grand Total.
Line 3	Payroll Register	On the General tab, select to include paid calculations. Select <Specific date> for Payment date and enter the date range used on the 941 report. Under Include calculation detail for, unmark all checkboxes except Taxes. In the Print a field, select Summary. Mark the Summarize activity by: checkbox and select Pay stub ID. On the Filters tab, select to filter Taxes by Federal tax.	Verify the Federal amount under Total Deductions/Employee Taxes.
Line 5a	Adjusted Gross Wage Report	On the General tab, select to include paid calculations. Select <Specific date> for Payment date and enter the date range used on the 941 report.	Verify the Social Security (Soc. Sec.) Grand Total.
Line 5c	Adjusted Gross Wage Report	On the General tab, select to include paid calculations. Select <Specific date> for Payment date and enter the date range used on the 941 report.	Verify the Medicare Grand Total.
Line 8	Payroll Register	On the General tab, select to include paid calculations. Select <Specific date> for Payment date and enter the date range used on the 941 report. Under Include calculation detail for, unmark all checkboxes except Taxes. In the Print a field, select Summary. Mark the Summarize activity by: checkbox and select Pay stub ID.	Using the amounts under Total Deductions/Employee Taxes, calculate: Federal W/H column + [(Soc Sec + Medicare columns) * 2].
Line 9	Payroll Register	On the General tab, select to include paid calculations. Select <Specific date> for Payment date and enter the date range used on the 941 report. Under Include calculation detail for, unmark all checkboxes except Taxes. In the Print a field, select Summary. Mark the Summarize activity by: checkbox and select Pay stub ID. On the Filters tab, select to filter Taxes by Advanced EIC.	Verify the Advanced EIC amount under Total Deductions/Employee Taxes.

Want more Payroll end-of-year information? Take a look at the Payroll Post special edition: Payroll 7 End-of-Year Process. Talk to you soon!

Payroll Post Notes Time Saver: Globally Add Records to Employees

Jennifer Maroney — Mon, 16 Jun 2008 12:01:00 GMT

The top question asked last month was how to globally add compensation types, attendance information, and events. Since a lot of people are asking this question, I thought it would be a good topic to cover. Globally adding records is a great way to save time and your wrist when you need to add the same record to a large number of employees. You can globally add the following records:

Pay Type
Benefit
Deduction

Attendance Record
Attendance Plan
Event

Pay types, benefits, and deductions can be added for one calculation or with a schedule for multiple calculations.

I strongly recommend creating a backup of your database right before globally adding or changing anything in your database. This is one of those processes that can only be reversed by manually correcting each record, which defeats the purpose of the shortcut, or restoring to a backup, which will cause you to lose all data entered after the backup was made (hence the backup right before the change).

Just so you know, the last paragraph was not meant to scare you completely: I just want to make sure you're prepared in case you find an error after clicking Process Now. As long as you take your time and verify the records that will be changed before processing, you'll be fine .

Ok, now that the standard warnings are out of the way, let's get to the fun stuff and don't be scareI. It is a great tool. Here we go:

In Payroll Processing, click Create Group Assignments.
On the Options tab, select to Assign new records to employees.
Select the appropriate field from the Assign new drop-down menu and the appropriate ID or code.
On the Assignment Grid tab, select the records to include or click Select All.
Note: Depending on the pay type and defaults defined, additional information, such as hours or amounts, may be required.
After you verify the records and information are correct on the Assignment grid tab, click Process Now.

The process may take a while to complete depending on the number of records to be updated. If you are adding a record to a large number of employees, you may want to run the process overnight.

On a side note, since the only way to undo a global change is manually updating records or restoring to a backup, I recommend granting Global Change security rights to only a handful of users. This way you will be able to more easily monitor who uses the tool.

Talk to you soon!

Payroll Post Notes: Can't Find State and Federal Tax Reports?

Jennifer Maroney — Thu, 22 May 2008 16:21:00 GMT

Are you trying to run your Federal I-9 form or the State New Hire Reports and can't find the State and Federal Tax Report option in Mail? Don't worry; it is probably your security rights. Since this report can contain personal information, such as social security numbers, we have added an additional security option to help keep this information secure. In other words, simply having rights to Mail, will not give you access to these reports.

You will need to request your supervisor, or someone with supervisor rights, to update your group security settings. Once they log in, have them go to Set up system security in Administration to open the security group they are assigned to. Highlight Shared Components, mark the Personal Information checkbox on the right and click Options. On the Options screen, mark the State Tax Reports and the Federal Tax Reports checkboxes, click OK, and then save the security group.

Before you will be able to see the Mail option, you will need to exit and sign out of FE and then log back in. For step-by-step instructions, review Knowledgebase solution BB373712.

Happy reporting. Talk to you soon!