Getting Ready for 2012 Year-End with Sage 100 ERP

Christmas is in the air, and for many of our clients, that means year-end processing is also right around the corner. To help those of you with the Accounts Payable and Payroll modules prepare for your 2012 close, here are some pointers from the Sage 100 ERP Year-End FAQs:

  • Customers running Accounts Payable must install the 2012 year-end Interim Release Download (IRD). There are A/P 1099 form changes included in the 2012 IRD.
  • Even though there are no W-2 form changes included in the 2012 IRD, Payroll customers also must install the 2012 IRD in order to use eFiling and Reporting, also to install the necessary program changes required when the 2013-Q1 Tax Table Update (TTU) is installed.
  • The 2012 IRD is included in versions 4.50 PU5 and version 2013 PU1. PU5 for version 4.50 is available for download now, and the 2013 PU1 will be available soon.
  • You must be a customer with a current Sage Business Care plan in order to access the Sage Customer Portal to download the updates.
  • Minimum Sage 100 ERP (formerly known as Sage MAS 90 and 200 ERP) versions required to install the IRD and Tax Table Updates:
    • 4.30.0.18: must have the 2011 IRD installed
    • 4.40.0.1: must have the 2011 IRD installed
    • 4.50.0
    • 2013
  • The IRD and TTU will be available for download sometime during the week of 12/17. Sage will continue to update the TTU throughout the month of January with any late-breaking payroll tax table changes, as necessary.
  • Year-end filing updates for Federal and State eFiling and Reporting will be available on December 20, 2012. The system will prompt you to apply the updates when you access the tasks.
  • Changes applied to Electronic Reporting:
    • W-2 – from SSA
      • RA Record – Submitter Record: The Preferred Method of Problem Notification Code field (position 499) has been removed and is now shown as filler
      • RW Record – Employee Wage Record: The Military Employee Basic Quarters, Subsistence and Combat Pay field (positions 342-352) has been removed and is now shown as filler
      • RT Record – Total Record: The Military Employee Basic Quarters, Subsistence and Combat Pay field (positions 220-234) has been removed and is shown as filler
      • RA Record – Submitter Record: The Contact E-mail/Internet field (positions 446-485) is now a required field
    • 1099 – from IRS
      • Form 1099-DIV, Dividends and Distributions, two new amount codes: F-Exempt Interest Dividends and G-Specified Private Activity Bond Interest Dividends were added in the Payer “A” record.
  • The Social Security Administration will not accept W-2 information from employers on any type of magnetic media. Instead, it requires electronic filing of W-2 information. Sage 100 ERP versions 4.3 through 2013 Electronic Reporting module will allow you to create an EFW2 format file for uploading to the SSA’s website (www.ssa.gov/employer). The EFW2 file is formatted to the SSA’s Electronic Filing specifications provided the applicable IRD has been downloaded and installed.
  • Year-end processing information, including checklists and the order in which to close modules can be found on the Sage Customer Portal: https://customers.sagenorthamerica.com/.
  • The Sage Tax Forms Division provides approved 2012 IRS forms that are the only ones guaranteed to be 100% compatible with Sage 100 ERP and eFiling and Reporting. To order forms, go online at https://sage.checks-and-forms.com or call 800-538-5514. Your Sage Business Partner can also assist with selecting the right forms for your company.
  • If you own a Sage Extended Solutions enhancement, or have replaced your Extended Solutions enhancement with an updated version from one of Sage’s Preferred Development Partners, you must contact your Sage ERP Business Partner to determine whether your enhancement is affected by the 2012 IRD. Sage has listed several enhancements in the JC, MR, and PR modules that may be affected.
  • For those companies required to report the Cost of Employer-sponsored Health Coverage: the ability to include Box 12 Code DD on W-2 form was included in the 2011 IRD and will provide the required reporting for 2012. For versions 4.30.0.18 through 4.40.0.8, verify the 2011 IRD was installed before installing the 2012 IRD. To verify that the 2011 IRD was installed, run the Activity Log and look for “description” of “Installed 2011 Year End Changes”.
  • Sage previously announced that as of December 31, 2012, they will no longer support updates, including the Tax Table Update (TTU), to Sage 100 ERP version 4.30. However, due to the new 2013 Medicare requirements, Sage will provide clients on version 4.3 with a 2013-Q1 TTU and a 2012 IRD in December. There are the last updates that will be released for version 4.30.
  • If using Federal and State eFiling and Reporting, the Federal W-2s and W-3s are not required to be printed on the official form. Sage have incorporated an approved substitute that can be printed on plain paper with an inkjet or laser printer. It should not be printed on red paper. You can identify the approved form by looking for the numbers 0000/1048 under “year” on the W-2 form and in the For Ofrficial Use Only box on the W-3. There forms are approved for use by the Social Security Administration and conform to the IRS Publication 1141 as required.
  • Regarding the new Medicare changes effective January 1, 2013: In order for the Medicare changes to calculate correctly, you will need to first install the 2012 IRD (or version 4.5 PU5 OR 2013 PU1) then install the 2013-Q1 Tax Table Update to the ..\MAS90 directory on your ERP server PRIOR to your first payroll run in 2013. For more information about the new Medicare changes effective January 1, 2013, go to: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Questions-and-Answers-for-the-Additional-Medicare-Tax

For more information regarding 2012 year-end procedures, contact your Sage Business Partner. Clients of Ennis, Pellum & Associates Technology Services can contact Chris or Ed at 904-396-5965.

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