Tips for Preparing and Processing Payroll for Year-End

Tom Franz

11/29/2016

Welcome and IntroductionReview Year End Payroll Changes

Review Standard Order of Payroll TasksTroubleshoot Year End Discrepancies

Q&A/Links to Helpful Information

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AGENDA

Welcome and Introduction

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Your Presenter: Tom Franz

Product Managertfranz@integrity-data.com(217) 732-3737 x-0215Follow us on Twitter@TomFranz_@IntegrityData

Integrity Data Overview

Providing solutions to GP customers since 2000

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Original authors of

• Advanced Payroll

• Advanced Human Resources

• PTO Manager

• Benefit Self Service

MICROSOFT DYNAMICS GP

PARTNER20 YEARS!

Review Year End Payroll Changes

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Year End Update Changes

• Dynamics GP 2010• No update scheduled

Year End Update Changes

• Dynamics GP 2013• All-inclusive Update (includes R2)• NO W-2/W-3/W-2 Electronic Filing Changes• Affordable Care Act Changes• Fix for Employee Benefit Beneficiaries not saving correctly

Year End Update Changes

• Dynamics GP 2015 / GP 2016• All-inclusive Update (includes R2)

• NO W-2/W-3/W-2 Electronic Filing Changes

• Affordable Care Act Changes

• Fix for Employee Benefit Beneficiaries not saving correctly

• Fix for Employee Self Service

Year End Update Changes

… Coming Soon

• Tax Table Updates (subject to change)(Target release date Mid December 2016)

• FICA Social Security Limit $127,200

• States changes:CaliforniaKentuckyMinnesotaNebraskaNew MexicoNorth CarolinaSouth Carolina

Don’t apply this update until afteryour last payroll of 2016!

dynamics gp 2016

Year End Update Changes

• ACA Changes• For the 2016 year substitute forms are acceptable.• Plan start month is not required again this year so they are not populating

it.• The all 12 month check box is not required for employee so they are

populating each individual amount for employee, but on the dependent the covered all 12 month box will be populated.

• Line 15 description of form 1095-C is now labelled “Employee Required Contributions” which is the lowest-cost self-only minimum essential coverage (MEC) providing minimum value to the employee. This is a new descriptive heading, but the required information is the same.

• Void Box. Fliers should not use the Void Box on the form 1095-C.• Microsoft Dynamics GP will NOT be supporting the 1094-B and 1095-B

forms for small business employers of less than 50 employees. • Microsoft Dynamics GP will NOT support the electronic filing for the 2016

year.

Year End Update Changes

• ACA Changes• New codes added for 2016 year Line 14 1J and 1K

1J – used to report MEC providing MV offered to employee, but only conditionally offered to spouse and dependents 1K – used to report MEC providing MV offered to employee and dependents, but only conditionally offered to spouseWhat is ‘conditional’ offer of coverage?– Offer that is subject to one or more reasonable, objective conditions, including but

not limited to an offer of coverage to spouse only if the spouse is not eligible for coverage under Medicare, or a group health plan sponsored by their employer. Details on these conditions should be tracked and stored, in case employee requests details to help determine their eligibility for a premium tax credit

• You can now add a dependent on the fly in the Edit W2 window under dependents (changed in mid-year update)

• Changes were made to the Human Resource Benefit Status field on Microsoft Dynamics GP 2016 R2 that will not reactivate payroll codes based on a waive status in Human Resource, it will remain inactive in payroll.

• Sort option enabled on the print W2 window when you print 1095-C forms

Year End Update Changes

• ACA Changes• [Insert Shameless Plug Here]

integrity-data.com/aca

Review Standard Order of Payroll Tasks

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Year-end Checklist

• Get the Latest 2016 Tax Tables (do this now!)• Should be 3/25/2016 (Utah 7/15/2016)

• Create the Year-end File

• Verify W-2 and 1099-R Information

• Remove Year-end File

• Complete All Pay Runs for 2016

• Make a Backup

• Install the Year-end Update

• Create the Year-end File

• Make a BackupNote: You can start processing 2017 payrolls once you have created the Year-end file (backup! & get new tax tables first!)

Year-end Checklist

• Verify W-2 and 1099-R Information

• Print/Email* the W-2/W-3

• Create Electronic W-2*

• Print the 1099-R/1096

• Archive Inactive Employees (HR)**

• Setup 2017 Fiscal Periods

• Close 2016 Fiscal Periods**

• Update 2017 Payroll Tax Tables

• Start Processing 2017 Payrolls*W-2 Only /**Optional

Insert Shameless Plug Here

Email W-2’s to your employees!

Year-end Checklist

• Benefit Self Service Year-End Process• Create Future Effective Benefits

• Open Enrollment Period

• Review Enrollments

• Complete Final Pay of 2016

• Activate Future Effective Benefits

• Post Enrollments

• Review Benefits

• Begin Processing 2017 Payrolls

Year-end Checklist

• Other Items (perform prior to first 2017 pay run)• Employee Accounts & Splits/FTE Manager

– Copy Employee Positions

• Enhanced Retirement Plans– Change Retirement Catch-Up Contribution Limit

– 2017 401(k): $6,000 on amounts over $18,000

– 2017 SIMPLE IRA Catch-Up: $3,000 on amounts over $12,500

– 2017 Roth IRA: $1,000

– 2017 403(b): $6,000 on amounts over $54,000 (or 100% of includable compensation)

– Review Shared Maximums

• Life Insurance Tax Calculator– Verify IRS Rates (no changes)

Year-end Checklist

• Other Items (perform prior to first 2017 pay run)• Employee E-Mail Suite

– Install the year-end update prior to sending out your W-2’s to ensure your employees get the correct form

– Sign up for one of the webinars

• Comprehensive Leave Manager/PTO Manager– Apply Carry Over Limits

– Create Lump Sum Posting Dates (Year End Wage Work File)

• If upgrading to R2 – Ensure you upgrade your Integrity Data Products to R2!

Troubleshoot Year End Discrepancies

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Troubleshooting Year-end Issues

• Reconciling the 941 > W-2’s > Payroll Summary• Problem Areas

– Manual Checks/Adjustments

– TSA changes on Deductions

– Business Expense Pay Codes (Report as Wages)

– Failed/Interrupted Payroll Postings

• Table Information– Payroll Check History (UPR30100)

– Payroll Transaction History (UPR30300)

– Employee Summary (UPR00900/UPR00901)

– Payroll Tax Liabilities (UPR30200)

• Perform Quarterly with 941 Filing

Q&A/Links to Helpful Information

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Helpful Information

• Information from Microsoft• Download Links

– Microsoft Dynamics GP 2016 Customersource

– Microsoft Dynamics GP 2015 Customersource

– Microsoft Dynamics GP 2013 Customersource

• Click HERE for U.S. Payroll specific documentation and install steps.

• Click HERE for all you ever wanted to or needed to know about ACA (Affordable Care Act)

Helpful Information

• Dynamics GP Support & Services Blog• Microsoft Dynamics GP Year-End Update 2016: U.S. Payroll

• 2016 U.S. Year-End Update has RELEASED!!

• Integrity Data Blog• Prepare for Payroll Year End

Helpful Information

• Microsoft KB Articles• Year-end closing procedures for Microsoft Dynamics GP

Payroll

• Incorrect calculations on the Payroll 941 Quarterly Summary Report in Microsoft Dynamics GP

• Correcting differences between federal wages in Form 941 and in the Payroll Summary report in Microsoft Dynamics GP

• Contact Your Partner

• GPUG Community Boards

Helpful Information

Key points to remember:

• Year End Wage File

• Held in UPR10100-UPR10107 tables

• Year End Wage Report

• Edit & Print W-2s

• Create W-2 Electronic File (W200005, W200006)

• Prior to processing pay runs in New Year

• Install Payroll Tax Update Round 1

– Microsoft Dynamics GP >> Maintenance >>

U.S. Payroll Updates >> Check for Payroll Tax Updates

– Downloads & Updates >> Tax Updates (manual)

Helpful Information

• Helpful Documents, Numbers, Sites, and Articles:• Downloads & Updates >> Tax Updates• U.S. Year End Update.pdf• W-2 Wage and Tax Statement Data Source.pdf• Tax Forms – 800-432-1281 www.microsoftbusinesschecks.com• IRS Forms and Publications

http://www.irs.gov/formspubs/index.html• Accuwage for Electronic File Verification

http://www.ssa.gov/employer/accuwage/index.html• KB Article 850663 Year-end closing procedures for Microsoft

Dynamics GP Payroll http://support.microsoft.com/kb/850663

Q&Awww.integrity-data.com

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Thank You!www.integrity-data.com

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