Ending and Starting Your Payroll Year
If you do the bookkeeping or accounting in your company, you’re probably getting ready for the end of your payroll year (and beginning of the new year). This post covers a good approach to the end of the payroll year in AccountEdge and specifically which steps you should take, and in what order to make the beginning of the year and W-2s go smoothly.
For example, with AccountEdge, you can only print W-2s for 2011 while your 2011 Payroll Year is open, BUT you can’t run a payroll in 2012 until you start a new payroll year. So, you could run your W-2s first thing in January, but a better approach would be to make a backup of 2011, start your new year, then use that backup to run W-2s at the end of January.
There’s also the question of when to load the 2012 payroll tax tables. (hint: after you Start a New Payroll Year)
So here’s my recommended approach for the ending and starting your payroll year.
Run Your Last Payroll
Straightforward enough. Process your last set of pay checks for 2011.
Make a Backup of 2011 (VERY IMPORTANT)
With this approach to your year end, you should make a backup after your last payroll. Give it a name that includes “2011”, so you know that this is the final backup for 2011, and that includes your last payroll. This backup will be used later in January to run your W-2s and 1099s. You should consider going to the Setup menu, choosing Preferences/Security, then choosing “Mark Company File as Read-Only” to prevent you from entering data into your backup of last year once you start a new year.
Start a New Payroll Year
Use the assistant found under the File menu to start your new payroll year. Once you do this, you’re officially done with the 2011 payroll year and won’t be able to run paychecks. You also won’t be able to run W-2s for 2011, which is why you made a backup in the prior step.
Install Updates and Load Tax Tables
You can install the update itself immediately after your last payroll, but it’s important not to load your new 2012 payroll tax tables until you are in your 2012 payroll year. Because the Social Security maximum changed for 2012, these tables have an effect on W-2s and 941s.
Run Your First Payroll for 2012
You’re ready for your first payroll of the year. Be on the lookout for new payroll updates though. Many states tend to approve their changes too late in the year for us to include in the first payroll update, and many end up approving them after the new year, and even into February.
W-2 and 1099s
When you’re ready to run your W-2s and 1099s for the year, restore that very important 2011 backup you made earlier. This backup is important because it contains your final payroll and 1099 numbers used on these forms. Once restored, run the “Prepare Payroll Tax Forms” assistant, found in the Payroll command center (top right corner) or “Print 1099s” option, accessible from the payroll or purchases command center.
Close Your Backup
Once you’re done with W-2s and 1099s, don’t forget that you’re in your old 2011 backup and enter transactions by accident. Close your backup file, and open your current company file before you begin entering transactions for 2012.
That should do it. If you have questions or need some help, please check out the Help system for End of Period Procedures or check out the Discussion Forums, Knowledge Base, or contact us via the Support Center.
