The information shared here is applicable for Microsoft Dynamics® GP (“Dynamics GP”) versions 9, 10, and 2010.
This year, all Dynamics GP Payroll users will need to install the Year End Update due to the form changes and electronic filing changes noted below:
-W3 form changes
-W2 Electronic changes (EFW2)
-Hire Act ending 12/31/2010
-1099-INT form changes (Payables)
-Luxury Auto Depreciation changes for automobiles, trucks and vans (Fixed Assets)
Do not confuse the Year End Update and Payroll Tax Update! They are two different updates.
The 2010 Year End Update encompasses the form changes in Dynamics GP listed above and is available for download on the CustomerSource website. It can be applied at any time (before you create the Year End Wage file). To confirm that the update is installed, open the Payroll Setup window: Tools >> Setup >> Payroll >> Payroll. Check the Last Year-End Update date. It should be 11/19/2010.
The Payroll Tax Update encompasses the Tax Table updates for 2010. Verify you have installed the 2010 Tax update by going to Tools >> System >> Payroll Tax for this information. The Last Tax Update field should be 12/18/2009 or later. If it is not, then you should install the August 2010 Round 6 Payroll tax table update.
Do NOT apply the 2011 Payroll Tax Update until AFTER the Year End Wage file has been created. The 2011 Payroll Tax Update is targeted to be released on 12/27/10.
Below is a checklist for the Payroll Year End process. It assumes you will be processing 2011 pay runs prior to printing statements (W-2's, 1099-R's, etc.).
1. Verify that you have installed the latest 2010 Payroll tax updates.
2. Complete all 2010 pay runs.
3. Complete all payroll month-end, period-end, or quarter-end procedures. Note: You can install the year-end update (step 5) before this step, as long as you create a backup before installing.
4. Make a backup of your 2010 company databases. Label the backup “Pre Year-End Wage file.”
5. Install the U.S. 2010 Year-End Update.
6. Create the Year-End Wage file.
7. Make a backup of your 2010 company databases. Label the backup “Post Year-End Wage file.”
8. Verify W-2 and 1099-R statement information. If you make changes to the information, we recommend that you make another backup.
9. Archive Human Resources information for inactive employees (optional).
10. Set up fiscal periods for 2011.
11. Clear Human Resources information for inactive employees (optional).
12. Close the fiscal periods for the Payroll series of the 2010 year (optional).
13. Install the 2011 Payroll tax update.
14. Process 2011 pay runs.
15. Print the W-2 Validation Report, W-2 statements, and W-3 Transmittal forms.
16. Print the 1099-R Validation Report, 1099-R forms, and 1096 Transmittal Form.
17. Prepare and submit W-2 information in the federal EFW2 format, if required.
Please contact your consultant or the Wipfli Service Center with any questions.
- Donny