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Year-end FAQ for Sage 100

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Summary

Frequently Asked Questions (FAQs) on Year-end for Sage 100. Year-end 2025 FAQ

Answers

Year-end Updates

▼What updates do I need for 2025 Payroll Year End?
  1.  Sage 100 Payroll 2.26.0 - The PR 2.26.0 update is compatible with all currently supported versions: 2025, 2024, 2023, and 2022 (for this final year-end). This update prepares the program for year-end forms processing in payroll and ensures correct data routing to these forms.

    The 2.26.0 release notes document some changes, but there are many state and local last-minute changes and PIM code (data-mapping tag) updates not available in prior versions. If you can’t update to 2.26.0, thoroughly review your forms for accuracy and make necessary corrections in the Aatrix forms preparer. See Sage 100: Download Portal. The estimated release date will be December 20, 2025.
     TIP: For 2025 year-end specific resources, see Year-End Processing Resources for Calendar year 2025  
  2. Payroll Tax Update - Run the Payroll Tax Update when prompted or later from the Utilities area of the Payroll module regularly, especially before year-end tax reporting. Always back up MAS90 system files before running the update. This update, along with Payroll product updates, will update important system files and ensure correct data tagging for form hand-off. See Sage 100 Payroll Tax Update Guide.

  3. Payroll Status Check - Run the Payroll Status check utility for both Options from the Utilities Menu in Payroll after installing any updates to payroll.  Correct warnings and errors as needed. See Payroll Status Check utility for details.

  4. Tax Table Update (TTU) - not applicable as legacy payroll versions (v2017 and older) are retired and are no longer available.

 TIP: Year-End Processing Resources for Calendar year 2025  

▼What updates do I need for Accounts Payable Year End/1099 forms?

Interim Release Download (IRD) - IRD 2025 is required and it installs on the versions listed below.  Interim Release Downloads (IRDs) currently apply only to 1099 processing in Accounts Payable (AP). IRD installation will appear as "Installed End of Year Changes" in the Installed Modules Listing in Library Master / Reports. See Sage 100: Download Portal. Estimated release date is December 20, 2025.

  • Sage 100 2025.0 - 2025.1 (7.40.0 - 7.40.1)
  • Sage 100 2024.2 - 2024.3 (7.30.2 - 7.30.3)
  • Sage 100 2023.5 (7.20.5)

  TIP: Year-End Processing Resources for Calendar year 2025 

▼What are the minimum versions the 2025 IRD will install on?
  • Sage 100 2025.0 - 2025.1 (7.40.0 - 7.40.1)
  • Sage 100 2024.2 - 2024.3 (7.30.2 - 7.30.3)
  • Sage 100 2023.5 (7.20.5)

See Sage 100: Download Portal. 

▼Do you install the 2.26.0 update before or after closing 2025 and running W2s?

Install the PR 2.26.0 update before running W2s and any other year-end forms. Year-end processing can be run before or after updating payroll to 2.26.0 and/or running W2s.

▼When is the Payroll Tax Update performed?

It’s recommended to finalize all postings for the 2025 payroll year and complete the year-end processing before making any entries for 2026. This is important because the year-end processing in the new Payroll 2.X (Sage 100 v2018 and newer) triggers essential calculations and rollovers, such as time off accruals, deduction goals, and Direct Deposit year-to-date amounts. It is possible to run payroll for the new year before completing the year-end processing. However, it's not the recommended practice. 

 

Year-end Processes

▼Can I run payroll for January 2026 before running period-end processing for payroll year 2025?

It’s recommended to finalize all postings for the 2025 payroll year and complete the year-end processing before making any entries for 2026. This is important because the year-end processing in the new Payroll 2.X (Sage 100 v2018 and newer) triggers essential calculations and rollovers, such as time off accruals, deduction goals, and Direct Deposit year-to-date amounts. However, it's possible to run payroll in the new year before running year-end, but it's not recommended.

It isn’t necessary to run W2's before running period-end processing. Sage 100 has partnered with Aatrix for forms processing since MAS90 4.50. The data tables that store tax reporting information maintain detailed records year-over-year in all versions. 

▼Do I need to create a year-end copy company?

If you’re running Sage 100 2018 or newer (“Payroll 2.X”), there’s no need to create a copy company, as the new payroll program keeps many detailed records year-over-year (according to the setting in Payroll Options). The exception is if you’re running Sage 2017 or older (“legacy payroll”), in which case a year-end copy company is required for record keeping in these retired versions.

▼In the past I’ve been instructed to run W2s from a year-end copy company, is this still accurate?

Tax reporting forms, including W2s, should be run in the "live company" and not in a copy company. This ensures that the forms archive is maintained together in the same database.

▼Can I reopen a closed payroll year?

Reopening a closed payroll year should be avoided whenever possible. Certain amounts, such as benefit accruals, are reset during year-end processing (unless the anniversary date reset option is used). Therefore, prior payroll years shouldn’t be reopened.

▼How do I correct tax amounts on prior payroll checks during the year?

If checks were processed incorrectly, they should ideally be reversed and re-entered correctly. If this isn't possible, you can manually edit the wage and tax history. For detailed instructions, see Edit employee wage and tax history in Tax Summary

▼When should year-end processing be performed? 

Year-end processing can be run before or after updating payroll to 2.26.0 and/or running W2s

 

Year-end Forms

▼Do I need to purchase forms when printing W2s and 1099s from Sage Federal and State Tax Reporting?

Most forms can be printed on plain printer paper, but some require a pre-perforated 4-part blank page. The official red ink forms for certain government copies of W2/W3, 1099/1096, etc., are no longer required when printing forms from Aatrix Federal and State Tax Reporting. For more details, see Forms used to print W2s, 1095s and 1099s

▼Can I run W2s from Sage 100 2021, 2020, and other unsupported versions?

Aatrix Tax Reporting forms update independently from the Sage 100 version, so even older versions may be able to run the 2025 W2 after updating the forms. However, only supported versions will receive the necessary year-end updates to ensure data is correctly routed from Sage 100 files to the Tax Reporting forms. Sage 100 support can’t assist with any issues running W2s or other Tax Reporting forms in unsupported versions. If needed, corrections can be made directly in the Aatrix form processor. 

The NEC (Non-Employee Compensation) version of the 1099 is supported on all currently supported versions of Sage 100, from v2022 to 2025.

▼Do I need to be active on a payroll support plan to run W2s and other year-end forms?

Yes, an active payroll subscription is required for processing any new Tax Reporting forms in payroll. Have questions about your subscription? Call 1-888-721-8989, open 9 a.m. - 8 p.m. ET, Monday-Friday unless otherwise noted.


Common issues 

▼The system shows 'Payroll Expiration Date is Invalid' or locks users out of the payroll module.

Access to the payroll module requires an active payroll subscription plan. 

Regular customers: See Error: "Payroll Expiration Date is Invalid. Your payroll subscription will expire in xx days."

Channel Partners / Sage Accountants Network (SAN) members: See Unable to access Payroll module (for Business Partners and SAN Customers with NFR keys and Customers with Read Only Access). 

 NOTE: Channel Partners and Sage Accountants Network (SAN) members receive NFR (Not For Resale) activation keys and programs. The payroll expiration date in NFR versions is hard coded and can’t be changed. For those running the 2022 version of Sage 100, access to the payroll module will expire on 12/31/2025, starting a 45-day lockout timer. You MUST upgrade to a supported version. NFR versions of Sage 100 2023 will expire on 12/31/2026, Sage 100 2024 on 12/31/2027, and so on.  

 

▼Unable to Install Aatrix Federal and State Tax Reporting Updates

Users may experience issues with installing Aatrix Federal and State Tax Reporting Updates that fail to install.

Refer to this article for helpful tips on environmental settings and resolution options: Unable to Install Aatrix Federal and State Tax Reporting Updates

 

 Visit our Sage 100 Year-end Center on Community Hub for the latest updates and information on Year-end processing and tasks.