About the Close Payroll Year feature

About the Sage 100 Contractor 5-3-8 Close Payroll Year, multi-year payroll feature.

Starting with version 24.2, Sage 100 Contractor lets you retain multiple payroll years using menu 5-3-8 Close Payroll Year.

This article answers common questions about this feature.

Q: What does closing a payroll year do?

A: When you use 5-3-8 Close Payroll, Sage 100 Contractor:

• Separates payroll data for the closed year.
• Clears year-to-date and quarter-to-date totals for each employee, including sick and vacation.
• Updates the carry-forward amounts for sick and vacation hours.
• (U.S. Edition) Creates ACA records for the new year using December values.
• Updates the first pay period for biweekly payroll.
• Advances the current payroll year.

Q: How is closing payroll different from archiving the oldest payroll year?

A: Both processes perform similar functions, but key differences include:

• Speed: Closing payroll takes just seconds.
• Data retention: Closing keeps records in the current database; archiving moves them to a separate archive.
• Payroll calculations: You can’t delete calculations used in a closed year until you archive.
• Employee records: Archiving allows the removal of terminated employees; closing doesn't.

Q: What must I do before closing the payroll year?

A: Follow these steps:

• Finalize all payroll records for the year.
• Run 5-3-7 Payroll Audit with the Repair option.
• Install the year-end tax update (available mid-December).
• Run 5-3-8 Close Payroll (Requires company and payroll administrator rights).

Update rates and maximums in:

• 5-2-1 Employees
• 5-3-1 Payroll Calculations
• 5-3-2 Workers' Compensation
• 5-3-4 Paygroups and Paygroup Benefits
• 5-3-6 Local Payroll Tax

Q: How does Sage determine which records to include in the payroll close?

A: It uses the Check Date field in each payroll record to identify records for the year closed.

Q: What if I’ve already started processing payroll for the new year?

A: Closing the payroll year only affects records with a check date matching the closed year. However, Sage recommends closing the previous year before processing new year records.

Q: Can I undo a payroll close?

A: No. Payroll closes are irreversible. Always back up your company before closing.

Q: How do I remove closed-year payroll records from my company?

A: Use Archive Oldest Payroll Year in Database Administration. This removes records for the oldest closed year and creates an archive database.

Q: Can I run reports or process Aatrix forms for a closed year?

A: Yes. Since records remain in your company, you can run reports and process forms in 5-4-1 and 5-4-2.

Q: Can I add, edit, or void records in a closed year?

A: Yes, but only for the immediately preceding year. Older records are "read only".

Q: What happens when I modify a record in a closed year?

A: Sage updates the stored data for that year and performs a payroll repair to adjust year-to-date and carry-forward totals.

Q: How can I identify a closed payroll year?

A: In 5-2-2 Payroll Records, use the View By filter in the Record# selection window. The system hides the filter when no payroll year is closed.

Q: How many closed payroll years can I keep?

A: There’s no limit. Use the archive feature (Archive Oldest Payroll Year or the Combined Fiscal and Payroll Year archive) to remove older years if needed.

Q: Does closing the payroll year affect my General Ledger?

A: No. General Ledger transactions and balances remain unchanged.