How to Perform Quarter End & Year End Processing in Payroll 2.x and Higher

Period end processing is performed at the end of each quarter and at year end to prepare for the following period's payroll.

**** DO NOT manually change the quarter or year in Payroll Options.

During the quarter-end close, the system performs the following tasks:

• Increments the current quarter in Payroll, Setup, Payroll Options.
• Time off accrual values are updated based on settings in Payroll Options.

During the year-end close, the system performs the following tasks:

• Increments current year and quarter in Payroll, Setup, Payroll Options
• Time off accrual values are updated based on settings in Payroll Options.
• The field showing the employees' year-to-date direct deposit amount is cleared.
• Terminated employee records are removed from the employee file if there is no history associated with the records.
• For pension plan deductions, if the Reset Balance at Year End check box in Deduction Code Maintenance is selected, the deduction balance is reset to match the deduction goal amount. Otherwise, the goal is set to match the balance. (The deduction balance is calculated as the deduction goal less the accumulated deduction amount. If the balance is zero, the deduction is no longer applied.)
• If an employee has no history for a deduction, the deduction is removed from the employee record.
• If Calendar Year is selected in the Reset Time Off Based On field in Payroll Options, employees' unused time is carried over to the next year (up to the Caryover limit set in Employee Maintenance).
• History records, including Time Track Entry history records, are purged if they are older than number of years for which Payroll history is retained. The number of years to retain history is set in Payroll Options.

TIP: Set up Paperless Office to save your Period End Payroll Reports, refer to DocLink: How to Setup Paperless Office to save/print your Period/Year-End Reports in Sage 100

Reminder: Period-end/Year-end processing can not be undone.

_____________________________________________________
Period End Processing Checklist (Quarter End and Year End):

1. Set the Payroll module date to the quarter-ending date (for example 06/30/20).
2. Open Payroll, Reports, print each of the following reports, and verify that all checks and adjustments have been entered for the current quarter:
   • Quarterly Tax Report - DocLink: How to print the Quarterly Tax Report for federal, state or local taxes
   • Payroll Check History Report - DocLink: What information is included on the Payroll Check History Report
   • Quarterly Pay Recap
   • Deduction Report (if applicable) - DocLink: What information is included in Payroll Deduction Reports
3. Open Payroll, Period End, and Period End Report Selection and Select the reports that apply to your payroll.
4. Select Period End, Federal and State Tax Reporting.
   • Under Federal, select 941 Form and any applicable State payroll forms/reports - DocLink: How to print the 941 & Schedule B forms in Sage 100 ERP and DocLink: How to print Federal or State tax forms and reports
   • W-2 forms from within Federal eFiling and Reporting (If the fourth quarter (year-end) is being closed)
5. Reconcile your quarterly 941 forms to your W3 form - DocLink: How do I reconcile Payroll tax forms & reports
6. Back up your company data files onto a quarterly set of backup disks or tapes &/or make a Copy Company - DocLink: How to copy data from an existing company into another company in Sage 100