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When to install the year-end tax update

Created on  | Last modified on 

Summary

When to install the Sage 100 Contractor year-end tax update.

Resolution

Installing the Year-End Tax Update and Closing the Payroll Year in Sage 100 Contractor

Complete the necessary steps before processing the first payroll of the new year.

Why This Matters

The year-end tax update includes:

  • Fixes and enhancements for the Close Payroll Year and Archive Oldest Payroll Year processes.
  • Updates federal and state income tax rates (U.S. version).
  • Updates provincial and territorial tax changes (Canadian version).
     NOTE: Install the update before closing or archiving the payroll year to avoid incorrect tax calculations or system errors. 

Step-by-Step Instructions

  1. Finalize Current Year Payroll.
  • Process review, and finalize all payroll for the current year
  • Double-check for any unposted or incomplete payroll records
  1. Run Payroll Audit.
  • Go to menu 5-3-7 Payroll Audit
  • Click the Repair button
  • Review and resolve any payroll audit errors
  1. Install the Year-End Tax Update.
  • Download and install the year-end update from Sage
  • Follow the installation instructions provided by Sage to apply the update correctly
  1. Close or Archive the Payroll Year.

Choose one of the following options

  • Use menu 5-3-8 Close Payroll Year to close the current payroll year
  • Use Database Administration to Archive the Oldest Payroll Year

Important: Install the year-end update before performing either of these actions.

Next Steps

Important: Once the above steps are complete, you can safely begin processing payroll for January in the new tax year.

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