When to install the year-end tax update

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

2. Run Payroll Audit.

• Go to menu 5-3-7 Payroll Audit
• Click the Repair button
• Review and resolve any payroll audit errors

3. 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

4. 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.

New Feature: 5-3-8 Close Payroll Year
How do I update my payroll taxes?
How to Archive Oldest Payroll Year
CANADIAN: From which company do I print T4's