Microsoft Dynamics GP Year-End Close Checklist – Payroll

Microsoft Dynamics GP Year-End Close Procedures – Payroll

This blog outlines the recommended year-end closing procedures for Microsoft Dynamics GP Payroll. The “More Information” section contains the following:

• A detailed checklist of the steps that you must follow to complete the year-end closing procedures.
• An alternative checklist to use instead of the standard checklist if you must process 2017 pay runs before you complete the year-end closing procedures for 2016.

IMPORTANT NOTE: Before you follow the instructions in this article, make sure that you have a complete backup copy of the database that you can restore if a problem occurs.

IMPORTANT NOTE: There will not be a 2016 Year-End Update available for Microsoft Dynamics GP 2010 and prior versions.

Payroll year-end checklist

To perform the year-end closing procedures, follow these steps:

1. Verify that you have installed the latest 2016 payroll tax update
2. Complete all pay runs for the current year
3. Complete all month-end, period-end, or quarter-end procedures for the current year
4. Make a backup of the original file
5. Install the Year-End Update
6. Create the Year-End file
7. Make a backup of the new file
8. Verify W-2 and 1099-R statement information
9. Print the W-2 statements and the W-3 Transmittal form
10. Print the 1099-R forms and the 1096 Transmittal form
11. (Optional:) Create the W-2 Electronic file
12. (Optional:) Archive inactive employee Human Resources information
13. Set up fiscal periods for 2017
14. (Optional:) Close fiscal periods for the payroll series for 2016
15.   Install the payroll tax update for 2017

Alternative payroll year-end checklist

If you must process 2017 pay runs before you complete the 2016 year-end closing procedures, follow the steps in this alternative checklist:

1. Verify that you have installed the latest 2016 payroll tax update
2. Complete all pay runs for the current year
3. (Optional:) Complete all month-end, period-end, or quarter-end procedures for the current year
4. Make a backup of the original file
5. Install the Year-End Update
6. Create the year-end file
7. Make a backup of the new file
8. Verify W-2 and 1099-R statement information
9. (Optional:) Archive inactive employee Human Resources information
10. Set up Fiscal Periods for 2016
11. (Optional:) Close the fiscal periods for the Payroll series for 2016
12. Install the payroll tax update for 2017
13. Process the 2017 pay runs. The user date must occur in 2017.
14. Print the W-2 statements and the W-3 Transmittal form
15. Print the 1099-R forms and the 1096 Transmittal form
16. (Optional:) Create the W-2 Electronic file

Payroll module year-end details:

1. Verify that you have installed the latest 2016 tax update

Download the latest tax table update and installation instructions for 2016 using the link below:

Customer:
https://mbs.microsoft.com/customersource/northamerica/GP/downloads/tax-regulatory-updates

Note: The latest tax tables will ensure that the FICA wage limit is correct.  To check your tax table update date, click on Microsoft Dynamics GP, point to Tools, point to Setup, point to System, and click on Payroll Tax. The Last Tax Update should be 12/18/2015 (Round 1 for 2016) or later.

2. Complete all pay runs for the current year
3. (Optional:) Complete all monthly and quarterly payroll month-end, period-end, or quarter-end procedures for the current year.

For more information about period-end procedures for payroll for Microsoft Dynamics GP 2013 and later versions, use this link to obtain the printable manual for ‘U.S. Payroll’: http://technet.microsoft.com/en-us/library/jj673202(v=gp.30).aspx

4. Create the year-end file

To create the year-end file, follow these steps:

1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamic GP menu, point to Routines, point to Payroll, and then click Year-End Closing.
2. In the Year field, type 2016, and then click Process.

Note When you process the 2016 Year End Wage file, make sure you have a ‘2016’ tax update in place, so the correct FICA limit used. You can install the payroll tax update for 2017 any time after the year-end wage file for 2016 has been created, and before you process a new payrun for 2017.

5. Make a backup of the original file

Create a backup, and then put this backup into safe, permanent storage. By creating a backup, you make sure that you have a permanent record of the company’s financial position at the end of the year. You can restore the backup to quickly recover data if a power fluctuation or other problem occurs during the year-end closing procedure.

To create a backup in Microsoft Dynamics GP, follow these steps:

1. In Microsoft Dynamics GP, point to Maintenance on the Microsoft Dynamics GP menu, and then click Backup.
   Note The Back Up Company window opens.
2. In the Company Name list, click your company name.
3. Change the path of the backup file if it is required, and then click OK.

   Note We recommend that you name this backup 2016 Pre Year-End Update to differentiate it from your other backups.

6. Install the 2016 year-end update

To install the payroll year-end update, you must follow the steps in the Microsoft Dynamics GP U.S. 2016 Year-end document. The install must be performed on each computer that has Microsoft Dynamics GP installed. When the update is released, install the update and download the 2016 Year End document from one of the following locations:

U.S. Payroll Year End Update for Microsoft Dynamics GP 2016
Customer:
https://mbs.microsoft.com/customersource/northamerica/GP/downloads/tax-regulatory-updates/usgpye2016

U.S. Payroll Year End Update for Microsoft Dynamics GP 2015
Customer:
https://mbs.microsoft.com/customersource/northamerica/GP/downloads/tax-regulatory-updates/usgpye2015

U.S. Payroll Year End Update for Microsoft Dynamics GP 2013
Customer:
https://mbs.microsoft.com/customersource/northamerica/GP/downloads/tax-regulatory-updates/usgpye2013 

Note: Download the US16YE.pdf and W-2DataSourceGP.pdf documents in the links above for details of what is included in the Year End Update, checklists to follow, FAQ, year-end procedures, electronic W2s, reporting and more.

7. Make a backup of the new file

Create a backup, and then put this backup into safe, permanent storage. By creating a backup, you make sure that you have a permanent record of the company’s financial position at the end of the year. You can restore the backup to quickly recover data if a power fluctuation or other problem occurs during the year-end closing procedure.

To create a backup in Microsoft Dynamics GP, follow these steps:

1. In Microsoft Dynamics GP, point to Maintenance on the Microsoft Dynamics GP menu, and then click Backup.
2. In the Company Name list, click your company name.
3. Change the path of the backup file if it is required, and then click OK.
   Note We recommend that you name this backup 2016 Post Year-End File to differentiate it from your other backups.

8. Verify W-2 and 1099-R statement information

To view the W-2 information in Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Payroll, and then click Edit W-2s.

To view the 1099-R information in Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GPmenu, point to Routines, point to Payroll, and then click Edit 1099-Rs.

Note If you change the W-2 or the 1099-R information, we recommend that you make another backup.

9. Print the W-2 statements and the W-3 Transmittal form

To print the W-2 statements, follow these steps:

1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Payroll, and then click Print W-2s.
2. In the Print W-2 Forms window, specify the following settings:
   • Print W-2s for: Normal Year-End
   • Print: W-2 Forms
3. Click Print.

Note You can print employee W-2 statements as many times as you have to.

To print the W-3 Transmittal Form, follow these steps:

1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Payroll, and then click Print W-3s.
2. In the Print W-2 Forms window, specify the following settings:
   • Print W-2s for: Normal Year-End
   • Print: W-3 Transmittal Form
3. Click Print.

Note: You can print the W-3 Transmittal Form as many times as you have to.

10. Print the 1099-R forms and the 1096 Transmittal form

To print the 1099 forms, follow these steps:

1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Payroll and then click Print 1099-Rs.
2. In the Print 1099-R Forms window, click 1099-R Forms, and then click Print.

Note You can print employee 1099-R forms as many times as you have to.

To print the 1096 Transmittal form, follow these steps:

1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Payroll, and then click Print 1099-Rs.
2. In the Print 1099-R Forms window, click 1096 Transmittal Form, and then click Print.

Note You can print the 1096 Transmittal form as many times as you have to.

11. (Optional:) Create a W-2 Electronic File

To create a W-2 Electronic File, follow these steps:

1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Payroll, and then click W-2 Electronic File.
2. In the W-2 Electronic File window, click to select the check box that is next to each company that you want to include in your W-2 Electronic File.
3. In the User ID Number field, enter the user ID number (formerly called a PIN).
4. Click Submitter. The Electronic Filer Submitter Information window opens. Enter the submission information.
5. Change the file destination information in the File Name field if it is required.
6. Click Create File or Save to store the information to create the file later.

12. (Optional): Archive inactive employee Human Resources information

To archive inactive employee Human Resources information in Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Utilities, point to Human Resources, and then click Archive Employee.

13. Set up fiscal periods for 2017

To set up fiscal periods for the next year, follow these steps:

1. In Microsoft Dynamics GP, point to Setup on the Microsoft Dynamics GP menu, point to Company, and then click Fiscal Periods.
2. In the Year field, type 2017, and then click Calculate.
   Note You may want to close all periods except period 1 to prevent users from posting to future periods.
3. Click OK.

14. (Optional:) Close fiscal periods for the payroll series for 2016

You can use the Fiscal Periods Setup window to close all fiscal periods that are still open for the year. By closing fiscal periods, you prevent users from accidentally posting transactions to the wrong period or to the wrong year.

Before you close a fiscal period, verify that you have posted all transactions for the period and for the year for all modules. To later post a transaction to a fiscal period that you have closed, you must first reopen the period in the Fiscal Periods Setup window.

To close a fiscal period, follow these steps:

1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Company, and then click Fiscal Periods.
2. Click to select the Payroll check box for each Period that you close.

15. Install the payroll tax update for 2017

Note Do not install the payroll tax update for 2017 until the year-end file has been created for 2016.

To install the payroll tax update for 2017, follow these steps:

1. In Microsoft Dynamics GP, point to Maintenance on the Microsoft Dynamics GP menu, point to U.S. Payroll Updates, and then click Check for Tax Updates.
2. In the Tax Update Method window, click Automatic, and then click Next.
3. In the Authorization Number field, type your authorization number, and then click Log in.
4. Click Finish.

ADDITIONAL

Can I install the U.S. Payroll Year-End Update PRIOR to finishing all my payruns for the current year?

Yes, you can!! We release it early to give you plenty of time to install it. The important thing to remember is that you run the Year-End Wage file and finish all payruns for the current year BEFORE you install any Tax Updates for the next year. When you process your first payrun for the new year, you want to make sure you have the newest tax tables and FICA limits for Jan 1.

Where can I get more information on the Affordable Care Act (ACA) functionality in Microsoft Dynamics GP?

1. Refer to the latest blog article about ACA:

https://community.dynamics.com/gp/b/dynamicsgp/archive/2016/11/09/microsoft-dynamics-gp-year-end-update-2016-affordable-care-act-aca

and You-Tube video (is the same as last year’s but still applies. There is no new video this year.)

https://www.youtube.com/watch?v=gAeLUjozhUA&feature=youtu.be

2. Visit the Microsoft Dynamics GP Resource page. Scroll to the On This Page section and open the Module Information link. Click ACA/Year End to open a document that included information about complying with ACA as well as other information about other year-end changes.

3. There were several blog articles written to cover the ACA changes and functionality.  All the blog links are listed in KB 3070629

If you need assistance with your year-end closing procedures, contact Conexus SG today at:

info@conexussg.com or 469-828-3274