Summary
This document 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 2021 pay runs before you complete the year-end closing procedures for 2020.
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.
INTRODUCTION
Read this whole article before you perform any one of the steps. If you have any questions, contact Technical Support for Microsoft Dynamics and related products. Use this link to open a support incident if you need technical assistance:
https://serviceshub.microsoft.com/supportforbusiness
Detailed information about each step in the payroll year-end closing routine is included in the Payroll Web services. Before you complete the steps in this article, look for updated year-end information at the following Microsoft Web site:
https ://mbs.microsoft.com/customersource/northamerica/GP/downloads/tax-regulatory-updates
More Information
Payroll year-end checklist
To perform the year-end closing procedures, follow these steps:
-
Verify that you have installed the latest 2020 payroll tax update
-
Complete all month-end, period-end, or quarter-end procedures for the current year
-
Print the 1099-R forms and the 1096 Transmittal form and ACA forms
-
(Optional:) Archive inactive employee Human Resources information
-
(Optional:) Close fiscal periods for the payroll series for 2020
Alternative payroll year-end checklist
If you must process 2021 pay runs before you complete the 2020 year-end closing procedures, follow the steps in this alternative checklist:
-
Verify that you have installed the latest 2020 payroll tax update
-
(Optional:) Complete all month-end, period-end, or quarter-end procedures for the current year
-
(Optional:) Archive inactive employee Human Resources information
-
(Optional:) Close the fiscal periods for the Payroll series for 2020
-
Process the 2021 pay runs. The user date must occur in 2021
-
Print the 1099-R forms and the 1096 Transmittal form and ACA forms
Payroll module year-end details
• Verify that you have installed the latest 2020 tax update
Download the latest tax table update and installation instructions for 2020 to ensure your FICA Wage Limit is correct. To access the U.S. Payroll Tax Update pages, click on the US Taxes link for your version within the Microsoft Dynamics GP Directory page or click on the link below:
U.S. Payroll Tax Update for Microsoft Dynamics GP
https://mbs.microsoft.com/customersource/northamerica/GP/downloads/tax-regulatory-updates/TUGP2018
U.S. Payroll Tax Update for Microsoft Dynamics GP 2016
https://mbs.microsoft.com/customersource/northamerica/GP/downloads/tax-regulatory-updates/TUGP2016
Note: 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 12/20/2019 (Round 1 for 2020) or later.
• Complete all pay runs for the current year
(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, use this link to obtain the printable manual for 'U.S. Payroll': http://technet.microsoft.com/en-us/library/jj673202(v=gp.30).aspx
• 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:
-
In Microsoft Dynamics GP, point to Maintenance on the Microsoft Dynamics GP menu, and then click Backup.
Note The Back Up Company window opens. -
In the Company Name list, click your company name.
-
Change the path of the backup file if it is required, and then click OK.
Note We recommend that you name this backup '2020 Pre Year-End Update' to differentiate it from your other backups.
• Install the 2020 year-end update
To install the payroll year-end update, you must follow the steps in the Microsoft Dynamics GP U.S. 2020 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 2020 Year End document from one of the following locations:
U.S. Payroll Year End Update for Microsoft Dynamics GP
https://mbs.microsoft.com/customersource/northamerica/GP/downloads/tax-regulatory-updates/usgpye2018
U.S. Payroll Year End Update for Microsoft Dynamics GP 2016
https://mbs.microsoft.com/customersource/northamerica/GP/downloads/tax-regulatory-updates/usgpye2016
Note: Download the US20YE.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.
Note: There will not be a year-end update available for Microsoft Dynamics GP 2015 and prior versions.
• Create the year-end file
To create the year-end file, follow these steps:
-
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.
-
In the Year field, type 2020, and then click Process.
Note When you process the 2020 Year End Wage file, make sure you have a '2020' tax update in place, so the correct FICA limit used. You can install the payroll tax update for 2021 any time after the year-end wage file for 2020 has been created, and before you process a new payrun for 2021.
• 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:
-
In Microsoft Dynamics GP, point to Maintenance on the Microsoft Dynamics GP menu, and then click Backup.
-
In the Company Name list, click your company name.
-
Change the path of the backup file if it is required, and then click OK.
Note We recommend that you name this backup 2017 Post Year-End File to differentiate it from your other backups.
• 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 GP menu, point to Routines, point to Payroll, and then click Edit 1099-Rs.
Note If you change the W-2 or the 1099-Rinformation, we recommend that you make another backup.
• Print the W-2 statements and the W-3 Transmittal form
To print the W-2 statements, follow these steps:
-
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.
-
In the Print W-2 Forms window, specify the following settings:
-
Print W-2s for: Normal Year-End
-
Print: W-2 Forms
-
-
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:
-
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.
-
In the Print W-2 Forms window, specify the following settings:
-
Print W-2s for: Normal Year-End
-
Print: W-3 Transmittal Form
-
-
Click Print.
Note You can print the W-3 Transmittal Form as many times as you have to.
• Print the 1099-R forms and the 1096 Transmittal form and ACA forms
To print the 1099 forms, follow these steps:
-
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.
-
In the Print 1099-R Forms window, click 1099-R Forms, and then click Print.
Note You can print employee1099-R forms as many times as you have to.
To print the 1096 Transmittal form, follow these steps:
-
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.
-
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.
To print the 1095-C (ACA) 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 W-2s.
2. In the Print W-2 Forms window, click 1095-C, and then click Print.
To print the 1094-C 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-2s.
2. In the Print W-2 Forms window, click 1094-C Transmittal, and then click Print.
• (Optional:) Create a W-2 Electronic File
To create a W-2 Electronic File, follow these steps:
-
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.
-
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.
-
In the User ID Number field, enter the user ID number (formerly called a PIN).
-
Click Submitter. The Electronic Filer Submitter Information window opens. Enter the submission information.
-
Change the file destination information in the File Name field if it is required.
-
Click Create File or Save to store the information to create the file later.
• (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.
• Set up fiscal periods for 2021
To set up fiscal periods for the next year, follow these steps:
-
In Microsoft Dynamics GP, point to Setup on the Microsoft Dynamics GP menu, point to Company, and then click Fiscal Periods.
-
In the Year field, type 2021, and then click Calculate.
Note You may want to close all periods except period 1 to prevent users from posting to future periods. -
Click OK.
• (Optional:) Close fiscal periods for the payroll series for 2020
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:
-
In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Company, and then click Fiscal Periods.
-
Click to select the Payroll check box for each Period that you close.
• Install the payroll tax update for 2021
Note Do not install the payroll tax update for 2021 until the year-end file has been created for 2020.
To install the payroll tax update for the new year, follow these steps:
-
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.
-
In the Tax Update Method window, click Automatic, and then click Next.
-
In the Authorization Number field, type your authorization number, and then click Log in.
-
Click Finish.
ADDITIONAL
Q1: Can I install the U.S. Payroll Year-End Update PRIOR to finishing all my payruns for the current year?
A1: 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.
Q2: Where can I get more information on the Affordable Care Act (ACA) functionality in Microsoft Dynamics GP?
1. Refer to our latest blog article about ACA: (Link will be updated at a later time)
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