Okay, it’s the year-end season, and even longtime Microsoft Dynamics GP payroll users can be forgiven for forgetting the nuance in the year-end update. We’ll try to clarify everything to get through 2018 with ease.
So, what exactly do I have to do?
Well, it might help to think of the Microsoft Dynamics GP year-end update as being in three parts:
- Software update
- Year-end close (aka making the Year-End Wage file)
- Tax update
Understanding that there’s not just one thing to do helps. Take them in pieces and you’ll be fine.
Okay, so tell me about that software update. When do I do it, what do I do… Help!
Relax! It’s fine! If you’d like, you can always contact us to help with the hard stuff. If you normally do these updates yourself you’ll find the latest versions here:
Remember that backups are your friend and you must install this update on every machine running Microsoft Dynamics GP. Microsoft no longer provides updates for Microsoft Dynamics GP 2013 and earlier.
As for when you install, that’s easy: now! You don’t have to wait until 2019 to install this, but you’ll need to do so before you do any year-end printing or filing.
Why do I even have to do this update? What’s in it?
The IRS has this charming habit of changing the layouts of various forms, so Microsoft Dynamics GP needs to make sure it prints out what the IRS expects. For 2018 the IRS changed the 1099 R (Pension) form and is playing around with changes related to the Affordable Care Act.
For year-end 2018, the IRS didn’t make any changes to the W2 layouts, the W3 layout, W4, or the EFW2 layout (formerly known as Magnetic Media and also known as Electronic Filing). So that’s great news for most of us!
It’s best to stay current on the software, of course, but if you aren’t using Microsoft Dynamics GP to generate the Affordable Care Act forms or the 1099 R and you successfully filed everything last year, in an emergency you may be able to muddle through.
But don’t risk it. Update your software. Better safe than sorry.
Okay. Then there’s that Year-End Close or Year-End Wage File? What’s that?
That’s the process that actually collects the information needed to make W2s, W3s, 1099s, EFW2/Magnetic Media, 1095-Cs, and 1094-Cs. If you go into the W2 window of Microsoft Dynamics GP you won’t see the current year until you run this close.
If you’re running payroll out of multiple Microsoft Dynamics GP companies you’ll have to do the close in each company.
Got it. Then what?
This next part can vary, and it’s time sensitive. Microsoft has a helpful knowledge base article to see all your options. But here’s what most people do.
You wait until you finish your last payroll in 2018. Now you print out your month-end, quarter-end, and year-end reports. Happy with what you see? Great! Then this is a good time to make a database backup.
Now put in that software update on every workstation if you haven’t already.
Next, close your year. Celebrate!
Now, before you start processing 2019 payroll you should do that payroll tax update.
Sigh… Do I have to update all the computers AGAIN?
No! The tax update changes the tax rates, FICA limits, and any of the curve balls that taxing authorities like to throw at you. You only 2019 tax update once! No matter how many companies you have running payroll… just once! See? Not so hard!
You make this all sound so easy.
Well, we’ve been doing this a while. We’re pretty good at it. 😊
But our year-end calendars are filling up, so make sure to reserve your time now!
What You Need to Know