Calendar Year End Procedures - Payroll

If you need detailed instructions on any of the steps below, please contact us at 901-382-1634.
 

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q    1) Verify that you have the latest service pack installed. Within Great Plains, go to Help | About Microsoft Business Solutions Great Plains. Under Version Information, Great Plains should read 8.0g44 if you're on version 8, or 7.5g66 if you're on 7.5. (Only versions 8.0 and 7.5 are currently supported by Microsoft.) If you do not have the latest service pack, contact Computer Resources or your IT department.

q    2) Complete all pay runs for the current year.

q    3) Complete all monthly and quarterly payroll period-end procedures for the current year (optional).

q    4) Back up your system and name the backup "2005 Pre-yearend Tax Update". (Go to File | Backup).

q    5) Install the year-end update. (The automatic process below is only available in version 8. If you're on version 7.5, you must download the file from CustomerSource.)

a) Log in as SA
b) Go to Help | Products and Services | Check for Year-End Updates (be sure you select Year-End Updates not Payroll Tax Updates).
c) Choose Automatic
d) Enter your Authorization Number (usually your 10-digit phone number)
e) Repeat steps a through d on all workstations (not just those that run payroll) and the server.
f) Exit and re-enter Great Plains on each machine. Click yes to include new code.
g) Go to Tools --> Setup --> Payroll --> Payroll. The box in the lower left should read 12/22/2005

q    6) Create the year-end file. Go to Tools | Routines | Payroll | Year-end Closing. Type 2005, and click Process.

q    7) Make a backup of the new file and label it "2005 Post-yearend file". (Go to File | Backup).

q    8) Verify W-2 and 1099 statement information. Go to Tools | Routines | Payroll | Edit W-2s (or Edit 1099 Rs). If you make changes, we recommend repeating step 6.

q    9) Print the W-2 statements. Go to Tools | Routines | Payroll | Print W-2s. Specify Normal Year-End and in the lower right corner, choose W-2 Forms (or W-3 Transmittal Form). You can print W-2 statements and W-3 forms as many times as you need to.

q    10) Print the 1099-R forms and the 1096 Transmittal form. Go to Tools | Routines | Payroll | Print 1099Rs. Be sure to select 1099-R Forms (or 1096 Transmittal Form) in the Print box on the right. You can print 1099-Rs and 1096 forms as many times as you need to.

q    11) Create a magnetic media file (only available on some systems). Go to Tools | Routines | Payroll | W-2 Magnetic Media. Select each company you want to include in the file. Enter your PIN and click Submitter. Enter the authorized submission information and close that box. Choose the appropriate file destination in the File Name box. Create File.

q    12) Archive inactive employee Human Resources information (optional). Go to Tools | Utilities | Human Resources | Archive Employees.

q    13) Set up fiscal periods for 2006. Go to Tools | Setup | Company | Fiscal Periods. Type 2006 and click Calculate, then OK. Note: you may wish to close all periods except period 1 to prevent users from posting to future periods.

q    14) Close fiscal periods for the payroll series for 2005 (optional). Closing periods prevents users from posting to the wrong period or year. Before you close a period, verify that you have posted all transactions for that period and year for ALL modules. Go to Tools | Setup | Company | Fiscal Period. Select Payroll for each period you close.

q    15) Install the Payroll tax update for 2006. Be sure you have run your last payroll for 2005. The update should be installed before your first pay run for 2006. THIS FILE WILL NOT BE AVAILABLE UNTIL DECEMBER 28. (The automatic process below is only available in version 8. If you're on version 7.5, you must download the file from CustomerSource.)

a) Back up your system. (Go to File --> backup. Choose System Database as the company name.)
b) Go to Help | Products and Services | Check for Payroll Tax Updates  (be sure you select Payroll Tax Updates not Year-end Updates).
c) Choose Automatic
d) Enter your Authorization Number (usually your 10-digit phone number)
e) Exit and re-enter Great Plains on each machine. Click yes to include new code.
f) Go to Tools | Setup | System | Payroll Tax. Last Tax Update should read 1/1/2006.

Please note that we will be closed on 12/26/05 and 1/2/06. Call Microsoft Business Solutions directly if you need assistance on those days: 800-456-0025

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