Welcome to Sage Timberline Office Year End

Set up the following pays and deductions now and enter the information into Payroll prior to closing the year. These pays and deductions may need to appear on the 2009 W-2 forms. By entering this information now, you can use the correct taxes and current year tax limits. If you are unsure about a deduction or pay being taxable or pretax, check with your accountant or tax advisor.

1. Third-party sick pay (disability)—This is used to pay an employee from a disability insurance company; this pay is taxable and will be reported on the W-2. See KB13378 for more information about setting up third-party sick pay.

2. Automobile, health, and life insurance allowances—Set up these allowances now and include them in paychecks monthly or quarterly so that taxes are calculated along with actual dollars earned. See KB62146 for more information about setting up these allowances so they can be added to the W-2.

3. Bonus pay—Set this up now to calculate a flat percentage of taxes. See KB5627 for more information about pays with specific tax rates. See KB147820 for steps to pay a bonus check with only taxes calculating.

4. Pretax deductions—Pretax deductions are taken before taxes are calculated on earnings so that the check taxable amount is the gross pay minus the pretax deduction amount. Examples of pretax deductions include 401K and medical savings account deductions. See KB211105 for steps to set up pretax deductions.

(Note: Access to the Knowledgebase is based on your current support plan.)

You must close your Payroll year before you process the first payroll of the year.

If you have closed the year and you need to make additions or corrections to your 2009 payroll, you may have to restore your taxes and make corrections before you print W-2s. By doing these checks and balances now, it will be easy to resolve these adjustments and you will not have to restore taxes.