Before beginning payroll year-end procedures, subscribe to a Sage Business Care plan soon, and install the tax update. The timing of when to install the tax service update is very important. This update will provide important updates to Sage-maintained payroll tax tables/formulas, employee W-2, company W-3 forms, vendor 1099 forms, and other maintenance changes for the current and new payroll tax year.
The latest Sage 50 tax service update must be installed before you perform the following procedure:
Print payroll tax and vendor 1099 forms for the payroll tax year you are ending or about to close. This is needed to ensure that current Sage 50 941, 940 EZ, W-2, W-3, and 1099 forms (if changed by the IRS) are in compliance with government regulations. For example, you must install the 2012 tax service update before printing 2011 employee W-2 forms or vendor 1099 forms.
Calculate Fixed Asset depreciation for the payroll and fiscal year you are about to close. This is needed to ensure accuracy of depreciation calculations for both the current and new calendar years.