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Year End Update Not Done Before Payroll Tax Update

  • 1.  Year End Update Not Done Before Payroll Tax Update

    Posted Jan 02, 2020 04:56 PM
    Good Evening,

    Unknowingly, we did they payroll tax update without preforming the year end update.  Will installing the year end update effect the tax update we've already preformed?

    We also have already run a payroll in 2020, will not having the year end update have caused any incorrect calculations in the taxes?

    Thanks,

    ------------------------------
    Carson Miller
    Accounting Manager
    Atkinson Resort & Country Club
    Atkinson NH
    ------------------------------
    Academy - Online Interactive Learning from Experts


  • 2.  RE: Year End Update Not Done Before Payroll Tax Update

    TOP CONTRIBUTOR
    Posted Jan 03, 2020 12:40 AM
    The taxes for 2020 will be fine but you need to reopen 2019, install 2019 tax tables, close 2019, then install 2020 tax tables. The reason is the 2020 tax tables will affect the W2 data due to FICA wage limits.

    ------------------------------
    Charles Allen
    Senior Managing Consultant
    BKD Technologies
    Houston, TX
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 3.  RE: Year End Update Not Done Before Payroll Tax Update

    Posted Jan 03, 2020 09:53 AM
    Hi @Charles Allen,

    Just to clarify the steps here:

    1. Reopen Payroll 2019.
    2. Install the 2019 tax tables
    3. Install Year End Update
    4. Close 2019, including rerunning the wage file.
    5. Install 2020 tax tables.

    or do you mean...

    1. Install the year end update
    2. Reopen 2019
    3. Install 2019 tax tables
    4. Close
    5. Install 2020 tax tables






    ------------------------------
    Carson Miller
    Accounting Manager
    Atkinson Resort & Country Club
    Atkinson NH
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 4.  RE: Year End Update Not Done Before Payroll Tax Update

    TOP CONTRIBUTOR
    Posted Jan 03, 2020 10:02 AM

    Carson, I'm sorry. I assumed you closed 2019.

    Installing the year-end update will not have any effect on what you have done.

    If you haven't closed 2019, you'll need to do the following:
    1. Install the 2019 tax tables
    2. Install the year-end update
    3. Close 2019
    4. Install the 2020 tax tables

    If you have closed 2019, you'll want to do the following:
    1. Install the year-end update
    2. That should be it.

    ------------------------------
    Charles Allen
    Senior Managing Consultant
    BKD Technologies
    Houston, TX
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 5.  RE: Year End Update Not Done Before Payroll Tax Update

    Posted Jan 03, 2020 10:12 AM
    Charles,

    Thank you for your help with this.  Yes, we had already closed the 2019 payroll due to having an early pay run here in 2020 which is why the 2020 tax update had already been uploaded.

    ------------------------------
    Carson Miller
    Accounting Manager
    Atkinson Resort & Country Club
    Atkinson NH
    ------------------------------

    Academy - Online Interactive Learning from Experts


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