Year-End Processing Instructions For Calendar Year-End December 31, 2014

Transcription

1 Hi-Tech Software, Inc. 114 East Madison Road, Madison, ME Phone: Fax: Year-End Processing Instructions For Calendar Year-End December 31, 2014 Helpful Tips Do not wait until the last minute for filing and printing deadlines! Use these instructions as a checklist when you do calendar year-end processing. In this document the term fiscal year-end (FYE) refers to the calendar year-end of 12/31. If your FYE is not 12/31, please refer to the separate instructions for Fiscal Year-End Other than 12/31*. These instructions cover all Hi-Tech applications. If your facility does not use all of the applications, please use the Table of Contents on the next page to locate instructions for the applications you use. If you call Hi-Tech for assistance during year-end processing, please have these instructions in front of you so we can refer to them together. This document will refer to Hi-Tech applications by their application codes. AP Accounts Payable PR Payroll CGL Condensed GL RA Resident Accounting FA Fixed Assets TR Resident Trust Accounting GL General Ledger * For instructions on Fiscal Year-End Other than 12/31, go to our website: > Clients > Important Instructions > End of Year > Year-End Other than 12/31. Please view our Webinar Schedule for Webinars on the Year-End Process: > News > Events \\hi-techsoftware.local\shared\apps\hitech\notes\end of Year\YEInst docx Page 1

2 Table of Contents Year-End Processing Instructions... 1 For Calendar Year-End December 31, General Ledger Notes... 3 Payroll Notes Payroll Tax Tables...3 Filing your W-2 Forms...3 Before You Begin Calendar or Fiscal Year-End Processing... 4 Year-end Summary by Application... 5 Resident Accounting (detail steps on Page 7)... 5 Condensed General Ledger -- skip if you use full GL (detail steps on Page 8)... 5 General Ledger --skip if you use Condensed GL (detail steps on Page 8)... 5 Accounts Payable (detail steps on Page 9)... 5 Payroll (detail steps on Page 12)... 6 Resident Trust Accounting... 6 Fixed Assets (detail steps on Page 17)... 6 Month-End and Year-End Details by Application... 7 Resident Accounting...7 Condensed General Ledger...8 General Ledger...8 Accounts Payable Processing Payroll Prepare W-2s: Last Year Maintenance and Reporting Reporting (Last Year) Maintenance (Last Year) Record 3rd Party Pay W-2 Forms (Last Year) Resident Trust Accounting Fixed Assets Enter Adjusting Entries for Prior Year (G/L) Additional Resources yeinst Last printed 12/24/2014 8:37 AM Page 2

3 General Ledger Notes To avoid General Ledger posting errors, we strongly advise opening the new GL year as early in January as possible through General Ledger or Condensed General Ledger > End of Year > Open New Year. You can continue to enter transactions and create reports for 2014 under Last Year on the GL menu. Payroll Notes 2015 Payroll Tax Tables We have not included any Payroll Tax Tables for calendar year 2015 in these instructions. When the tables become available from Federal and State government agencies, we will post them on our website and a notification to all our payroll clients. We will send detailed instructions at that time. Filing your W-2 Forms Federal If you file 250 or more W-2 Forms, you must file electronically, unless the IRS granted you a waiver. You may file electronically even if you have fewer than 250 W-2 forms to file. You may be charged a penalty if you fail to file electronically when required. Federal Deadlines for Submission Filing on paper: Filing electronically: o Copy A of all Forms 1099 with Form 1096 with the IRS by March 2, o Copy A of all Forms W-2 with Form W-3 with the SSA by March 2, o Copy A of all Forms 1099 with Form 1096 with the IRS by March 31, 2015 o Copy A of all Forms W-2 with Form W-3 with the SSA by March 31, Know your State s filing requirements! yeinst Last printed 12/24/2014 8:37 AM Page 3

4 Before You Begin Calendar or Fiscal Year-End Processing Verify that your System Release Number is at Release 14.12, displayed at the top of the main menu (see sample on right). Or, on any Hi-Tech menu, press the [F1] key to view the Release number. Release Number Example: = calendar year (2014). 12 = month (December) If your system is not current, ask your Hi-Tech Update Contact to install the current update from the Hi-Tech website: > Clients > Downloads > New Releases. Download Patches. Ask your Hi-Tech Update Contact to download Patches from the Hi-Tech website to have the most recent EOY program changes. Check your G/L Company Header for accuracy. Select GL > Libraries > General Ledger Profile or from Condensed GL > Libraries > Edit CGL Profile. Earnings Account: Verify that the account number listed is your Retained Earnings account. Current Year: Before you close your calendar year/fiscal year 2014, the current year should be If your current year is not correct, call Hi-Tech for assistance. Check the Resident Accounting Company Header for accuracy. (RA > Libraries > Facility > Accounting Profile) If your Current Fiscal Year End is not correct, STOP and call Hi-Tech for assistance. yeinst Last printed 12/24/2014 8:37 AM Page 4

5 Year-end Summary by Application Use this checklist as a quick reference for required steps at year-end. See the detailed instructions for closing each application starting on Page 7. Skip applications that your facility does not use. Resident Accounting (detail steps on Page 7) Complete December End of Month. This will automatically close the Resident Accounting year. Before starting Medicare A billing for January, change the Co-Insurance room rate. Condensed General Ledger -- skip if you use full GL (detail steps on Page 8) Complete all End of Month Steps for December. Open New Year as soon after the last day of the calendar year as possible. General Ledger --skip if you use Condensed GL (detail steps on Page 8) As early as possible in January, open the year. You do not need to have completed 2014 year-end to open the new year. You can continue to record December 2014 activity under Last Year > Processing Accounts Payable (detail steps on Page 9) Batch all payments and invoices by month so you can post to the appropriate year. Complete all invoice and check entries for Do 1099s if applicable 1099 Processing (Page 10) 1099 calculation is based on check dates in the calendar year. You can process checks for the new year before you print 1099s. A. If you print 1099 forms from Hi-Tech Accounts Payable: Verify that all 1099 vendors are identified correctly in Vendor Library. Verify details for all 1099 vendors. Confirm accuracy of AP Tables and 1099 Table information. Process 1099s. B. If you type or hand-write the 1099 forms, complete all A. steps above When you Process 1099s, do not print the 1099 forms. Use the 1099 Edit List for the 1099 details. Copy the E-file. yeinst Last printed 12/24/2014 8:37 AM Page 5

6 Payroll (detail steps on Page 12) After you have posted the last payroll checks dated in December: Reconcile the fourth quarter payroll totals. Complete all End of Quarter steps for Q/E 12/31/14. This will close the payroll year. After you close the 4 th quarter, and before you start any payroll with a January check date: Review the Payroll Profile for accuracy. Print an Employee Pick Detail Report to verify employee information. Download the new payroll tax tables for 2015 from the Hi-Tech website. You can now start Payroll with January check dates. IMPORTANT: If your first payroll period in 2015 spans both years, pay attention to the Post to Year options to ensure that expenses and liabilities are recorded in the correct calendar year. Resident Trust Accounting Complete End of Quarter steps for December. There are no specific End of Year steps in the Trust application. Fixed Assets (detail steps on Page 17) Complete all usual steps for December. There are no specific End of Year steps in the Fixed Assets application. IMPORTANT: Keep an extra copy of the Print Depreciation Entry and Fixed Assets List. yeinst Last printed 12/24/2014 8:37 AM Page 6

7 Month-End and Year-End Details by Application Resident Accounting IMPORTANT: Before you enter any Resident Accounting transactions in the first month of the new fiscal year, complete end-of-month processing for the last month of your fiscal year. Select Resident Accounting > End of Month and complete all appropriate steps. Complete normal End of Month steps. A. Resident Day Statistics and other statistics reports will print automatically with the normal End of Month (EOM) reports. Copy these reports for your auditors. B. Reconcile the Accounts Receivable account to the General Ledger. The A/R Aging ( ) report will print automatically with normal EOM reports. C. Print Medicare A and B Billing Logs. Select Billing > Billing Logs > Print Logs (password = HTS). For both Medicare A and Medicare B, choose all 3 report types and enter your fiscal year-end as the Log Date. The reports will include totals for each month and grand totals for the year. You can also print Billing Logs for all other payer sources. D. Change the Medicare Co-Insurance Rate. Select Libraries > Facility > Facility Rates Enter the Effective Date of 01/01/2015 and the new Medicare Co-Insurance amount of End of Year Processing The system automatically performs all End-of-Year processing during the month-end close for period 12. When you close period 12, the system will clear all statistics, including days, admission totals, discharge totals, etc. If 12/31 is not Period 12 for your facility, only Medicare B statistics will be cleared. IMPORTANT: This application is not affected by closing EOY in the General Ledger. Users can proceed with normal processing. You can post activity whether or not the GL New Year has been set up. You do not need to close the year for Resident Accounting to set up the new GL year. yeinst Last printed 12/24/2014 8:37 AM Page 7

8 Condensed General Ledger IMPORTANT: If you use Condensed General Ledger, complete the CGL process below. If you use General Ledger, skip this step and go to General Ledger below. A. Complete End of Month steps for December B. Complete End of Year Complete this step as soon as possible after the last day of your fiscal year. You do not have to coordinate this step with the closing of other applications. Open New Year (CGL > End of Year > Open New Year). This is the only year-end step in Condensed G/L. This step will do the following: Change the current year in the CGL Profile to the new fiscal year. Establish the Chart of Accounts for the new fiscal year. Assign subsequent transactions to the new year. General Ledger (If you use Condensed General Ledger, STOP and refer to the instructions above.) A. Complete normal End of Month (GL > End of Month). Create Reoccurring Entries (if applicable) Create Reclass Entries (if applicable) View All Journal Entries Print/Post Journal Entries Print Trial Balance (Reporting > GL > Trial Balance). Verify it is in balance. Print Financial Reports (Reporting > Financial Statements > Custom Reports) B. Complete End of Year step (GL > End of Year). Complete this step as soon as possible after the last day of your fiscal year. You do not need to coordinate this step with the closing of other applications. Open New Year. This step will: Change the current fiscal year in the GL Profile to the new fiscal year Establish the Chart of Accounts for the new fiscal year Allow you to post activity to the new fiscal year in General Ledger After you open the new year, to make journal entries for fiscal year 2014, select Last Year > Processing from the menu. See the Enter Adjusting Entries section on Page 17 for more details. yeinst Last printed 12/24/2014 8:37 AM Page 8

9 Accounts Payable Verify End-of-Year Accounts Payable Balances. A. Print Open Invoice Report. (AP > Reporting > Open Invoices) B. Verify that the total of Open Invoices equals the total of the AP account in the GL. This step should also be part of your regular monthly tasks. C. Print End of Month Aging (AP > Reporting > End of Month Aging) using an aging date of the last day of your fiscal year. The total on this report should equal the total on the Open Invoice Report and the balance of the A/P account in the General Ledger. You can now continue with Accounts Payable processing in calendar year Batch invoices for Period 12 and Period 1 (new fiscal year) and enter them separately by period. When you update transactions under Record Invoices / Credits and Pay Invoices: o If you have already set up the new calendar year in General Ledger: o Post Period 12 transactions (calendar year 2014) to Last Fiscal Year. o Post Period 01 transactions (calendar year 2015) to Current Fiscal Year. Post Transactions to This Year Post Date 01/03/2015 Fiscal Year 2015 Post to Current Fiscal Year Next Fiscal Year Last Fiscal Year o If you have not set up the new calendar year in General Ledger: o Post Period 12 transactions (calendar year 2014) to Current Fiscal Year. o Post Period 01 transactions (calendar year 2015) to Next Fiscal Year. Post Transactions to This Year Post Date 12/30/2014 Fiscal Year 2014 Post to Current Fiscal Year Next Fiscal Year Last Fiscal Year yeinst Last printed 12/24/2014 8:37 AM Page 9

10 (Accounts Payable continued) 1099 Processing Prepare to Print 1099s. Do this at any time after all 2014 AP checks are posted. NOTE: The 1099 limit for 2014 for most 1099-MISC Forms is $ Please review IRS instructions for Form 1099 to verify the limit for the type of form you are required to provide. Under Libraries > Vendors, select No Threshold for vendors who require a 1099 regardless of the total paid, i.e., under the $600 threshold. This checkbox is grayed out unless the 1099 flag above it has been checked. A. Reporting > Custom Reporting > Custom Vendor Report Click OK on the first screen. On the second screen, select Vendor ID, Name and Address, Tax ID, 1099 Flag/Threshold and 1099 Type. See sample screen below. Review the resulting report to confirm that all 1099 vendors have a 1099 flag. If any flags are missing, make corrections through Libraries > Vendors. Correct name, address, tax ID number, 1099 flag, threshold and 1099 type as necessary. yeinst Last printed 12/24/2014 8:37 AM Page 10

11 B. Reporting > Invoice History Detail: Choose Summary; at From and Thru enter 2014 Check Date range; Invoice Total dollars over $ (or applicable threshold), and 1099 Vendors Only.. The report will list vendors with 1099 Flag and No Threshold selected in the Vendor Library, for whom checks written in 2014 total at least $ C. D. Verify the Accounts Payable Profile (Libraries > Accounts Payable Profile). The company information will be used on the 1099 forms. Verify the 1099 Limit in the 1099 table (Libraries > Tables). The 1099 limit for 2014 for most 1099-MISC Forms is $ Please review IRS instructions for Form 1099 to verify the limit for the type of form you are required to provide. E. Prepare 1099s 1. Extract 1099 Amounts. Use calendar year 12/31/ Print 1099 Edit List. Review for accuracy. If you print 1099 forms outside of Hi-Tech, (i.e. hand-written or typed), use this Edit List for details by vendor. IMPORTANT: If you make corrections to the Vendor file, Extract 1099 Amounts again. 3. Print 1099 Forms. Run more than once, if necessary, to print the 1099 forms correctly. Use the Form Alignment button to make small adjustments to the printing. When you print the red IRS copy, check Print IRS copy (Red) to assure correct form alignment. Printing the 1099 forms creates AP1099.SEQ in the AP-SEND folder. Browse to X:\DATA\AP-SEND\AP1099.SEQ to send this file electronically. (X = the drive where your DATA folder is located. See Page 16 for instructions on how to find your DATA path) 4. Copy E-file if required. yeinst Last printed 12/24/2014 8:37 AM Page 11

12 Payroll Review Details to Prepare for Closing the Year and W-2s A. Post the last payroll with a check date in Prepare and post any payroll adjustments that require a check dated in B. Reconcile payroll for the 4 th quarter and for the calendar year. C. Review the Payroll Profile (Libraries > Facility > Payroll Profile) for accuracy. All line items applicable to your payroll must be completed for year-end reports and W-2 Forms to print correctly. Please refer to your Payroll User s Instructions Manual for more information. D. Review Libraries > Pays and Deductions > Deductions. Verify that all deductions with Sec 125 Deduction checked are 125-type deductions. These represent your pre-tax deductions. Review the deduction codes and description lines so this information will transfer correctly to the W-2 s. All unused pay and deduction fields should display 00. E. Complete normal End of Quarter steps, including Set Up New Quarter. See your Payroll User s Instructions Manual for detailed instructions on closing the quarter. This step will close the 4 th quarter and the year for 2014 and will set up the new calendar year. F. Your Hi-Tech Update Contact should download the new tax tables and Memo from the Hi-Tech website at > Clients > Downloads. Enter Account Number and Access Code. Select New Releases. Look for 2015 Payroll Tax Rates. Click Memo for more information. After downloading the 2015 tax tables, you can start the first payroll in calendar year Note for Payroll Posting: First Payroll in the Fiscal New Year If the check date is in the new fiscal year, when you post the accrual, the screen will display the posting periods. (See screen on right.) If you accept this screen, a warning will display. See below. On the Warning screen, the Current G/L Year is displayed to help you determine the correct posting Period and Year. The year displayed here comes from the General Ledger Profile. In this sample screen, the current year in G/L is The Calendar (fiscal) year 2014 has not been closed and the check date is in the new fiscal year, Period 12 will post to fiscal year 2014, the current year; period 1 to 2015, the new year. NOTE: Please verify that the New Year is opened in G/L before you post your first payroll in the new year. Click OK to continue or click Cancel to make adjustments. yeinst Last printed 12/24/2014 8:37 AM Page 12

13 Prepare W-2s: Last Year Maintenance and Reporting After you close the payroll year, use the Prepare W-2s menu option to process your W-2 Forms for 2014 and access 2014 payroll information. Reporting (Last Year) A. Custom Report Print an Employee Pick Detail Report and review details before you print W-2s. Select Prepare W-2s > Maintenance (Last Year) > Employees to make changes. Print an Accrued Benefits List. (Personal, sick, vacation time, etc.) Select Sort Order: Department and Break Total Print one report for each of your benefit pays. On the first screen, click OK to include all employees. On the second screen, choose the items shown on the right. If you have more than one EBT Type, print a report for each Type. Accrued Benefits List Selections Print an Employee Profit Sharing Report, if this type of plan is offered. On the first screen, choose a sort option. Uncheck All Hire Dates, All Birth Dates and All Worked Hours and enter the information applicable to your pension plan to include only the employees with sufficient years of service, age and worked hours to participate. On the second screen, choose the items shown on the right. B. Year to Date Register and Deduction List Use these reports as necessary to review and reconcile totals for the year. YTD Register. Click Totals Only for a report that shows facility totals, but no employee detail. Save this report to compare to report totals printed when you run the W-2 s. Employee Profit Sharing Selections yeinst Last printed 12/24/2014 8:37 AM Page 13

14 (Prepare W-2s continued) Maintenance (Last Year) A. Employees: You should not need to change employee YTD information after the calendar year has been closed; however, if you do have to make changes to YTD wage or deduction totals, call Hi-Tech for assistance. Making changes to these totals might require General Ledger entries. B. Payroll Profiles: If you make changes to last year s PR Profile, determine if the same changes should be made to the current year Profile (Libraries > Facility > Payroll Profile). C. Diff and Extra Pay: This information is from your 2014 pay files and should need no adjustment. It is available for review and adjustment, if necessary. D. Tax Rate Tables: Will include tax rates and percentages from No adjustments should be necessary. E. Edit HSA and Health Ins Stats: Use this program to record employer and employee contributions to an HSA and employer cost of employee health insurance. Beginning in 2013, it became mandatory to report HSA amounts and total cost of health insurance premiums on W-2s. Employers must report employer contributions (including employees contributions through a cafeteria plan) to an HSA on Form W-2, in box 12, with code W. The cost of employer-sponsored health coverage is also reported in Box 12 with code DD. The amount reported with code DD is not taxable. Access the editing program through either the Current or the Last Year menu. Employee Processing > Edit HSA and Health Ins Stats for Current Fiscal Year or Prepare W-2s > Maintenance (Last Year) > Edit HSA and Health Ins Stats When you choose the deduction and the HSA company, any employee with this particular deduction will be displayed. You can enter the employer information throughout the year or once at the end of the year. Record 3rd Party Pay If any employees have received pay from a third party, like an insurance company, that you are responsible for reporting on the W-2, use these programs to record the pay and taxes and include these totals on the employee s W-2. A. Enter 3 rd Party Pay. This screen is the same as the normal Time Card Entry screen. Enter all 3 rd party pay and taxes here. B. Print Report. Use this report to verify your entries. C. Update Transactions. This step will add your 3 rd party pay and tax entries to the employee s W-2 totals. yeinst Last printed 12/24/2014 8:37 AM Page 14

15 (Prepare W-2s continued) W-2 Forms (Last Year) A. Print YTD Wage / Tax List. Verify all totals. You should already have reconciled YTD figures prior to closing the payroll year. When you print the edit list, you might find some employee detail lines have been marked with a code. Please see the list below for code descriptions. If any employees are coded with an M or S, review the accuracy of their Social Security and/or Medicare taxes. W-2 Edit List Code Descriptions M FICA (Medicare portion) tax calculation off by more than $0.10 S FICA (Social Security Portion) tax calculation off by more than $0.10 J K I C D V T Employee has 3 rd party non-taxable sick pay Employee has a 401K-type deduction Employee has employer paid health insurance Employee has a Section 125 / Cafeteria type deduction Employee has a dependent care deduction Employee has personal use of a company vehicle Employee has tuition reimbursement B. Extract W-2 Data (after the year-to-date totals have been reconciled) to pull all W-2 information from last year s Employee Maintenance screens and create a file that you can review and selectively edit by employee. C. Edit W-2 Data to change an employee s W-2 information. All non-accessible fields, such as wage and tax totals will be grayed out. If changes to these figures are required, please call Hi-Tech for assistance. D. E. Print Change Register to print a report of old and new information as a result of changes made through Edit W-2 Data. Save these registers with your W-2 and year-end payroll information for future reference. Print Report / W-2 Forms. If YTD totals reconcile, print the W-2 forms. Choose the form type you want to print, i.e. employee, employer or SSA. Use the Form Alignment button to align the W-2 forms to the laser printer you use. SSA forms align differently than other W-2 forms and must be aligned separately. (Continued on next page). yeinst Last printed 12/24/2014 8:37 AM Page 15

16 (Prepare W-2s continued) If you submit your W-2 information electronically, continue with Steps F, G, H and I. Facilities that file more than 250 W-2 Forms must file electronically. If you submit your W-2 information on paper, skip steps F, G, H and I. Go to for more details. F. G. H. I. Create EOY E-File if you will submit an electronic file. Print E-File Report. Confirm the totals on the edit list before creating the CD. If the system finds errors or discrepancies in W2 information, an error/warning report will be printed. Uncommon box 12 codes that will not be correctly reported in the E-File will be designated by: Skipped Box 12X (X = the box A - F that it skipped). Contact the Hi-Tech Support team for assistance. An informational message will be printed with each line item to help you determine what (if anything) should be corrected. Copy W-2 E-File. Copy the W-2 file (W2REPORT.SEQ) to CD. Run this step if you want to have the file on CD, but do not mail the CD. When you submit the file, put the CD in the drive and browse for W2REPORT.SEQ. Copy W-3 E-File. Copy the W-3 file (W3REPORT.SEQ) to CD. Run this step if you want to have the file on CD, but do not mail the CD. When you submit the file, put the CD in the drive and browse for W3REPORT.SEQ. If you do not copy the file to CD, to submit the file electronically browse to the DATA directory that holds your Hi-Tech files. Example: X:\DATA\PR-SEND\W2REPORT.SEQ Find your Data Path: X = the drive location of your DATA folder. Learn this location from any menu, by pressing the [F1] key on your keyboard. The fourth line of the screen that is displayed will show you the Path or location of your files. Based on the sample Path below, the location of the file would be U:\DATA\NEXTREL\PR-SEND\W2REPORT.SEQ yeinst Last printed 12/24/2014 8:37 AM Page 16

17 Resident Trust Accounting There are no End of Year steps for Resident Trust Accounting. At December 31, 2014, process End of Quarter. Fixed Assets There are no End of Year steps for Fixed Assets. At December 31, 2014, process End of Quarter. Do the following before or after the General Ledger new year is established. A. Print Depreciation Entry keep a copy for your auditors. B. Update Depreciation C. Post Depreciation Entry D. Print Fixed Asset List (Asset Lists > Detail or Summary) Keep a copy for your auditors. Enter Adjusting Entries for Prior Year (G/L) When you receive fiscal year-end adjusting entries from your accountant, proceed with the steps shown below: GL > Last Year > Processing A. Enter Adjusting Entries. All journal entries for the prior fiscal year must be entered through this menu choice. You can use Period 13 to keep adjusting entries separate from normal Period 12 activity. B. View All Journal Entries. C. Print/Post Journal Entries. Choose All Sources and All Periods to post. This step will automatically transfer adjusted balances to the new fiscal year accounts after it posts activity to the prior year. GL > Last Year > Reporting A. Print Trial Balance. Verify that it is in balance. B. Print Financial Statements. Print any financial reports you normally print with month end and any others requested by your accountant and auditors C. Print Activity by Period Report. Analyze or research general ledger activity by account number and/or period. yeinst Last printed 12/24/2014 8:37 AM Page 17

18 Additional Resources Please visit the following websites for more information: For W-2 information: For 1099 information: yeinst Last printed 12/24/2014 8:37 AM Page 18