Payroll Year-End Update Simplified

Author: April Buck

Wondering how to prepare the Dynamics GP Payroll module for 2020?

First, apply the Payroll Year-End Update provided by Microsoft, complete your Payroll Year-End Closing procedures, and then install the payroll tax update for 2020.  It sounds fairly simple, right?  You might be just a bit nervous because ultimately we’re touching a sensitive part of the system, employees’ money.  Have no fear, FMT is here to help.

I’m going to provide the basic instructions and links to all the information you need to complete the Payroll Year-End update successfully. 

Let’s start with where to get the Payroll Year-End Update. 

 

Find your version of Dynamics GP below

 

If you are using Microsoft Dynamics GP 2018, find the U.S. Payroll Year-End Update Here

If you are using Microsoft Dynamics GP 2016, find the U.S. Payroll Year-End Update Here

If you are using Microsoft Dynamics GP 2015, find the U.S. Payroll Year-End Update Here

 

Don’t have access to the customer source website?  You can always ask your Microsoft Partner to provide you with the download.  The download includes information regarding the update in pdf form, US19YE.pdf and W-2DataSourceGP.pdf.

Now, that you have the file downloaded, you’ll complete the Year-End Closing Procedures.

Year-End Closing Procedures checklist below

  1. Verify that you have installed the latest 2019 payroll tax update
  2. Complete all pay runs for the current year
  3. Complete all month-end, period-end, or quarter-end procedures for the current year
  4. Make a backup of the original file
  5. Install the Year-End Update
  6. Create the Year-End file
  7. Make a backup of the new file
  8. Verify W-2 and 1099-R statement information
  9. Print the W-2 statements and the W-3 Transmittal form
  10. Print the 1099-R forms and the 1096 Transmittal form
  11. (Optional:) Create the W-2 Electronic file
  12. (Optional:) Archive inactive employee Human Resources information
  13. Set up fiscal periods for 2020
  14. (Optional:) Close fiscal periods for the payroll series for 2019
  15. Install the payroll tax update for 2020

You can find detailed information regarding each step here: https://support.microsoft.com/en-us/kb/850663

Make a backup of the company database as you go through the steps! The backup procedures are noted on steps 4 and 7. This can save you in case you need to restore back to a previous state during your close.

After completing steps 1-14, you are now ready to install the payroll tax update for 2020.  YOU DO NOT want to install this update until the year-end file has been created for 2019.

 

Payroll Tax Update for 2020 below

Install the payroll tax update for 2020

Note Do not install the payroll tax update for 2020 until the year-end file has been created for 2019. 

To install the payroll tax update for 2020, follow these steps:

  1. In Microsoft Dynamics GP, point to Maintenance on the Microsoft Dynamics GPmenu, point to U Payroll Updates, and then click Check for Tax Updates.
  2. In the Tax Update Method window, click Automatic, and then click Next.
  3. In the Authorization Number field, type your authorization number, and then click Log in.
  4. Click Finish.

You’re now set to start your 2020 Payroll Year! 

As a reminder, if you utilize any third-party products such as Integrity Data, Greenshades, etc. that pertain to Payroll, it is always a good idea to check to see if they have any year-end updates. 

If you run into any issues, errors, questions, and/or need assistance in completing these steps please do not hesitate to contact us.  You can reach us any time here.