Sage 100

I have a client that we just converted to MAS90 with an unusual request. They are using Payroll (version 4.5). They hire, terminate, re-hire, terminate and re-hire the same employee throughout the year. When they hire an employee back he/she gets a new clock number. They want to re-create the employee with a new number but MAS90 won't let them (message that the SS is already used by another employee). Their old software apparently printed multiple W-2's for this employee. I told them MAS90 would combine this all in one W-2. I told them I would check but I did not think there was any other way around this issue other than re-numbering the previous employee number to the new clock number. They are checking on their end to see if this change in procedure will cause any problems and I'm checking to see if there are any other options. Any ideas? This may not seem urgent, but they are actually waiting for me to answer before they enter/re-enter an employee they just re-hired. ( I told them I not to get their hopes up though) :)

Or I guess change the SS# on the old employee though I cannot predict what would happen when you go to print W2 forms.

Under Payroll Options, Tab 3 Integrate, change ""Allow Entry of Duplicate Social Security No"" to Yes. This will allow you to enter the employee multiple times and generate multiple W-2s.

Wouldn't it be easier to make the employee inactive instead of assigning a new ID?

the new ID is requied for their timeclock system and they re-hire in different divisions and give them a timeclock number. I'm assuming they do this without knowing that it was a previous employee

@michael - perfect thank you

Interesting to know what happens with the unemployment taxes etc.

excellant point Jeff, I'm sure the employer will be paying additional FUTA and SUTA taxes if the emplyee reaches the limit under 2 different employee numbers, unless they manually handle that outside of MAS90.

To MAS90 you're setting up a new employee (with the same SSN), so you start over with payroll tax limits. It's a cost, however inflexible HR people don't often care about excess payroll tax costs, instead they care about THEIR systems.

does anyone know if they used Aatrix to would Aatrix to do their 940 filings, would it handle this as one employee? (I'm skeptical)

David, I am not sure about Aatrix 940, though Aatrix would solve the multiple W-2 issue. Once the data is in Aatrix you would be able to edit the file to combine manually his W-2 information into one record.

David I don't know if you're in the business of practicing as a CPA however words of wisdom with respect to payroll -- make it clear that if you're not acting as their CPA that you are ""Not in the business of providing tax or accounting advice. Consult with your financial advisor prior to implementing any changes to accounting policies. Always verify payroll tax changes immediately since early detection of problems may avoid a year end tax surprise"" .... I've been in several situations where customers didn't want to pay their CPA and figured our advice (which they misunderstood) was good enough. Then when the IRS notices came (with penalties) they tried to play the ""but you told me and I got penalized"" game.....

What about just renumbering the existing employee?

@ Wayne - good point. I always like to say ""you need to check with your CPA or Accountant"" if we are not already their CPA's for that reason exactly. @robert - They decided to go with switching the employee number. After thinking it thorugh they decided that was a much cleaner/easier route to go