Sage 100

Need confirmation on year end payroll support strategy. Most PR clients are not ready to print/efile W2s until mid to late January yet need to run payrolls during the month of January. For one running v2017, I copied the production company to P18 company for PR. Can I install the IRD and TTU now as they intend to use Aatrix for efiling?

Install the IRD. You can install the TTU, but you will have to reset the SS limit prior to printing the W-2's.

I copy the company, run the the period end reports from both the live and copy company, close out the live company and then install the TTU. I have not had to reset the SS limit doing it this way.

At least 75% of our Payroll Clients run their W-2's from a backup company. If your client doesn't print a Quarterly Tax Report before installing the TTU, then indeed they'll want to change the FICA limit back to the 2018 limits in order to print a Quarterly Report that has the right Employer calculations on it. Aatrix knows what the limits are - it's just that Quarterly Report that you have to change the limits back for. And the SUTA limit and SUTA rate if it has changed as well.

You guys are great! These explanations are super helpful, especially since we only deal with this once a year. One wrong move and your goose is cooked. I can sleep tonight and stop stressing about this. Happy New Year!

It can be a bit confusing particularly because of the tax act passed in late 2017. Last year there was good reason to install the TTU right away, change the FICA limit etc, before printing the W2 if the W2 is printed after the first or second payroll. The tax changes affected the withhholding significantly and some customers wanted the lower withholding reflected on the first payrolls of the year to keep employees from complaining. Realistically, installing the TTU in Feb and being a bit over withheld never hurt anyone.