Sage 100 Contractor Year-End Closing Guide

Unlike some accounting systems that combine all year-end activities into a single step, Sage 100 Contractor separates calendar year-end tasks (payroll and vendor 1099 processing) from fiscal year-end activities (general ledger advancement and archiving). This guide walks through both processes, providing actionable checklists and best practices to help construction businesses close their books accurately and efficiently.

Sage 100 Contractor Year-End Resources

The Sage 100 Contractor Year-end Center features comprehensive year-end resources, checklists, and support articles through the Sage Community Hub, including:

• Detailed FAQ documentation
• Step-by-step process checklists
• Training materials and webinars
• Software updates and announcements
• Direct links to Sage Knowledge Assistant and Chat support

Understanding Sage 100 Contractor Year-End Processes

Sage 100 Contractor manages year-end activities through three distinct processes:

• Calendar Year-End (Payroll) – Payroll year-end processing occurs at the end of each calendar year, regardless of your fiscal year schedule. This involves closing the payroll year, generating W-2 forms for employees, and preparing year-to-date records for the new calendar year. Sage 100 Contractor allows businesses to retain multiple closed payroll years without forced archiving.
• Calendar Year-End (Vendor 1099s) – Vendor 1099 processing happens independently of both payroll and fiscal year-end activities. Businesses must verify vendor payment amounts, ensure proper tax identification information, and generate required 1099 forms for qualifying payments made during the calendar year.
• Fiscal Year-End (General Ledger) – Fiscal year-end focuses on advancing the general ledger to a new fiscal period and optionally archiving accounting data from completed fiscal years. Sage 100 Contractor can maintain multiple years of accounting data simultaneously, allowing businesses to post transactions to prior periods even after advancing to a new fiscal year.

Pre-Year-End Preparation

Software Updates

Verify your Sage 100 Contractor version before beginning year-end processes. Sage recommends maintaining either the latest version or at most one version behind current releases. Year-end tax updates are cumulative and become available annually through the Sage Customer Portal.

Data Backup and Verification

Complete a comprehensive backup of your company data before beginning any year-end procedures. Store at least one backup copy in a separate physical location or secure cloud storage. Verify backup integrity by testing restoration procedures on a non-production environment.

Run a company-wide audit to identify and resolve any data integrity issues:

1. Open Database Administration
2. Navigate to Database Utilities
3. Run the Audit Company Data function
4. Address any reported errors before proceeding

Reconciliation Requirements

Complete all bank reconciliations through the final period of your fiscal year using 1-5 Bank Reconciliation. Unreconciled transactions can complicate year-end reporting and may indicate posting errors that require correction.

Verify that all transactions have been properly posted to the general ledger. Check for unposted checks, invoices, or journal entries that should be included in year-end financial statements.

Calendar Year-End: Payroll Processing

Installing Year-End Tax Updates

Year-end tax updates become available through the Sage Customer Portal and can be accessed directly from within Sage 100 Contractor:

1. From the Home & Resources tab, navigate to Sage Support > Downloads and Updates
2. Log in with your Sage Customer Portal credentials
3. Select the Latest Product > Sage 100 Contractor Download Portal
4. Download and install the year-end tax update

Depending on your software version, you may be able to install tax updates without coordinating with your payroll schedule. Check your version’s documentation to understand your system’s tax table management capabilities.

Payroll Year-End Checklist

Complete these tasks before closing the payroll year:

1. Finalize Current Year Payroll
2. Run Payroll Audit
3. Reconcile Payroll Reports
   1. Federal Tax Verification
   1. State Tax Verification
   1. Employee Earnings Verification
4. Determine Reconciliation Discrepancies

Closing the Payroll Year

When you close the payroll year:

• Separates payroll data for the closed year while retaining it in your company database
• Clears year-to-date and quarter-to-date totals for each employee
• Updates carry-forward amounts for sick time and vacation accruals
• Creates new ACA records for the upcoming year using values from the final month of the closed year
• Updates the first pay period for biweekly payroll schedules
• Advances the current payroll year

To close the payroll year:

1. Log into Sage 100 Contractor with Administrator rights
2. Ensure no other users are accessing the company
3. Open 5-3-8 Close Payroll Year
4. Review the on-screen information about the close process
5. Click Close Payroll
6. Wait for the process to complete

W-2 Form Processing

Sage 100 Contractor supports both paper filing and electronic filing through Aatrix integration.

Generating W-2 Forms:

1. Open 5-4-1 Federal Forms
2. Select the appropriate tax year
3. Choose Calculate W-2 Data to perform a test calculation (this does not commit data)
4. Review calculated W-2 data for accuracy
5. Make corrections in payroll records if needed, then recalculate
6. Once verified, select Finalize W-2 Data to commit the information
7. Process W-2 forms through Aatrix or print directly from Sage 100 Contractor

Post-Payroll Close Tasks

Update Employee Tax Withholding:

• Review and update W-4 forms received from employees
• Modify federal and state withholding amounts in 5-2-1 Employees
• Adjust calculation maximums for items like Social Security wage bases

Review and update 5-3-1 Payroll Calculations for the new year:

• Unemployment rates (state and federal)
• Disability insurance rates
• Workers’ compensation rates
• Social Security wage base maximums
• 401(k) contribution limits
• Other benefit calculation thresholds

Calendar Year-End: Vendor 1099 Processing

Vendor 1099 Preparation

1. Verify Vendor Information

• Confirm Tax ID numbers are accurate
• Verify 1099 Type classifications are correct
• Update vendor addresses if needed
• Review vendor payment totals using the All Payments from Accounting Transactions window

2. Enter All Current Year Invoices and Payments

• Final invoices dated within the calendar year
• Year-end payment transactions
• Any manual adjustments or corrections

3. Review 1099 Reports

• Print 4-1-1-61 Vendor 1099 Report to review Tax IDs and 1099 Types
• Print 4-1-5-61 Vendor 1099 Payments report for the calendar year
• Verify payment amounts are accurate
• Make corrections in vendor records as needed

Fiscal Year-End: General Ledger

Advancing to the New Fiscal Year

Sage 100 Contractor can maintain multiple years of accounting data without requiring you to close your books or archive data. You can enter transactions for the new fiscal year while still posting to prior fiscal year periods.

When to Advance Advance to period 1 of the new fiscal year when you’re ready to begin regular operations in the new year. While on period 12 of your current fiscal year, period 1 of the next fiscal year is already available for posting transactions.

Advancing the Period:

1. Log into Sage 100 Contractor with Administrator rights
2. Ensure no other users are accessing the company
3. Open 1-6 Period/Fiscal Year Management
4. Click Change Period
5. Verify:
   • Current period shows 12
   • Current fiscal year is correct
   • “Change period to” field shows 1
   • New fiscal year appears in the FY box
6. Click Change Period
7. The system begins auditing your books
8. If audit errors appear:
   • Print the audit report
   • Click Recalculate Balances
   • If errors persist, print the report again and contact support
9. If no errors exist, click Yes to advance the default posting period

After advancing, periods 2-12 of the new fiscal year become available for transactions. You can still post transactions to prior fiscal year periods as needed for adjustments or corrections.

Archiving Company Data

Sage 100 Contractor separates archiving from year-end advancement. You can maintain multiple years of accounting data in your current company without archiving. Consider archiving when:

• You no longer need frequent access to a previous year’s data
• You’ve entered and posted all transactions for that year
• Your accountant or tax advisor has completed all corrections and adjustments
• Your company data file size is affecting system performance

Some versions of Sage 100 Contractor allow businesses with a fiscal year ending December 31 to combine fiscal year and payroll year archiving in a single process. Check your version’s documentation or Database Administration options to determine if this feature is available.

Simplify Sage 100 Contractor Year-End with Cloud Hosting

Year-end processing in Sage 100 Contractor requires careful coordination of software updates, data backups, and system accessibility for your accounting team. Cloud hosting can help you streamline these activities while improving day-to-day operations throughout the year.

Benefits for Year-End Processing

Cloud hosting eliminates hardware dependencies that can complicate year-end activities. Your team gains the flexibility to access Sage 100 Contractor from multiple locations — whether working from the office, job sites, or home — ensuring that year-end tasks can proceed on schedule regardless of where team members are located. Your service provider can also take over software upgrades and maintaining automated backup schedules that protect your financial data without requiring manual intervention.

Learn More About Sage 100 Contractor Hosting

SWK Technologies offers Secure Cloud Hosting services for Sage applications and other business systems. Our hosting solutions combine technical expertise with infrastructure designed for business-critical applications, helping companies maintain reliable access to their accounting and ERP systems year-round.

Contact SWK Technologies to learn how cloud hosting can support your year-end processes and improve operational efficiency across your organization.

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