SWK Technologies has compiled this comprehensive guide to help streamline your Sage 100 year-end closing processes for 2025 and prepare your reporting for the 2026 fiscal year. This resource collection includes detailed walkthroughs for general EOY (end of year) tasks and specific payroll close-out procedures, including critical information about 1099 form processing.
Please contact info@swktech.com if you have any questions or need additional support for managing your Sage 100 EOY processes.
2025 Year-End Updates for Sage 100
Building upon these established year-end procedures, Sage has introduced several important updates for the 2025 tax year that will affect your closing process. These changes primarily impact payroll reporting and 1099 form processing, requiring attention to new requirements in both tax calculations and data management.
The following sections detail the specific changes implemented for 2025, including enhanced features in the Payroll module and streamlined vendor maintenance for 1099 processing. Review these updates carefully before initiating your year-end closing procedures.
2026 Tax Year Changes (Preview)
The One Big, Beautiful Bill Act introduces new requirements for reporting overtime compensation that will affect how employers process W-2 forms. Beginning with the 2026 tax year, employers will be required to separately report the overtime premium portion of overtime compensation on Form W-2. The IRS is currently developing new guidance and updated forms for implementation.
Expected changes for tax year 2026:
- Overtime premium will be reported in Box 12 with code TT
- Only the premium portion (not total overtime pay) will be separately reported
- Example: An employee earning $20/hour works 3 hours of overtime and receives $90 in total overtime pay ($30/hour × 3). Only the $30 premium amount ($10 premium/hour × 3 hours) would be reported in Box 12.
Sage is monitoring IRS guidance and will release product updates to support automatic calculation and reporting of overtime premiums for the 2026 tax year. Additional information will be provided as the IRS publishes final requirements.
Payroll Year-End and 1099 Processing Procedures in Sage 100
W2s, 1099s and other payroll files and tax information are updated annually in Sage 100 via the cloud to help ensure your books are accurate before closing out the quarterly and annual periods. For 2025, Sage is implementing new updates to both payroll and 1099 processing. Additional updates are expected in April 2026, including for versions 2026, 2025.2 and 2024.4, as well as for Payroll 2.26.1, which will provide further enhancements for 2026 tax year compliance.
The Sage 100 Payroll module version 2.26.0 is scheduled for release December 20, 2025, and can be installed on versions 2025, 2024, 2023, and 2022 (for this final year-end). For 1099 processing, the 2025 Interim Release Download (IRD) will be compatible with Sage 100 versions 2025.0-2025.1, 2024.2-2024.3, and 2023.5. The IRD includes minor changes to 1099-MISC and 1099-NEC forms for both 2025 and 2026 tax years.
Before initiating year-end processing, verify your data accuracy using Quarterly Tax Reports and Check History Reports. Cross-reference these against your general ledger to ensure all tax calculations and withholdings are properly recorded. Install the latest Payroll 2.26.0 update and IRD 2025 when available to access current tax tables and form updates.
Watch SWK’s webinar here and follow the steps described to ensure you are reconciling all of your accounts correctly:
Sage 100 Year-End Closing Procedures
Year-end closing procedures in Sage 100 follow a similar methodology as period-end closing workflows, but require a few more steps to ensure ledger reconciliation across your entire database and to be able to migrate to the next period and year. There are a few data fields that required new information to process before closing out the annual period, particularly when managing W2 and 1099 forms in the Payroll module.
Year-end processing in Sage 100 is automatically triggered when closing the last period of your fiscal year. This critical process serves multiple purposes – it prevents data entry in prior periods, updates report default settings to the current period, enables data review and verification, and manages historical data retention based on your specified settings.
Before initiating year-end closing, ensure you have:
- Created a full backup of your Sage 100 system
- Generated an archive company copy through Company Maintenance
- Posted all registers and journals across all modules
- Confirmed all users have exited the system
- Verified historical retention settings across modules
Sage 100 EOY Closing Demo
The webinar below gives a comprehensive breakdown of every step you need to take to close out EOY in your Sage ERP, including what actions you need to follow prior to closing, what order each module needs to be closed out in and how to clean up any remaining transaction data:
Sage 100 Payroll & 1099 Year-End Checklist
This checklist for Sage 100 Payroll and 1099 processing will walk you through all the individual steps for payroll reporting at EOY in your Sage ERP, including:
- Print Quarterly Payroll Reports: Generate the Quarterly Tax Report for reconciling 941 forms and state tax documents, along with Payroll Check History, Earnings Report, Deduction Report, Time Off Accrual Report, and Workers’ Compensation Report. Archive these documents for compliance and reference purposes.
- Quarterly Tax Forms & Year-End Updates: Install the latest Interim Release Download (IRD) for Payroll and Accounts Payable modules, typically available in mid-December. Process Form 941, Schedule B, and applicable state tax forms using the Federal and State Tax Reporting menu.
- Set Up ACA Employer Maintenance: Update employer information for Forms 1095/1094-B or 1095/1094-C, including contact details, employee counts, and coverage information. Verify Applicable Large Employer (ALE) status and update monthly detail records as needed.
- Close Quarter & Install Tax Table Update: Back up company data, process quarter-end reports, and verify period settings in Payroll Options. Install current tax table updates before initiating final closing procedures.
- Reconcile 1099 Amounts: Review Payment History Reports to verify check, electronic payment, and wire transfer records by vendor. Ensure all payment records are properly categorized for 1099 reporting.
- Print & File 1099/1096 Forms: Process required 1099 forms through the Form 1099 Tax Reporting menu. Review company information, verify minimum payment thresholds, and select appropriate filing methods (electronic or paper) based on IRS requirements.
Where to Get 1099 Forms for Sage 100
Refer to the articles featured here for guidance on everything related to managing payroll and tax forms in Sage 100, including W2s, 1095s and 1099s. You can purchase appropriate checks and forms directly from Sage at the storefront here.
Additional Sage 100 EOY Resources
SWK Technologies releases guidance and direction on Sage 100 year-end processes annually before EOY. Stay tuned to the latest best practices and updates – or review workflows for previous Sage 100 versions – by following our Sage 100 Year-End YouTube playlist here.
Sage 100 Year-End Center
The Sage Community Hub features a Sage 100 Year-End Center with links to various relevant resources for closing out the end of year period, including:
- FAQ articles on year-end items
- Checklists for tasks
- Training & Sage University courses
- News & updates
Year-End Checklists
The Community Hub also contains hyperlinks to various year-end checklists for Sage 100, including:
- Payroll & AP 1099 Year End Checklist
- Sage 100 ERP Order of Closing Modules
- Reconciling Accounts Receivable to General ledger
- Reconciling Accounts Payable to General ledger
Stay Up to Date on the Latest Sage 100 News with SWK Technologies
SWK Technologies delivers the latest news, updates, and tips and tricks for Sage 100 users to help them capture the most value from their software. Whether you need technical guidance on year-end processing, assistance with compliance requirements, or strategic advice on optimizing your Sage 100 implementation, our team of certified consultants is ready to help.
Contact SWK here to get expert help for EOY processes in Sage 100 and ensure your year-end closing is accurate, compliant, and stress-free.