The Q1 2012 TTU and IRD are expected to be available December 20, 2011 and will be available for download from the “Sage MAS Support” section of Sage Online.  Sage will update the TTU with any late-breaking legislative changes, as necessary, throughout January 2012.

NO.  For 1099 reporting, there are no changes so no IRD is required.  If you performed 1099 reporting last year in MAS 90 or 200, you should have all the programs you need for this year.

Note: If you’re running version 3.74, 4.2, 4.3, or 4.4, you must have the year-end IRD from last year (2010) installed.

YES.  Install the 2011 year-end IRD.  Before installation, check to be sure you are running one of the following minimum requirements (or update your system first):

• 3.74, 4.2, or 4.3 and you must have last year’s IRD (2010) installed
• Version 4.4 – ready to install current year IRD (2011)

NO.  All of the program changes included in the IRD are already installed on your system. However, you’ll still need to download & install the Q1 2012 Tax Table Updated (TTU) before processing your first payroll for 2012.

After December 20th, you can access the W-2 eFiling updates for Payroll and 1099 updates for Accounts Payable. Simply click “eFiling and Reporting” in Sage ERP MAS 90 or 200 and the system will automatically prompt you to apply the online update.

In accordance with the Social Security Administration’s 2011 specifications for electronic W-2 filing (EFW2), Codes DD (Cost of employer-sponsored health coverage – not mandatory for 2011) and EE (Designated Roth contributions under a Section 475(b) plan) for Box 12 have been added.

A new field has also been added to identify the type of employer.  That field is populated via drop-down box on the “Additional Information” panel in W-2 electronic reporting after installing the 2011 year-end IRD. No changes were required for electronic 1099 filing.

If you do not have a current logon to Sage ERP MAS Support, go to www.sagesoftwareonline.com and click the “Register Now” link.  You’ll need both a current agreement or subscription plan along with your Sage Account number to register.

To make it easier to use and understand the eFiling and Reporting process, a “test drive” feature was added last year which allows you to walk through the process of W-2 filing without making any permanent changes or edits.  The test drive feature has been added for 1099 processing as well.

In addition, the eFiling and Reporting website offers text message alerts and customizable calendar-style reminders to help keep things on track.  Plus, new “return later” instructions are available at the end of the W-2 and 1099 processes to assist you in reprinting, making corrections, or processing additional copies.

While some states may still accept these filings, the Social Security Administration (SSA) no longer accepts W-2 information from employers on any type of magnetic media.

The Sage ERP MAS 200 for SQL Version 3.74 Magnetic Media module and MAS 90 or 200 Versions 4.2, 4.3, and 4.4 Electronic Reporting module will allow you to create the EFW2 file format that’s required by the SSA (provided you’ve downloaded and installed the applicable IRD on your system).  The file, which will be created as W2REPORT.TXT in the EFW2/“companycode” directory, can be uploaded to www.ssa.gov/employer.

Note: If your state accepts magnetic media filings and uses the Federal EFW2 format, you can use the Electronic Reporting module to create the media for your filing.

January 31, 2012 - Deadline to issue W-2, 1098, and 1099 forms to employees and independent contractors.

January 31, 2012 – Deadline for filing quarterly payroll & annual sales tax returns.

Depreciation and Section 179 Expense – Last year’s Small Business Jobs Act (SBJA) of 2010 increased the Section 179 deduction to $500,000.

The phase out threshold for qualifying Section 179 expenses increased to $2 Million, up from $800,000 previously.

Standard Mileage Rate – Beginning on January 1, 2011 through June 30, 2011, the standard mileage rate for operating an automobile for business use is 51 cents per mile.  From July 1, 2011 through December 31, 2011, the standard mileage rate increases to 55.5 cents per mile.

HIRE Act Worker Retention Credit - if your business hired a previously unemployed worker last year, 2011 is the year you qualify for up to a $1,000 tax credit for keeping that person employed.

Informational Reporting of Employer-Sponsored Health Coverage - Reporting employee’s annual cost of health insurance coverage on form W-2 is NOT mandatory until 2012. However, the ability to voluntarily report such information in 2011 using code DD in W-2 Box 12 will be included in the year end IRD for Sage ERP MAS 90 and MAS 200.

*Note: this information is intended as a helpful reference and is not to be relied on as tax advice from a qualified professional.