Blue Skies Newsletter: 01/6/2020

BLUE SKIES ACCOUNTING® 2019 YEAR END INSTRUCTIONS

Download our latest update by double clicking the banner message on your Blue Skies desktop Install the update by double clicking the downloaded file and following the on-screen prompts. After you have run the update:

1st Step Go to Setup! Company! Reset GL & Payroll Yr Bal Fwds

2nd Step Follow the prompts - the program will guide you through these steps.Have all 2019Data Entries Posted! You cannot close with any ‘Pending Transactions’.

Payroll Only: Must do Backup first! Go to Setup! Company! Payroll Yr End – Zero Amounts Receive Message: Successfully Done!

General Ledger w/Payroll: Go to Setup! Reset GL and Payroll Yr Bal Fwds! (see 3rd Step)

3rd Step: Create Folder for New Year’s Books

If you use default path statements, the program will automatically fill in your New Year Path name & create the new folder ie. (C:\Blue_Sky\2020data). Note: If your data is in a non-standard directory (ie..currentdata), re-name to 2019data. After close, re-name 2020Data to “CurrentData”

4th Step: Back up your final books (to Flash Drive) Click ‘OK’ at 1st message. This will take you directly to the‘Backup Screen’ in your Blue Skies Program - Click ‘Start’

``` `5th Step: Follow the ‘Requirement Steps’ in consecutive order!

Each Item must have the ‘Check Mark’ ( ) to close properly.

1) Install New Jan 2020 Version of Blue Skies Updates 2) Close 2019 PR before your 1ST payroll in 20203) ‘Adjusting Journal Entries’, W2s, etc. for 2019 may be made later.

6th Step: Click ‘GO’ after all Items Checked!

Important Note: If you click GO before all requirement steps are finished, you will have to exit and start the procedures again from Step#2.

7th Step: Successfully Reset!Successful Message Appears: Note: If you do not receive this message, then a problem occurred during your close procedures. Repeat steps 2-7 for re-closing. Call Tech Support if you require assistance. Please have Blue Skies Direct Support (tv-team viewer) running with your ID and password.

8th Step: CHANGE Employer 2020 Tax Rates & Wage Limits :

Close 2019 client and OPEN client in 2020Data!

Go to Setup! Employer! Setup Deductions

FICA tax rate……………... 6.2% Wage Subject to FICA……………….137,700Medicare tax rate………… 1.45% Max Wage Subject to Medicare…… AllFUTA tax rate……………. 0.60% Max Wage Subject to FUTA……… 7000(FUTA rate may be different in your state)CA SDI tax rate…………. 1% Max Wage Subject to SDI………… 122,909CA SUI tax rate…………. varies by company Max Wage Subject to SUI………… 7000CA ETT tax rate………… .1% Max Wage Subject to ETT………… 7000(does not apply to all employers) CA Minimum Hourly Wage: $12.00

The threshold annual compensation amount that triggers Additional Medicare Tax is $200,000.

Outstanding Advances for Employees at the end of the year: Re-enter the remaining advance in the 2018data books, so you will continue to see the 'outstanding advance reminder’ for those employees. Go to Transactions ! Manual Paychecks and re-enter the (remaining) advance USING Date of Jan. 1, 2018 and Check Number 1- When asked to post these checks, at the prompt, 'Post to General Ledger? Click 'NO'.

Please check out “What’s New in Blue Skies Accounting?”Click on the Help menu and then “Display What’s New”

2020 Income Tax Tables Updated US & Calif Income Tax Tables are installed in Jan 2020 BSA_Update downloaded from www.agdata-usa.com website, or by Blue Skies as the new automatic download.

Employee Setup now has ‘2020 W4’ to checkmark if new, 2020 hire, employee or an older hire employee who wishes to use the new, more extensive, 2020 W4 calculation. If ‘2020 W4’ is checkmarked, the ‘FIT Addnl’ label will change to ‘FIT Withhold’. The historic Blue Skies ‘FIT Addnl’ adds a fixed dollar amount. So if an

employee’s tax table calculated FIT of $150 and this field had $100, then $250 FIT would be withhold. But for 2020 W4 employees, this field is labeled ‘FIT Withheld’, the adjustment amount from the 2020 W4. If one of these employees had FIT Tax Table calculated FIT of $150, and 2020 W4 amount in ‘FIT Withheld of $50, then the employee’s paycheck would have $100 for FIT amount. ‘Addnl FIT’ adds a fixed amount to the FIT withheld. But ‘FIT Withheld’ for 2020 employees deducts this dollar amount from FIT. For 2020 employees, this adjustment includes the reduction that had been included for Exemptions as well as other adjustment. The intent of the new procedure is to make more net available in each paycheck with a smaller refund check at year end. The 2020 W4 calculator allows, using a slider bar, to more closely estimate the dollar amount of refund wished by the employee.

Note also, you now can store two phone numbers and the email address for the employee. You now have 2 FIT tables, one for those with ‘2020 W4’ and a second one for employees – hired before 2020 – who continue to use their established FIT withholding specifications.

Employees hired before Jan 1, 2020 can continue to use their old W4 that uses number of Exemptions to determine amount of FIT to withhold. Employees hired Jan 1 2020 or later must use new W4 form that calculates the flat dollar amount adjustment to withhold for FIT – number of Exemptions is ignored for FIT for these employees. The new W4 can be manually completed as in previous years of you can use the IRS’s new ‘Tax Withholding Estimator’ online at: https://apps.irs.gov/app/tax-withholding-estimator . The 2020 W4 will calculate higher flat dollar amount FIT withholding for multiple sources of income. Enter this flat amount into the ‘FIT Withhold’ that appears when ‘2020 W4’ is checkmarked.

Both federal income tax tables (serving 2020 W4 employees and non-2020 W4 employees) are installed with 2020 BSA Update. Technicians can edit either of these two federal tax tables using the below Blue Skies command.

Further BSA updates include revisions to W2 and other yearend reports.Blue Skies also now allows multiple 401(k) and similar pretax deductions. These 401(k) adjustments will be included in 2020 W4 calculations, also.State of Washington sick leave is now included.State of Oregon transportation tax is now included.

Best Regards, AgData staff