Technical Support

Year-End Procedures
for Contractor III® Software

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Calendar Year End Procedures

Print 1099-MISC Forms

There are only two requirements of major importance at the end of the calendar year. First, 1099 forms must be printed and distributed to your vendors and the YEAR TO-DATE AMOUNT PAID balances in the Accounts Payable Vendor file must be transferred into the PAID LAST YEAR fields.

When the system prints 1099s, the forms will be printed for all vendors whose PRINT 1099 flag reads 'Y'es and to whom you have paid more than the specified minimum amount during the calendar year. Before printing 1099s on your purchased forms, you may wish to first print on plain paper and check your figures. Year to-date balances for any vendor may be changed through Vendor Entry or using a special option in the 1099 printing program menu.

After you print 1099 forms (and create a diskette for magnetic media reporting, if applicable), you must perform the Year End Balance Transfer before you pay any vendors during 2007. This balance transfer option is also found in the 1099 printing program menu.

Remember to make a permanent backup of your data files before you perform the Year End Balance Transfer.

Print W-2 Forms

The second required procedure for calendar year end is printing W-2 forms for your employees.

Contractor III® will print on standard single wide forms, as well as a number of other formats. For a list of the available formats, go to the setup screen for printing W-2s. The formats are listed here.

If you are reporting your W-2 information on magnetic media, and you need to generate a special file for your state, please contact A-Systems Support for instructions.

After W-2s and End-of-Quarter Reports for the 4th quarter have been printed and before you post your first payroll of 2007, you must zero all quarter to-date and year to-date fields in the employee record file. Make sure you have a permanent backup of your data files before performing this procedure. To zero the balances, go to the End of Quarter Reports option on the payroll menu. Select the Zero Quarter to-Date and Year to-Date Totals option and Contractor III® will perform the function.

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Fiscal Year End Procedures

At the end of the fiscal year, the year to-date portion of your financial statement must be cleared to make way for transactions posted in the new year. To accommodate the transactions needed to clear the statement, you should create a fiscal period titled YEAR END. This fiscal period should appear after the last fiscal period in your fiscal year. For example, if you have a calendar year and the last fiscal period of this year is "Dec 2006" with a Begin Date of 12/1/06 and an End Date of 12/31/06, the next fiscal period should be "End 2006".

The procedures for year end processing should follow this pattern:

1. Close any jobs which are completed (all billings have been received and all invoices have been paid). Post these transactions to the last period of your fiscal year.
2. Make Year-end Adjustments. This includes posting the total year-end Over Billings and Under Billings (found on the year-end bonding report) into your balance sheet accounts. Post these transactions to the last period of your fiscal year.
3. Zero all cost, revenue, and expense accounts in the P&L statement by entering an offsetting debit or credit for each account balance and debiting or crediting the total difference to the Retained Earnings account in the Equity portion of the Balance Sheet. Post these transactions to the YEAR END fiscal period.
4. Re-enter prior years job cost and job revenue figures.

New Federal Tax Tables As Of January 1, 2007

The following screens are the tax tables as they should appear in Contractor III®. Remember, use your own Federal ID Number and G/L Account numbers.

For more detailed instructions, go to Technical Bulletin #507

                           TAX TABLE FOR SINGLE PERSONS
                        ====================================
                         LINE   MINIMUM OF FRACTION OVER
                           #.     RANGE       MINIMUM
                        ======  ========== =============

                        1      2,650     10.000%
                        2     10,120     15.000%
                        3     33,520     25.000%
                        4     77,075     28.000%
                        5    162,800     33.000%
                        6    351,650     35.000%
                        7          0       .000%
                        8          0       .000%
                        9          0       .000%
                       10          0       .000%
                       11          0       .000%
                       12          0       .000%

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A-Systems Technical Bulletin #506