Nonprofit News by Soft Trac

Sage recently posted an update to Sage Fund Accounting (formerly Sage MIP Fund Accounting). Version 10.2.11, is now available for download from the Sage MIP Fund Accounting Knowledgebase. The v10.2.11 download link as well as all of the detailed release information and installation instructions can be found within Knowledgebase article #311222.

You may access the knowledgebase article at www.sagesoftwareonline.com. After logging in, simply click the green “SUPPORT” button to be directed to the main support page, which contains a link to the Knowledgebase. If you are not already registered for Sage Software Online, click the “Register now” link on the login page.
As v10.2.11 is a cumulative update, it includes all of the updates (v10.2.7, v10.2.8, v10.2.9, v10.2.10 and v10.2.11) since the October 2010 release of v10.2.6.

The updates prior to v10.2.11 contain:
- The following federal changes:
• The Employee Social Security withholding rate was reduced to 4.2%.
• The Earned Income Credit option is no longer applicable.
• The withholding allowances and the percentage method income tax withholding tables were updated.
• The percentage method nonresident alien calculations were updated.
• The HIRE Act has expired effective 12/31/10; therefore, all HIRE Act benefit codes should be changed to Discontinued.

Changes in state withholding tax information for AZ, CA, CO, HI, KY, ME, MO, MI, MN, NM, ND, OK, OR, PR, RI, VT, IL and Palau.

Feature to credit the 2% excess employee social security withholding back to each employee if your organization ran payroll before installing v10.2.8 which was released on January 4, 2011 and you have not processed the credits manually. Please refer to Knowledgebase article #316443 for more details on how to set up and use this new payroll feature.
- Resolutions to customer reported issues.

The v10.2.11 contains the above updates and:
- New update makes accommodation for the reduction in the FUTA tax rate from 6.2% to 6.0% effective 7/1/2011
- Resolutions to customer reported issues (See aKB 317867 for more information on all resolved issues).

Sage MIP Fund Accounting includes the “Tax Forms and eFiling by Aatrix®” functionality for Payroll and 1099 tax forms. This feature eliminates the need for some or all pre-printed forms-allowing you to eFile or print your tax forms on plain paper instead.

W2
-The Employee copy of the W2 should be printed on the blank 4 part perforated paper.
-The State copy (if any) should be printed on the blank 4 part perforated paper.
-The Employee Notice is printed on the back of the 4 part perforated forms or it can be printed separately on plain copier paper.

-The Federal copy of the W2 can be printed on plain copier paper, no forms needed.
-The Federal copy of the W3 can be printed on plain copier paper, no forms needed.
-The Employer copy of the W2 can be printed on plain copier paper, no forms needed.

1099
-The Federal copy of the 1099 forms (all) must be printed on a red pre-printed form with black ink.
-The Federal copy of the 1096 must be printed on a red pre-printed form with black ink.
-The Recipient copy of the 1099 (all) should be printed on the blank 4 part perforated paper.

-The Payer copy of the 1099 forms (all) can be printed on plain copier paper, no forms needed.

Below is a pricing list including the form numbers for Sage Checks and Forms. To order call 800-994-1351 or visit https://sage.checks-and-forms.com/homePage.do?client=MIP

Only these part numbers are compatible with Sage MIP Fund Accounting

Bundle W-2 Laser Package Set – Forms and matching envelopes.
LW2BK4DWS

Bundle 1099 Laser Package Set
L99BK4DWS

Note: Sage Checks & Forms are offering a 20% discount if they order online by 9/24/2010

In the past, outsourcing payroll duties was a good option especially if your organization had limited resources and time. A staff member provided essential information about your organization and employees and the payroll service took care of generating the checks, making the tax payments, filing tax returns and distributing the year-end forms.

If you have a small payroll of less than ten people with few programs or departments, that still remains a good option. However, as payroll software technology has advanced, we are seeing many organizations re-evaluating the benefits of bringing their payroll in-house.

One such organization is a client of Soft Trac with approximately 150 employees. According to their Finance Manager, it made sense to study the differences between continuing to outsource versus bringing their payroll in-house. The study revealed that their payroll service was providing the core payroll services, but their accounting staff was still spending time in preparing the time records, maintaining employee information, reconciling payroll reports and doing journal entries.

On examination, they found that the Sage MIP Fund Accounting payroll module would allow their organization to take closer control over their costs while producing their own payroll. The MIP payroll provided them with options, such as labor hour reporting, integration to Allocations and Bank Reconciliation, and the ability to easily manage accrual entries. The Direct Deposit module allowed them to provide their employees with the same service as their payroll service company. In addition, they found that MIP payroll’s integration with Aatrix Software automated the federal and state tax reporting and eliminated the worries of manually filing tax returns and year-end tax forms.

In the final conclusion, their study revealed an annual cost savings of over $13,000. The cost savings they will realize in the first year alone, paid for them to add the payroll module with direct deposit and a fully integrated HR module.

Annual cost of payroll service (excluding inflation) $15,000
One-time Cost of MIP Fund Accounting Payroll Module,
Direct Deposit and Sage’s New HR Module $10,900
Annual Maintenance & Support Cost $1,300

Want help conducting your own cost analysis? Call Susan Campbell at 207-621-8556 for assistance. For more information about Sage’s MIP Fund Accounting Payroll or the Sage’s New HR Module, call Sandy Sherry at 207-221-6575 or Susan Campbell at 207-621-8556.

Hope this find you well. Here are some Sage Knowledgebase articles regarding tax forms to order and a useful PR Q&A article.

Please note that if you want to use Aatrix to file forms for you, you can set up an account with them. Find their web site in the Sage MIP Aatrix Q&A attached.

Regards,

Sharon Blakeslee
Nonprofit Accounting Specialist
Soft Trac, LLC
207.221.0342

MIP Tax Forms Article 296550

W-2-Red Copy 273286

PR Tax Calc QandA 303703

Starting with the release of Sage MIP Fund Accounting v10, Sage recommends that customers upgrade their database engines to SQL Server 2005. This can be either the full version or the Express edition (included on the MIP v10 CD). SQL Server 2000 and MSDE 2000 will still be supported database platforms in v10. However, they are encouraging customers to upgrade to gain the following benefits:
• Better security
• Better performance
• Longer support life (from Sage and from Microsoft)
• Express edition includes SQL Server management tools that were previously only available in
full SQL Server.
Upgrading the database engine will require uninstalling MIP and SQL Server 2000 (or MSDE 2000) first. Instructions for upgrading will be included in the v10 installation instructions booklet. You may also view article #282603 in the knowledgebase at www.sagesoftwareonline.com or contact Soft Trac support atfor more information.

Sage Software recently released version 9.0 of Sage MIP Fund Accounting, the latest version of its award-winning accounting software for nonprofit financial management. Enhancements to the product include: new tax forms and eFiling by Aatrix®, new recurring and reversing entry management functionality, enhanced fixed assets tracking and reporting, streamlined navigation and enhanced user interface, and additional payroll, accounts payable, accounts receivable, and reporting functionality. For 25 years, Sage MIP Fund Accounting has been helping nonprofit and government organizations of all sizes track and report on multiple funds, across multiple budget periods; plan and manage budgets; maximize grants; and produce accurate, customized reports.
“The latest release of Sage MIP Fund Accounting includes several features, such as an easier-to-navigate interface and the Recurring and Reversing Entry Manager, that we told Sage Software would simplify our accounting processes,” said Rebecca Trevino, CPA, director of administration for The Railroad Commission (RRC) of Texas, an Austin, Texas-based regulatory organization. “We have been a Sage customer since 1996, because Sage MIP Fund Accounting is an outstanding fund accounting package. The software can handle any government structure that I have encountered.”

Krista Endsley, senior vice president and general manager for Nonprofit Solutions at Sage Software, said, “Sage MIP Fund Accounting, version 9.0, features stronger core functionality, while preserving the stability and reliability expected by our loyal nonprofit and government customers. This release debuts the product’s new user interface, and offers more tools designed to save time and effort for customers at all experience levels.”

New Version 9.0 Features

• New tax forms and eFiling by Aatrix® enables users of the Payroll module to quickly and easily produce W-2 and W-3 forms for employees, or eFile federal and state reports. Users can also review and file more than 250 federal and state tax forms and payments, which are automatically completed with their payroll data.

• Streamlined navigation and an easier-to-navigate interface enhance the user experience.

• New Recurring and Reversing Entry Manager can help save users time by allowing them to set up, edit, and manipulate repeat entry tasks.

• Enhanced tracking and reporting capabilities in the Fixed Assets module can help strengthen users’ audit trails.

Additional payroll, accounts payable, accounts receivable, and reporting functionality, as well as audit controls were added to Sage MIP Fund Accounting.

“The new Recurring and Reversing Entry Manager will go a long way in making our repetitive processes easier and faster,” said Trevino. “It expedites many of the data entry functions, thereby enabling us to process more transactions with fewer staff.”

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