How do I handle W-2 forms when switching from Sage 50 to QuickBooks mid-year?
One W-2 per employee must combine wages from both systems, so keep the Sage payroll records and year-to-date figures before you convert.
One W-2 per employee has to carry the full calendar year, with Sage wages and QuickBooks wages combined on the same form. Neither program can see what the other paid, so neither will print a complete W-2 on its own. The practical job is to capture the Sage half before you switch, then make the QuickBooks half continue from it.
The W-2 covers the whole calendar year
The form reports what each employee was paid between January 1 and December 31, no matter which system cut the checks. If Sage paid January through June and QuickBooks paid from July onward, every box amount is the sum of both halves. Filing two forms for one employee, one from each system, is the common mistake; the totals then disagree with the quarterly returns already filed.
What should you keep from Sage 50 before the switch?
Before the conversion date, run the payroll reports Sage can produce for the year so far, then archive them outside the Sage data. The useful set is the employee earnings summary, the payroll register through the final Sage pay run, and each quarterly report already filed. Export them to PDF or Excel. Keep a backup of the Sage company data itself as well, since those reports are the authority for the first half of the year.
Getting the QuickBooks half to line up
When you set up each employee in QuickBooks payroll, enter the Sage year-to-date wages and withholding rather than starting everyone at zero. Our QuickBooks knowledge base covers entering year-to-date payroll after a mid-year start. What carries through a Sage 50 to QuickBooks conversion depends on the file, so treat payroll history as an open question until someone has examined it. We evaluate files free of charge and will say plainly what will move.
One form, no double counting
Check the seam before year end. The last Sage check and the first QuickBooks check must not overlap, and no employee should show on both systems’ quarterly filings for the same quarter. Reconcile the year-to-date totals from both systems against the bank and the payroll tax deposits. When they agree, produce the W-2 from the system holding the full year, or combine the two halves onto one form before filing.
The best next step happens before you convert: run and archive the Sage payroll reports to date, then send us the file for a free evaluation. Our engineers will tell you which payroll data will land in QuickBooks and what you will need to enter by hand.