W-2 Class Notes for Year Ended 2006

DOS Revised 12/05 W-2 Class Notes for Year Ended 2006 Payrolls in 2007 can be done without completing the 2006 W2’s first. The information needed will be extracted from the history file. After the year's data is extracted, the W2’s can be produced. Extract W-2 Information Before W-2's can be printed, the information must be extracted from the history file and moved into the W-2 work file. Once the extract has been done, changes you make in the W-2 work file are not duplicated in the main payroll files. If any changes are made to the prior year after an extract is performed, the extract will need to be re-done to update the work file. The extract creates a file named: W-2ccccc.dat (ccccc=company code). Reextracting will replace this file. Note: WolfePak Dos only supports 3 of the 4 available boxes in 12. (Boxes 12a, 12b, and 12c.) Calendar Year – Press “Enter” to accept the calendar year as “2005” Put tips in Box 7 – For wages coded in the special category called “Tips” in the payroll system, answer “Y” if you would like to include these amounts in Box 7 “Social Security Tips,” or “N” if you do NOT want it included in Box 7. WolfePak for DOS: 2006 Year End – W-2 Page 1 DOS Revised 12/05 Box 8 through Box 14 Amounts – See the back of the W-2 for specific instructions as to what information to include in boxes 8 through 14. These rows (Box 8 Allocated Tips, Box 9 Advance EIC Payment, etc) have three columns each, where you can define specific detail fields for income that government requires you to report. For example, in the row Box 12-A (which stands for line 1 of Box 12 on the W-2 form), if your company has a 401K plan, enter the detail field number in the first column for the system to record the amount contributed to the plan. The “+” columns allow you to change, or reverse, the sign of the given detail field for W-2 reporting when you change the “+” to “-“. The three column amounts for each row will be added together and one amount will be entered for that particular line item in the box. Add to Box 1: Wages, Tips, Other – In most cases, this amount will be calculated automatically and you will not need to make an entry here. Only if you have a special detail number that needs to be added to Box 1 for Wages for W-2 reporting, enter the detail numbers to be included. (Example: A company cost detail for life insurance you are providing for an officer of the corporation which is required to be reported to the IRS as compensation – you would enter the detail number of the company cost.) Employee Maintenance After the extract file is created, the information is available for verifying and editing on the Employee Maintenance menu item. (Note: This is also where box 12 can be marked.) If employee information is incorrect, you can make changes on this screen before printing W-2's. However, remember that this is the W-2 work file, and making a change here does not change the employee's permanent record. If the extract is repeated after any fields are changed here, the information will need to be overridden again. Employees with state income information can be extracted by state, however, for each extract (W2 run) a separate transmittal must be made as well. Note: For companies with employees in multiple states, the system will extract a separate W-2 for each state for one employee. For example, if an employee works in Texas and Oklahoma, the Texas wages will be on one W-2 and the Oklahoma wages will be on a separate W-2. The two combined make up the total wages for the employee. WolfePak for DOS: 2006 Year End – W-2 Page 2 DOS Revised 12/05 Company Transmitter Information This information will be printed on the W-2's and/or transmitted to the IRS via magnetic media. This information is on the work file. If the extract is repeated after any fields are changed here, the information will need to be overridden again. Submitter – Person submitting by diskette (magnetic media) to the IRS. Leave the field blank if you are sending the IRS W-2’s on paper. Employer – The Employer is the company name and address you will be filing the W-2’s under. This information should automatically prefill based on your company information in the Payroll system. Type of Employment – The type of employment defaults to “R” for regular 941 payer. If this is not the case for you, input the appropriate code from the list of available options. Box 11 – The system defaults to a blank field for Box 11 Code. If you have a nonqualified plan of a Section 457 plan you must report on for IRS purposes, enter a “G” in this box. Box 12 Code Letters – Any amount extracted and reported in Box 12 require an IRS code to describe what the amount is. The letters “A” through “V” directly corresponds with the letters on the back of the W-2 form for Box 12. Box 14 Description – Any amounts extracted and reported in Box 14 require a short description of what the amount is that is being reported. The three fields allow you to enter a 4-character description for up to three Box 14 amounts. Screen 2 – If you are processing employee wages in multiple states, enter your reporting ID# for each state in which you pay wages. WolfePak for DOS: 2006 Year End – W-2 Page 3 DOS Revised 12/05 Verifying reports Edit Listing: Before printing the W-2s, use the Edit Listing to verify that all information is correct. Company summary information is also printed. Error messages will print if FICA and Medicare amounts are incorrect for an employee. If there are errors correct in employee maintenance and rerun edit listing until there are no errors reported. The edit listing with (N) print everyone is a good report to keep. Other Verifying reports: 1. Employee Detail List (located at Main/Daily/Check/Payroll/Emp Maint/Print Emp/Detail Emp Listing 2. Employee Wage Report (located at Main/Daily/Check /Payroll /Historical/Other Reporting/Employee Wage Report) Printed Information W-2 Pre-Printed Forms For pre-printed forms, use a paper format specifying 10 cpi. If using a dot-matrix printer, make sure your paper format indicates letter-quality mode. This helps insure that the carbon copies are legible. Also, use a good-quality black ribbon. On both laser and dot-matrix forms, you will be given a chance to print an alignment page before printing the actual W-2's. Use the alignment page to check the line-up of the boxes. After the alignment test, the forms can be printed one line at a time, one form, or all at once (same options as printing payroll checks). Dot Matrix Printers: Select Type of Form #1 for one W-2 going across page Laser Printers: Since laser forms don’t use carbon paper, you must print each W-2 three or four times, depending on your state. 1. Start by selecting form type A: copy A for IRS. This prints copy A, two employees per page. Do not separate the copies when submitting to the SSA. 2. Select D to print copy B for employee copy. Distribute these to the employees, along with instructions. 3. Select D again to print copy C for employer copy. 4. Select D again to print copy D for state information, enter the state twodigit code. WolfePak for DOS: 2006 Year End – W-2 Page 4 DOS Revised 12/05 On all copies for laser printers, you will be given the opportunity to make adjustments in where the text prints. Be sure you print an alignment page and adjust text as necessary. W-2 Plain paper Plain paper W-2's can be used only if you are also transmitting the information on diskette. It does not create or draw the form in any way. Select the range of employees to print, and a paper format. A summary page will be printed following the W-2 information. Printing Options: 1. Print individually Form B,C,D,1,2 2. Print combination E (Both B&C) and 3(Both 1&2) Note: Plain paper B & C option is not split halfway on paper. It is designed for the B copy to fit in a regular Window envelope. W-3 This is done from a separate menu option on the W-2 processing menu. To print the W-3 select this menu option when ready and use the alignment options provided to print this summary form. Note: If details are applied to box 13 on the extract with a code of D, H, or S, the totals will print in box 12 of the W-3. WolfePak for DOS: 2006 Year End – W-2 Page 5 DOS Revised 12/05 FILING INFORMATION Paper Print W2’s and W3 and mail to the Social Security Administration Magnetic Media Paper Print W2’s and W3 and mail to the Social Security Administration Magnetic Media The Social Security Administration no longer allows W-2’s by Physical Media (i.e. diskette, CD, tape, etc). Electronically Export the electronic file (W2REPORT) to your hard drive and e-mailed to the Social Security Administration. Transmittal information is filled out on line when filing. NOTE: When either filing Magnetic Media or Electronically, the Social Security Administration has a web site to test your transmission for errors. See attached. DEADLINE INFORMATION a. b. c. January 31, 2007 – W2’s to employees February 28, 2007 – Paper Filing on Copy A of W2’s and W3 April 2, 2007 – Electronic submissions of W2’s. WolfePak for DOS: 2006 Year End – W-2 Page 6 DOS Revised 12/05 How to test your electronic W-2 file with AccuWage Website is http://www.ssa.gov/employer Click on Wage Reporting Software & Reference Material Click on AccuWage Information and Software Click on Download AccuWage Software for Tax Year 2003 Click on Go to Download AccuWage Software for Tax Year 2003 Choose Download option Single File to hard disk or Multiple Files to diskettes Click Save and choose a location for download file Go to saved location and execute file by double clicking to install After file is installed, an Icon will be located on desktop Double click Icon to execute Click on Start Testing and choose the location of the file created by the WolfePak Payroll program. At this time it will test the file and generate any errors. Click on View Error Report for a list of errors. WolfePak for DOS: 2006 Year End – W-2 Page 7