W-2 Printing

Before processing W-2’s, make sure you have completed the following:

• Make sure VMS program files have been updated.

• Make sure ALL Payroll transactions for all companies in use have been posted for the year.

• Make a backup of Payroll data for all companies in use on your system AFTER all Payroll transactions have been posted and PRIOR to year-end closing.

• Close the Year in Payroll.

NOTE: Refer to instructions for Payroll Year End Closing, if necessary. Continue only after the above steps have been completed!

PROCESSING W2 DATA FOR 2005

Step 1

From the PAYROLL menu select “21. W2 Forms”. This will display the Extended W-2 Information screen. Enter the information to proceed to the Edit FICA limits screen.

Contact name – Enter the contact name for the company.

Contact phone – Enter the phone number. Dashes (-) may be used.

Contact ext – Enter the extension for the contact person.

Contact email – Enter the email address for the contact person.

Contact fax – Enter the fax number, no dashes (-).

Contact method – Enter the preferred method of contact: Email, fax or postal.

Preparer Code – Select from the available options: Self prepared, Acctg firm, Service bureau, Parent company, or Other.

Establishment number – Enter the establishment number.

Terminating business – Select yes or no.

Employment code – Select from the available options: Regular, Agriculture, Household, Military, Mediare Govt Emplr, or Railroad.

Third party sick pay – Select yes or no

Edit FICA limits screen requires entries as indicated:

FICA – OASDI limit: 87900.00

Tax Year: 2005

NOTE: If the employee names have not been set up according to IRS W2 reporting requirements (Last_name suffix, first_name middle_initial), a message will appear on the screen:

Another message appears stating “Incorrectly formatted names will be skipped.”. Press RETURN to continue.

To correct employee names, on the W2 Processing screen, Select Edit W2 Data and select the employee. Edit the name.

Step 2

Print a Proof List.

Select option 2 and print the report.

The only error that you may encounter is a difference between the federal wages, and the total of all state wages. If this error occurs, the following message will display: “Check For Errors On Proof List.”

Step 3

CORRECTING W2’s

Because of changes in tax reporting, it is possible that certain employees will have different wage totals for federal gross wages, FICA wages, and state wages. The differences in these totals represent the 401K, Cafeteria Plan, and any other non-taxable or partially taxable deductions. The city and local wages may NOT add up to the total federal taxable wages.

If on the proof list, you see the message ***FEDERAL GROSS DOES NOT EQUAL TOTAL OF ALL STATE WAGES***, and the federal and state wage totals ARE equal, this means that the total of all city/local wages does not equal the total of the federal wages. This may happen when employees have worked in multiple states/cities/locals for the tax year. No correction is required - you may continue to process W2 data.

To change the FEDERAL wage/tax amounts, select option 1. After entering an employee number, the Employee Name and Address will display. Select Federal, State and City wage information to edit by selecting the appropriate button and edit the information as necessary.

For employees requiring fringe benefit totals on W-2 forms, enter the correct fringe benefit amount in the Fringe $ field on the Federal W2 Data Screen. This value will print in Box 14 on the 2005 W2 form labeled "Other."

NOTE: You are responsible for verifying the amounts are correct for the various wages.

Box 14 will hold up to four (4) entries. Possible entries include:

· FRG – Fringe Benefit amount [from Fringe $ box]

· SUI – State Unemployment Insurance amount [from Edit W2 State data screen]

· SDI – State Disability Income [CA, NY and NJ] [from Edit W2 State data screen]

· WFD – Work Force Development [New Jersey] [from Edit W2 State data screen]

Box 12 will hold up to four (4) entries. 401K information automatically prints in Box 12a (Deduction Code/Amount 1). When there is a 401K amount, only three other Box 12 fields are available to print.

NOTE: You are responsible for assigning the correct IRS code to these Benefits. The amount and Code will print in Box 12 b - d.

SIT – State Income Tax

SUI – State Unemployment Income

SDI – State Disability Income

WFD – Work Force Development

SIT – State Income Tax

Step 4

PRINTING W2’s

Select Print W2 Forms.

NOTE: Print Plain Paper forms before printing on actual W2 forms.

Select printer type.

The following printing options are available:

· NOT A RESTART: Prints ALL W2 forms, including all state/local W2 forms for all employees

· FEDERAL RESTART: Prints ALL federal W2 forms beginning with a specified employee number, and all state/city/local W2 forms. If a restart is necessary due to a printer malfunction, you can begin printing from the last correct W2.

· OTHER RESTART: Prints ONLY W2 forms for employees who have wages reported in more than two state/local codes (only two state/local wage boxes are available on each W2 Form), beginning with a specified employee. If a restart is necessary due to a printer malfunction, you can begin printing from the last correct W2.

• SEPARATE W2 / CITY:

o No selection combines Federal, State and City information.

o Selecting (check mark in box) will provide additional options: 1) to NOT include Federal information on City W2’s, 2) to Skip zero tax city forms, and 3) to print only one City/Local code per W2. If one City/Local code is selected, there is an option to sort the City/Local W2 forms by tax code or employee number. If this option is not selected, the forms will sort in Employee Number order.

· NO FEDERAL ON CITY

o Select if you do not want any federal information shown on a city or local W2 form. To include Federal information with City/Local information, leave blank.

· SKIP ZERO TAX CITY FORMS

· Select for W2 forms with zero withholding amounts for city tax to be skipped. To print all W2 forms, including zero city tax, leave blank.

· ONE CITY / W2

o Select to print one city/local code per W2 form. To print multiple city/local codes on a W2 form, leave blank. If a separate W2 per city is selected, there is an option to sort by employee or tax code.

o Federal W2 forms are sorted in employee number order, NOT by employee name.

o State W2 forms are sorted in state tax code order. Since only two state codes are printed on each W2 form, all state W2 forms AFTER the first two state codes print at the end of the Federal W2 run.

o City/Local W2 forms will print after all Federal and State W2 forms.

o The actual W2 totals should be verified with the W2 PROOF LIST BEFORE mounting actual W2 forms. Also, verify the alignment of W2 printing by overlaying the blank W2 forms with the Plain Paper W2's produced with this step. Make any corrections and Print on Plain Paper until error-free.

NOTE: DO NOT PROCEED without VERIFIED PLAIN PAPER W2'S in-hand!

Step 5

Mount W2 FORMS and select Print W2 Forms. Select Yes to print an alignment form, as required. You may print as many alignment forms as needed. When the forms are aligned correctly select No to begin the W2 forms.

NOTE: After printing Plain Paper W-2’s, starting actual W-2 forms printing is NOT a restart!

Step 6

Repeat W-2 process for each COMPANY on your system that is using Payroll.