NDS Payroll GUI W-2 Reporting Runbook

Transcription

1 NDS Payroll GUI W-2 Reporting Runbook

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4 Table Of Contents Table Of Contents W-2 REPORTING PROCEDURE...1 W2 EMPLOYER MASTER MAINTENANCE...3 W2 BOX TABLES MAINTENANCE...6 W2 LOCAL TAX CODES TABLE MAINTENANCE...11 W2 TRANSMITTER FILE MAINTENANCE...13 W2 DESTINATION FILE MAINTENANCE...17 W2 STATE SUPPLEMENTAL DATA FILE MAINTENANCE...20 BUILD W-2 MASTER RECORDS...24 W2 CONSOLIDATE RECORDS...27 W-2 MASTER FILE MAINTENANCE...28 PRINT W-2 FORMS INSTRUCTIONS...33 XML W-2 MAGNETIC FILING...36 W-2 ACCUWAGE TESTING...40 SUBMITTING W-2S ELECTRONICALLY TO SSA...41 REPORT SAMPLES INTRODUCTION...42 PRINT W-2 FORMS SAMPLE...42 XML W2 MAGNETIC FILING REPORT SAMPLE...44 XML W2 MAGNETIC FILING STATUS REPORT SAMPLE...46 APPENDIX...48 CONTACT US...48 FIELD DESCRIPTIONS...50 INDEX...61 ii

5 W-2 Reporting Procedure This topic describes the steps in the W-2 Reporting process. The W-2 Reporting Procedure encompasses the steps you will take to create, edit, and print employee W-2s. In addition, you have the options for generating the W-2 Magnetic file containing the employee W-2 information and for uploading the W-2 Magnetic file electronically to the government, if applicable. Important W-2 Reporting Reminders: Read and review all of the steps in the W-2 Reporting Procedure before beginning. For questions, please contact NDS Technical Support. NDS recommends that you do a test run that includes going through the steps listed below and printing the W-2s using plain paper before the last payroll of the year so you can make any necessary changes and adjustments before the end of the year. All entries should be in UPPER CASE only. Do not use punctuation. For more information regarding entries in specific data fields, please refer to the documentation supplied by the IRS and the Social Security Administration. If you are filing employee W-2 information electronically: o Both the Social Security Administration (SSA) and NDS encourage you to download and run the Social Security Administration's free AccuWage Software for the current tax year, which reads your files and checks for errors. It is important to do this before you submit the file to the SSA. For more information, see the section W-2 AccuWage Testing. o In addition, the submitter must obtain a User ID and Password. For more information on obtaining a User ID/Password go to 1

6 W-2 Reporting Set Up Steps Each year before you start the W-2 Reporting process, be sure to check all records for accuracy. 1. Maintain the W2 Employer Master Record. 2. Maintain the W2 Box Tables for the deduction and other pay amounts to print in Boxes 10, 11, 12 and Maintain the Local Tax Code Table if you assess local taxes. 4. Perform file maintenance for electronic filing, if you submit employee W-2s electronically to the government: a. Maintain the W2 Transmitter Record. b. Maintain the file name and export location for the W-2 Magnetic file during W2 Destination File Maintenance. c. Maintain the appropriate State Supplemental Data Records to maintain additional information required by the state for processing employee W-2s. d. Obtain or verify the submitter's User ID and Password for uploading the W-2 Magnetic file to the Social Security Administration. W-2 Reporting Steps 1. After the last payroll of the year and before you clear the payroll files, print the following reports to be used for reconciliation purposes: a. Employee Earnings & Withholding Report for the fourth quarter b. Deductions Totals Report for the year-end 2. Build the Employee W-2 Master Records. 3. Consolidate the W-2 Records, if you have employees with multiple W-2s. Note: This routine is optional. You only need to run it, if you want to consolidate employee W-2s. 3. Edit employee W-2 Master Records that need changing during W-2 Master FM. 4. Print W-2 Forms. Note: NDS recommends that you print the W-2s on plain paper to review and verify the accuracy of the employee w-2 information prior to printing them on the actual forms. Note: Only use the following steps if you are sending your W-2 Magnetic file electronically to the government. 5. Run the XML W-2 Magnetic Filing routine to create the W-2 Magnetic file. 6. Download and run AccuWage to test the W-2 Magnetic file for errors. Note: NDS strongly recommends that you run AccuWage to ensure that the W-2 Magnetic file is error-free. 7. Submit the W-2 Magnetic file electronically to the Social Security Administration. Note: The person who submits the W-2 Magnetic file must have a valid User ID and password from the SSA. 2

7 W2 Employer Master Maintenance Use W2 Employer Master Maintenance to maintain the Employer information to print on the employee W- 2 forms and to transmit the W-2 Magnetic file electronically, if applicable. Notes: It is important that you maintain all W2 Employer Master fields unless the directions indicate otherwise. All Entries must be in UPPER CASE only. Do not use punctuation. Generally maintaining the W2 Employer Master Record is the first step in setting up for W-2 Reporting. For more information on the timing and sequence of steps, see the W-2 Reporting Procedure. Directions: OPENING W2 EMPLOYER MASTER MAINTENANCE 1. Click Utilities from the Menu Bar. 2. Click Misc Utilities. 3. Click W-2 Utilities. 4. Click Employer Master. Or, use the keyboard shortcut: [ALT] [t] [u] [w] [e]. W2 Employer Master Maintenance Window Example: 3

8 CREATING A NEW W2 EMPLOYER MASTER RECORD CAUTION: To avoid losing data, you must save new or changed records. W-2 Employer Master Maintenance Prompts To update the new or changed information, click Save or press [ENTER]. Keyboard shortcut: [ALT + s] CAUTION To avoid losing data, you must save new or changed records. To exit the maintenance, click Done. Or, click Close in the upper right corner of this window. Keyboard shortcut: [ALT + d] 4

9 Employer Name Enter the name of your company or organization. (up to 50 characters) Agent Indicator Code Entry Options: 1 - To indicate a 2678 Agent (approved by the IRS) 2 - To indicate a Common Pay Master (A corporation that pays an employee who works for two or more related corporations at the same time.) Blank - To skip this field Term. Business Indicator If you have terminated your business during the tax year, enter 1. Or, leave blank to indicate the business is active. (1.0 numeric) Establishment Number If you have multiple employee locations, such as, multiple stores that will be in the same W-2 file using the same EIN number (Employer Identification Number) use this field to identify the store or factory location or types of payroll. You can use any combination of letters or numbers for the Establishment Number. (up to 4 characters) Note: If you do not have multiple locations, please leave this field blank. Federal ID# Agent For EIN Enter the Federal ID Number assigned to your company or organization. (9.0 numeric, (-) hyphen optional) If an Agent Indicator Code was entered, enter the Agent EIN. (9.0 numeric, (-) hyphen optional) Other EIN If you submitted a Form 941 or a Form 943 to the IRS or W-2 data to the SSA for this tax year and you used a different EIN then the Employer EIN, enter the other EIN. (9.0 numeric, (-) hyphen optional) Location Address Enter the employer location address, such as, Attention, Suite, or Room information. (up 22 characters) Tip: The Location Address does not print on the W-2 forms. Delivery Address City State Zip Code Enter the employer delivery address, such as, the street or P.O. Box address information. (up 22 characters) Tip: The Delivery Address prints in Box C of the W-2 forms. Enter the name of the city for the employer address. (up 22 characters) Enter the two-character Postal Service state abbreviation for the employer address. (2 characters) Enter the Zip Code or the zip+4 Code for the employer address. (up to 11 characters) Employment Code To specify the type of employer, enter one of the following: Entry Options: R - Indicates Regular 5

10 H - Indicates Household M - Indicates Military Q - Indicates Medicare Qualified Government Employment X - Indicates Railroad Required Tax Jurisdiction Code Note: This field is reserved for future use. Please leave blank. 3rd Party Sick Pay Indicator Tax Year To specify a Sick Pay Indicator, enter 1. Otherwise, please leave blank. (1.0 numeric) Enter the four-digit tax year to report. (4.0 numeric, yyyy) EDITING AN EXISTING W2 EMPLOYER MASTER RECORD CAUTION: To avoid losing data, you must save new or changed records. 1. To display the record to be changed, simply open the maintenance. 2. To position the pointer to the information that you want to change, press [TAB] or click the field using the mouse. 3. Enter the data changes. 4. To complete the edit process, click Save, or press [ENTER]. Keyboard shortcut: [ALT + s] DELETING AN EXISTING W2 EMPLOYER MASTER RECORD Note: To maintain data integrity, you cannot delete the W2 Employer Master record. W2 Box Tables Maintenance Use W2 Box Tables Maintenance to maintain the tables that contain the deductions or other pay codes that determine the amounts to print in boxes 10, 11, 12 and 14 on the W-2 forms. If you do not create the W2 Box Tables no amounts will print in those boxes. Per employee, one deduction or other pay amount can print in box 10 and box 11, four amounts can print in box 12, and three amounts can print in box 14. Notes: Please refer to IRS documentation for instructions on the types of deductions and or other pays that need to be reported in each of the boxes. NDS recommends that you print a Deduction Master Edit List and an Other Pay Master Edit List to determine what codes need to be maintained in the W2 Box Tables. 6

11 Specific Box Instructions: o Box 10 and 11 - The table Description for Box 10 and 11 is user-definable and it does not print on the W-2 form. Enter all deduction codes and other pay codes that pertain to Box 10 and 11. Only one code will print in each box of the W-2. o Box 12a - 12d - W2 Box Tables 12-1 through 12-4 pertain to boxes 12a through 12d on the W-2 form. There are 19 possible types of deductions or other pay codes and amounts that you can report in Boxes 12a through 12d. For specific types of codes allowed in each box, please refer to the current year instructions for Forms W-2 and W-3. The W-2 program allows for four types of IRS codes to print, one IRS type for each box in Box 12a through 12d. It is important to note that each IRS type may have multiple payroll deduction codes associated with that type. For example, the IRS Type Code D is for 401(k) deductions. If you have several 401(k) deductions codes, assign the IRS Type D to one of the Boxes in 12 and maintain all the deduction codes associated with IRS Type Code D. Maintain the IRS Type Code during the Box 12 Type field and it will print in the box on the W-2 form. Important: If an employer has more than four IRS Types to report for box 12a through 12d, they can manually maintain the appropriate Box 12 amounts for specific employee W-2s during W-2 Master File Maintenance. While it possible to have more than four IRS Types to report for Box 12, you can only have one IRS Type per Box. o Box 14 - The W2 Box Table Title for Box 14 is user-definable and it prints as the description in box 14 on the W-2 forms. For example, you can maintain a Title of RET for Maine State Retirement or maintain a Title of DUES for Union Dues. Enter all deduction codes and other pay codes that are applicable to this box. Generally, this is the second step in setting up for W-2 Reporting. For more information, see the W-2 Reporting Procedure. Directions: OPENING W2 BOX TABLES MAINTENANCE 1. Click Utilities from the Menu Bar. 2. Click Misc Utilities. 3. Click W-2 Utilities. 4. Click Table Maintenance. 5. Click W2 Box Tables. Tip: Or, use the keyboard shortcut: [ALT] [t] [u] [w] [m] [b]. W2 Box Tables Maintenance Window Example: 7

12 CREATING A NEW W2 BOX TABLE RECORD To create a new record select the new Box(xx) in the drop-down list and click Retrieve press [ENTER]. Keyboard shortcut: [ALT + t] Tip: To indicate that you are building a new W2 Box Table, New displays near the Box. Default entries display and the first field is highlighted to let you know you can begin entering information., or W2 Box Tables Maintenance Prompts Box To specify the box to be maintained, click a choice in the drop-down list. (Predefined) To update the new or changed information, click Save or press [ENTER]. Keyboard shortcut: [ALT + s] 8

13 CAUTION To avoid losing data, you must save new or changed records. Tip: Search is not active during this maintenance. To display an existing W2 Box Table, select the Box and click Retrieve, or press [ENTER]. Keyboard shortcut: [ALT + t] Title Description Enter an abbreviated title for the W2 Box Table. (up to 14 characters) Note: For Boxes 14-1, 14-2, and 14-3, maintain a 4-character user-defined Title to print for the Type in boxes 14 on the W-2 form. For example, you can maintain a Title of RET for Maine State Retirement or maintain a Title of DUES for Union Dues. Enter the description for the box on the W-2 form. (up to 79 characters) Note: The Description does not print on the W-2 forms. Type Enter the Type of code for the box. Entry Options: D - Deduction Notes: O - Other Pay R - Retirement for Maine State Retirement to report in Box 14 To report Maine MEPers participant employee contributions, enter R for the appropriate Box 14 table. In addition, if your facility only files magnetically, you must set the W2 State Supplemental Data record Other State Data field to RET. Code Enter the Payroll Deduction Code or Other Pay Code to report in the box. Notes: If you specified Type R above, enter RET for the code. To look up a specific Code, click Search. Box 12 Type Enter the IRS Type Code to print for the Type in boxes 12 on the W-2 form. (up to 4 characters) Notes: For the specific types of codes allowed in each box, please refer to the IRS current year instructions for Forms W-2 and W-3. This field is only active if maintaining Box 12-1, 12-2, 12-3 or To complete the line for the Box, click Add. Keyboard shortcut: [ALT + a] 9

14 To clear the fields and position the cursor for a new entry, click New. Keyboard shortcut: [ALT + n] To remove a Deduction or Other pay code from the box, click to highlight the desired line, and then click Remove. Keyboard shortcut: [ALT + r] EDITING AN EXISTING W2 BOX TABLE RECORD CAUTION: To avoid losing data, you must save new or changed records. 1. To display the record to be changed, select the Box(xx) in the drop-down list and click Retrieve, or press [ENTER]. Keyboard shortcut: [ALT + t] 2. To position the pointer to the information that you want to change, press [TAB] or click the field using the mouse. 3. Enter the data changes. 4. To complete the edit process, click Save, or press [ENTER]. Keyboard shortcut: [ALT + s] DELETING AN EXISTING W2 BOX TABLE RECORD 1. To display the record to be deleted, select the Box(xx) in the drop-down list and click Retrieve, or press [ENTER]. Keyboard shortcut: [ALT + t] 2. Click File from the Menu Bar, and next click Delete. Keyboard shortcut: [ALT] [f] [d] 3. At the Delete Records prompt, click Proceed to delete the record, or click Cancel to escape from the delete routine. Note: After you click Proceed, you will see the following message on the Status Bar. 10

15 W2 Local Tax Codes Table Maintenance Use W2 Local Tax Codes Table Maintenance to maintain the deduction code for the type of local income tax and the locality name. You can maintain a deduction code for each type of local tax that is applicable to your employees. Notes: Only maintain the W2 Local Tax Codes Table if you collect a type of local income tax. Generally, this is the third step in setting up for the W-2 Reporting process. For more information, see the W-2 Reporting Procedure. Directions: OPENING W2 LOCAL TAX CODES TABLE MAINTENANCE 1. Click Utilities from the Menu Bar. 2. Click Misc Utilities. 3. Click W-2 Utilities. 4. Click Table Maintenance. 5. Click W2 Local Tax Codes Tables. Tip: Or, use the keyboard shortcut: [ALT] [t] [u] [w] [m] [l]. W2 Local Tax Codes Table Maintenance Window Example: 11

16 CREATING A NEW W2 LOCAL TAX CODES TABLE W2 Local Tax Code Table Prompts To update the new or changed information, click Save or press [ENTER]. Keyboard shortcut: [ALT + s] CAUTION To avoid losing data, you must save new or changed records. Note: Search is not active during this maintenance. To display an existing W2 Local Tax Code Deduction Table, click Retrieve, or press [ENTER]. Keyboard shortcut: [ALT + t] Title Description Enter the Title for the W2 Local Tax Code Deduction table. (up to 14 characters) Enter the description associated with the table. Local Income Tax Code To specify the type of local income tax, click a choice in the drop-down list. Tax Code Types: C - City D - County E - School District F - Other Deduction # Locality Enter the deduction code associated with the local income tax. (3.0 numeric) Enter the name of the locality for the local income tax. (up to 12 characters) EDITING AN EXISTING W2 LOCAL TAX CODES TABLE CAUTION: To avoid losing data, you must save new or changed records. 1. To display the record to be changed, simply open the maintenance routine and click a choice in the Local Income Tax field. 2. To position the pointer to the information that you want to change, press [TAB] or click the field using the mouse. 3. Enter the data changes. 12

17 4. To complete the edit process, click Save, or press [ENTER]. Keyboard shortcut: [ALT + s] DELETING AN EXISTING W2 LOCAL TAX CODES TABLE 1. To display the record to be deleted, click a choice in the Local Income Tax Code dropdown list. 2. Click File from the Menu Bar, and next click Delete. Keyboard shortcut: [ALT] [f] [d] W2 Transmitter File Maintenance Use W2 Transmitter File Maintenance to maintain the transmitter information to be included in the W-2 Magnetic file when submitting employee W-2s electronically to the government. Notes: Generally, the company name and address on the W2 Employer Master Record and the Company and Submitter's address on the W2 Transmitter Record are probably all going to be the same name and address. You are required to maintain the information in all three areas for the W-2 Magnetic file to be processed successfully. You only maintain one W2 Transmitter Record. Generally, this is the fourth step in setting up for the W-2 Reporting process. For more information, see the W-2 Reporting Procedure. For more information about working with data in fields, see the Data Entry Guidelines. Directions: OPENING W2 TRANSMITTER FILE MAINTENANCE 1. Click Utilities from the Menu Bar. 2. Click Misc Utilities. 3. Click W-2 Utilities. 4. Click Transmitter FM. Or, use the keyboard shortcut: [ALT] [t] [u] [w] [e]. 13

18 W2 Transmitter File Maintenance Window Example: CREATING A NEW W2 TRANSMITTER RECORD W2 Transmitter File Maintenance Prompts To update the new or changed information, click Save or press [ENTER]. Keyboard shortcut: [ALT + s] CAUTION To avoid losing data, you must save new or changed records. To exit the maintenance window, click Done. Or, click Close in the upper right hand corner of this window. Keyboard shortcut: [ALT + d] 14

19 Company Name Enter the name of your company or organization. (up to 50 characters) Preferred Method of Notification To specify the method the IRS should use to contact you if there are problems with the W-2 file, enter one of the following choices. Entry options: 1 - To notify by /internet 2 - To notify by Postal Service Submitter EIN Enter the submitter's EIN (Employer Identification Number) even if it is the same as the employer's EIN. (9.0 numeric, (-) hyphen optional) Submitter Pin Enter the PIN assigned to the employee who is attesting to the accuracy of this file. (9.0 numeric, (-) hyphen optional) Note: The Submitter PIN is required, if you are submitting the employee W- 2s electronically. Submitter Name Enter the name of the organization to be notified if there is data that cannot be processed. Note: The submitter name should be the employer name if W-2 processing is not done by an outside agency. Location Address Enter the location address for the company or organization. (up to 22 characters) Tip: Maintain an Attention, Suite, or Room Number for the location address. Delivery Address City State Zip Code Enter the delivery address for the company or organization. (up to 22 characters) Tip: Maintain the street or P.O. Box address information for the delivery address. Enter the name of the city for the company or organization. (up to 22 characters) Enter the two-character Postal Service state abbreviation for the company or organization. (2 characters) Enter the zip code or the zip+4 code for the company or organization. (up to 11 characters) Note: The following four fields are for submitter information. If you prepare and submit your own employee W-2 information, maintain your company or organization information here. If another organization submits your W-2s for you, enter the address for the organization that prepares and submits your employee W-2 information. Sub-Loc Address Enter the submitter's location address, such as, Attention, Suite, or Room Number. (up to 22 characters) 15

20 Sub-Deliv Address City State Zip Code Enter the submitter's delivery address. (up to 22 characters) Tip: Maintain the street or P.O. box address information for the delivery address. Enter the submitter's city name. (up to 22 characters) Enter the Postal Service 2-character state abbreviation. (2 characters) Enter the zip code or the zip+4 code for the submitter. (up to 11 characters) Contact Info Contact Title Enter the professional title of the person (for example, Finance Director, Payroll Clerk, or Human Resources, etc.) the Social Security Administration should contact if there are problems with processing the W-2 file. (up to 15 characters) Contact Name Enter the name of the person the SSA (Social Security Administration) should contact if there are problems with processing the W-2 file. (up to 27 characters) Phone Number Extension Contact Fax Enter the telephone number of the contact person. (xxx-xxx-xxxx) Enter the telephone extension number for the contact person, if applicable. (up to 5 characters) Enter the fax number for the contact person. (xxx-xxx-xxxx) Contact Enter the or Internet address for the contact person. (up to 80 characters) Note: The Contact is required if your preferred method of notification is set to 1 (to be notified via ). Preparer Code Enter the code that best describes the person who prepared the file. Entry Options: L - Self Prepared A - Accounting Firm S - Service Bureau P - Parent Company O - Other EDITING AN EXISTING W2 TRANSMITTER RECORD CAUTION: To avoid losing data, you must save new or changed records. 1. To display the record to be changed, simply open the maintenance window. 16

21 2. To position the pointer to the information that you want to change, press [TAB] or click the field using the mouse. 3. Enter the data changes. 4. To complete the edit process, click Save, or press [ENTER]. Keyboard shortcut: [ALT + s] DELETING AN EXISTING W2 TRANSMITTER RECORD Note: To maintain data integrity, you should not delete the W2 Transmitter Record. W2 Destination File Maintenance Use W2 Destination File Maintenance to maintain the physical attributes of the file containing electronic employee W-2 information. This file is exported to a PC during the XML W-2 Magnetic Filing routine. You can maintain the file type, the file name, and the definition file name. Notes: If you require assistance in setting up the W2 Destination record, please contact NDS Technical Support. Generally, you will maintain the W2 Destination information when you are setting up for the W-2 Reporting process. For more information on the timing and sequence of steps, see the W-2 Reporting Procedure. You only need to maintain the W2 Destination information if you are submitting employee W-2 information to the government electronically. For more information about working with data in fields, see the Data Entry Guidelines. Directions: OPENING W2 DESTINATION FILE MAINTENANCE 1. Click Utilities from the Menu Bar. 2. Click Misc Utilities. 3. Click W-2 Utilities. 4. Click W2 Destination FM. Tip: Or, use the keyboard shortcut: [ALT] [t] [u] [w] [m] [w]. 17

22 W2 Destination File Maintenance Window Example: CREATING A NEW W2 DESTINATION RECORD To create a new record choose one of these methods: o Enter the new Destination ID and click Retrieve Keyboard shortcut: [ALT + t], or press [ENTER]. o Or, enter the new Destination ID and click File from the Menu Bar; next click New. Keyboard shortcut: [ALT] [f] [n] Tip: To indicate that you are building a new W2 Destination Record, New displays near the Destination ID. Default entries display and the first field is highlighted to let you know you can begin entering information. W2 Destination File Maintenance Prompts Destination ID Enter the user-defined Destination ID, which is used to recall and store W2 destination information. (up to 20 characters) Required To update the new or changed information, click Save or press [ENTER]. Keyboard shortcut: [ALT + s] 18

23 CAUTION To avoid losing data, you must save new or changed records. To view all of the existing W2 Destination Records, click Search. From the Search list you can select the record to change or delete. Keyboard shortcut: [ALT + r] To display an existing W2 Destination Record, enter the Destination ID and click Retrieve, or press [ENTER]. Keyboard shortcut: [ALT + t] File Type File Name Definition File Name Category To select a File Type, click No Delimiter in the drop-down list. File Types: No Delimiter Quote Comma Comma Only Pipe Tab Enter the File Name for the W2 Destination file. (up to 80 characters) Note: This is the location where the W-2 Electronic file will be stored. It can be to a location on a PC or to a network drive. Enter w2export_txt.xml for the Definition File Name for the W2 Destination file. (up to 30 characters) Note: NDS will always maintain the Category setting. (up to 30 characters) EDITING AN EXISTING W2 DESTINATION RECORD CAUTION: To avoid losing data, you must save new or changed records. 1. To display the record to be changed, enter the Destination ID and click Retrieve, or press [ENTER]. Keyboard shortcut: [ALT + t] Tip: If you do not know the Destination ID, you can click Search to see a list of Destination Records. 2. To position the pointer to the information that you want to change, press [TAB] or click the field using the mouse. 3. Enter the data changes. 19

24 4. To complete the edit process, click Save, or press [ENTER]. Keyboard shortcut: [ALT + s] DELETING AN EXISTING W2 DESTINATION RECORD 1. To display the record to be deleted, enter the Destination ID and click Retrieve, or press [ENTER]. Keyboard shortcut: [ALT + t] Tip: If you do not know the Destination ID, you can click Search to see a list of Destination Records. 2. Click File from the Menu Bar, and next click Delete. Keyboard shortcut: [ALT] [f] [d] 3. At the Delete Records prompt, click Proceed to delete the record, or click Cancel to escape from the delete routine. Note: After you click Proceed, you will see the following message on the Status Bar. W2 State Supplemental Data File Maintenance Use W2 State Supplemental Data File Maintenance to maintain additional information required by the state for W-2 processing. This may include the state Withholding Tax Account Number and the Reporting Period. Notes: Maine, Maryland, Michigan and Wisconsin require that certain state supplemental information be included in the electronic W-2 Magnetic file for reporting to the state. For specific details, please see below. Generally, you must maintain a State Supplemental Data Record for each state being reported to, with the exception of New Hampshire. If you are reporting wages for employees who work in New Hampshire, you do not need to maintain a State Supplemental Data Record. For more information about working with data in fields, see the Data Entry Guidelines. Directions: OPENING W2 STATE SUPPLEMENTAL DATA FILE MAINTENANCE 1. Click Utilities from the Menu Bar. 2. Click Misc Utilities. 3. Click W-2 Utilities. 20

25 4. Click State Supplemental Data FM. Or, use the keyboard shortcut: [ALT] [t] [u] [w] [s]. W2 State Supplemental Data File Maintenance Window Example: CREATING A NEW W2 STATE SUPPLEMENTAL DATA RECORD To create a new record choose one of these methods: o Enter the new State and click Retrieve Keyboard shortcut: [ALT + t], or press [ENTER]. o Or, enter the new State and click File from the Menu Bar; next click New. Keyboard shortcut: [ALT] [f] [n] Tip: To indicate that you are building a new W2 State Supplemental Data Record, New displays near the State. Default entries display and the first field is highlighted to let you know you can begin entering information. W2 State Supplemental Data File Maintenance Prompts State Enter the 2-character postal service state abbreviation as the unique identifier for the W2 State Supplemental Data record. (2 characters) 21

26 To update the new or changed information, click Save or press [ENTER]. Keyboard shortcut: [ALT + s] CAUTION To avoid losing data, you must save new or changed records. Tip: Search is not active during this maintenance. To display an existing W2 State Supplemental Data Record, enter the State and click Retrieve, or press [ENTER]. Keyboard shortcut: [ALT + t] State Supplemental Data 1 Enter the State Supplemental Data 1 information required by the state you are reporting to. (up to 20 characters) Notes: If you are reporting wages for employees who work in Maryland, enter the 8-digit Maryland Tax Withholding Tax Account Number. For all other states, please leave blank. State Supplemental Data 2 Note: For all states, please leave blank. State Tax No. Part 1 Enter the State Tax Number as specified by the state you are reporting to. (up to 10 characters) Notes: If you are reporting wages for employees who work in Maine, enter the first 10 characters of the 11-digit Maine Tax Account Number. Generally, this is the reporting company's EIN and a 2-digit suffix number. If you are reporting wages for employees who work in Wisconsin, enter the first 10 characters of the 15-digit Wisconsin Tax Account Number. If you are reporting wages for employees who work in Michigan, enter the first 10 characters of the Michigan Tax Account Number. For Massachusetts and Maryland, please leave blank. State Tax No. Part 2 Enter the State Tax Number Part 2 as specified by the state you are reporting to. (up to 10 characters) Notes: If you are reporting wages for employees who work in Maine, enter the remaining characters of the Maine Tax Account Number that did not fit in State Tax No. Part 1. If you are reporting wages for employees who work in Wisconsin, enter the last 5 characters of the 15-digit Wisconsin Tax Account Number. If you are reporting wages for employees who work in Michigan, 22

27 enter the remaining characters of the Michigan Tax Account Number. For Massachusetts and Maryland, please leave blank. Other State Data Enter the information for the Other State Data as specified by the state you are reporting to. (up to 10 characters) Notes: If you are reporting Maine MEPers participant employee contributions, enter RET. In addition, you must set the Type field to R for the appropriate W2 Box 14 tables. If you are reporting wages for employees who work in Maryland, enter If you are reporting Federal Withholding amounts (positions ), enter FWH. For Massachusetts, Michigan, and Wisconsin, please leave blank. Payment Year (yyyy) State Control Number Enter the information for the Payment Year as specified by the state you are reporting to. (4.0 numeric) Note: For Maine, Maryland, Massachusetts, Michigan, and Wisconsin, please leave blank. Enter the information for the State Control Number as specified by the state you are reporting to. (up to 7 characters) Note: For Maine, Maryland, Massachusetts, Michigan, and Wisconsin, please leave blank. Reporting Period Enter the Reporting Period as specified by the state you are reporting to. (6.0 numeric, mmccyy of tax year) Notes: If you are reporting wages for employees who work in Maine, enter For Maryland, Massachusetts, Michigan, and Wisconsin, please leave blank. EDITING AN EXISTING W2 STATE SUPPLEMENTAL DATA RECORD CAUTION: To avoid losing data, you must save new or changed records. 1. To display the record to be changed, enter the State and click Retrieve, or press [ENTER]. Keyboard shortcut: [ALT + t] 2. To position the pointer to the information that you want to change, press [TAB] or click the field using the mouse. 3. Enter the data changes. 23

28 4. To complete the edit process, click Save, or press [ENTER]. Keyboard shortcut: [ALT + s] DELETING AN EXISTING W2 STATE SUPPLEMENTAL DATA RECORD 1. To display the record to be deleted, enter the State and click Retrieve, or press [ENTER]. Keyboard shortcut: [ALT + t] 2. Click File from the Menu Bar, and next click Delete. Keyboard shortcut: [ALT] [f] [d] 3. At the Delete Records prompt, click Proceed to delete the record, or click Cancel to escape from the delete routine. Note: After you click Proceed, you will see the following message on the Status Bar. Build W-2 Master Records Use the Build W-2 Master Records routine to create the employee W-2 forms for the current tax year from the current payroll information. In addition, the W-2 Master records are used to generate the information in the XML W-2 Magnetic file for electronic submission. You need to build the W-2 Master records after the last payroll of the year and before the first payroll of the next year. Important: It is important to run Build W-2 Master Records AFTER the last payroll run of the year and BEFORE you perform the payroll year end routines. Once you run the payroll year-end routines, the employee earnings and withholding information for W-2s is cleared. While you can build the W-2 Master file as many times as necessary until the Payroll totals are cleared, if you make edits to individual employee W-2 Master Records using the W-2 Master FM the edits are lost each time you run Build W-2 Master Records. All deduction amounts to be reported in boxes 10, 11, 12 and 14 must be set up before running the Build W-2 Master Records. For information, see W2 Box Tables Maintenance. Directions: OPENING THE BUILD W-2 MASTER RECORDS ROUTINE 1. Click Utilities from the Menu Bar. 2. Click Year End. 3. Click W-2 Reporting. 24

29 4. Click Build W-2 Master Records. Tip: Or, use the keyboard shortcut: [ALT] [t] [y] [w] [b]. Build W-2 Master Records Window Example: CHOOSING THE SELECTIONS AT THE PROMPT WINDOW Build W-2 Master Records Prompt Options To run the routine, click Proceed or press [ENTER]. Keyboard shortcut: [ALT + p] To escape from the routine: Click Cancel. Keyboard shortcut: [ALT + c] Or, click Close. 25

30 After clicking Proceed, the following window displays: Build W-2 Master Records Prompt Options Tax Year of last create ccyy Make backup as W2WORK Displays the tax year for the last create for your reference. Note: Confirm that the displayed Tax Year is the correct year before proceeding with the routine. To maintain a backup file called W2WORK, click to select the box. To omit maintaining a backup file, click to de-select the box. To run the routine after confirming the Tax Year is correct, click Proceed, or press [ENTER]. Keyboard shortcut: [ALT + p] To escape from the routine: Click Cancel. Keyboard shortcut: [ALT + c] Or, click Close. Displays information pertaining to the various phases of the Build W-2 Records routine to guide you. Processing Important: The Processing Window displays Process Complete when the process is ended. In addition, the Processing Window displays Records Processed: xxx for your reference. To close the Build W2 Records routine when Process Complete displays and the routine is finished, click Done. Keyboard shortcut: [ALT + d] 26

31 W2 Consolidate Records Use the W2 Consolidate Records routine to consolidate multiple employee W-2 records into one employee W-2 record. Notes: The W2 Consolidate Records routine is optional. You can opt to run this routine if you have employees who have multiple W-2s and you want to consolidate them into one employee W-2. Generally, you run W2 Consolidate Records after you have run the Build W-2 Master Records routine to consolidate multiple employee W-2s to one. For more information on the timing and sequence of steps, see the W-2 Reporting Procedure. Directions: OPENING THE W2 CONSOLIDATE RECORDS ROUTINE 1. Click Utilities from the Menu Bar. 2. Click Misc Utilities. 3. Click W-2 Utilities Click W2 Consolidate Records. Tip: Or, use the keyboard shortcut: [ALT] [t] [u] [w] [m] [b]. W2 Consolidate Records Window Example: CHOOSING THE SELECTIONS AT THE PROMPT WINDOW W2 Consolidate Records Options To run the routine, click Proceed, or press [ENTER]. Keyboard shortcut: [ALT + p] 27

32 To escape from the routine: Click Cancel. Keyboard shortcut: [ALT + c] Or, click Close. Processing Window Displays information pertaining to the various phases of the W2 Consolidate Records routine to guide you. Important: The Processing Window displays Process Complete when the process is ended. In addition, the Processing Window displays Records Consolidated xxx to notify you. To close the W2 Consolidate Records program when Process Complete displays and the routine is finished, click Done. Keyboard shortcut: [ALT + d] W-2 Master File Maintenance Use W-2 Master File Maintenance to maintain individual employee W-2 information. Using this maintenance you can view, create, edit or delete individual employee W-2 records from the current W-2 file. This maintenance displays in the same format as the employee W-2 form. Any box amounts that cannot be created through the Build W-2 Master Records routine can be maintained during this maintenance. Notes: Please refer to the documentation provided by the IRS for assistance with questions on specific entries within the boxes. The letter or number that displays next to a field in this maintenance corresponds to the letter or number for a specific box on the W-2 form. For more information about working with data in fields, see the Data Entry Guidelines. Directions: OPENING W-2 MASTER FILE MAINTENANCE 1. Click Utilities from the Menu Bar. 2. Click Year End. 3. Click W-2 Reporting. 4. Click W-2 Master FM. Tip: Or, use the keyboard shortcut: [ALT] [t] [y] [w] [w]. W-2 Master Maintenance Window Example: 28

33 CREATING A NEW EMPLOYEE W-2 MASTER RECORD To create a new record choose one of these methods: o Enter the new Employee Number and click Retrieve, or press [ENTER]. Keyboard shortcut: [ALT + t] o Or, enter the new Employee Number and click File from the Menu Bar; next click New. Keyboard shortcut: [ALT] [f] [n] Tip: To indicate that you are building a new Employee W-2 Master Record, New displays near the Employee Number. Default entries display and the first field is highlighted to let you know you can begin entering information. W-2 Master File Maintenance Prompts Employee Number Sequence Number Enter the Employee Number for the employee W-2. (7.0 numeric) Displays the first Sequence Number for the employee, if an employee has multiple W-2s. To change, enter the new Sequence Number for the appropriate W-2 for the employee. To update the new or changed information, click Save or press [ENTER]. Keyboard shortcut: [ALT + s] 29

34 CAUTION To avoid losing data, you must save new or changed records. To view all of the existing employee W-2 records, click Search. From the Search list you can select the record to change or delete. Keyboard shortcut: [ALT + r] To display an existing employee W-2 Record, enter the Employee Number and click Retrieve, or press [ENTER]. Keyboard shortcut: [ALT + t] Federal ID# Displays the submitter's Federal ID Number. (up to 11 characters, xxxxxxxxx) Note: The following fields contain the information maintained during W2 Employer Master Maintenance and are display-only. Employer Name Street Address City, State Zip Code Displays the employer name. Displays the employer street address. Displays the employer city name and state. Displays the employer zip code. Note: The employee name and address is maintained during Employee Master Maintenance. Employee Name To accept the employee first name and middle initial in the first box, press [TAB] or enter another employee first name and middle initial. To accept the employee last name in the second box, press [TAB] or enter the employee last name. (up to 15 characters per box) Address 1, 2, 3 City, State Zip Code Department To accept the 3 lines for the employee mailing address, press [TAB] or enter the new mailing address lines. (up to 20 characters, per line) To accept the city name and state for the employee mailing address, press [TAB] or enter another city and state. To accept the zip code or the Zip+4 code for the employee mailing address, press [TAB] or enter another zip code. (up to 11 characters) To accept the department number for the employee, press [TAB] or enter another department number. (up to 8 characters) Wages, Tips, Other To accept the dollar amount for the employee's accumulated wages, tips and other compensation, press [TAB] or enter another amount. (7.2 numeric) 30

35 Federal Income Tax WH Social Security Wages Social Security Tax WH Medicare Wages Medicare Tax WH To accept the accumulated dollar amount for the federal income tax withheld for the employee, press [TAB] or enter another amount. (7.2 numeric) To accept the accumulated dollar amount for the employee's social security wages, press [TAB] or enter another amount. (7.2 numeric) To accept the accumulated dollar amount withheld for social security taxes for the employee, press [TAB] or enter another amount. (7.2 numeric) To accept the dollar amount accumulated for the employee's Medicare wages, press [TAB] or enter another amount. (7.2 numeric) To accept the accumulated dollar amount withheld for the employee's Medicare tax, press [TAB] or enter another amount. (7.2 numeric) Social Security Tips To accept the accumulated dollar amount for the employee's social security tips, press [TAB] or enter another amount, if applicable. (7.2 numeric) Allocated Tips To accept the dollar amount allocated for employee tips, if you are a food and beverage establishment, press [TAB] or enter another amount or press [TAB] to skip. (7.2 numeric) Advance EIC Payment Dependent Care Benefits Nonqual Plan Dsb To accept the dollar amount paid to the employee as advance earned income credit, press [TAB] or enter another amount, if applicable. (7.2 numeric) To accept the dollar amount for dependent care benefits under a dependent care assistance program paid or incurred by the employer for the employee, press [TAB] or enter another amount. (7.2 numeric) Enter the amounts from box, 1, 3 or 5 that was earned in a prior year, if applicable. (7.2 numeric) Note: You can maintain up to four types and amounts for Box 12. Type Amount Displays the IRS Type Code that pertains to the amount in box 12. Tip: The IRS Type Code is the Box 12 Type setting maintained during W2 Box Table Maintenance. Enter the dollar amount that pertains to the code in box 12. (7.2 numeric) S/E Enter Yes if the employee is a statutory employee whose earnings are subject to social security and Medicare taxes but not subject to federal income tax withholding. Otherwise, enter No. PP Enter Yes if the employee actively participated in a retirement plan for 31

36 part of the year. Otherwise, enter No. 3PY To specify a Sick Pay Indicator, enter 1. Otherwise, please leave blank. (1.0 numeric) Note: You can maintain up to three types and amounts for box 14. Desc Amount Displays the description associated with the amount in box 14. Tip: This description is maintained during W2 Box Table Maintenance. Enter the amount associated with box 14. (7.2 numeric) To display State 1 information, click State 1. Or, to display State 2 information, click State 2. State 1 Abbrev State 1 Tax ID St Wages St Tax WH Loc Wages Displays the state abbreviation associated with the State Code assigned to the employee. Enter the state tax identification number. (up to 11 characters) To accept the accumulated dollar amount for the employee's state wages, press [TAB] or enter another dollar amount. (7.2 Numeric) To accept the accumulated dollar amount withheld for the employee s state taxes, press [TAB] or enter another dollar amount. (7.2 numeric) To accept the accumulated dollar amount for the employee s local wages, if applicable, press [TAB] or enter another amount. (7.2 numeric) Loc Tax WH To accept the accumulated dollar amount withheld for the employee s local taxes, if applicable, press [TAB] or enter another dollar amount. (7.2 numeric) Locality To accept the name of the locality for local withholding tax, if applicable, press [TAB] or enter another locality name. (up to 7 characters) EDITING AN EXISTING EMPLOYEE W-2 MASTER RECORD CAUTION: To avoid losing data, you must save new or changed records. 32

37 1. To display the record to be changed, enter the Employee Number and click Retrieve, or press [ENTER]. Keyboard shortcut: [ALT + t] Tip: If you do not know the Employee Number, you can click Search to see a list of Employee W-2 Master Records. 2. To position the pointer to the information that you want to change, press [TAB] or click the field using the mouse. 3. Enter the data changes. 4. To complete the edit process, click Save, or press [ENTER]. Keyboard shortcut: [ALT + s] DELETING AN EXISTING EMPLOYEE W-2 MASTER RECORD 1. To display the record to be deleted, enter the Employee Number and click Retrieve, or press [ENTER]. Keyboard shortcut: [ALT + t] Tip: If you do not know the Employee Number, you can click Search to see a list of Employee W-2 Master Records. 2. Click File from the Menu Bar, and next click Delete. Keyboard shortcut: [ALT] [f] [d] 3. At the Delete Records prompt, click Proceed to delete the record, or click Cancel to escape from the delete routine. Note: After you click Proceed, you will see the following message on the Status Bar. Print W-2 Forms Instructions Use the Print W-2 Forms Instructions to print the employee W-2 forms for employee W-2 reporting. You can print the employee W-2s as many times as necessary and you have the option of printing an individual employee W-2 if needed. Notes: To save on forms, NDS recommends that you first print W-2s on plain paper first to verify that they are correct before printing them on the actual W-2 forms. A W-2 totals page prints at the end for reconciliation purposes. To reconcile the W-2s: o The W-2 totals for boxes 1-6 and boxes 16 and 17 should match the grand totals on the yearend Employee Earnings & Withholding Report for the fourth quarter. 33

38 Box 1 W-2 total (wages, tips other) = Grand Total FED EARN YTD amount on the Employee Earnings & Withholding Report Box 2 W-2 total (Federal tax w/h) = Grand Total FED W/H YTD on the Employee Earnings & Withholding Report Box 3 W-2 totals (Social Security wages) = Grand Total FICA EARN YTD amount on the Employee Earnings & Withholding Report Box 4 W-2 totals (Social Security tax w/h) = Grand Total FICA W/H YTD amount on Employee Earnings & Withholding Report Box 5 W-2 totals (Medicare Wages & tips) = Grand Total MED FICA YTD amount on the Employee Earnings & Withholding Report Box 6 W-2 totals ( Medicare tax w/h) = Grand Total MED W/H YTD amount on the Employee Earnings & Withholding Report Box 16 totals (State wages, tips, etc) = Grand Total State Earn YTD on the Employee Earnings & Withholding Report Box 17 totals (State income tax) = Grand Total State W/H YTD Employee Earnings & Withholding Report o To reconcile the W-2 totals for boxes 10, 11, 12, and 14, print the Deductions Totals Report for the year-end and accumulate the YTD deduction amounts for the deductions assigned to a specific W-2 box. For example, if the amounts for Deductions 10, 20, and 30 print in box 12c, the YTD Total for the three deductions accumulated should equal the box 12c total on the W-2 totals. o If your totals do not reconcile, please contact NDS Technical Support for assistance. Print W-2 Forms is the fourth step in the W-2 Reporting process. For more information, see the W-2 Reporting Procedure. Directions: OPENING THE PRINT W-2 FORMS INSTRUCTIONS 1. Click Utilities from the Menu Bar. 2. Click Year End. 3. Click W-2 Reporting. 4. Click Print W-2 Forms. Tip: Or, use the keyboard shortcut: [ALT] [t] [y] [w] [p]. Print W-2 Forms Window Example: 34

39 CHOOSING THE SELECTIONS AT THE PROMPT WINDOW Print W-2 Forms Prompt Options Employee Range To From Sequence To limit the W-2s to a range of employees, enter the beginning Employee Number to report. Or, to report on all, leave blank. (7.0 numeric) To limit the printing of W-2s to a range of employees, enter the ending Employee Number in the range. Or, to report on all, leave blank. (7.0 numeric) To print a specific W-2 if an employee has multiple W-2s, enter the Sequence of the appropriate employee W-2. (2.0 numeric) 1st Sort Sequence To specify the first sort sequence, click one of the following options: N - No Special Sort F FEDA, Sorts for Copy A forms D DEPARTMENT, Sorts numerically by Department Number S ST/LOCALITY, Sorts by locality within alphabetical state abbreviation Note: To print Copy A forms for submitting paper copies to the IRS, select FEDA as the 1 st Sort Sequence and Employee Name as the 2 nd Sort Sequence. 2nd Sort Sequence To specify the second sort option, click one of the following options: N - Employee Name, Sorts alphabetically by Employee Name S - SSN, Sorts numerically by Employee Social Security Number 35

40 E - Payroll Employee Number, Sorts numerically by Employee Number Select only New/Edited W- 2s To only print the employee W-2s that are new or edited since the last print, click to select this box. To print all employee W-2s, click to de-select this box. To open the Windows Printer Dialog window for selecting the printer, click Print or press [ENTER]. Keyboard shortcut: [ALT + p] To print to the Print View window, click here. Note: If you select Print View to view the W-2 forms before printing them, you will only see an XML stream. To view the actual W-2 forms, select View from the Print View Menu Bar and then select Report Form. To escape from the print routine, click Cancel. Keyboard shortcut: [ALT + c] REPORT SAMPLE Tip: To see an example of the report, refer to the Report Samples chapter. XML W-2 Magnetic Filing Use the XML W-2 Magnetic Filing routine to create the file of employee W-2s for electronic submission to the Social Security Administration. Important: For reconciliation purposes, it is important that you print the W2 Mag File Report that is part of this routine. The totals on the W2 Magnetic File Report should match the W-2 totals accumulated during the Print W-2 Forms routine. Only run this routine if you are submitting the W-2 Magnetic file electronically to the government. If the XML W-2 Magnetic file is returned by the government because of errors, you must make the necessary corrections during W-2 Master FM, run the XML W-2 Magnetic Filing routine again and re-send the file. If you re-submit the file, you must check Resubmit and maintain the Wage File Identifier provided by the Social Security Administration. For more information, please contact NDS Technical Support. The W-2 Magnetic file does not include employees with no earnings or withholdings to report. Employers are required by law to maintain at least the previous four years W-2 Magnetic files. After sending your XML W-2 Magnetic file, it is important that you rename your file to include the year. Make sure to save copies of each applicable year on some type of removable media such as, a tape, diskette, or CD-ROM or save copies on a network drive that is backed up regularly. XML W-2 Magnetic Filing is the fifth step in the W-2 Reporting process. For more information, see the W-2 Reporting Procedure. 36

41 Directions: OPENING THE XML W-2 MAGNETIC FILING ROUTINE 1. Click Utilities from the Menu Bar. 2. Click Year End. 3. Click W-2 Reporting. 4. Click XML W-2 Magnetic Filing. Tip: Or, use the keyboard shortcut: [ALT] [t] [y] [w] [ARROW DOWN]. XML W-2 Magnetic Filing Window Example: CHOOSING THE SELECTIONS AT THE PROMPT WINDOW Control Record XML W2 Magnetic Filing Routine Prompt Options Destination ID To specify the characteristics of the file and the destination of the generated W2 Magnetic file, enter the defined Destination ID created during W2 Destination File Maintenance. (up to 20 characters) Note: To search for a Destination ID, click Search or press [CTRL + f]. Export Destination File To accept the Definition File Name associated with the Destination ID as the Destination File, press [TAB] or enter another Definition File Name. (up to 80 characters) 37

42 Note: To search for the appropriate file name, click Browse [CTRL + b]. or press To run the routine and generate the report, click Export, or press [ENTER]. Keyboard shortcut: [ALT + e] To close the window when the routine is finished, click Done. Keyboard shortcut: [ALT + d] Status Note: For directions for this field, see the table below. Note: For directions for this field, see the table below. After you click Export, the following window displays: XML W2 Magnetic Filing Routine Prompt Options Resubmit To identify that the W2 Magnetic file is being resubmitted to the government, click to select the box. Notes: Generally, if the W-2 Magnetic file was returned because of errors, you must make the necessary corrections during W-2 Master FM, run the XML W-2 Magnetic File routine again and re-send the file. If you are re-submitting the file, you must check Resubmit and maintain the Wage File Identifier provided by the Social Security Administration. 38