W2 / 1099: Preparation & Printing

Transcription

1 The LoadMaster Tax Utility allows for printing and electronically filing W2s and 1099s. This utility can be found on the LoadMaster menu under Sys Admin W2 / Prior to utilizing this utility, you should obtain W2 and 1099 paper forms at office supply stores. The supported forms are listed below: o W-2 Inkjet/Laser Forms (6-part sets) 2up (two employees per page) or 4up (one employee per page) Includes three W3 forms o 1099-MISC Inkjet/Laser Forms (5-part sets) 2up (two vendors per page) Includes three 1096 summary forms Tip: There are no changes to the printed W2 / 1099 forms or to electronic filing layouts for 2015 reporting. Outlined below and discussed in detail in the pages to follow are recommended steps for utilizing the Tax Utility to prepare and print W2s and/or 1099s. Tip: For electronic filing instructions, refer to a separate document titled W2 / 1099: Electronic Filing. Tax Utility Setup 1. Create Document Designer template(s) for W2 and/or Run Copy Tax Definition Records program. 3. Add or update Tax Year Setup file. Tax Data Generation & Verification 4. Verify that applicable 1099 Payees and Vendors are marked to receive a If Vendor changes are made for the printing of 1099s, run the Set 1099 Box in Payables History program. 6. Run Transfer Tax Data program. 7. Review and verify tax data. Printing of W2s and 1099s 8. Run the Output Tax Forms program in order to print paper W2s and/or 1099s. 12/7/2015 Page 1 of 14

2 Tax Utility Setup 1 Create Document Designer Template(s) for W2s and/or 1099s: If you have not previously printed W2s or 1099s within LoadMaster, you will need to create a document designer template for each. To create templates, select Sys Admin Document Settings Document Designer. Use the Create Template toolbar option to create both a W2 and/or 1099 template from the pre-loaded templates. 12/7/2015 Page 2 of 14

3 Tip: W2 and 1099 printed forms have not changed since Therefore, the 2007 preloaded templates are the most current templates to select from. Below are preloaded W2 templates. Notice that the -11 template would be used for a 2-up W2 and the -51 template would be used for a 4-up W2. Below are preloaded 1099 templates. Notice that the -4 template would be used for a 2up /7/2015 Page 3 of 14

4 2 Run Copy Tax Definition Records program: The Copy Tax Definition Records program creates tax data definitions for 2015 based on prior year tax data definitions. The data definitions copied by this program include Tax Year Setup (if one exists), Mag Media Employer, Mag Media Transmitter, Mag Media Forms Definition, Mag Media Records Definition and Mag Media State Override Records. If you processed tax documents in LoadMaster last year, you will simply need to run this program to copy tax year setups from 2014 to For customers who implemented LoadMaster within the last year or who are running the copy program for the first time, you will need to run the copy from 2007 to To run this program, select Sys Admin W2 / 1099 Copy Tax Definition Records. In the Tax year from which to copy parameter, use the browse box to select 2014 if you processed tax documents in LoadMaster last year. Or, select 2007 if have not previously processed tax documents in LoadMaster. In the New tax year parameter, specify /7/2015 Page 4 of 14

5 3 Add or update Tax Year Setup File: The Tax Year Setup File will be copied from the prior year in the previous step if you have processed tax documents in prior years within LoadMaster. The 2015 file should be reviewed and updated for any necessary changes. If you have not processed tax documents before, you will need to add a record for The Tax Year Setup File can be found in Sys Admin W2 / 1099 Tax Year Setup. From this screen, search in the Tax year field for Fields to review / update are explained below. 12/7/2015 Page 5 of 14

6 Maximum SS wages: For 2015, the maximum SS wages should be set to $117, W2 template: If printing W2s, this field should indicate the template number of the document designer template you will be using template: If printing 1099s, this field should indicate the template number of the document designer template you will be using. W2 Options Box 13 / Mark Retirement Plan: If your company offers a retirement plan such as 401k that is maintained through the 401k Rate screen within LoadMaster, you can specify when the Retirement Plan checkbox in box 13 of the W2 should be marked. You have an option to either mark the checkbox in box 13 for all employees or to only mark the checkbox for employees that made a contribution to the plan during Box 14 / Calculate SDI: If State Disability Insurance (SDI) was withheld from employees based on a percentage defined in the State Tax Table, you can check this box in order for the SDI amount withheld to print in box 14 of the W2. If checked, the amount will print in box 14 with a description of SDI. Box 14 / Calculate Per Diem: If per diem was provided to employees in the form of per diem pay on a settlement record or in the form of a per diem deduction record, check this box in order to print the per diem amount in box 14 of the W2. If checked, the amount will print in box 14 with a description of PER DIEM. If per diem was provided to employees in the form of a reimbursement record in pending deductions, you can add the per diem deduction/earning code in the Deduction Setup below. Deduction Setup: In the Deduction Setup grid, enter the deduction/earning code for any items that should be included in box 7 (Social Security tips), box 8 (Allocated tips), box 9 (Advance EIC payments), box 10 (Dependent care benefits), box 11 (Nonqualifed plans), box 12 (Codes) or box 14 (Other) of the W2. Deduction/earning codes to enter on this screen might include but are not limited to the following: Per diem reimbursements Employer contributions to a Health Savings Account (HSA), including amounts the employee elected to contribute using a section 125 (cafeteria) plan 12/7/2015 Page 6 of 14

7 Tip: If 401k is deducted from payees through the 401k Rates Screen, 401k deduction codes do not need to be mapped within the Deduction Setup section. Instead, the 401k deduction amounts from 401k history will be automatically mapped to Box 12 Code D. Roth 401k deduction amounts from 401k history will be automatically mapped to Box 12 Code AA. Deduction Setup / Box 12 type: If entering a deduction/earning code to print in box 12, you must specify the box 12 code (A through BB) to print with the amount. Deduction Setup / Box 14 comment: If entering a deduction/earning code to print in box 14, you must specify the description to print with the amount. For per diem reimbursements, you can assign a description of PER DIEM to have the amount combine with per diem pay from settlements and with per diem deductions Options 1099 options / Enforce cutoff: Check this box to print 1099s for only those 1099 payees and vendors with payments over a specified cutoff amount options / Cutoff amount: If enforcing a cutoff, specify the dollar amount of the cutoff. 1099s will only be generated for those payees or vendors with total payments greater than the amount entered. So, in order to send 1099s for total payments of $600 or more, you should enter $ in this field. 12/7/2015 Page 7 of 14

8 Tax Data Generation and Verification 4 Verify that applicable Payees and Vendors are marked to receive a 1099: Applicable payees / vendors must be marked to receive a Settlement Payees: In order for a 1099 to be created for an Owner Operator, Agent or Carrier, the Print 1099 checkbox must be checked in the Settlement Payee file as shown below. The Box field can optionally be assigned to print the payee s 1099 amount in a box other than Box 7 Nonemployee compensation. For example, if a payee s 1099 amount should in Box 1 Rents, you can specify an override box code. 12/7/2015 Page 8 of 14

9 Vendors: In order for a 1099 to be created for an AP vendor, the Print 1099 checkbox must be checked in the Vendor file as shown below. In addition, the Vendor file must have a 1099 Box code to identify the 1099 box number in which the vendor payment amount(s) should print. This Box code can also be overridden as vouchers are entered. 12/7/2015 Page 9 of 14

10 5 If Vendor changes are made, run Set 1099 Box in Payables History program: Vendor 1099 data is generated from Payables History. Therefore, if a vendor is updated in the previous step to print a 1099 or a Box code change is made, then the Payables History file must reflect this change. The Set 1099 Box in Payables History program (Sys Admin W2/1099 Set 1099 Box in Payables History) should be run if changes are made in the previous step. This program will only update the 1099 Box code in Payables History for vendors set to print a 1099 and where the Payables History Box code is blank. Tip: A similar program is not necessary for changes made to the Settlement Payee Print 1099 field. 12/7/2015 Page 10 of 14

11 6 Run Transfer Tax Data program: The Transfer Tax Data program is run to create tax records used for printing and/or filing W2s and 1099s. The source of the generated tax data is as follows: Settlement Payroll History, Office Payroll History, and Payables History. The Transfer Tax Data program can be found in Sys Admin W2/1099 Transfer Tax Data. Parameters for this program are explained below. Tax year: Specify Quarter: Specify All. Generate for: Specify whether you want to generate tax data for Payees, Vendors or Both. Print exceptions: Leave this option as checked in order to print an exception report. Possible exceptions include the following: 12/7/2015 Page 11 of 14

12 Exception Message State Code for Payee is not set Payee s Zip Code is not set Payee s Social Security Number is not set Check [ ] does not have a State Tax ID Suggested Action Assign state in address section of settlement or office payee file Assign zip code in address section of settlement or office payee file Assign social security number in settlement or office payee file If a W2 type payee is not subject to state tax, then no action is required. If a payee is subject to state tax and the check should have been marked with a state tax ID, then the Set State/Local Tax Code program in the Settlement & Office Payroll History screens can be used to assign a state code. Transfer tax data: Check this box to create tax data records for payees and vendors that did not have exceptions. It is recommended that you print an exception report and correct exceptions before transferring tax data. 7 Review and verify tax data: Tax data can be reviewed and verified in a couple of ways as outlined below: Tax Data Review Screen (Sys Admin W2 / 1099 Tax Data Review) By searching for a tax year of 2015 and for all payees or individually, you can review W2/1099 data from this screen. Output Tax Forms (Sys Admin W2 / 1099 Output Tax Forms) Paper forms can be printed to plain paper or previewed on screen in order to review the data. If changes are needed to the tax data, only limited data can be updated on the Tax Data Review Screen as indicated below: Tab Screen header Payee tab Driver W2 and Office W2 / W-2 State Driver W2 and Office W2 / Custom Fields Driver 1099, Office 1099 and Vendor 1099 / 1099 data Driver 1099, Office 1099 and Vendor 1099 / Custom Fields Comments Field(s) Retirement plan, Third party sick pay, Statutory employee, Correction, Void Name, Address, Tax ID Weeks worked, Exemptions Custom fields Box 9 Direct sales, 2 nd TIN, Account number, Box 15a/b 409A Deferrals/Income, Box 17 State Custom fields Comments (internal use) 12/7/2015 Page 12 of 14

13 If changes are needed to tax data beyond what can be updated above, this can be accomplished through the following: 1) Your company s name, address and phone number can be updated in the Company file (Sys Admin Preferences Company). 2) Your company s federal tax ID can be updated in the Federal Tax Table (Settlement Master Files Federal Tax Table) 3) Settlement W2 or 1099 amounts can be adjusted through Manual Settlement Processing program (Settlement System Maintenance Manual Settlement Processing). 4) Office Payroll W2 amounts can be adjusted through Manual Office Payroll Processing program (Office Payroll System Maintenance Manual Office Payroll Processing). 5) AP 1099 amounts can be adjusted through AP Set Beginning Balances using the type of History Trx-1099 totals (Accounts Payable System Maintenance Set Beginning Balances) Caution: Any time that a change made outside of the Tax Data Review Screen that affects a W2 or 1099, the Transfer Tax Data program must be re-run for the affected payees or vendors. The transfer program can be run as many times as needed. Each time this program is run, the existing Tax Data Review record(s) for the payee(s) or vendor(s) being retransferred will be recreated. 12/7/2015 Page 13 of 14

14 Print of W2s and 1099s 8 Print Paper W2s and/or 1099s: W2s and 1099s are printed using the Output Tax Forms program (Sys Admin W2 / 1099 Output Tax Forms). The parameters are explained below. Tax year: Specify Quarter: All Type: Select W2 Paper or 1099 Paper depending on which form you are printing. State: If printing W2s for a specific state, specify the state code here. If printing W2s for all states, you can specify an asterisk and select whether to sort the W2s by the state code. Generate for: If printing 1099s, specify whether you want to print for Payees, Vendors or Both. 12/7/2015 Page 14 of 14