2006 Payroll Calendar Year End Procedures

Transcription

1 2006 Payroll Calendar Year End Procedures page Summary of Procedures Before you Begin the Close... 2 Year End Menu.. 3 Circular E... 3 W2 Process Menu Options. 4 Miscellaneous Codes Add-On Maintenance Miscellaneous Codes Add-On Report W2 Reporting Process W2 Parameters Build Working File Error/Warning Report Totals Report W2 Report Print W2's Form IRS Addresses W3 Form Build Reporting File Other Year End Procedures Roll Leave Reset Process Select Circular E Year Obtaining a PIN/Password Using a PIN/Password Report - Quarter History Summary - Quarter Report - Quarter History Summary - Quarter Report - Quarter History Summary - Quarter Report - Quarter History Summary - Quarter History Summary W2 Totals W2 Report W2 Form LGC

2 Summary of Procedures Before you Begin the Close 1. Before you run the last payroll of the calendar year, be sure you have accounted for all taxable vehicle usage (fringe benefit), dependent care, and advanced earned income credit. 2. Be sure you have entered all manual payroll checks. 3. Be sure you have taken care of all voided payroll checks. 4. Be sure you have entered all third-party sick pay. For questions on entering third-party sick pay, copy the following link into your web browser: 5. Balance and prepare your quarterly tax return for the fourth quarter. 6. Balance your calendar year-to-date totals with the sum totals of the four quarterly reports. (See pages for an example of these reports and instruction on how to balance.) Use the summary history report. Access these reports from the main payroll menu. Reports History Summary Summary 7. If you have differences between the sum of the quarterly reports and the history reports, you should first check your voided checks and manual checks. 8. Be sure you have the correct spelling for each employee s name and their correct social security number entered into the payroll system. 9. Be sure you have the correct mailing address for each employee entered into the payroll system. 10. If you have employees who have left throughout the calendar year, be sure you have the correct mailing address for these people. 11. Visa SSN parameter has been added to Employee Master screen - If the Visa SSN flag is YES, the edit check during the W-2 process will not exclude the employee. The employee WILL show up with a WARNING on the W-2 Error/Warning Report. When the update is loaded, this field will automatically be updated to a NO for all employees. If you have employees that have a Visa number as their Social Security Number, you need to change this flag to YES before starting the W-2 process. Employee, Employee Master. After you have balanced your calendar year-to-date totals back to the totals of the four quarterly reports and you have completed the steps outlined above, you are ready to begin the process of preparing W-2 forms for your employees. For complete instructions on filing W-2 and W-3 information, see Make a DAILY BACKUP and label it "Pre-Calendar Year End". LGC

3 Year End Menu To begin the W-2 process, you will access the payroll main menu and use the year-end menu, which is found under the period end section of the payroll menu. The year-end menu options are shown below. Circular E Note: You must load the December update you received from LGC before you change the Circular E year. Select the Circular E year. Use the 'Lookup' option to select the correct year. If you have run your last payroll for 2006, choose Do not run this until you have completed all payrolls for LGC

4 W2 Process Menu Options Each of the options on the W2 Process menu will be briefly explained below. Misc Code Add-On Maint This option gives the opportunity to attach W-2 miscellaneous codes and non-qualified plan distributions to employees as shown below. Misc Code Add-On Report This program will list the employees on the Miscellaneous Code Add-On File. Reporting Process This option provides a step by step process for the W-2 process. Follow the steps in order to complete your W-2 forms. Select W2 File To Copy This option allows a dated W-2 file to be copied to a diskette. W2c Reporting Process This menu allows access to building the W2c file and the printing of the W-2c forms. Miscellaneous Codes Add-On Maintenance This allows you to enter any miscellaneous codes. There is a look up for the code. Miscellaneous Codes Add-On Report The miscellaneous code add-on report can be sorted by name or by social security number. LGC

5 W2 Reporting Process The W2 Process menu is shown below. A brief description of each option is included. 1. W2 Parameters This option allows you access to update information about your office as the employer who is filing the W-2 forms. If you have more than one EIN, the EIN entered here is the one that will be used in the heading on the W-2 diskette. All EIN's will be processed. See screen below for more information. Note: You must have a PIN number. If you had a PIN last year, it is good indefinitely as long as you change your password once each year. To change your password, go to You should see a link you can use to change your password. If you do not have internet access, you cannot change your password. Instead, you can call You will have to register for a new password and PIN. (See page 11 for more information about obtaining a PIN or changing a password.)*** Be sure the W2 Tax Year is set to If not, change it on this screen before proceeding. Be sure the information on your screen is like the example shown for these fields: Assigned File Name W2REPORT Inventory Number 1 PIN Enter your unique PIN W2 Type 01 W2ORIGINAL WFID blank W-2 Laser Ptr If you are using a laser printer for your forms, it should be 01 YES. Otherwise, it should be 02 NO. w/4 W2's If you are using a laser printer for your forms and they are 4 per sheet, this should be 01 YES. Otherwise, it should be 02 NO Note: The address on the W-2 Parameter Maintenance Screen to the right, is not the address that prints on the W-2 s. The address that prints on the W-2 s comes from the Payroll Number Control under Other, Control, Control N-Z, Payroll Number LGC

6 2. Build Working File This option creates the work file for preparing the W-2 forms. You will be prompted for the year you are running and a beginning and ending date. If you only want one employee you can enter that in the 'Select One SSN:' line. Leave this field blank to select all employees. See screen below for more information. It is recommended that you have everyone out of the payroll system while you run Step 2. NOTE: If you make changes to an employee after you have run this option, you will have to run the option again to see those changes on the W-2 form. 3. Error/Warning Report This report shows all employees who may possibly have errors. It is important you review this report carefully before you proceed. If you need assistance with this, please contact LGC Phone Support. A sample of this report is shown below. NOTE: Errors show first, warnings come last. Employees with a 'Warning' will still get a W-2 form. But, a form will not be printed if the employee shows with an 'Error' unless the error is corrected. If you correct errors, you must run Step 2 again. The E/W column reflects if the employee has an error or a warning. LGC

7 4. Totals Report This report shows summary totals for your W-2 processing. See sample report below. The totals should be checked against the History Summary Report totals. 5. W2 Report When you select this option, the screen to the right will be displayed. If you want ALL employees, press <enter> at the name fields. To select the range of employees for the report, press the Lookup option key by each name field. When finished with the range selection, press <enter>. When prompted by Is This Screen Correct?, select Yes and then select Continue to print the report. This report shows all of the information as it will be printed on the W-2 forms. This shows totals for each employee. It is important that you review this report carefully. If there are any errors, they need to be corrected before you proceed to the next step. (Call LGC phone support for assistance in making the corrections.). A portion of a sample report is shown below. Once you have reviewed this report and feel satisfied that it is correct, you should proceed to the next step. LGC

8 If LGC is printing your W-2 forms: Stop here, escape out of this menu, and do a daily backup. Review and initial the W-2 totals Report (Step 4) and send it with your backup. Send this backup to LGC at: Attention: W-2 Printing 714 Armstrong Lane, Columbia, TN Await further instructions from LGC, which will be sent with your W-2 forms. It is OK to run payroll checks and proceed with business as normal as long as you have set your Circular E to 2007 (see page 3). 6. Print W2 s This is the option that will print the W-2 forms. You should be sure that everyone who uses the printer you are going to use knows that you are using the printer and not to print anything until you give notice that you are finished. The printer settings should be set to 10 CPI (characters per inch) and 6 LPI (lines per inch). Refer to your owner s manual for your printer for assistance in making these changes. Call LGC Hardware Support Dept. if you need assistance. Note: For Tally printers only, you will also need to set the page length to 75. You will have the option to run the alignment routine at the beginning. If you choose to do this, you will print one form with XXX s and s to help you get the numbers and boxes aligned properly. After you choose to end the alignment routine, the system will finish the form it is on with XXX s and 999 s. Then it will start printing the first real W-2 form! See page 22 for a sample W-2 Report. This report shows where each field will print on the W-2 forms Form This form no longer applicable since the SSA no longer accepts diskettes This option would print the cover sheet you used to send in with your diskette when you file with the IRS. If you are not reporting on diskette, you will not have to run this option. It should have N/A out beside it. See sample form below. PYQ /12/15 13:58:54 TOWN OF SAMPLEVILLE FlexGen4(6.1U) Page: 1 Transmitter Report And Summary Of Magnetic Media Please Submit Below Information On An Original Form 6559 Or 6559-A 6559 Form 1. Transmitter: LOCAL GOVERNMENT CITY SCHOOLS P O BOX 123 Tax Year Transmitter EIN: Number Of Reporting Media This File COLUMBIA TN Magnetic Tape(s) 1 Diskette(s) Cartridge(s) 4. Contact Name: CONTACT NAME 5. Telephone Number: CONTACT ADDRESS 6. Inventory Number: 1 COLUMBIA TN Type Of Data Being Reported X W-2 Original W-2 Reconciliation W-2 Resubmittal W-2c For W Affidavit Under penalties of perjury, I declare that I have examined this return, including accompanying documents, and to the best of my knowledge and belief it is true, correct and complete. 8. Signature: 9. Title: 10. Date: Employer Summary Of Wage And Tip Information Employer Name CITY OF SPRING HILL EIN Total W2's: 2 SS Wages: SS Tips: Reg Wages: FIT: SS Tax: Medi Wages: Medi Tax: AEIC: * End of Report: Local Government Data Demo * MQGE LGC

9 IRS Addresses 8. W3 Form This option prints the W-3 form that you will include with your W-2 copies when you report to the IRS. If you are reporting on diskette, this option will have N/A out beside it. See sample form below. 9. Build Reporting File This option builds the file you will send to the IRS and copies it to a diskette. Following is a suggested site for the transmitting of the W2REPORT file that can be sent electronically to the SSA/IRS: Congratulations! You have completed the W-2 process. (See next page for "Other Year End Procedures".) LGC

10 Other Year End Procedures Roll Leave For the selected payroll(s), this option will add the number of days from the first leave type total accumulated field to the second leave type total accumulated field. The amount to add is determined by three options, (1) Total Accumulated, (2) Excess over a prompted amount, and (3) Up to a prompted amount. Only one option may be selected. Reset Process This option will reset deductions, leave, times paid, W-2 miscellaneous file and increment teacher s experience by one year. These items should be reset at least once per year. See screen to right. NOTE: If you reset your deductions and leave on a fiscal year basis, you will not execute this option until the fiscal year end. Select Circular E Year Use this option to copy the new calendar year s Circular E data file into use. Circular E data will update the Social Security amounts, federal amounts, federal and state tax tables, AEIC tax table and amounts, and the TCRS base rates. (Refer to page 3 for the menu options.) Note: If you are running a January payroll, you have to log in with a January date. LGC

11 Obtaining a PIN/Password Must I get a Personal Identification Number (PIN) before I submit my file? Yes How do I get a PIN/Password? Monday-Friday, 6:00 AM to 1:00 AM Eastern time Saturday, 6:00 AM to 8:00 PM Eastern Time or access the Internet at select 'Business Services Online', select 'Registration' or call Monday through Friday, 7:00 AM to 7:00 PM Eastern Time What information do I have to provide to get a PIN? 1. The EIN of the company you work for. If you are a third party submitter, you need the EIN of your own company, not the EIN of the company(s) for which the wage report(s) is/are being submitted. If you are self-employed, you do not need to provide an EIN. 2. Your social security number (SSN), name (first, middle initial, or name and last name) as shown on your social security card, date of birth, your telephone number, address (optional), and/or FAX number (optional) to contact you, and your mailing address. 3. Company name, phone number, and address. How do you approve my request? The IRS will match your name, date of birth, and SSN against our records and verify that you work for the company that will submit the file. If the information is verified, we issue a PIN immediately and mail you a password that you should receive within days. Your employer will be notified of your registration. Using a PIN/Password How do I use the PIN I receive? There are two times when you can use your PIN: 1. As an electronic signature: Employer submitter: You will use the PIN as your signature for the file in the MMREF format; Insert your PIN into the file in the Personal Identification Number (PIN) field in the RA record positions This should be the PIN of the person responsible for the file and attesting to its accuracy. It would generally be the same individual who would be signing the attestation statement on the Form W-3. You will be attesting to that under penalties of perjury, you declare that you have examined this file s data and that to the best of your knowledge and belief, it is true, correct, and complete. Third-Party or Payroll Practitioner Submitter: You will use the PIN as your signature for the file in the Personal Identification Number (PIN) field in the RA Record positions This should be the PIN of the person responsible for the file and attesting to its accuracy. This attestation is based on the information available and assurances provided by the client. You should include as part of your standard business practices a provision in our contractual agreement that requires your client to give assurances that the file you are attesting to is to the best of their knowledge true, correct, and complete. 2. To use the Business Services Online (BSO) As a designated individual authorized by your company you will use your PIN to use the Business Services Online to carry out various payroll activities. You ll need your PIN (and password) to upload files and to check the status of your file. The person uploading the file or checking the status of the file will use his or her own PIN and password. This does not have to be the same person who is inserting their PIN in the file as explained above. How do I use the password I receive? Use the password with the PIN to use the BSO (see Section VII). You must change your password the first time you use the system. Your password is valid for one year. If you do not use the BSO, save the password you receive. Your password must be changed each year to retain your PIN. You may use your PIN and SSN to upload a file until you receive your password (not to exceed 30 days after you register). When may I start using my PIN and password? Immediately, upon receipt. How long may I use the PIN? Indefinitely, if you change your password once a year. LGC

12 941 Report- Quarter 1 Name: LGC Training Center Date Quarter Ended: 03/31/2006 Adr: 714 Armstrong Lane City: Columbia Employer ID #: State:TN Zip: State Tax #: Number Of Employees Total Wages & Tips Subject To Withholding... 2,354, Total Income Tax Withheld From Wages & Tips , Adj. Of Withheld Income Tax Withheld Adjusted Total Of Income Tax Withheld , Taxable Soc Sec Wages... 2,518, * = 312, Actual Soc Sec Taxes , Difference Taxable Medicare Wages & Tips. 2,518, * = 73, Actual Medicare Taxes... 73, Difference Total FICA Taxes (Add Lines 6 & 7) , Adj. Of Soc Sec & Medicare Adj. Total Of Soc Sec & Medicare , Total Taxes (Add Lines 5 & 10) , Advanced Earned Income Credit Payments Made Net Taxes (Subtract Line 12 From Line 11) , Total Deposits For Quarter Balance Due... First Month Liability: 214, Second Month Liability: 215, Third Month Liability: 215, Total Liability For Quarter: 645, * End of Report: Local Government Data Demo * LGC

13 LGC PYQ /12/03 12:44:32 TOWN OF SAMPLEVILLE FlexGen4 (6.1U) Page: 1 History Summary Selected Date: 01/01/2006 to 03/31/2006 Payrolls: 0001 WEEKLY 0002 BIWEEKLY 0003 SEMI-MONTHLY 0004 MONTHLY 0007 QUARTERLY 0009 ELECTION WORKERS 0010 COMMITTEES 0994 COUNTY COURT CLERK 7028 CLERK & MASTER CHANCERY COURT - Gross Salary: 2,556, FIT Taxable Gross: 2,354, Social Security Wage: 2,518, ,556, Medicare Wage: 2,518, (113,226.84) SIT Taxable Gross (89,185.51) Retirement Gross: 2,261, (NDNTB Emp) FIT: 259, Fringe Benefits Social Security: 156, Medicare: 36, SI TCRS Employee: 113, Employer: 176, Advanced Earned Income Credit: Other Deductions Employee: 110, ,556, Employer: 299, (38,163.67) Employer: Cafeteria Plan: 38, ,518, Deductions Sheltered From FIT: 89, Soc Sec: 38, SIT: 17, Retirement: Exempt From Soc Sec: Medicare: Net Pay: 1,880, ,354, Employment Security Wage: 2,321, Employment Security: 31, Deductions Employee Employer Adjustments Hrs/Days Amount 0002 AFLAC- S 2, OVERTIME 2, , BC/BS OF TN 17, , * Class 01 OVERTIME 2, , AFLAC- NS BACK PAY UWAY OTHER PAY , DEFCOM 50, OTHER/SHER 2, , RELIANCE OPTION 3, VAC PAY , DENTAL-NON-SHEL COMP PAY DEF COMP (1ST) * Class 02 OTHER PAY 3, , DEF COMP (2ND) USABLE - S 7, USABLE - NS USABLE-STD-NS 3, MUTUAL SAV-NS DENTAL-SHELTER 6, , MUTUAL - S GAP 1, , GAP , GAP , DISABILITY 12, RELIANCE-GROUP 6, RELIANCE-GROUP PRESCRIPTION , * Class 01 REGULAR VOL DED 97, , MISC 5, MISC MISC MISC 5, MISC MISC * Class 03 CRT ORDERED PAY 12, History Summary Quarter 1

14 941 Report - Quarter 2 Name: LGC Training Center Date Quarter Ended: 06/30/2006 Adr: 714 Armstrong Lane City: Columbia Employer ID #: State: TN Zip: State Tax #: Number Of Employees Total Wages & Tips Subject To Withholding... 2,774, Total Income Tax Withheld From Wages & Tips , Adj. Of Withheld Income Tax Withheld Adjusted Total Of Income Tax Withheld , Taxable Soc Sec Wages... 2,953, * = 366, Actual Soc Sec Taxes , Difference Taxable Medicare Wages & Tips. 2,953, * = 85, Actual Medicare Taxes... 85, Difference Total FICA Taxes (Add Lines 6 & 7) , Adj. Of Soc Sec & Medicare Adj. Total Of Soc Sec & Medicare , Total Taxes (Add Lines 5 & 10) , Advanced Earned Income Credit Payments Made Net Taxes (Subtract Line 12 From Line 11) , Total Deposits For Quarter Balance Due... First Month Liability: 223, Second Month Liability: 304, Third Month Liability: 220, Total Liability For Quarter: 748, * End of Report: Local Government Data Demo * LGC

15 LGC PYQ /12/03 12:45:04 TOWN OF SAMPLEVILLE FlexGen4(6.1U) Page: 1 History Summary Selected Date: 04/01/2006 to 06/30/2006 Payrolls: 0001 WEEKLY 0002 BIWEEKLY 0003 SEMI-MONTHLY 0004 MONTHLY 0007 QUARTERLY 0009 ELECTION WORKERS 0010 COMMITTEES 0994 COUNTY COURT CLERK 7028 CLERK & MASTER CHANCERY COURT - Gross Salary: 2,998, FIT Taxable Gross: 2,774, ,998, Social Security Wage: 2,953, (127,873.57) Medicare Wage: 2,953, (NDNTB EMP SIT Taxable Gross: (96,642.61) Retirement Gross: 2,554, Fringe Benefits FIT: 296, Social Security: 183, Medicare: 42, ,774, SIT: TCRS Employee: 127, Employer: 200, Advanced Earned Income Credit: 2,998, Other Deductions Employee: 123, (45,259.01) NDNTB Employer: 399, Employee: Employer: 2,953, Cafeteria Plan: 45, Deductions Sheltered From FIT: 96, Soc Sec: 45, Medicare: 45, SIT: 20, Retirement: Exempt From Soc Sec: Medicare: Net Pay: 2,225, Employment Security Wage: 2,737, Employment Security: 7, Deductions Employee Employer Adjustments Hrs/Days Amount 0002 AFLAC - S 2, OVERTIME 3, , BC/BS OF TN 19, , * Class 01 OVERTIME 3, , AFLAC - NS BACK PAY UWAY COMM MEET , DEFCOM 50, OTHER PAY 1, , RELIANCE OPTION 3, IN-SERVICE 32, DENTAL-NON-SHEL OTHER/SHER 1, , DEF COMP (1ST) VAC PAY , DEF COMP (2ND) * Class 02 OTHER PAY 3, , USABLE - S 9, USABLE - NS 1, USABLE-STD-NS 4, MUTUAL SAV-NS DENTAL-SHELTER 7, , MUTUAL - S GAP GAP GAP DISABILITY 12, RELIANCE-GROUP 6, RELIANCE-GROUP PRESCRIPTION 5, , * Class 01 REGULAR VOL DED 107, , MISC 7, MISC MISC 7, MISC * Class 03 CRT ORDERED PAY 16, * = Class Totals* = Class Totals History Summary Quarter 2

16 941 Report Quarter 3 Name: LGC Training Center Date Quarter Ended: 09/30/2006 Adr: 714 Armstrong Lane City: Columbia Employer ID #: State: TN Zip: State Tax #: Number Of Employees Total Wages & Tips Subject To Withholding... 2,485, Total Income Tax Withheld From Wages & Tips , Adj. Of Withheld Income Tax Withheld Adjusted Total Of Income Tax Withheld , Taxable Soc Sec Wages... 2,649, * = 328, Actual Soc Sec Taxes , Difference Taxable Medicare Wages & Tips. 2,649, * = 76, Actual Medicare Taxes... 76, Difference Total FICA Taxes (Add Lines 6 & 7) , Adj. Of Soc Sec & Medicare Adj. Total Of Soc Sec & Medicare , Total Taxes (Add Lines 5 & 10) , Advanced Earned Income Credit Payments Made Net Taxes (Subtract Line 12 From Line 11) , Total Deposits For Quarter Balance Due... First Month Liability: 221, Second Month Liability: 219, Third Month Liability: 219, Total Liability For Quarter: 661, * End of Report: Local Government Data Demo * LGC

17 LGC PYQ /12/03 12:45:38 TOWN OF SAMPLEVILLE FlexGen4(6.1U) Page: 1 History Summary Selected Date: 07/01/2006 to 09/30/2006 Payrolls: 0001 WEEKLY 0002 BIWEEKLY 0003 SEMI-MONTHLY 0004 MONTHLY 0007 QUARTERLY 0009 ELECTION WORKERS 0010 COMMITTEES 0994 COUNTY COURT CLERK 7028 CLERK & MASTER CHANCERY COURT - Gross Salary: 2,687, FIT Taxable Gross: 2,485, ,687, Social Security Wage: 2,649, (116,250.75) Medicare Wage: 2,649, (86,023.41) SIT Taxable Gross: (NDNTB Emp) Retirement Gross: 2,322, Fringe Benefits FIT: 256, Social Security: 164, Medicare: 38, ,485, SIT: TCRS Employee: Employer: 116, , Advanced Earned Income Credit: 2,687, Other Deductions Employee: 113, (37,912.75) Employer: 389, NDNTB Employee: Employer: 2,649, Cafeteria Plan: 37, Deductions Sheltered From FIT: 86, Soc Sec: 37, Medicare: 37, SIT: 17, Retirement: Exempt From Soc Sec: Medicare: Net Pay: 1,998, Employment Security Wage: 2,435, Employment Security: 3, Deductions Employee Employer Adjustments Hrs/Days Amount 0002 AFLAC - S 1, OVERTIME 2, , BC/BS OF TN 16, , * Class 01 OVERTIME 2, , AFLAC - NS BACK PAY 1, UWAY COMM MEET 3, DEFCOM 47, OTHER PAY , RELIANCE OPTION 3, OTHER/SHER 1, , DEF COMP (1ST) VAC PAY DEF COMP (2ND) * Class 02 OTHER PAY 1, , USABLE - S 8, USABLE - NS 1, USABLE-STD-NS 3, MUTUAL SAV-NS DENTAL-SHELTER 6, , MUTUAL - S DISABILITY 13, RELIANCE-GROUP 6, RELIANCE-GROUP PRESCRIPTION 4, , * Class 01 REGULAR VOL DED 95, , MISC 9, MISC MISC 7, MISC * Class 03 CRT ORDERED PAY 18, * = Class Totals* = Class Totals History Summary Quarter 3

18 941 Report Quarter 4 Name: LGC Training Center Date Quarter Ended: 12/31/2006 Adr: 714 Armstrong Lane City: Columbia Employer ID #: State: TN Zip: State Tax #: Number Of Employees Total Wages & Tips Subject To Withholding... 2,060, Total Income Tax Withheld From Wages & Tips , Adj. Of Withheld Income Tax Withheld Adjusted Total Of Income Tax Withheld , Taxable Soc Sec Wages... 2,177, * = 270, Actual Soc Sec Taxes , Difference Taxable Medicare Wages & Tips. 2,194, * = 63, Actual Medicare Taxes... 63, Difference Total FICA Taxes (Add Lines 6 & 7) , Adj. Of Soc Sec & Medicare Adj. Total Of Soc Sec & Medicare , Total Taxes (Add Lines 5 & 10) , Advanced Earned Income Credit Payments Made Net Taxes (Subtract Line 12 From Line 11) , Total Deposits For Quarter Balance Due... First Month Liability: 303, Second Month Liability: 259, Third Month Liability: 0.00 Total Liability For Quarter: 562, * End of Report: Local Government Data Demo * LGC

19 LGC PYQ /12/03 11:32:48 TOWN OF SAMPLEVILLE FlexGen4(6.1U) Page: 1 History Summary Selected Date: 10/01/2006 to 12/31/2006 Payrolls: 0001 WEEKLY 0002 BIWEEKLY 0003 SEMI-MONTHLY 0004 MONTHLY 0007 QUARTERLY 0009 ELECTION WORKERS 0010 COMMITTEES 0994 COUNTY COURT CLERK 7028 CLERK & MASTER CHANCERY COURT - Gross Salary: 2,220, FIT Taxable Gross: 2,060, ,220, Social Security Wage: 2,177, (97,258.00) Medicare Wage: 2,194, (63,169.88) SIT Taxable Gross: (NDNTB Emp) Retirement Gross: 1,940, Fringe Benefits FIT: 228, Social Security: 135, Medicare: 31, ,060, SIT: TCRS Employee: 97, Employer: 152, Advanced Earned Income Credit: 2,220, Other Deductions Employee: 85, (26,084.90) Employer: 260, NDNTB Employee: Employer: 2,194, Cafeteria Plan: 26, Deductions Sheltered From FIT: 63, Soc Sec: 26, Medicare: 26, SIT: 11, Retirement: Exempt From Soc Sec: Medicare: Net Pay: 1,642, Employment Security Wage: 2,059, Employment Security: 1, Deductions Employee Employer Adjustments Hrs/Days Amount 0002 AFLAC - S 1, OVERTIME 1, , BC/BS OF TN 11, , * Class 01 OVERTIME 1, , AFLAC - NS BACK PAY UWAY OTHER PAY , DEFCOM 36, OTHER/SHER , RELIANCE OPTION 2, VAC PAY DEF COMP (1ST) COMP PAY DEF COMP (2ND) * Class 02 OTHER PAY 1, , USABLE - S 5, LONGEVITY 105, USABLE - NS * Class 05 LONGEVITY PAY 105, USABLE-STD-NS 2, MUTUAL SAV-NS DENTAL-SHELTER 4, , MUTUAL - S DISABILITY 10, RELIANCE-GROUP 4, RELIANCE-GROUP PRESCRIPTION 2, , * Class 01 REGULAR VOL DED 69, , MISC 9, MISC MISC 5, MISC MISC * Class 03 CRT ORDERED PAY 16, * = Class Totals* = Class Totals History Summary Quarter 4

20 LGC PYQ /01/16 08:32:54 Local Government Data Demo FlexGen4(5.3U) Page: 1 History Summary Selected Date: 01/01/2006 to 12/28/2006 Payrolls: 0001 GENERAL HOURLY 0002 GENERAL HOURLY 0003 WATER & SEWER HOURLY Name: DOE, JOHN SSN Gross Salary: 3, FIT Taxable Gross: 4, Social Security Wage: 4, Medicare Wage: 4, SIT Taxable Gross: Retirement Gross: 3, FIT: Social Security: Medicare: SIT: TCRS Employee: Employer: Advanced Earned Income Credit: Other Deductions Employee: Employer: NDNTB Employee: Employer: Cafeteria Plan: Deductions Sheltered From FIT: Reads check history for 95 Take gross salary minus TCRS (employee), minus deductions sheltered from FIT, plus Fringe Benefits = Take gross salary minus deductions sheltered from Soc Sec. Plus Fringe Benefits = Take gross salary minus deductions sheltered from Medicare. Plus Fringe Benefits = Take the Retirement Gross and multiply by the % that the employees pay in. Take the Retirement Gross and multiply by the % that the employer pays. in. Total of all deductions listed at bottom of this report Soc Sec: 95 all wages being marked Total of only those deductions with the Cafeteria Plan field set to 01 (Yes) on the deduction Medicare: 95 SIT: as subject to Emp. Sec. control. It doesn't matter how they were marked for being sheltered or not. Retirement: Net Pay: 2, Employment Security Wage: 3, Employment Security: Reads check history for all deductions marked as being sheltered from Social Security. Deductions Employee Employer Adjustments Hrs/Days Amount 0005 LICOA HEART AUTO-FRING 1, RETIREMENT (TSA) * Class 03 FRINGE BENEFIT 1, * Class 01 REGULAR VOL DED * = Class Totals * End of Report: Local Government Data Demo Reads check history for all deductions marked as being sheltered from Medicare. If the "Cafeteria Plan:" field is different than the "Deductions 'Sheltered from' FIT:", the difference should be your TSA amounts. If there are still differences, you should run the "Ded Flag Comparison" report from history to show you which deductions were marked differently than the control file. To run this report, you should access the Payroll Main Menu: 4. Reports, B. History, 5. Other, A. Ded Flag Comparison. Use the date range of 01/01/2006 through 12/31/2006. Select all deductions that might be affected by the cafeteria plan flag. If you are unsure, you can select all deductions. Note: If you find differences on this report that you don't know how to correct, call LGC phone support for Assistance. History Summary

21 LGC PYQ /10/30 12:57:10 CUSTOMER NAME FlexGen4(5.3U) Page: 1 EIN: Total W2 s: 67 Employer: CITY OF ANYWHERE W2 Totals FIT Wages: 893, FIT: 102, SS Wage: 953, SS Tax: 59, Medi Wage: 953, Medi Tax: 13, AEIC: Dep Care: Non-Q: Benefits: TCRS: 43, DDNTB: 11, NDNTB: 1, Total W2 s: 67 FIT Wages: 893, FIT: 102, SS Wage: 953, SS Tax: 59, Medi Wage: 953, Medi Tax: 13, AEIC: Dep Care: Non-Q: Benefits: TCRS: 43, DDNTB: 11, NDNTB: 1, * End of Report: Local Government Data Demo * This should match the totals from a history summary report for the whole calendar year. W2 Totals

22 LGC PYQ / 10/30/ :00 CUSTOMER NAME FlexGen4(5.3U) Page: 1 EIN: Employer: CITY OF ANYWHERE W2 REPORT SSN: JOHN M DOE Retirement Plan: X Box 13 FIT Wages: 17, Box1 FIT: Box 2 1, SS Wage: 20, Box 3 SS Tax: 1, Box 4 Medi Wage: 20, Box 5 Medi Tax: Box AEIC: Box 9 Dep Care: Box 10 Non-Q: Box 11 Benefits: Box 12 TCRS: 1, Box 14 DDNTB: Box NDNTB: 1, Box 14 * End of Report: Local Government Data Demo * W2 Report

23 a. Control Number Void W2 Form For Official Use Only OMB No b Employer s identification number 1 Wages, tips, other compensation c Employer s name, address, and ZIP code ABC COMPANY 123 ELM STREET COLUMBIA, TN 3 Social security wages Medicare wages and tips Federal income tax withheld Social security tax withheld Medicare tax withheld Social security tips 8 Allocated tips d Employee s social security number e Employee s first name and initial Last name JOHN M DOE 201 EASY STREET COLUMBIA, TN Advance EIC payment 10 Dependent care benefits 11 Nonqualified plans 12a See instructions for box Statutory Retirement Third-party employee plan sick pay 14 Other TCRS NDNTB DDDNTB b 12c 12d f Employee s address and ZIP code 15 State Employer s state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name W-2 Wage and Tax 2005 Form Statement Copy A For Social Security Administration Send this entire page with Form W-3 to the Social Security Administration; photocopies are not acceptable. Do Not Cut, Fold, or Staple Forms on This Page Do Not Cut, Fold, or Staple Forms on This Page Department of the Treasury Internal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see back of Copy D LGC