CALENDAR YEAR END INFORMATION/PROCESSING INSTRUCTIONS FOR YEAR ENDING 2018

Transcription

1 Page 1 of 18 CALENDAR YEAR END INFORMATION/PROCESSING INSTRUCTIONS FOR YEAR ENDING 2018 W-2 & W-3 Processing Pages & 1096 Processing Pages Priest Accountable Plan Page 18 W-2 and W-3 PREPARATION IMPORTANT REMINDER: It is required that you submit your 4th quarter 941 AND your W-3 to Parish Support for approval BEFORE printing W-2 forms. Please note: DO NOT send copies of the employee W2 forms. The W2 has all the information a hacker needs to steal employees identities. Please protect this personal information and DO NOT INCLUDE W2s when submitting the 941, Payroll Summary and W3 for approval. W-2: This form is a statement that must be prepared by employers each year for employees. It reports the employee's gross, social security and Medicare earnings and the taxes withheld from the earnings. Other information, including employee retirement contributions is reported in Box 12. The W-2 is a multi-part form which includes: Copy A is for the Social Security Administration Copy 1 is for the city, state or locality Copy B is for filing with the employee's federal tax return Copy C is for the employee's records Copy 2 is another copy for a city, state, or locality Copy D is for the employer's records. The W-2 form must be distributed to all employees NO LATER than January 31, W-3: This is a transmittal form which is sent to the Social Security Administration (SSA) that reports total earnings, Social Security wages, Medicare wages and withholding for all employees for the calendar year. The W-3 form is required to be sent to the SSA NO LATER than January 31, 2019, along with Copy A of the W-2 forms for each employee.

2 Page 2 of 18 On the Home screen, click on Process Payroll Forms. Scroll down and select Annual Form W-2/W-3 Wage and Tax Statement/Transmittal. Click Create Form Scroll here C l i c k

3 Page 3 of 18 Change the year to Click OK You now have a window showing a list of all employees (including inactive) paid in Be sure all employees have a in the box before their name. You must review all W-2 forms before you can print them. Click Review/Edit. C l i c k The W-2 and W-3 Interview window will appear. Please read all the information appearing in this window. Click Next.

4 Page 4 of 18 Step 1: Forms W-2 and W-3 Interview window appears. Verify the parish name, EIN, address and contact information is correct. Verify that the 941(most common) box is X d for Kind of Payer Scroll down. Scroll Verify the following boxes are X d Kind of Employer is 501c non-govt.

5 Page 5 of 18 Special Situations is YES Click Next Step 2: The next window is where you verify that all employees enrolled in the retirement plan have an X in the Pension Plan box next to their name. Click Next. The W-2 appears for each employee. Make certain there are no entries in Box 10 (Dependent Care Benefits) unless the employee is participating in the Dependent Care Benefit flex plan. Pre-tax health insurance should not appear on the W-2 as the IRS does not require this information.

6 Page 6 of 18 If you notice any entry in red, this indicates that QuickBooks is pointing out a possible problem. Make a note of it and continue reviewing. After reviewing all W-2 forms go back and verify/correct all possible problems. After all W-2s are reviewed, the following window appears. This is a check list that you may print for your files. After printing, click Next. Step 3: Form W-3: Transmittal of Wages and Tax Statements is the next window to appear. Verify that all information is correct. Be sure to scroll down to review the entire page. Right click anywhere in the window and select print to print the actual form for review. Click Check for Errors to have QuickBooks find any errors on any form Scroll Any errors will appear at the top of the window. All errors must be corrected before continuing.

7 Page 7 of After correcting all errors, click Next. The Filing and Printing Instructions window appears. After reviewing the instructions, click Submit Form.

8 Page 8 of 18 The Print/E-file Form window appears. Click Print. The Print W-2 and W-3 Forms window appears. Select the paper you are using and the form you want to print. You may use regular blank copy paper to print all copies EXCEPT for the employee copy. According to government regulations, the employee copy MUST be printed on perforated paper specifically for form W-2. Also, please note that if the perforated blank paper does not include the Employee Filing Instructions on the back, you must print a copy of those instructions for each employee. Click on Print PDF and print from Adobe Reader until all required copies are printed. Once completed, click Close Window, then Finish.

9 Page 9 of 18 The following message may or may not appear. Click OK if you have current addresses in the employees files and want to send the notification. Otherwise, click Cancel. You are returned to the prior window then click Save and Close. Congratulations, you ve completed your W-2 and W-3 forms! Employees must receive their form by January 31, Social Security and state copies must be mailed by January 31, 2019.

10 Page 10 of MISC and 1096 PREPARATION 1099-MISC: This form is used to record payments made by businesses to independent contractors. If you make payments over $600 for services (including parts and materials) to any one individual, company, partnership, etc. (not a corporation), over the course of the calendar year you must provide a 1099-MISC to them. If you are not certain if they are incorporated, call them. The 1099-MISC is a multi-part form which includes: Copy A (red copy) is mailed to the Internal Revenue Service Copy B is for the recipient Copy C is the payer or state copy (You are not required to file in MO) The 1099-MISC form must be distributed to all independent contractors NO LATER than January 31, Form 1096: This is a transmittal form which reports the total payments from all 1099 forms. It must be submitted to the IRS along with Copy A (red copy) of the 1099 s. The 1096-Annual Transmittal and the red copies of the 1099 forms must be sent to the IRS NO LATER than January 31, 2019.

11 Page 11 of 18 Click on Vendor in the top menu. Select Print/Efile 1099s. Select 1099 Wizard. The QuickBooks 1099 Wizard appears. Click Get Started when you are ready to continue. Your entire vendor list will appear. Vendors you had marked as 1099-eligible in vendor setup are at the top of the list. Please notice that they have a in the box before their name. Please review

12 Page 12 of 18 all vendors to make sure no one was overlooked during vendor setup. You may find someone who should receive a 1099 but is not marked. You can select that vendor by clicking on the box before their name and a will appear. When all eligible vendors have been selected, click Continue. Verify that all vendor information is correct and enter/edit any missing or incorrect information. Click Continue. This window lets you select (map) the expense accounts used to calculate 1099 totals. Be sure that Report all payments in Box 7 is checked ( ). Click Continue.

13 Page 13 of 18 Click View Included Payments and review the report that appears. This report includes all the recipients and dollar amounts that will be included on your printed 1099 forms. Click Continue.

14 Page 14 of 18 This window lists all 1099 forms that will be printed. Review the list and if correct click Continue. You re ready to print your forms. Load forms into your printer and click Print Forms.

15 Page 15 of 18 Be sure the date range is from 01/01/2018 to 12/31/2018. Click OK. 01/01/ /31/2018 Verify that all vendors have a before their name. Click Print You will have to select print three times - 1 st for the IRS (red) copy, 2 nd for the Recipient copy and 3 rd for the Payer copy. When finished printing 1099 s, click Print 1096.

16 Page 16 of 18 Enter a Contact Name and click OK. The 1096 will print. Click Cancel then Save & Close.

17 Page 17 of 18 Congratulations, you ve completed your 1099 s and 1096 forms! Independent contractors must receive their form by January 31, The IRS copies must be mailed by January 31, 2019.

18 Page 18 of 18 PRIEST ACCOUNTABLE PLAN What is an accountable plan? In its simplest form, it is an expense reimbursement plan that allows employers to reimburse employees for business-related expenses. In order for the reimbursements to be tax-exempt, the expenses must be accounted for properly by documenting the purpose of the expenses and attaching receipts within a reasonable time period which we define as 60 days from the end of the reporting period. IMPORTANT NOTE: It is no longer necessary to account for the reimbursement of the Archdiocesan provided automobile insurance because it is no longer being billed as a separate item by the Office of Risk Management. Reminders: 1. Maximum calendar plan limit for 2018 is $2,800 for all priests for accountable plan expenses. 2. A priest may submit evidence of expenses to more than one employer but is only entitled to a total annual reimbursement of $2,800 for business related expenses per year no matter how many employers he may have. There should be communication among the priest and his employers regarding the amount of reimbursement paid by each employer. 3. Qualifying business-related expenses for purposes of the accountable plan include only: automobile mileage reimbursement, parking fees and tolls, business travel expenses, business meals and entertainment expenses, costs of clerical clothing such as vestments, and dues, subscriptions, books, and equipment used for business purposes. If you have any questions pertaining to this documentation, please contact Sally Serbus at or sallyserbus@archstl.org.