MARATHON FINANCIAL ACCOUNTING END OF CALENDAR YEAR

Transcription

1 The following instructions will guide you through the end of a calendar year process. This process includes steps for W-2 Forms, Electronic W-2 Filing, Clear Calendar Year to Date Totals, Tax Table updates and 1099 Forms. Items to Note If you are required to file 250 or more W-2 Forms, you must file them by electronic submission unless the IRS granted you a waiver. You may be charged a penalty if you fail to file electronically when required. Also, you are encouraged to file electronically even though you are filing fewer than 250 W- 2 Forms. The employee name on the electronic file must agree with the spelling of the name as shown on the individual s social security card. Do not include any titles in the name. Only upper case letters are acceptable on electronic files. You must notify employees who have no income tax withheld that they may be able to claim an income tax refund because of the Earned Income Credit. You can do this by using the official IRS Form W-2 with the EIC notice on the back of Copy B or a substitute Form W-2 with the same statement. Keep for four years any employee copies of W-2 Forms that you tried to deliver but could not. If you paid for group-term life insurance over $50,000 for an employee you must withhold social security and Medicare taxes, but not income tax. The cost of excess coverage must be included in boxes 1, 3, 5 and 16. Also, the amount must be shown in box 12 with code C. If you had employees who received sick pay in 2012 from a disability insurance company or other third party payer and the third party notified you of the amount of sick pay involved, you may be required to report the information on the employees W-2 Forms. See Sick Pay Reporting in section 6 of Publication 15-A for specific reporting instructions. Furnish Copies B, C, and 2 of the W-2 forms to your employees, generally, no later than January 31, You will meet the furnish requirement if the form is properly addressed and mailed on or before the due date. Reporting the cost of group health insurance coverage. You must report the cost of employer-sponsored health coverage in box 12 using code DD. However, transitional relief applies to certain employers and certain types of plans Section 1- W2 Processing 1

2 W-2 Preparation To begin preparing for the W-2 process you will need to verify that the district s address, Federal ID number, and State ID number are set up correctly. Marathon Administration Setup District Setup Generally, the State ID Number will be the same as the Federal ID Number. The County is optional and not required for W-2 processing Section 1- W2 Processing 2

3 W-2 Preparation Mark any deduction code that must be included on the W-2 Forms. Setup Deduction Deduction Codes Review each deduction code and mark those that should be included on the W-2 Forms. To mark the code you may tab down to the appropriate W-2 Deduction Codes field and press the space bar or you can use the mouse to click in the W-2 Deduction Codes box. After marking the field click the Save button. Note that only the Public Employees Retirement System should be marked Pension Plan. The amount of retirement withheld will print on the W-2 in box Section 1- W2 Processing 3

4 W-2 Preparation If you had employees who received sick pay in 2012 from a disability insurance company or other third party payer and the third party notified you of the amount of sick pay involved, you may be required to report the information on the employees W-2 Forms. See Sick Pay Reporting in section 6 of Publication 15-A for specific reporting instructions. Payroll Employees Browse Tax/Wages Tab Wages to Date If the district s disability income premium was not tax sheltered under the cafeteria plan, place the amount of the third party paid sick pay on the Disability Income line in the YTD column, mark the Disability Income box and click the Save button. This amount will be reported on the employee s W-2 Form in box 12 with a Code J. If the district s disability income premium was tax sheltered under the cafeteria plan do not add the amount to the Disability Income line. Instead, add the sick pay to the appropriate YTD taxable income amounts, mark the Disability Income box and click the Save button. NOTE: Before adding the taxable income amounts you will want to confirm that the disability insurance carrier did not file a W-2 Form on behalf of the employee Section 1- W2 Processing 4

5 W-2 Preparation The following steps will need to be completed only if the third party sick payer withheld taxes and you are required to report the amounts. Payroll Employees Browse Tax/Wages Tab Deductions to Date Select the appropriate deduction code. Once it is displayed at the bottom of your screen, change the CTD field to the adjusted amount and then click the Save button Section 1- W2 Processing 5

6 W-2 Preparation The following utility will be used to report the Employer Sponsored Health Insurance. This utility allows calculation of deductions flagged, import of file from 3 rd party, and export file. Payroll End of Period Calendar Employer Sponsored Health Insurance Import File Select Browse and choose file to upload. Once file is selected, click the Import File button. The amounts from file will be uploaded to the Employer Sponsored Health Insurance field on the Employee s Wages to Date Tab. Replace Existing Amounts Check box to replace the current Employer Sponsored Health amount shown on the employee s wages to date tab. Hints: To see if you have any existing amounts, run the laser W-2 totals page. If you are importing an additional 3 rd party file Do Not check this box so that the amount will be added to the existing amount. Update Record Information Check box to update the saved CTD record. This should only be checked if year to date totals have already been cleared and saved. Export File Calculate Employer Sponsored Health Insurance using Flagged Deductions This will open csv formatted file in web browser. Amounts can be changed or entered into the export file. Select File>Save As, enter desired file name, choose file type csv, and select Save. File may be imported back into Marathon using the Import File. Please note the file type MUST be in csv format. Select to calculate amounts for deductions marked as Employer Sponsored Health Coverage. This will sum the YTD deduction and acct distribution amounts and place the amount in the Employer Sponsored Health Insurance field on the Employee s Wages to Date Tab Section 1- W2 Processing 6

7 W-2 Preparation Importing the file: The file should be csv format with the following order of columns: SSN Last Name First Name Amount Please note we recommend uploading the BCBS file accessible from The file can be found under the reports section located on the left hand side of screen. The file provided from BCBS is an excel format and must be saved as csv format. You will also need to delete the first few rows of file and other columns to conform to import format. The rows and columns to delete can be viewed in the following example shown in csv format. Delete rows 1-8 containing file info Delete columns: Group #, MI, Jan- Dec Rename Total column to Amount After the import, you will receive a report showing the amount imported for each employee. Any employees that are not found will have the SSN shaded. It is possible employees will not be found due to discrepancy in last 4 digits of SSN and/or first and last name. Sort report by Result column in descending order. Export or print report to address those employees not found. To correct employees that are not found, you can choose either of the following methods. Export File. Enter amount from printed or exported report for each employee not found. Save file and Import File back into Marathon selecting box to Replace Existing Amounts. Find or add employee in Marathon, go to Tax/Wage tab (3), select Wages to Date and enter amount into Employee Sponsored Health Insurance field or add the amount to existing amount. Select Save. Please modify any other 3 rd party files to specifications shown on the top of this page. If the amounts contain commas, you will need to remove before import Section 1- W2 Processing 7

8 W-2 Preparation The final information for the W-2 Forms must be taken from the employee records after all payrolls for the month of December have been written and posted. The following reports will help in reconciling your payroll records. You will need to select ALL for the Employee Statuses, Positions, Locations, Pay Frequencies, and Calculation Methods throughout the entire process of printing reports and W-2 Forms. Reports Employee Taxable Wages Select Year to Date under the Print Selections. From the Order By section, choose the order in which you want the list to print Section 1- W2 Processing 8

9 W-2 Preparation Reports Deduction Multiple Deductions Period to Date Withholdings/Setup Select Year to Date under the Print Selections section and check box for Print Employee Totals. From the Order By section, choose the order in which you want the list to print. The system will allow you to select up to five deductions per report. You will need to print several different groupings of this report: one for deferred compensation codes, one for tax sheltered annuity codes, one for dependent care benefit codes, one for taxable life insurance (see page 10 for detailed instructions), one for standard deductions (FW, SW, FI, MX and RT), one for 403(b) designated Roth contributions, if applicable, one for employer provided vehicle, Section 1- W2 Processing 9

10 W-2 Preparation There is one more report that you will need to print to reconcile the W-2 Forms to your calendar year to date taxable wages. Internal Revenue Service regulations states that if you paid for group term life insurance over $50,000 for an employee you must report the cost of the excess coverage in boxes 1, 3, and 5 on the W-2 Forms. Also, the amount must be listed in box 12 with a code C. For your employees, you must withhold social security and Medicare taxes, but you are not required to withhold income tax during the calendar year. However, for W-2 purposes the taxable life insurance amount must also be added to taxable wage amounts found in boxes 1 and 16. When you print the W-2 Forms the system will look for the taxable life insurance codes and will check to see if it is exempt from Federal and State taxes. If it is exempt the calendar year to date amount will automatically be added to boxes 1 and 16. Reports Deduction Single Deduction Period to Date Withholdings/Setup To obtain the total amount of taxable life insurance you will need to print a Single Deduction Report for the deduction codes used for taxable life insurance. Under Print Selections mark only Include Expensed Amounts. Note: The taxable life insurance amounts will only be added to boxes 1 & 16 if they were exempt from Federal and State taxes Section 1- W2 Processing 10

11 W-2 Preparation The totals from all of these reports will help you reconcile your calendar year to date taxable wages. Be sure to keep in mind taxable life insurance amounts and any third party paid sick pay and taxes when reconciling to your 941 Forms. Once you have verified the accuracy of your calendar year to date information, you will want to confirm that the grand total of your W-2 Forms also agrees. Reports End of Period Calendar Year Print W-2 Laser Form 5208 Note: All three W-2 formats allow the user to print a Totals Page Only but the laser W-2 format is the only one that includes the 403(b) Designated Roth contributions total, Retirement contributions total, and Employer Sponsored Health Insurance total. We have added an additional reconciliation page to the totals page. Use the totals page to confirm that the grand total of your W-2 Forms agrees to your calendar year to date totals. The totals contained in each box should be reconciled to the appropriate report that you ran in the earlier steps. Mark box and run report to get totals l Section 1- W2 Processing 11

12 W-2 Preparation A sample Laser W-2 Totals page is shown below. IMPORTANT: Please confirm that Total EIC (Box 9) is $0.00. We are NOT removing this field from the totals page at this time. The Reconciliation page is shown on the next page and can assist in reconciling your W-2 totals Section 1- W2 Processing 12

13 W-2 Preparation After verifying the accuracy and reconciling your totals, you will be ready to print the actual W-2 Forms Section 1- W2 Processing 13

14 W-2 Preparation Printing Mailer and Non-Mailer Forms Load the forms that you have chosen for your district and select the appropriate printer. When using the Mailer or Non-Mailer Forms make sure that the printer is off line then click the Print Mask box (Please note we are not removing the X s from Box 9 at this time for the mask, however the employee s printed W-2 will not have any amounts shown). Once you place the printer online the system will print two masks. Adjust alignment as needed. After alignment has been set, select the print order and print the W-2 Forms Section 1- W2 Processing 14

15 W-2 Preparation Printing Laser W-2 Forms Year must be 2012 Print a Test Page - Place the Laser Form 5208 in your laser printer being sure to place the forms in such a manner that the information will be printed on the blank side of the form. For proper placement you may print a test page by selecting a single employee. Print W2 Laser Forms - After the forms are properly loaded, select the print order and Run Report. The W-2 Forms will be previewed to your screen. You will click on the printer icon, from within the preview to print your W2 laser forms. Select default Statuses = ALL Enter the Year Select the Order by If you are using Active Resources, review the explanation of each check box listed below before proceeding Section 1- W2 Processing 15

16 W-2 Preparation The W-2 Page 2 for Employees with more than 4 codes box 12 button will create a second W-2 page for employees that have more than 4. This additional page will not be available in Active Resources at this time. Please see page 12 of W-2 instructions for further clarification: Build Active Resources W2 Records If your district has implemented Active Resources, check this box when generating Laser W2 forms. This will also generate a file that will allow your employees to view their W-2 record within Active Resources. The file will remain inactive within Active Resources until the administrator of Active Resources activates the W2 file. Disclaimer: Each district must obtain consent from each employee that is willing to receive their W2 Form only in an electronic format. Please review the IRS instructions found in Publication 15A. Until consent is given, you must provide a paper W2 Form to your employees. Override electronic Opt in If you have activated the Electronic Opt In for Employees, the printed W-2 s will consist of those employees who did not opt in to receive their W-2 electronically. We have given an override option to select if you wish to print W-2 s for all employees regardless of their opt in status. Use CTD Record Information Check this box to print the laser W-2 as well as Build Active Resources W2 Records from a saved Calendar Year to Date Record. Sample Laser W-2 Form Section 1- W2 Processing 16

17 W-2 Preparation Active Resources Active Resources Administration W2 Manage W2 Date range to display option for employees to opt in or out of Electronic W2 forms Set begin and end date range for when employees will have option to select to receive Electronic W2. Filter Options Depending on when your district implemented Active Resources, calendar years 2009 through 2012 will be shown. W2 List - When the W2 Print file was created in Marathon, a batch file was created for Active Resources with a Status of Inactive. The Calendar Year establishes the different batches of W2 Forms that will be available for viewing in Active Resources. Once you are ready for your employees to view their W2 Form in Active Resources, you will need to change the Status to Active and click the Save Changes button for Calendar Year Section 1- W2 Processing 17

18 Electronic W-2 Filing Preparation The actual W-2 Forms should always be printed and verified before beginning the electronic reporting process. The IRS requires employers to retain a copy of their W- 2 Copy A data, or to be able to reconstruct the data, for at least four years after the due date of the report. Please be sure to make a backup as instructed in Section 3 before clearing calendar year to date amounts. The SSA deadline for Tax Year 2012 electronic filing is March 31, The Social Security Administration (SSA) has a free test software package called ACCUWAGE that can be downloaded from their web site. This software can be used to help identify any potential problems with your data before submitting your electronic file. ACCUWAGE download instructions are given on the last page of this document. Generate the Electronic W-2 file Payroll End of Period Calendar Generate Electronic W2 File Be sure to generate the information in Employee ID order. The employee ID in this feature refers to the employee social security number Section 2 Electronic W-2 Processing 1

19 Electronic W-2 Filing Preparation Select the Preferred Method of Problem Notification as /Internet (Required), postal service is no longer available, and then enter the following: Total Third Party Income Taxes Withheld for your district Your User Identification Number Contact Name Phone Number Phone Extension Address Fax Number (All of this information is a part of your registration with SSA). The ReSub Indicator is to be used only if SSA notifies you that you need to make a correction and re-submit your file. You have two options for your electronic File Destination: Floppy Disk and Temporary Directory. Floppy Disk - If you choose the Floppy Disk option you will want to make several copies of the W2report file. This option is not recommended if you have more than 200 employees. Directory (the recommended option) You will select the location for the creation of the W2report file. Once you have entered the correct information and made your selections click the Begin button to generate your electronic W-2 file. After the file has been generated you will need to follow the SSA submission guidelines to complete the electronic filing process Section 2 Electronic W-2 Processing 2

20 Electronic W-2 Filing Preparation AccuWage download instructions You will be ready to use the AccuWage software after generating the electronic W-2 file. Disclaimer from AccuWage Software - The AccuWage application identifies most of the common format errors in wage submissions. Using this application greatly reduces submission rejections. Please be aware that even if no errors are identified by AccuWage, your submission could be returned because of other errors. Follow this path to download the AccuWage software: 1. Go to the website 2. Under Quick Links section (on right side of page), select Download AccuWage 2012 Tax Year 3. Save the application to your computer being careful to note where, on your computer, the downloaded file will reside. 4. After the download is complete, go to the location of the newly downloaded file and follow their installation steps. The installation process (step 4) should have created a shortcut to the AccuWage on your computer desktop. You should see the following icon. Click on this icon. You should now be in the AccuWage application. Click on the Start Testing button located in the upper right hand corner. You will be prompted to select the location of the electronic W-2 file labeled W2report. This file will reside in the directory you selected upon generation. You may view errors, if any exists, by clicking the View Error Report button. If you do have errors, corrections will need to be made in Marathon, generate the electronic file again and then run AccuWage. You should not attempt to submit your file to SSA until all errors have been corrected Section 2 Electronic W-2 Processing 3

21 Calendar Year to Date Completion All W-2 Form processing, printing, and electronic W-2 filing should be completed before the first payroll for the 2013 calendar year is processed. You must also update your tax tables before calculating payroll. Before clearing the calendar year to date totals you must address the limit amount of all garnishment deduction codes. The limit amount must be reduced by the deduction calendar year to date total. If you do not reduce the limit of an active garnishment, the system will start anew each calendar year withholding for the total amount of the garnishment. Garnishments must be addressed before calculating the first payroll of the new calendar year. Setup Utilities Deductions Update Calendar Year To Date Garnishments ****Perform this utility one time only***** 2012 Section 3 Clear Calendar Year to Date 1

22 Clicking the OK button will take you to the following screen: This utility affects only deductions marked as garnishments; Standard (Type G), Percent (Type R), Amount (Type M) and Student Loan (Type F). The update screen will list all deductions with these types. The limit amount of these deductions will be reduced by the calendar year to date total. If the reduction creates a negative amount the limit will be set to zero. Do not try to select individual deductions, pressing the Update button will process ALL of the deductions listed at one time. Spot check for accuracy. IMPORTANT: Before Clearing Calendar Year to Date, we strongly recommend making a backup. This can be done from the Marathon main menu. Select the icon description of backup. and then New Backup. Name the backup noting the date and After description has been entered, select Backup Now Section 3 Clear Calendar Year to Date 2

23 DID YOU MAKE A BACKUP? Calendar Year to Date Completion Payroll End of Period Calendar Clear Calendar Year to Date You will need to select ALL for the Employee Statuses, Positions, Locations, Pay Frequencies, and Calculation Methods then click the Begin button. Save Calendar Year to Date Information will automatically be checked upon clearing calendar year to date. This will save a record for each employee that can be used to print another W-2 or generate the electronic file. Reports can also be printed for the saved CTD records. Please see section 4 for more information Section 3 Clear Calendar Year to Date 3

24 CTD Record This utility will save a copy of the employee s Calendar Year to Date Wages, Deductions, and Account Distribution. The CTD record is created when the Calendar Year to Date Amounts are Cleared and the Save Calendar Year to Date Information box is checked. Payroll End of Period Calendar Clear Calendar Year to Date ***Please do not perform this step until you have addressed your garnishments. Please reference the Clear Calendar Year to Date section 3 for more information Section 4 CTD Record 1

25 After the CTD records have been saved, they can be viewed within the employee folder. You may also print reports, generate a W-2, and generate the W-2 Electronic File. Payroll Employees Browse On the Wages to Date and the Deductions to Date tabs each employee will have a CTD Record Report. Clicking the CTD Record Report will bring up report of employee s wages or deductions for the calendar year. There is also a CTD Record Report on the YTD Totals Tab under Employee s Job tab Section 4 CTD Record 2

26 Reports End of Period Calendar Year CTD Record Report will provide Saved CTD information for all employees. The Tax Wage selection will also provide a grand total Section 4 CTD Record 3

27 Payroll Employees Modify Calendar to Date Record If for any reason a Saved CTD record needs to be modified, we have created a way to edit the employee amounts only if you are granted the specific right. When this utility is sent only those users with Admin group rights will have this feature. If you wish to add it to any other groups/users please do so within Marathon Administration. Selecting this utility will redirect you to Marathon Web to make the modification. You can begin typing the first few letters of the employee s last name and the possible filtered selections will be available in the drop down box. Once the employee name appears in the Employee field, select Filter. You can edit any of the fields shown by selecting Modify under the Actions column. After the change has been made, select Save under the Actions Column Section 4 CTD Record 4

28 Reports End of Period Calendar Year Print W-2 Laser Form 5208 W-2 s may be printed for all employees or a specific employee using the CTD record by checking the Use CTD Record Information. If the W2 s in Active Resources need updating, check the box to build the Active Resource W2 Records Section 4 CTD Record 5

29 Payroll End of Period Calendar Generate Electronic W2 File You can generate the Electronic W2 file using the CTD record information by selecting the Use CTD Record Information. Once you generate the file be sure to run through Accuwage Please reference the Electronic W2 processing section Section 4 CTD Record 6

30 Tax Table Updates Calendar year to date totals MUST be cleared before you update the tax tables and you MUST update the tax tables before calculating your first payroll in the new calendar year. Note: The amounts shown in the following screenshots are for Please refer to your copy of the 2013 Circular E for the correct amounts to insert into each of the tables described in this document. Setup Tax Rates Federal Income Tax Table/FICA/MEDI The information contained in this table can be found in the Circular E. To find the information needed for the Single and Married ranges look on the first page of the Circular E. Under the Tables section look for Tax Withholding Tables for Percentage Method. Go to those pages and find the table for the ANNUAL Section 5 Tax Table Update 1

31 Tax Table Updates Payroll Period. Replace the information contained in the tax table, tabbing from field to field, for both Single and Married ranges. You will also need to change the FICA Limit and the Annual Withholding Allowance amount. The FICA Limit, generally, can be found on the first page of the Circular E. The Annual Withholding Allowance amount can be found in Section 16 (How to Use the Income Tax Withholding Tables) Table 5. Look for the annual amount for One Withholding Allowance in Table 5. After all changes have been made click the Save button. Setup Tax Rates State Income Tax Table/Retirement Refer to the State of Mississippi Income Tax Withholding Tables Booklet for the tax amount information. Retirement information should not change until July Section 5 Tax Table Update 2

32 1099 Forms You are required to file a 1099-MISC Form to any vendor that you have paid $ or more for certain services. Refer to your 1099-MISC Form Instructions for clarification on who should receive a 1099 form. Effective Tax Year 2009, if you file 250 or more 1099 forms you must file electronically. To begin preparations for the 1099 Forms verify that the appropriate vendors have been properly marked and that the vendor calendar year to date total is correct. Accounts Payable Activities Vendor Vendor Maintenance You can filter an individual vendor or filter by a 1099 vendor type. If a list of vendors are filtered, select Modify under the Actions column. In order for a vendor to receive a 1099-MISC Form, the 1099 box must be marked, reported income type selected, and the Federal ID number field must also be completed. Once the information has been entered click the Save button Section Processing 1

33 1099 Forms If you aren t sure that the calendar year to date totals were cleared out last December, or if you aren t sure that all voided or deleted AP checks were removed for the vendor s calendar year to date total, then you may want to clear the vendor totals and rebuild the calendar year to date totals. Accounts Payable Activities Vendor Utilities Clear Vendor YTD Totals Be sure to select button for Calendar Year to Date. You will be asked to confirm that you wish to clear calendar to date totals; Click the OK button. A Complete message will be displayed in the left corner, above the buttons, once the clear process has been completed. You are now ready to re-build the correct totals. Accounts Payable Activities Vendor Utilities Calculate Purchases YTD Calculate Total using Check Date Range - Enter the beginning and ending dates for calendar year 2012 and select button for Calculate Calendar Year to Date Totals. The system will rebuild the calendar year to date total by summing up all AP and Disbursement checks where the check status is either outstanding or cleared. Calculate Totals using Object Range If you would like to calculate totals based on object codes for services, etc. You can enter object range and date range for Then select button for Calculate Calendar Year to Date Totals The system will rebuild vendor totals using the expense amounts for the object code contained in the date range entered Section Processing 2

34 1099 Forms 1099 Preview Report Accounts Payable Reports Vendor 1099 Preview List Order Vendors Vendor Type Reported Income Type This report can be sorted by vendor name or vendor ID. Select 1099 Vendors or Vendors with YTD > 600 and not marked 1099 or a specific vendor. This report can be filtered for specific vendor types. Select all reported income types or a specific one. Review this report carefully. If a vendor is listed on the report that should not receive a 1099 Form, browse for the vendor record and remove the check mark for the 1099 field. Continue to print and review the report until you are ready to print the forms. Vendors with missing Federal ID numbers will appear shaded in red on the reports and on the screen Section Processing 3

35 1099 Forms The final preparation before printing 1099 forms is to verify that the district s address, Federal ID number, State ID number, and phone number are set up correctly. Marathon Administration Setup District Setup 2012 Section Processing 4

36 1099 Forms Printing 1099 Forms Accounts Payable Reports Vendor Print 1099 The 1099s are generated for the pre-printed 1099-MISC form. There will be two forms per sheet (1 sheet equals two vendors). You will need to print three separate 1099 batches: Copy A to send to the IRS, Copy B to send to the vendor, and Copy C for your recordkeeping purposes. You will need to know how to properly place the 1099-MISC forms in your laser printer before starting the print job; should they be face up or face down, etc. You may want to practice by printing only one vendor. Determine your vendor number from the 1099 Preview report and enter that number in both the beginning and ending Vendor ID fields and click the Filter button Section Processing 5

37 1099 Forms Printing 1099 Forms The laser 1099-MISC forms will be previewed to your screen as shown on the previous page. You will need to export to PDF. Once PDF is selected Open the document and select File then Print. If necessary, change the Page scaling to Fit to Printable Area, verify that correct printer is shown and select OK. The 1099 s will begin printing. You can also save the PDF document by selecting File and Save As. You may save the file in the default location listed or you may want to create a special folder on your computer before starting the export option. You may also change the file name to reflect the current calendar year. To find the location path click the arrow at the end of the Save in Field. Be sure to note the location path that you have chosen so you may easily find the exported file. Click the Save button Section Processing 6

38 1099 Forms Electronic 1099 File You now have the ability to submit your 1099 File electronically. You will need to obtain a copy of IRS Publication 1220 for detailed instructions on submitting the file. Accounts Payable Reports Vendor Electronic 1099 Note: You must enter your district s telephone number on the District Information page, located in the Administration module, before you generate this file. The district telephone number is a required component. Transmitter Control Code To obtain this code, you must submit Form 4419, Application for Filing Information Returns Electronically, to IRS/ECC-MTB no later than forty-five (45) days before the due date of your information returns. IRS/ECC-MTB will issue a Transmitter Control Code (TCC) that will be required on all files and correspondence Section Processing 7

39 1099 Forms Tax Year Enter the correct Reporting Year. The Prior Year Indicator should only be used if you are reporting a previous year. Contact Enter your contact information. Run Type Test - IRS/ECC-MTB encourages first-time electronic filers to submit a test file. However, a test file must be submitted when applying to participate in the Combined Federal/State Filing Program. The Combined Federal/State Filing Program was established to simplify filing information returns for the taxpayer. IRS/ECC-MTB will forward this information to participating states free of charge for approved filers. Separate reporting to those states is not required. Mississippi does participate in this service. Actual Use the Actual option once you have been notified that your test file was submitted successfully. Click the Create button to generate the file. Be sure to save file in a location that you can easily access. Once the file has been generated, you will need to follow the IRS/ECC-MTB guidelines for submission Section Processing 8

40 1099 Forms Clear Vendor Totals After printing all 1099-MISC Forms, clear vendor calendar year to date totals. 1099s should be printed and vendor totals should be cleared before any Accounts Payable checks are printed, prepaid invoices entered, and/or disbursements entered in the new calendar year. Accounts Payable Activities Vendor Utilities Clear Vendor YTD Totals Be sure to select button for Calendar Year to Date. You will be asked to confirm that you wish to clear calendar to date totals; Click the OK button. A Complete message will be displayed in the left corner, above the buttons, once the clear process has been completed. You are now ready to begin printing AP checks for the new calendar year, entering any prepaid invoices, and/or entering disbursements for new calendar year Section Processing 9