Electronic Submission of W-2s & 1099s. Nicole Watson

Transcription

1 Electronic Submission of W-2s & 1099s Nicole Watson

2 What s New? O Businesses < 50 W-2s & 1099s O Delayed implementation for tax year 2017 O Give small businesses more time to comply. O 2017 filing requirements the same as 2016.

3 Requirements for Tax Year 2017

4 What s New? Can IDR make filing easier? O Working with software vendors O register and test software prior to the 1/31/2018 filing deadline. O Guiding businesses required to file O Provide list of vendors who have completed testing O They offer software services for Iowa file formats. O 17 vendors so far O Manual entry of W-2/1099 information is not available for tax year 2017.

5 Tax Year 2017 Filing Requirements Who What Is it Required? Filing Due Date Business with a withholding permit Must file Verified Summary of Payments (VSP) Yes 1/31/2018 Business with 50 or more W-2s with Iowa withholding Must file W-2s Yes 1/31/2018 Business with fewer than 50 W-2s with Iowa withholding May file W-2s No 1/31/2018 Business with a withholding permit or filing though a bulk filer May file 1099s or W-2Gs No 1/31/2018

6 How should I prepare my file? O Do it yourself O Do you have an ASCII programmer on staff? O If not, use a service provider. O Service Providers O 17 vendors are currently registered O Vendors listed on the IDR website. O Filing extensions:

7 Iowa Does Not Accept O Other types of files (for example, PDFs scanned or created with any other software product). O Paper W-2 wage statements and 1099 information returns. O CD-ROMs; Cartridges; Flash drives; Floppy disks; Magnetic media; PDF files created at SSA website.

8 Does Iowa Participate in Combined Reporting? O The SSA offers no Combined Reporting program for reporting W-2 wage statements to both the SSA and state revenue agencies. O The IRS offers Combined Federal/State Filing program (CF/SF) for reporting certain information returns to both the IRS and state revenue agencies. IDR does not participate in IRS program.

9 What is the plan for 1099s? O 1099 filing is currently optional and available to O Any business registered with an Iowa withholding permit O Any business using a bulk filer to submit a 1099 file on their behalf O The Department will not issue permits and Business efile Numbers (BENs) for purposes of electronically filing 1099s or W-2s with no withholding.

10 1099s forms accepted O Form 1099-B, Proceeds From Broker and Barter Exchange O O O O O O O O Transactions Form 1099-C, Cancellation of Debt Form 1099-DIV, Dividends and Distributions Form 1099-G, Certain Government Payments Form 1099-INT, Interest Income Form 1099-K, Payment Card and Third Party Network Transactions Form 1099-MISC, Miscellaneous Income Form 1099-OID, Original Issue Discount Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

11 Submitting Wage Statements and Information Returns

12 Upload a File O Visit the Department s efile & Pay web application at O You need your business Business E File Number (BEN) to login.

13 Upload a File O If you are a Service Provider enter your BEN, not the BEN of your client. O Verify that the BEN and Employer Legal Name match the information for the W-2 Wage Statement file you are about to upload.

14 Upload a File O Enter the User ID and password.

15 Upload a File O Select file type. Service providers select File for Client if uploading on behalf of a client.

16 Upload a File O Click Upload New File to upload a W-2 file.

17 Upload a File O Click the Choose File button to select the file to upload.

18 Upload a File O Select the appropriate W-2 file for Iowa. In this example we are using IAW txt

19 Upload a File O After you have selected your file, click the Upload button.

20 Upload a File O After uploading the file click the Refresh button to update the information on the page. Page contents will not update automatically.

21 How Will I Know the Department Received my File?

22 Do I need authorization to upload my file to Iowa? O Transmitters registered as Bulk Filers with the IDR must use their own efile & Pay credentials to upload withholding returns, wage and tax statements, and information returns on behalf of their software subscribers. O Payroll Service Providers registered as Bulk Filers with the Iowa Department of Revenue must use their own efile & Pay credentials to upload withholding returns, wage and tax statements, and information returns on behalf of their clients.

23 Do I need authorization to upload my file to Iowa? Companies registered to file Iowa withholding returns O Use your existing efile & Pay credentials O Upload wage and tax statements and information returns O Or use your software company to provide transmitter service.

24 Is a test file required? O Software vendors: Testing is required. O Software vendors (and commercial payroll service providers who develop their own software) are issued login credentials for use on an efile & Pay test site hosted in a User Acceptance Test (UAT) environment after they register their product(s) with the Iowa Department of Revenue. O Software customers: Testing is discretionary. Sample files may be uploaded through Iowa s production efile & Pay set to DEMO mode

25 How Will I Know the Department Received my File? W-2 or 1099 Results File O For each W-2 or 1099 file Iowa receives, Iowa posts a corresponding results file, distinguished by the same filename as original W-2 file, but appended with results. e.g. IAW results.txt O Warning: If the results file doesn t appear, remember to click the REFRESH button. O Large files take longer to process, delaying the results file. O Extremely large files including errors may cause the system to time out. O Try uploading a smaller file in an effort to identify a common error. O Fix that error everywhere it occurs O Upload again.

26 How Will I Know the Department Received my File? Compressing files is optional O IDR recommends compressing files O Reduces transmission time O Only compress one data file into a single zip archive file. O Before zipping your file, name the original (unzipped file) according to the filename pattern described in O Archive filenames should match the original. O For example: IAW txt.zip; IAIR txt.zip

27 Resources

28 Resources Visit the IDR website at

29 Resources Visit the IDR website at

30 Resources Visit the IDR website at A business can: O Apply for Extension of Time to File Iowa W-2 Wage Statements O Sign up for updates on Electronic Filing of W-2 and 1099s O View step by step instructions regarding W-2 Wage Statement File Upload Instructions

31 Resources Visit the IDR website at A software vendor can: O Access technical file specifications in the Electronic Reporting of Wage Statements and Information Returns O Register with the Department with the 2017 IA W e-file Vendor Registration Form O Apply to become a Bulk Filer of withholding returns or uploading of W-2/1099 files O View W-2 Reporting Errors

32 Information Online

33 Information Online

34 34

35 Receive Automatic Updates

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38 Purpose of this Presentation This presentation is intended for general educational purposes only. Anyone involved in an audit or protest must contact the Department representative they are working with on that issue.

39 THANK YOU!!