CYMA Accounting for Windows

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1 CYMA Accounting for Windows Technical White Paper CYMA Accounting for Windows 2014 Payroll Update CYMA Systems, Inc W. University Drive Suite 4 Tempe, AZ Fax: December 2013 CYMA Systems, Inc. All rights reserved.

2 Section 1: What is the Payroll Update What is the Payroll Update? The 2014 Payroll Update is an update to your CYMA payroll system that provides 2014 tax calculation updates, W2 formats and other important year-end and Payroll items. It includes all 2014 Federal and State tax tables and updates to Federal and State Unemployment taxes. Also included are changes to the W-2 and 940 forms. The new 941 is usually released in the first quarter of the year and is not included in the payroll update, but will be released prior to the end of the first quarter. How do I obtain the Payroll Update? If you are a Software Maintenance Plan customer you will be able to download it, when available, from our website or call us at to request that a CD be mailed to you for a nominal media charge. CYMA anticipates releasing the 2014 Payroll Update in the first week of January If you are not an SMP customer you will need to purchase the 2014 Payroll Update from our website or by calling CYMA or your CYMA Reseller prior to downloading or requesting a CD. What Versions of CYMA does it work with? The 2014 Payroll Update will work with Versions 13 and 13.5 only. It will not operate properly with any other version. To upgrade to the latest version of CYMA, please call CYMA at or contact your CYMA Reseller. Contents The 2014 Payroll Update contains all the necessary changes to ensure that your customers' payroll systems are ready for 2014 tax calculations and to process year end W-2 s, 1099 s and other tax forms. Highlights include: 2014 Federal Tax Table Updates 2014 State Tax Table Updates (for states with income tax) 2014 State Unemployment Insurance Updates Applicable Updates to 940, 941, W2 and 1099 forms Updated Plain paper W-2 Copy A for Federal filing Updated Plain paper W-2 Copy B, C, D, 1 and 2 in 2-up and 4-up format Updated Plain paper W-3 Applicable Electronic File Updates Supported Forms The Payroll Update supports the following pre-printed forms found in the CYMA Tax Forms catalog. Note that there are some forms in the CYMA forms catalog not supported by the Payroll Update. To obtain the CYMA Tax Forms catalog or to order forms call or visit the website at Laser W2 Form Number Employer Federal Copy A Laser W2 Form Number Employee Federal Copy B Laser W2 Form Number Employer File Copy C Laser W2 Form Number Employer State/City Copy 1 Laser W2 6 part EZ-Pack Number 5650E Laser W2 Form Number Up 2 over 2 W2

3 Laser W2 Form Number 5209 Blank 4 Up 2 over 2 W2 Laser W2 Form Number 5207B - Blank 2 Up W2 Laser 1099 INT Form Number Federal Copy A Laser 1099 INT Form Number Recipient Copy B Laser 1099 INT Form Number Payer/State Copy C Laser 1099 MISC Form Number Federal Copy A Laser 1099 MISC Form Number 5111 Recipient Copy B Laser 1099 MISC Form Number 5112 Payer/State Copy C Laser 1099 MISC EZ-Pack Number 6103E Unsupported Forms Through the use of Crystal Reports, you or your dealer may design custom formats to support other forms in the catalog. These include: Number Form W3 Laser 1099 DIV Form Number Federal Copy A Laser 1099 DIV Form Number Recipient Copy B Laser 1099 DIV Form Number Payer/State Copy C Again, do not order "unsupported forms" unless you or your dealer has specifically designed a report format to fit that form. Plain Paper W2 s The Federal Copy A must be printed in 2 up format, but other copies can be printed in either 2-up or 4-up format. You need to use good quality copy paper for Copy A. You can purchase special perforated paper on which to print all copies of the forms except for Copy A. This paper can be purchased through our Cyma Forms Division. The 4-up form comes with information printed of the back of Copy B and C. The 2-up form does not. Complete W2 efile Service Center The efile Service Center will, for a fee, to do the following: Print and Mail Employees Copies on your behalf File your Fed W-2s and W-3 to the SSA File your State W-2s and reconciliation Forms ew-2s Available for All Employees (ability for employees to access their W-2 online) Electronic File Submission You can submit an Electronic File for Federal W-2 s and State W-2 s. CYMA creates an EFW2 formatted file and can be submitted to those states that accept this format. The Social Security Administration no longer accepts files via disk or tape. All submission must be made through the web. If you are using CYMA 13, you will need a new code for this functionality. If you have installed CYMA 13, require this functionality and have not obtained the new code, call CYMA at The 2014 Payroll Update includes changes to the 1099 Electronic Format in the AP and PR module. The IRS no longer accepts files via disk or tape. All submission must be made through the web.

4 Section 2: Frequently Asked Questions Do I have to wait until I receive the PR update in order to print W2 s? Not necessarily. Based on the timing of the form changes release by the Social Security Administration we try to make the new forms available prior to the 2014 Payroll update. The forms will be available from our website. Instructions will be provided on the website for downloading and installing. If you have already upgraded to V13.5, you have the 2014 W-2s. NOTE: The electronic file changes will not be updated until the Payroll Update. Can I print W2 s at any time? Yes, you can print W-2 s at any time. Why Should I Be On The Most Current Version Of CYMA? Earlier versions of CYMA Payroll would have correct Electronic File formats for when they were first released but these may be different from the current format. By making sure you are on the most current version you know that the format is accurate. Failure to do so may result in your submission being rejected. Why Should I Recalculate Prior To Printing My W2's? Often in this write up we advise that the user run the Recalculate Payroll Balance utility. This is run from the System Manager System Utilities Recalculate Balances Payroll. The reason we suggest this is to ensure that the W2 Balances have been correctly calculated or that changes affecting into which box certain features (Benefits, Pre-Tax Deductions, etc) print take place. As an example, if you edit an Employee with a Pre-Tax deduction and change the W2 Information from None to Box 12 you will have to run a Recalculate Payroll Balances for this change to show on the W2. What File Format Is The Electronic File In? CYMA W2's are formatted according to the Social Security Administration's EFTW2 format. How Do You Recommend I Edit My Electronic Files? CYMA recommends that you do not edit your Electronic Files directly. Looking At My W2 With An Editor I Do Not See <X>, Why? If you opened your Electronic File with a Text Editor you will not be able to identify the information. To view the Electronic File you should use the Accuwage program. You can obtain the program from the Social Security Administration website. Does The W2 Have State Specific Filing Information? Most states accept the EFW2 file. If you need a file to send to your state you will need to select the state from the drop down list on the Print W-2 screen to obtain a file that includes the appropriate state records.

5 How Do I Get Pre-Tax Deductions to Print on W2 s? Pre-Tax Deductions can be configured to print in Box ten (10) through fourteen (14) on the W2. This is set on an employee by employee basis by performing the following steps. a) Run CYMA. b) Change to the PAYROLL module. c) From the Payroll module choose the MAINTAIN menu. d) From the Maintain menu choose EMPLOYEE. e) Click on the EDIT button. f) On the left side, SELECT the PRE-TAX DEDUCTION feature you wish to edit. g) On the right side, examine the W2 INFORMATION box. h) In the W2 BOX drop down field choose the where you would like the W2 to show on the W2. None Box 10 Dependent Care Box 11 Non Qualifying Benefits in Box 1 Box 12 Code Box 14 Label i) If you choose Box 12 or Box 14 then the field directly below CODE / LABEL becomes enabled. j) If so, then choose one of the three options from the Drop Down list or make one. k) To edit a code or label simply click in the drop down list field, backspace out the existing information and type in the code or label you want to show on the W2. l) Click on the SAVE button. m) Change to the SYSTEM MANAGER module. n) Choose the SYSTEM Menu. o) From the System menu choose UTILITIES. p) From the Utilities menu choose RECALCULATE PAYROLL BALANCES. q) SELECT THE EMPLOYEE you edited and click on RECALCULATE. Why Is The W2 Information Group Grayed Out? The first reason that the group is grayed out, is you had not clicked the EDIT button in which case all fields are grayed out. The second is the employee shows a Reporting Class of 1099 instead of W2. This is set within Maintain - Employee - Employment Information - the Reporting Class field. Select from the drop-down list the earnings reporting form for this employee. The available options are: W2 and W2 is generally used for company employees who have benefits and deductions deducted from their pay is generally used for contractors hired by the company not considered an employee. The 1099 contractor has no taxes or other deductions deducted from their pay. A company employee who receives non-taxable pay that is not reported on their W2 can also be setup as a 1099 contractor. If an employee has both 1099 and W2 earnings, then two employee records should be setup. If you change this setting after the employee has checks, you will need to perform the Recalculate Payroll Balances utility for that employee.

6 My Cafeteria Plan Is Taxing As A Regular 401k, Why? When Pre-Tax 401K/Cafe/Other features are added, the taxable wage calculation defaults to the settings for a 401k plan, which are subject to Social Security Insurance (FICA) and Medicare. If you are setting up a Cafeteria Plan pre-tax deduction go to the Maintain Wage Calculations dialog box and adjust the taxable wage calculation to comply with a Cafeteria Plan. This would be done by performing the following, a) Run CYMA. b) Change to the PAYROLL module. c) From the Payroll module choose the MAINTAIN menu. d) From the Maintain menu choose WAGE CALCULATIONS. e) On this screen earnings and pre tax deductions are listed as rows, and taxes and pre tax deductions are listed as columns. Where the pre-tax deduction meets a tax it can be marked as add, subtract, N/A, or exclude. are important for the purpose of a 401k or Cafeteria type plan. Of these only two When set to subtract the pre-tax deduction amount reduces the taxable wages for that tax. When set to NA the pre tax deduction has no affect on the taxable wages for that tax. Changes to Wage Calculations Don t Change W2? Changes to Wage Calculations cause FUTURE transactions to be taxed differently. They will not cause existing transactions to change. The most common reason for this question is the user who is looking at his or her W2 at the Tax Wages for a specific feature (SIT or LIT for example). While the amount taken out is correct the Tax Wages it is based on is incorrect (due to prior problems in Wage Calculations). The only way to correct this existing information is to enter an Adjustment. How Can I Adjust Tax Wages On My W2? You can do so by taking the following steps, a) Run CYMA. b) Change to the PAYROLL module. c) From the Payroll module choose the ENTER menu. d) From the Enter menu choose ADJUSTMENTS. e) Enter the EMPLOYEE ID of the employee you need to Adjust. f) Enter a DATE to make the Adjustment as of. Use a date within the W2 year. g) Locate the FEATURE (Social Security, etc) that you need to make an Adjustment to. h) IF you need to ONLY adjust the TAXABLE WAGES for this feature then scroll over to the right to the TAX WAGES column. i) Enter your Adjustment to the Tax Wages. j) Click on the POST button.

7 My Proof Listing Is Showing Co And La For Labels, Why? The default codes and labels for the W2 information in Maintain Employee are listed as Code 1, Code 2, etc Label 1, Label 2, etc. When assigning the letter for a Code or Label people often just tack it onto the end of the existing Label (Code S for example). There is only enough room on the W2 form to display two characters. The solution is to edit the Code for that employee and assign it as 'just' the letter (S for example, instead of Code S). If you change this setting after the employee has checks, you will need to perform the Recalculate Payroll Balances utility for that employee. How Do I Edit My W2 s? The W2 forms just like the other forms and reports in CYMA are developed with Crystal Reports. To edit any form, or report, in CYMA you will need to have purchased and installed Crystal Reports. Once you have Crystal installed you can edit a form by taking the following steps, a) Run CYMA. b) Change to the PAYROLL module. c) From the Payroll module choose the MAINTAIN menu. d) From the Maintain menu, choose CUSTOM FORMS. e) On the Custom Forms screen, SELECT THE W2 you wish to edit. f) Click on the EDIT button. g) This will run Crystal Reports, if you had it installed on this computer, and open up the selected form for editing. How do I create an electronic file for submission to a state or local entity? OR 1. Use the Complete W2 efile Service Center process and follow the steps on the screen. 2. Use the Self Service Print and efile W2s and 1099s a. Go to Process Year End Print W2s and 1099s Print and efile W2s and 1099s. b. Check the Single State checkbox and select the state you will submit the file to. c. Select the Output option of Electronic Filing d. Click Print e. Follow the remaining prompts. NOTE: If the electronic file option is grayed out, you will require new codes to use Payroll electronic file options for W-2. Call CYMA at to obtain your new codes.

8 Section 3: How to Process Payroll in the New Year Select the scenario that best describes your situation and follow the easy steps. 1. I have closed Q4 of 2013 and installed the 2014 Payroll update. No additional steps are necessary Simply process payroll as usual 2. I have closed Q4 of 2013 but have not installed the 2014 Payroll update. Simply process payroll as usual If you receive a message indicating that there are no calculations available for 2014, simply select 2013 and proceed as usual. You will no longer be prompted with this message after you install the 2014 Payroll update. 3. I have not closed Q4 of 2013 and have installed the 2014 Payroll update. You will need to manually advance to Q Maintain Configuration / Posting Information Payroll Accounting Year = 2014 Payroll Quarter = 1 When you are ready to close Q4 of 2013, simply change the Year and Quarter back. 4. I have not closed Q4 of 2013 and have not installed the 2014 Payroll update. You will need to manually advance to Q Maintain Configuration / Posting Information Payroll Accounting Year = 2014 Payroll Quarter = 1 When you are ready to close Q4 of 2013, simply change the Year and Quarter back. Note: If you receive a message indicating that there are no calculations available for 2014, simply select 2013 and proceed as usual. You will no longer be prompted with this message after you install the 2014 Payroll update.

9 Section 4: How to Process Payroll W3 s NOTE: For these forms use good quality copy paper, without perforations. Our Plain Paper W-2s and W-3 have been approved by the Social Security Administration and do not need to be printed in red ink. From the Payroll module, select Process / Year End / Print W2 s and 1099 s. Figure 4.1 Print W2s and 1099s Dialog Select the Laser W2 and W3 (Plain Paper Copy A) form from the Custom Form drop down list. Figure 4.2 W3 Information Dialog Fill in the appropriate information and press Continue. The W3 will be printed after the W2 s.

10 December 2013 CYMA Systems, Inc. All rights reserved. CYMA is a registered trademark of CYMA Systems, Inc., hereafter referred to as CYMA. CYMA is a registered trademark of CYMA. All other company and product names are the trademarks of their respective owners. Information has been obtained by CYMA from sources believed to be reliable. However, because of the possibility of human or mechanical error by our sources, CYMA or other, CYMA does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results from use of such information. No part of this manual may be reproduced by any means without the prior written permission of CYMA. Any comments or suggestions you have regarding CYMA documentation can be sent to: CYMA Systems, Inc. Product Development/Documentation 2330 West University Drive, Suite 4 Tempe, AZ Fax: (480) info@cyma.com