W-2 PROCESSING. Kim York Munis Business Analyst Fall 2016

Transcription

1 W-2 PROCESSING Kim York Munis Business Analyst Fall 2016

2 Don t wait for the phones to start ringing or the s to start bombarding your inbox! Look, I really need my W-2. Can you please tell me when you are going to mail them out?

3 Start Now! Prerequisites: Step 1: Confirm all 2016 W-2 forms have been ordered. Have extra on hand in case you have alignment or printing issues. Forms may be ordered on the Tax Form Ordering link on the Munis Support Web site.

4 Prerequisites Next Steps: Load the year end release from the Munis Internet (MIU). THIS IS IMPORTANT! If any state laws change regarding W-2s, Munis will post a new code package.

5 Prerequisites Next Steps: Prior to the first payroll of 2017, update the FICA limit and/or employee/employer amounts on the FICA Deduction Master to the new calendar year limit & amounts, if applicable. Verify all payrolls with a check date in year 2016 are completed through the Employee Update step. To find payrolls with a check date of Jan 1, 2016 to Dec 31, 2016, process a Search on the Payroll Start and Status screen. Input date field with : then Accept.

6 Prerequisites Next Steps: Review all payrolls returned. If any do not have the Employee Update step completed-either update them or delete them. DO NOT delete any payrolls where the Employee Update step is complete. Verify State assigned ID is set up in State Code Table. Update/verify W-2 Codes in Pay Master program & Deduction & Benefit Master program. (See appendix A of Tylertech document 2015 W-2 Processing. )

7 Prerequisites Next Steps Review the Payroll Exceptions table. The Accumulator Gross Verify will correct any gross amount errors if you find that a change in the Payroll Exceptions table is necessary. Review payroll accumulator data. Employee payroll accumulators should be reviewed for accuracy before starting W-2 processing.

8 Prerequisites Next Steps: Run the Accumulator Gross Verify (AGV.) Even if the Accumulator Gross Verify is run on a regular basis, it is STRONGLY recommended to run the process prior to generating W-2s at the end of the year. (Note: The AGV is purely used to calculate deduction grosses. It is not used to calculate employee/employer withholding amounts.) If you have accumulator amounts that need to be reported on the 2016 W-2s that have not been processed through Munis, these amounts should be imported into Munis prior to generating the W-2s. Instructions on this process can be found in the Munis Knowledgebase document Import Yearly Employee Accumulators.

9 The Great and Wonderful W-2 Wizard

10 The Wizard has 7 Steps Human Resources/Payroll>Payroll>W-2 and 1099-R Processing>W-2 Wizard 1. Start 2. Verify 3. Create 4. Register 5. Adjust 6. Print 7. Electronic File Wizard Home Page

11 Step 1: Start-What is the Wizard?

12 Preparing for the W-2 Process Once you have confirmed the above four questions, select Yes for each.

13 Step 2: Verify Verify Yearly Accumulator Records Let s talk more about Accumulator Records.

14 Accumulator Gross Verify The Accumulator Gross Verify process will calculate a new gross by looking at the employee s accumulator records and the current Payroll Exceptions program. If the deduction gross in accumulators (Old Gross) matches the system calculation (New Gross), then no record will be created in the AGV program. If the Old Gross and the New Gross don t match, then a record will be inserted into the AGV program for you to review. Once records are found, you will need to review them for accuracy. Munis recommends the Accumulator Gross Verify be run on a monthly basis. Imagine how easy your W-2 processing will be if you re able to start it with so much of the data reconciliation already behind you!

15 Accumulator Gross Verify-Procedure May be processed from the Verify step in the W-2 Wizard or by the AGV program directly. The only difference between the Wizard and the AGV program is that the Wizard will only compare the yearly records and not monthly records. To open the Accumulator Gross Verify program. Human Resources/Payroll > Payroll > W-2 and 1099-R Processing > Accumulator Gross Verify If you choose not to run this step because you have processed the Accumulator Gross Verify outside of the Wizard, you are ready to move to step 3.

16 Step 3: Create! Prepare to create W-2 records.. Once confirmed, select Yes.

17 Create cont. Dependent Care/Election Workers/Retirement Dependent Care Pay Type IRS Dependent Care Limit Do you need to report Election Workers? Do you need to flag W-2 records with a Retirement Plan based on active deductions?

18 Create cont. Match FIT Do you want to combine multiple employee records with the same SSN into one W-2? Does your state require the SIT gross match the FIT gross on the W-2? (created for NY) Does your state require the LIT gross match the FIT gross on the W-2? (created for NY) Does your state require the LIT code for that state to be one default value? (created for PA) Does your state require the LIT gross for that state be the same as the SIT Gross? (created for PA)

19 Create cont. Health/Savings Do you need to report Health Savings Account amounts from a cafeteria plan? Enter Box 14 descriptions as needed Do you need to report California State Disability Insurance? (created for California) Do you need to report Revenue Ruling earnings? (clients who report members of Indian Tribal Councils)

20 Create cont. W-2 records will be created using a FICA gross limit of (defaults from IRS Circular E doc/wise to double-check) W-2 records will be created using the employee s (preferred mailing address for W-2) Create W-2 Records (once created, screen displays number of W-2s created)

21 Step 4: Register The Register is a printed copy of your W-2 records. The Register should be printed in order to verify the data before W-2s are printed to avoid the need of reprinting W-2s. The recommendation is to print a Register before performing Employee W-2 changes, and then print a second Register when all Employee W-2 changes are complete. Keep the final copy of the W-2 Register for your records. Which subtotal method would you like to see in the report? Do you want the report to only contain employees that have paid into Medicare but not FICA? (choose yes for Medicare only- no for all employees)

22 Register cont. Employees to include in Register Edit the following ranges to determine which employees to include in the report. Define according to which employees you would like to pull. Define as shown above if you wish to include all employees.

23 Register Cont. Create Register Output W-2 Register Totals This option includes only grand totals. Output Detailed W-2 Register This option includes individual employee totals

24 Step 5: Adjust Adjust W-2 Records Maintain W-2 Records After reviewing the information on the W-2 Register and before the W-2s are printed, changes can be made on the employees individual W-2 records in the Employee W-2 program. However, keep in mind that while employees earnings and withholdings information can be updated using this program, Munis Support does recommend making all necessary changes to the employees accumulator records before W-2s are created. This program can also be used to verify that all Box 12 and Box 14 amounts are correct. The employees W-2 mailing addresses can be updated in this program as well; however changing the address information here will NOT change the employees information in the Employee Master.

25 After selecting Maintain W-2 Records, the Employee W-2 program will open. Header - Shows the employee s primary location and check location from Employee Master. Printed flag Will automatically become flagged once the W-2 record has been printed. Main tab Includes the totals for the employee gross and tax amounts for FIT, FICA, and Medicare. Also included are fields for Social Security Tips (box 7 on the W-2), Allocated Tips (box 8 on the W-2), Dependent Care (box 10 on the W-2) and Nonqualified Plan (box 11 on the W-2). The Box 13 Values section of the Main tab allows selection for: Retirement - This option is selected automatically for any employee who has deductions with W-2 Codes D, E, F, H, S or Y in the Deduction and Benefit Master. 3 rd Party Sick This option will not be automatically selected, however it can be manually set, or globally defined through the Mass Update option. Statutory Employee This option will not be automatically selected, however it can be manually set, or globally defined through the Mass Update option. SIT/LIT tab Includes the employee state and local gross, as well as state and local tax amounts. Box 12 tab Shows totals for W-2 Codes AA, BB, CC, C, D, DD, E, EE, F, G, H, J, L, M, N, P, Q, R, S, T, V and W. (The descriptions for the W-2 Codes can be found in Appendix A of this document.) Box 14 tab Shows totals for W-2 Codes 14V, 14W, 14X, 14Y and14z. State Specific tab Only used for the Maine state electronic file (MEWM). Address tab Shows the employee s address.

26 Step 6: Printing It is important to keep in mind, even if you are delivering W-2s electronically, this step of the wizard still must be completed. The reason being, it is the printing process that will initiate the distribution of the s and the archiving of the forms in Tyler Content Manager (TCM.) Employer Information Screen

27 Printing cont. Options Tab

28 Printing cont. Alignment Test Prior to printing the W-2s, it is recommended that an alignment print be done. By selecting the Alignment Test option, two W-2s, in the format of the defined W-2 Form Number, will show sample data. The alignment print must be printed on an actual W-2 form in order to verify that the alignment of the printed data is correct. Note: When Form TYLXML is defined an alignment test is not necessary, as they print to blank stock. Forms Definition The Forms Definition program is used to copy from the existing W-2 Master form layout to create a new form layout which can be updated to provide better alignment for the printing process. Original Munis forms (or Master forms) cannot be modified. Munis Support suggests users NEVER copy from a user modified version of the form (for instance, last year s modified W-2 form layout).

29 Printing cont. Employees to Include Employee Status This option provides three different ways to print employees. All Employees includes all employees in Employee W-2s. Active Only includes employees that have either an Active or Benefits Only status in the Employee Master. Inactive Only includes employees with an Inactive status in the Employee Master. Record Print Status The list indicates the records that print. Printing is determined by the value of the Printed check box in the employee W-2 program. There are 3 options available: UNPRINTED ONLY Prints only records for which the Printed check box is cleared. PRINTED ONLY Prints only records for which the Printed check box is selected. ALL RECORDS Prints all records regardless of whether the Printed check box is selected or cleared. Additional copies of W-2s may be printed, employee-by-employee, if needed.

30 Printing cont. Print W-2s Print W-2s Select the Print W-2s box then choose your designated W-2 printer. Print W-3 Select the Print W-3 box then choose your designated printer. Print W-3 Report Select the Print W-3 Report box then choose your desired output type.

31 Step 7: Electronic File This program is used to create the electronic files for Federal W-2s as well as states, counties, and municipalities. The file created by this program is located in the Munis spool directory. Once created, this file can be transferred to the applicable reporting agency.

32 Electronic File cont. Tabs Include. Employer Info Employer Contact Info Contact Info Transmitter Info Options Employees to Include Create Electronic File Once you are ready to create the file, select the Create Electronic File option. The file will then be automatically saved in your spool directory. The file path, as well as the file name, will be provided.

33 End of the Wizard

34 Additional Information If an employee has NOT filed their taxes AND your organization has NOT submitted the W-2 electronic file, changes and reprints of the W-2s can be made. HOWEVER, if the employee has already filed their taxes, OR your organization has already submitted the electronic file, you will need to use the W-2C programs to make any necessary changes. Therefore, it is recommended to file the electronic file close to the deadline, in case changes need to be made to employee W-2s, eliminating the need for W-2Cs. Information for electronically filing the W-2s can be found on the web at There is also AccuWage software available at this website to download to your PC and test your file for errors prior to submission. This software is only for verifying the Federal file.

35 Additional Information-IMPORTANT New filing due date for 2016 Forms W-2, W-3, and 1099-MISC. Both paper and electronically filed 2016 Forms W-2 and W-3 must be filed with the Social Security Administration (SSA) by: January 31, 2017 Both paper and electronically filed 2016 Form 1099-MISC must be filed with the IRS by January 31,

36 Additional Information-Reminder The Department of Employee Insurance no longer provides districts with the import file for employer cost of coverage. Modifications were made to the previous Munis insurance enrollment program as well as the KY Employee Benefits program that enables the employer cost information to be processed during each payroll. The information is now being pulled from employee accumulators when W2 forms are processed. Verify that your district is reporting the employer cost of insurance coverage for each employee in Box 12 of the W-2 with Code DD to identify the amount. The amount reported should include both the portion paid by the employer and the portion paid by the employee. Please verify this as soon as possible! If you have questions, please

37 Quiz Your Knowledge Please take out your smartphone, tablet or laptop. Go to: Go to the menu at the top right of the screen - drop down - and choose Student Login Type YORKCTE in the Room Name Then choose Join