FM Payroll Calendar Year-End Procedures

Transcription

1 FINANCE MANAGER FM Payroll Calendar Year-End Procedures 2013 Finance Manager

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3 Table of Contents Calendar Year-End Processing Checklist...1 Calendar Year-End Procedures...2 Common Errors...7 Commonly Asked Questions...8 Recording Payments for Non Cash Fringe Benefits...9 Recording Payments for Third Party Sick Pay...11 FM W2 Processing...12 FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 1

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5 Finance Manager: Payroll Calendar Year End Processing Checklist The following is a checklist of items to be completed at calendar year end. A more detailed version of this is provided in the step-by-step guide presented on the following pages. 1. Record any additional earnings from Non Cash Fringe Benefits and/or Third Party Sick Pay. 2. Complete the final Calendar Year payroll. 3. Run the W2 Detail Analysis report from the Diagnostic Report menu and make corrections as necessary. 4. Check that the W2 Box 12 Reportable flag is set properly for the appropriate benefits. 5. Process W2s (Cannot be done until ALL 2013 payroll information has been entered). 6. Clear out Calendar and Quarter totals (Must be done prior to calculating the first January payroll). 7. Update the Tax Withholding Tables as necessary (Must be done prior to calculating the first January payroll). 8. Complete the first January payroll. 9. Prepare 941 quarterly report for the quarter ended 12/ Prepare NYS Quarterly Report (NYS-45) and file. 11. Prepare the ERS report for the month of December. 12. Prepare the TRS report for the month of December. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 1

6 FM Payroll Calendar Year-End Procedures Calendar Year-End Procedures 1. Record any additional earnings from Non Cash Fringe Benefits and/or Third Party Sick Pay See sections entitled Recording Payments for Non Cash Fringe Benefits (Page 8) and Recording Payments for Third Party Sick Pay (Page 10). 2. Complete your final calendar year 2013 payroll. 3. Run the Diagnostic W2 Detail Analysis to check for potential W2 Problems (this report can be run at any time, even prior to year end). In FM PAYROLL, select Reports and then Diagnostic Report Menu. RUN W2 Detail Analysis 1. Enter the starting and ending employee name, employee number or employee social security number to include or leave blank for ALL employees. 2. Enter the starting and ending date of the calendar year, should be 01/01/13-12/31/ Choose No for Include Message if OK. 4. If you have any errors, please see the Common Errors section that follows. 5. Fix errors encountered in Step 4, or call for assistance. 4. Set the W2 Box 12 Reportable flag in HR Benefits Maintenance REMINDER: Starting with calendar year 2012, employers are required to report the total cost of the employee health insurance benefits on the W-2 form. The total cost is the portion paid by the employer and the portion paid by the employee. Since the reporting of employee dental and vision insurance benefits is optional on the W-2 form, FM Human Resources allows the user to flag which benefits are reportable in box 12 of the W-2 via the Benefits Maintenance routine. If you have been using the Benefit Entry window in FM Human Resources to record employee benefit costs, prior to creating the W2 History File, make sure the W2 Box 12 Reportable flag is properly set for those benefits that will be reported on the employee W2 form. Upon creation of the W-2 History file in Payroll, FM calculates the appropriate benefit cost, based on the employee benefit effective dates, and defaults the total cost in the Box 12 field with Code DD on the Edit W2 History File window. For more information, refer to, click on the Category entitled Important FM Updates, and the article W2 and Benefits Processing the W2s The following is a quick step method of preparing the W2s. A more thorough explanation of the W2 Processing area of FM follows in the section labeled FM W2 Processing Manual. In FM PAYROLL, select Utilities, Government Reporting Menu, W2 Processing Create the W2 History File 1. Verify that the Calendar Year selection is set to Make sure the Create W2 History File folder is selected. 3. Select to Create the History file for All or a Selected employee(s). 4. Click Run to Create W2 History File. 5. If an error list is generated, print out the error report so that it may be used as a reference later. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 2

7 FM Payroll Calendar Year-End Procedures Correct Any Errors Reported During History File Creation Note: While there is a modify W2 option, most errors should be corrected within the employee s check details by posting a check (a manual one if necessary) and leaving an audit trail of the correction. Once the check is posted, you must recreate the employees W2 History file so the W2 area will reflect any changes. For examples, see the Commonly Asked Questions section. Re-Create the W2 History File (See Create the W2 History File - above) This step is ONLY necessary if any additional payroll information (such as a check to correct an error) has been entered into FM Payroll for the calendar year being worked on after creating the W2 History File. You can recreate one employee or all employees. Export Benefit Total Cost Worksheet This step is ONLY necessary if you do NOT have benefit information linked to each employee record via the Personal folder in Human Resources Employee Information. This option allows you to export an employee worksheet and enter the total cost of the benefit. See the instructions for importing below. 1. On the W-2 Processing window, verify that the Calendar Year selection is set to Select the Create W2 History File folder to export the employee worksheet. 3. Click the Create Employee Worksheet button at the top of the window. 4. Enter the starting and ending dates of the calendar year. 5. Enter the local default path and file name. 6. Click OK. Click Yes, then click OK. 7. Click the My Computer icon on your desktop and find the path and name of the file just created. 8. Double click on the file to open it. 9. Enter the total cost of the benefit in column C. 10. Click Save; click Yes to keep the format; close the file, and click NO. Import Employee Benefit Data This step is used to import the benefit total cost entered on Employee Worksheet into the employee W2. 1. On the W-2 Processing window, click the Edit W2 History File folder to import the total benefit cost into the W2. 2. Click the Import Employee Data button at the top of the window. 3. Enter the starting and ending dates of the calendar year. 4. Enter the Local Default path and file name. 5. Click OK. 6. Click Yes at the confirmation prompt. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 3

8 FM Payroll Calendar Year-End Procedures Modify Employee W2 Information Note: Modifications made here WILL BE LOST if the History Files are created again! This option is typically used only when you had an employee move out of a city that collects tax. Otherwise, proceed directly to Print W2 Proof Totals! 1. Verify that the Calendar Year selection is set to Select the Edit W2 History File folder. 3. Select the employee to update. 4. Click the Edit button at the bottom of the window to enter the edit area. 5. Click the Update button Note: If updating the city as specified above, in the City area, type in the three letter city abbreviation (NYC for New York City or YON for Yonkers). Print W2 Proof Totals 1. Verify that the Calendar Year selection is set to Select the W2 Proof Listing folder. 3. Choose Detail for a report which lists detailed W2 information for employees in the W2 History File and the option to choose All employees or only those employees with errors. Choose Summary for a report with just the W2 Totals. 4. Click Run to run the report. 5. Include a FINAL Summary report with your file that is sent for W2 Processing. Print W2 / 941 Proof 1. Select the W2/941 Proof Summary folder 2. Enter the starting and ending dates, should be 01/01/13-12/31/13 3. Include this report with your file that is sent for W2 Processing Note: The Quarter totals from the W2/941 Proof should equal what was reported on your quarterly 941 and NYS-45 Reports for each quarter of the calendar year. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 4

9 FM Payroll Calendar Year-End Procedures Create W2 Export File 1. Insert a blank, formatted disk or CD into your computer (you may also export to your local hard drive and copy to a different media later) 2. Verify that the Calendar Year selection is set to Enter the path and filename (i.e., a:\fm13-w2.txt) into the Specify Path box 4. Click Run to create the export file 5. Make a copy of the finished disk (or CD) and store it in a secure location (either repeat steps 1-4 using another disk OR make a copy using your computer) 6. Send your disk (or CD) in to have your W2s processed. Note: The W2 export file CANNOT be created until any specified errors have been fixed. 6. Clear out your Calendar Year End Totals In FM Payroll, from the Utilities Menu select the Year-To-Date Utility Menu Run Clear Calendar Year to Date Amounts - This step MUST be done prior to calculating the first January payroll. Note: You will still be able to access your records to complete your retirement and quarterly payroll taxes after completing this step. 7. Update the Tax Tables with any changes as necessary In FM Payroll, to manually update the Tax Tables, from the Maintenance area of the menutree, choose Tax Tables to make appropriate changes. Otherwise, once finalized, Finance Manager will provide a utility to make this change. Note: Tax Tables MUST be updated prior to calculating the first January payroll! 8. Process and complete your first January 2014 payroll! Note: The following Steps 8-11 can be performed at any point after processing your final 2013 payroll (This can be BEFORE or AFTER running your first 2014 payroll). 9. Prepare your 4 th Quarter 941 Report While FM does not print the physical 941 form, there is a routine to create a worksheet that will assist with filling out the 941 report. This step can be done prior to or after clearing the quarter to date amounts and preparing January payrolls. From the Utility menu of FM Payroll, choose the Government Reporting Menu and choose the Print Federal 941 Worksheet routine. Key in the appropriate quarter start and end date; then click run. This will generate a report that will help you complete your 941 to be submitted to the Federal Government. Remember to submit your 941 report to the IRS by January 31 st. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 5

10 FM Payroll Calendar Year-End Procedures 10. Prepare the 4 th Quarter NYS-45 Report This step can be done prior to or after clearing the quarter to date amounts and preparing any January payrolls. From the Utility menu of FM Payroll, choose the Government Reporting Menu and choose the New York State Quarterly Report submenu. From here you can print a copy of what will be reported by FM by choosing the NYS-45 Report to Printer option and entering the appropriate quarter start and end dates. To create the file to submit to the state, run the NYS-45 Report to Diskette option with the appropriate quarter start and end dates. Remember to submit your file and NYS-45 form to the state by January 31 st. 11. Prepare the monthly ERS Report The usual procedures should be followed to prepare the monthly ERS report for December. This step can be done prior to or after clearing the quarter to date amounts and preparing January payrolls. From the Report menu of FM Payroll, go to Retirement Reports and choose the Monthly ERS Retirement submenu. Generate the report for the month ended December 31, make any necessary modifications, print a copy of the Report, and create the File to send to ERS. Any of these steps can be repeated, but make sure that the final copy of the report is printed and the final file created for ERS only AFTER ALL modifications have been made. Remember to submit the report/file to ERS by January 7 th. 12. Prepare the monthly TRS Report The usual procedures should be followed to prepare the monthly TRS report for December. This step can be done prior to or after clearing the quarter to date amounts and preparing December payrolls. From the Report menu of FM Payroll, go to Retirement Reports and choose the Monthly TRS Retirement submenu. Generate the report for the month beginning December 1, make any necessary modifications, print the TRS Report, and create the File to send to TRS. Any of these steps can be repeated, but make sure that the Excel Listing is saved and the final file created for TRS only AFTER ALL modifications have been made. Remember to submit the file to TRS by January 10 th. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 6

11 FM Payroll Calendar Year-End Procedures COMMON ERRORS NOTE: Employees with possible errors will appear on either the Diagnostic W2 Detail Analysis report and/or the error report created during the W2 History File creation. FICA WAGES are not correctly calculated. MEDI WAGES are not correctly calculated. FEDERAL WAGES do not balance out. STATE WAGES do not balance out. These errors indicate that wages differ from some basic rules. In general: The FICA Wages should equal Medicare Wages UNLESS the employee has hit the FICA Wage limit of $113,700 for 2013 The Medicare Wages plus the Flex deduction amounts should equal the gross payroll, UNLESS you have employees exempt from Medicare The State Wages plus Annuity (403b/457) total should equal the Medicare Wages The Federal Wages plus the Retirement (414h) total should equal the State Wages FICA Wages are over Annual Limit. The maximum FICA Wages for 2013 is $113,700. If any employee has FICA Wages over that amount, this error will occur. While Finance Manager enforces the FICA wage limit set within its tax tables, this error may occur if a manual check is posted incorrectly or sometimes when a new site is entering calendar YTD amounts that when added to the current YTD in Finance Manager, cause the total FICA wages to exceed the limit. This can be corrected by entering a check to reduce the FICA wage amount and refunding FICA overpayment. CITY Wages are not correctly calculated This error can occur if employee(s) moved into, or out of a city (ie, NYC or Yonkers) that collects city income tax. If you have had an employee move OUT of a city that collects income tax, you will need to enter the city on their W2 Info, after creating the W2 History File (see instructions for Processing W2s). Flags not properly set This message on the Diagnostic Detail Analysis report will specify which flag is not properly set (i.e., FLEX or ANNUITY) and indicates that the current exemption flags on a deduction code for the check specified on the report are not correct. In addition, this error can also occur if a deduction code somehow no longer exists for a deduction that is on the check specified. Previous versions of Finance Manager allowed the user to change the code which could cause this to happen. By simply adding the missing deduction code back into the deduction code table, the problem should be resolved. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 7

12 FM Payroll Calendar Year-End Procedures Commonly Asked Questions 1. FLEX amounts (Other than Dependent Care) are NOT typically printed on the W2s. This means that an employee s actual total gross may not be reflected on the W2 if the employee had a flex deduction. 2. Deductions for 414h and Tax Sheltered Annuity plans should only be refunded through payroll when refunding within the calendar year the contributions were originally taken in. Any refund for prior calendar year 414h contributions should be refunded through accounts payable and a 1099R issued. 3. Remember to enter all Non Cash benefits. This can be done on one of the employee s checks anytime during the year or on a manual check at the end of the year. 4. If you have a negative retirement, flex deduction or annuity, the instructions below can be used to assist in correcting your records a. Enter a manual check for the employee(s) affected b. Both the check date and the post date should be 12/31/13 c. The Gross should be zero, the Net is a negative amount equal to the negative deduction (Do not enter any earnings) d. On the Deductions folder, Add the deduction originally refunded with a positive amount for the amount that the deduction was negative for in the calendar year e. On the Tax folder, make any necessary adjustments to wages and/or withholdings f. Remember to POST the check from the Print Checks area g. Recreate the employees W2 in the W2 History File in the W2 Processing area h. If this negative amount is a result of a refund of 414H contributions from a prior calendar year (before January 2013), a 1099R should be issued for the amount not in the current calendar year. 5. Remember that all Voluntary Retirement Deductions for ERS/TRS Tier 1 and 2 members (i.e., TRS-VOL) should be set as Before Tax Deductions with NO Exemptions. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 8

13 Recording Payments for Non Cash Fringe Benefits What is a Non Cash Fringe Benefit? A Non Cash Fringe Benefit is a taxable fringe benefit where the employer makes payments towards the benefit on the behalf of an employee. For example: Group Term Life Insurance over $50, (Non Cash Life) or Use of Auto (Non Cash Auto) using the Commuting and/or Lease Value Rule. Summary: There are two possible ways to record non cash fringe benefits in FM: 1. Add the non cash amount to a regular check (RECOMMENDED). If the employee(s) are still due to be paid a regular check in the appropriate calendar year to which the non cash amount can be attached, the non cash amount can simply be added to the regular check. 2. Create a manual check to record the benefit. Since this method does not allow the district to withhold any necessary FICA/Medicare amounts it should only be used when the employee(s) are not being paid again before the end of the calendar year (i.e., if they have left employment). Attaching Non Cash Amounts to an employee s regular check When a regular check exists to be paid to an employee within the appropriate calendar year, record the Non Cash benefit as follows: In Additional Earnings, find the employee s check Add the Non Cash benefit amount as a Supplemental Earning using an earning code beginning with N/C (i.e., N/C Life or N/C Auto). Non Cash earnings should be charged to the account Non Cash since they are not district related expenses at this point, but rather when they were paid thru accounts payable. Note: Only earning codes beginning with N/C will be handled as Non Cash amounts by FM and not produce a net amount based on the N/C earnings. Calculate the payroll as normal. The Calculate routine will add the amount into the employees wages and withhold any additional amount of FICA and Medicare based on the Non Cash amount. Recording Non Cash Amounts for an employee who will not receive a Regular check (Should only be used when the employee has left) For an employee who will not receive a payroll check prior to the calendar year end, the following illustrates the way to record the Non Cash benefit. Enter a Manual Check dated and posted in the calendar year they should be reported in for the payments reported. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 9

14 Recording Payments for Non Cash Fringe Benefits The Net Pay amount should be 0.00 In the Earnings area, add a supplemental earning under the appropriate earning code (e.g., N/C Life or N/C Auto). Non Cash earnings should be charged to the account Non Cash since they are not district related expenses at this point, but rather when they were paid thru accounts payable. Note: Only earning codes beginning with N/C will be handled as Non Cash by FM and not produce a net amount for the N/C earnings. No deductions should be entered In the Tax area, any withholding amounts for Employee FICA and Employee Medicare amounts should be 0.00 since there are no other earnings to withhold against IMPORTANT NOTE: Since you are unable to collect the applicable Social Security and Medicare Taxes using this method, any Uncollected Social Security Tax will need to be reported with Code M in Box 12 of Form W-2 and the Uncollected Medicare Tax with Code N in box 12 of Form W-2. Since FM does not track uncollected amounts, they must be tracked manually and accounted for during the W2 print process so the W2s affected can be edited prior to printing. When you are finished entering these checks be sure to post them through the Post Check option in the Print Payroll Checks routine These manual checks (adjustments) will become part of what is reported on the NYS-45, W-2 Wage Statement, and the 941 Worksheet, along with any other year-end reports If payroll adjustments are needed for the FICA and Medicare Taxes related to the recording of these benefits, they must be reported on Form 941 Note: If you are not certain that the above referenced information relates to you or you have additional questions, please refer to Form 941 Instructions, IRS Publication 15-B: Employer s Tax Guide to Fringe Benefits (Supplemental to Circular E), OR consult your Tax Advisor or Auditors. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 10

15 Recording Payments for Third Party Sick Pay When do you record Third Party Sick Pay? If a third-party agent has made sick payments on behalf of your organization and is transferring the liability related to these payments to your school district or municipality, this liability requires you to add these sick payments to the employee s wages so they appear on their W2. Take the following steps to add Third-Party agent sick payments as wages on employees W2s: If there is not one already, add earning code called N/C Sick. To do this, proceed to the Earning Code maintenance table in FM Payroll to add the code. The earning code must start with N/C to designate the earning as non cash causing an increase in the employee s wages without actually adding to their Net Pay. For each employee reported by the third-party, enter a manual check dated and posted in the calendar year the payments should be reported in. You should get the information for the manual check (i.e., Name, Social Security #, Total Sick Pay, Federal Income Tax Withheld [if any], Employee Share of FICA Tax and Medicare Tax Withheld) from the sick-pay statement furnished by the third-party agent. Add the Federal, State, FICA and Medicare tax that was withheld from the sick payments. You will then enter this total as a negative amount in the Net Pay field. In the Earnings area, add a supplemental earning under the earning code N/C Sick for the total amount of sick pay. Non Cash earnings should be charged to the account Non Cash since they are not district related expenses being paid at this point. No deductions should be entered In the Tax area, enter any withholding amounts for Federal, State, Employee FICA, and Employee Medicare as positive amounts Note: If any payments are made that are not subject to FICA or Medicare tax withholding (i.e., those payments after 6 months absence from work), the FICA and Medicare Wages may need to be manually overridden to the correct amount. When you are done entering these checks be sure to post them through the Post Check option in the Print Payroll Checks routine These manual checks (adjustments) will appear on the NYS-45, W-2 Wage Statement, and the 941 Worksheet, along with any other year-end reports If payroll adjustments are needed for the FICA and Medicare Taxes related to the sick payments, they must be reported on Form 941 Note: If you are not certain that the above referenced information relates to you or you have additional questions, please refer to Form 941 Instructions, IRS Publication 15-A: Employer s Supplemental Tax Guide (Supplemental to Circular E), OR consult your Tax Advisor or Auditors. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 11

16 Preparing for W2 Processing Because employers are now required to report the total cost of the employee health insurance benefits but the reporting of employee dental and vision insurance benefits is optional on the W-2 form, FM Human Resources allows the user to flag which benefits are reportable in box 12 of the W-2 via the Benefits Maintenance routine. If you have been using the Benefit Entry window in FM Human Resources Employee Information to record employee benefit costs, this step must be completed BEFORE W2s are created in the W2 Processing routine. To set the W2 Box 12 Reportable Flags for Existing Benefit Records 1. In FM Human Resources, open the Maintenance menutree. 2. Open the Codes/Types menutree. 3. Double-click the Benefits option. 4. Highlight the appropriate benefit provider record in the browser. 5. Click Update in the maintenance toolbar at the top of the window. 6. Set the Reportable flag to Yes if the total cost of this benefit should be reported in Box 12, Code DD, on the employee W-2 form. Set the flag to No if the total cost of this benefit should not be reported on the W Click Save. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 12

17 W2 Processing The W2 Processing routine prepares the employee payroll information that is necessary for completing the W2s. The routine encompasses five steps: Creating W2 History File, Edit W2 History file, W2 Proof Listing, W2/941 Proof Summary, and Create W2 Export File used for W2 printing. To access the W2 Processing routine, select the W2 Processing option from the Government Reporting Menu on the Utilities drop-down menu or button in FM PAYROLL. The W2 Processing window is displayed. All W2 related routines can be accessed from this window. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 13

18 Create W2 History File To begin the W2 process, the W2 History file must be created. This process actually creates the W2 records to work with for the calendar year. To create these records, follow the following steps: 1. Select the Create W2 History File folder. 2. Select the calendar year for which you want to process the W2 information. Use the drop-down menu to select the appropriate processing year. 3. Choose whether to Create the W2 File for All employees or for a specific employee. 4. Click Run to generate the W2 history file for the year selected. If the system finds errors, the following error message is displayed: If you would not like to see the errors at this time, select No. If you would like to review the errors found, select Yes. From the Report Output window, select the desired reporting option. A sample error report is shown below. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 14

19 Export Benefit Total Cost Worksheet This step is ONLY necessary if you do NOT have benefit information linked to each employee record via the Personal folder in Human Resources Employee Information. This option allows you to export an employee worksheet and enter the total cost of the benefit. After the worksheet has been completed, the data may be imported into the W2. 1. On the W-2 Processing screen, verify that the Calendar Year selection is set to Select the Create W2 History File folder to export the employee worksheet. 3. Click the Create Employee Worksheet button at the top of the window. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 15

20 4. Enter the starting and ending dates of the calendar year. 5. Enter the local default path and file name. 6. Click OK. Click Yes, then click OK. 7. Click the My Computer icon on your desktop and find the path and name of the file just created. 8. Double click on the file to open it. 9. Enter the total cost of the benefit in column C. 10. Click Save; click Yes to keep the format; close the file, and click NO. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 16

21 Import Employee Benefit Data This step is used to import the benefit total cost entered on Employee Worksheet into the employee W2. 1. On the W-2 Processing window, click the Edit W2 History File folder to import the total benefit cost into the W2. 2. Click the Import Employee Data button at the top of the window. The Medical Insurance Import Process window displays. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 17

22 3. Enter the starting and ending dates of the calendar year. 4. Enter the Local Default path and file name. 5. Click OK. 6. Click Yes at the confirmation prompt. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 18

23 Edit W2 History File To edit the W2 history file that you just created, select the Edit W2 History File folder. A listing of employees displays in the browser on the right-hand side of the window. Employee W2 Browser The Employee W2 browser displays the following information: Employee Name, Employee Number, Social Security Number, and W2 Processing Year. To change the manner in which information is displayed in the browser, simply click once on the column title (Name, Employee, SSN, Year). The column title is highlighted in yellow to indicate the selected sort option. To reverse the order, that is to sort in numerical descending order or in reverse alphabetical order, click on the column title a second time. Use the Search button to search based on the current column sorted. Drop-Down Menus The following drop-down menus are displayed on the window: File Navigation Help Provides access to options that allow you to add and maintain W2 record information. Provides access to the First, Previous, Next, and Last options that allow you to locate specific records in the browser. Provides access to the Help Files. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 19

24 The navigation options can be accessed through the buttons on the top right-hand side of the window or through the Navigation drop-down menu. Navigation Buttons First Previous Next Last Function Used to highlight the first record in the browser. Used to highlight the previous record in the browser. For example, if there are five records in the browser and your cursor is highlighting the third record, select the Previous button to highlight the previous (second) record. Used to highlight the next record in the browser. For example, if there are five records in the browser and your cursor is highlighting the third record, select the Next button to highlight the next (fourth) record. Used to highlight the last record in the browser. To Edit the W2 History File for a Selected Employee: 1. Select the employee in the browser whose W2 record you wish to edit. 2. Press the Edit button at the bottom right-hand side of the window to view the employee W2 information. The following window is displayed: Use this window to update the W2 record. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 20

25 To Update the W2 Record: 1. Click Update or select the Update Record option from the File drop-down menu. 2. Modify the W2 information as needed. Box 12 Codes and Explanations**: Code C Taxable benefit of group term-life insurance over $50,000. Code E Non-taxable elective salary deferrals to a 403(b) retirement plan. Code G Non-taxable elective salary deferrals and non-elective employer contributions to a 457(b) retirement plan. Code M Uncollected Social Security (FICA) tax on taxable group term life insurance over $50,000 for former employees. Code N Uncollected Medicare tax on taxable group term life insurance over $50,000 for former employees. Code Q Non-taxable combat pay. Code BB After-tax contributions to a Roth 403(b) retirement plan. Code DD - Reports the cost of health insurance provided through your employer. Code EE - After-tax contributions to a Roth 457(b) retirement plan offered by your employer. ** Any amounts linked to these codes will be carried over into the YES software. 3. Click Save. Then click <Back. NOTE: Be aware that an employee can have more than one W2 if the employee has more than four different benefits being reported in box 12. The Seq indicator at the top of the window shows whether an employee has more than one W2. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 21

26 W2 Proof Listing The W2 Proof Listing lists, in detail or summary, the taxable withholding totals for all employees for the selected calendar year. To generate the W2 Proof Listing, select the W2 Proof Listing folder. The below window displays: To Generate the W2 Proof Listing: 1. Use the drop-down menu to select the calendar year for which to process the W2 information. 2. Indicate whether to print a Detail or Summary report. The Detail Report provides information for each individual employee. The Summary Report simply provides grand totals for the employees. 3. If you choose Detail, indicate whether or not to only see the report for those employee records with errors in them. 4. Click Run. From the Report Output window, select the desired reporting option. Sample reports are shown on the following pages. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 22

27 Detail W2 Proof Listing FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 23

28 Summary W2 Proof Listing FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 24

29 W2 / 941 Proof Summary The W2 / 941 Proof Summary provides a breakdown by quarter of the totals for all employees for the selected calendar year and reporting period. To generate the W2 / 941 Proof Summary Report, select the W2 / 941 Proof Summary folder. The below window displays: To Generate the W2/941 Proof Summary: 1. Use the drop-down arrow to select the calendar year for which to process the W2 information. 2. Indicate the starting and ending date of the period for which the report is being run. 3. Click Run. From the Report Output window, select the desired reporting option. A sample report is shown on the following page. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 25

30 FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 26

31 Create W2 Export File To create the W2 export file for printing, select the Create W2 Export File folder. The following window displays: To Generate the W2 Export File: 1. Use the drop-down arrow to select the calendar year for which to process the W2 information. 2. Be sure to have a new disk (or CD) in your drive to copy the export file to. 3. Press the Update Header button if you need to update the EIN, address, and/or State ID. Click <Done to return to the processing screen. 4. Indicate the path and name of the W2 export file. Be sure to copy the file to a disk (or CD) and export the default file name (FM13-W2.txt). 5. Click Run. * You are ready to have your W2s printed. Make a copy of the disk (or CD) containing the W2 export file in the step above for your own records and then ship the original disk to the appropriate person or entity that will be printing your W2s. FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 27

32 Copyright FINANCE MANAGER. All rights reserved. No part of this material protected by this copyright may be reproduced or utilized in any form or by any means, electrical or mechanical without written permission from FINANCE MANAGER. FINANCE MANAGER, the FINANCE MANAGER Series, ACCOUNTING MANAGER, BUDGET MANAGER, NEGOTIATIONS MANAGER, HUMAN RESOURCES MANAGER, PAYROLL MANAGER, RECEIVABLES MANAGER and REQUISITION MANAGER are registered trademarks of FINANCE MANAGER, All Rights Reserved. FINANCE MANAGER is written in PROGRESS, a fourth-generation relational database management system. PROGRESS is a registered trademark of Progress Software Corporation. Microsoft Office and Microsoft Excel are registered trademarks of Microsoft Corporation FM Version 3 Copyright FINANCE MANAGER. All rights reserved. 28