IMPORTANT INFORMATION

Accounting CS, v. 2017.3.x User Bulletin 8504: Payroll Year-End Processing FAQs October 24, 2017 TO Users of Accounting CS CONTENTS IMPORTANT INFORMATION... 1 W-2 PROCESSING... 2 W-3 PROCESSING... 4 1099 PROCESSING... 4 1095-C PROCESSING... 6 1094-C PROCESSING... 7 ELECTRONIC FILING OF W-2, 1099, and 1095-C FORMS... 7 ALIGNING YOUR W-2 AND 1099 FORMS... 9 FORM 94x PROCESSING... 10 HELP & SUPPORT... 10 IMPORTANT INFORMATION Federal/state/local forms and tax tables are released with Accounting CS updates via CS Connect. We recommend that you periodically check for application updates, and take advantage of the following resources, to determine when the forms and tax tables will be available. The Notices portlet and the Payroll Form and Filing Information portlet on the Home dashboard inform you when application updates are available. The Payroll Form and Filing Information portlet also provides the following information: form approval status, form availability, available filing methods, form due dates, form filing addresses, tax payment information (for all tax types), agency contact information, new hire reporting information, payroll resources, and tax calendar to view and print tax deposit due dates and form due dates for all federal and state tax agents and certain local tax agents. Click the applicable jurisdiction on the map to display the federal, state, and local tax form information within the tabbed pages in the lower section of the portlet. Note: For information on working with dashboard portlets, enter Portlets in the search field on the Accounting CS toolbar. You can receive email notification of application updates by signing up for our Email Subscriptions Service. To sign up for the service, visit the My Account page of our website at CS.ThomsonReuters.com. Note: A year-end processing tips help topic is available. Enter Payroll year-end processing tips in the search field on the Accounting CS toolbar. UB 8504 1

W-2 PROCESSING Which reports should I run to verify employee information prior to processing W-2s? Employee List Detailed. To verify that employee personal information is up to date, mark the Personal Information checkbox in the Regions to Include section. Payroll Tax Summary Detailed. To verify taxable wage and tax withholding information, select Current year (or Prior year, if applicable) as the period to process in the Date section. Employee Earnings. To identify missing, duplicated, or invalid W-2 information, mark the Missing/Invalid W-2 information checkbox in the Regions to Include section. W-2 Verification report. Use this report to verify W-2 information by box number for all or selected employees. How do I process W-2s? 1. Choose Actions > Process Payroll Tax Forms. 2. Select W-2 from the drop-down list in the Form type field, select the form year, and then click the Refresh button. Note that you can filter the number of clients listed in the Form Selection section by using the filters in the Filter options section. 3. For each client in the Form Selection section, mark the checkbox for the form types to print. For step-by-step information about how to process W-2 forms, see the Form W-2 processing workflow. How can I process W-2 forms for only a few employees? 1. Choose Actions > Edit Payroll Tax Forms. 2. Select W-2 from the drop-down list in the Form type field, select the form year, and then click the Refresh button. 3. In the Employee Data tab, mark the checkboxes for only the employees for whom you want to process W-2 forms. You can right-click to select or deselect all employees. 4. Click the Process Client Forms button at the top of the screen or choose File > Process Client Forms. 5. In the Process Client W-2 Forms dialog, specify the number of copies, the filing methods, and the print options for the forms and then click the Process Selected button. The amounts on an employee s W-2 are incorrect. Why? Try the following suggestions to determine why the amounts are incorrect. Print the Employee Earnings report and Payroll Tax Summary Detailed report to verify that earnings are correct for the employee. Print the Payroll Journal Detailed report using the filtering fields in the Payroll tab of the Print Reports screen to look for voided, deleted, or reversed payroll checks. Make sure that none of the employees have a check that was voided, deleted, or reversed after they reached a tax limit, such as for FICA-SS. Check to see if there are overridden amounts from the previous year that need to be cleared in the Employee Data tab of the Actions > Edit Payroll Tax Forms screen. How do I correct the amounts on an employee s W-2 form? You may need to do one or more of the following: Edit the employee s year-end taxable wages in the Adjust Taxable Wages dialog (accessed by clicking the link in the Payroll Taxes tab of the Setup > Employees screen). Override the information in the Employee Data tab or Client Data tab of the Actions > Edit Payroll Tax Forms screen. Verify that W-2 box information for the employee s payroll items is set up correctly in the Main tab of the Employee Payroll Item Settings dialog (accessed by clicking the Ellipsis button for an item in the Payroll Items tab of the Setup > Employees screen). UB 8504 2

How do I set up a client for W-2 processing only? You can set up employees for W-2 processing in either of two ways after the client and employee records have been added. Enter year-to-date checks for the employees in the Actions > Enter Transactions screen or the Actions > Enter Batch Handwritten Payroll Checks screen. Select W-2 as the form type in the Actions > Edit Payroll tax Forms screen, and then manually enter earnings amounts for the employees in the Employee Data tab. Which W-2 copies can I preview on the screen before printing? You can preview all available copies except Copy D and Copy D Summary. Why does the application print two copies of a W-2 for my employee? This can occur in the following situations. The employee has either two state withholdings and a local withholding or two local withholdings and a state withholding and you are using the 4-up W-2 for the employee s copy. The application prints a second W-2 so that the employee will have enough copies to distribute to all taxing agencies when they file their tax returns. The application prints additional W-2 copies when there are more Box 12 and Box 14 entries than can fit on a single form. The application is printing a description and/or an amount in Box 14 of the W-2. Why is this happening? Here are some things to check if this happens. Choose Setup > Payroll Items and ensure that the appropriate payroll items are selected for Box 14 for the payroll item that is listed incorrectly. Choose Setup > Employees, click the Personal tab, and then click the Other W-2 Items button, and look for entries in the W-2 Box 14 Items grid. Open the Payroll Taxes tab in the Setup > Clients screen and look for entries in the Box 14 column within the Taxes section. I made changes to a form layout, but I don t want to keep those changes. How can I go back to the default layout? To go back to the default form layout, choose File > Layout Designer, open the modified layout, and then choose File > Restore Default. I have added some variables to my W-2, but that information is not showing when I print. Why not? If you added a variable or changed something in the layout, be sure that you have also changed each copy of the layout. For example, if you added a Box 14 variable to the W-2 Copy A layout, you also need to add that variable to every other W-2 layout listed for that year to have the change affect all copies of the form. In addition, make sure you did not add text variables and then attempt to print using the preprinted paper form options. By design, the preprinted filing method suppresses all text variables. A Social Security number is set up for an employee, but the application is printing Applied For on the W-2 form. Why? The IRS specifies that individual taxpayer identification numbers (ITINs) should not be used on Form W-2. ITINs begin with the number 9 and the fourth and fifth digits are in the range 70-88, 90-92, or 94-99.. When the application identifies an SSN as an ITIN, it automatically prints Applied For in Box A of the Form W-2 and uses all zeroes in the internet file. Why doesn t the local withholding information align with its corresponding state? The application does not necessarily print the localities with their associated state. The application accumulates localities in the order in which they are encountered during the processing of employee information. UB 8504 3

Why does a 2-D barcode appear on the W-2 form? The application prints a 2-D barcode on Copy C of the W-2 form so that wage data can be scanned directly into UltraTax/1040 using the UltraTax CS Bar Code Scan utility. This scanning utility is automatically installed with UltraTax CS and runs independently from UltraTax CS. In addition, as of the 2010 tax year, all Copy A and W-3 forms contain a 2-D barcode conforming to the Social Security Administration (SSA) specifications. However, if you want to exclude the 2-D barcode from the forms to improve the processing speed or to conserve print toner, you can mark the Exclude 2-D barcodes on Forms W-2/W-3 checkbox in the W-2 Print Options dialog. How do I print Form W-2G? In the Actions > Process Payroll Tax Forms screen, select 1099 in the Form type field and select W-2G from the 1099 type field. How do I print filing instructions on the back of Form W-2 employee copies? To enable duplex printing of IRS instructions for employee W-2 forms, choose Setup > Firm Information > Firm, click the Preferences tab, and then mark the Duplex printing of IRS instructions for employee W-2s checkbox in the Payroll Tax Forms section. W-3 PROCESSING Why is there an X in Box 15 of my W-3 form? The X in Box 15 indicates that wages are being reported for more than one state. My Form W-3 amounts in Box 16 and Box 18 are overstated. Why? Per IRS instructions, the application combines state and local wages for any client with employees who are set up in more than one state or locality and reports a single sum in the appropriate box. For example, if there were $2,000.00 in Local1 taxable wages and $500.00 in Local2 taxable wages, Box 18 should show a total of $2,500.00 in wages. 1099 PROCESSING Which 1099 forms can I print? You can print the following 1099 forms and the corresponding 1096 form. 1098 1099-MISC 1098-C W-2G 1098-E 1099-OID 1099-T 1099-PATR 1099-A 1099-R 1099-B 1099-S 1099-C 1099-SA 1099-DIV 5498 1099-G 5498-SA 1099-INT UB 8504 4

How do I process 1099 forms? 1. Choose Actions > Process Payroll Tax Forms. 2. Select 1099 from the drop-down list in the Form type field, select the applicable 1099 type from the 1099 type field, and then select the year. 3. Click the Refresh button to populate the Form Selection section. Note that you can filter the number of clients listed in the Form Selection section by using the filter options. 4. For each client, mark the checkbox for the forms you want to include. For step-by-step information about how to process W-2 forms, see the Form 1099 processing workflow. How do I process 1099 forms for only a few employees? 1. Choose Actions > Edit Payroll Tax Forms. 2. Select 1099 from the drop-down list in the Form type field, select the applicable 1099 type from the 1099 type field, select the year, and then click the Refresh button. 3. In the Recipient Data tab, mark the checkboxes for only the employees for whom you want to process 1099 forms, and then click the Process Client Forms button at the top of the screen or choose File > Process Client Forms. 4. In the Process Client 1099 Forms dialog, specify the number of copies, filing methods, and print options for the forms and then click the Process Selected button. How do I prepare a 1099 form for a recipient after the fact, without affecting my General Ledger? 1. Choose Setup > Vendors and choose 1099 Recipient in the Type field. Then, select a 1099 form and box on the 1099 Properties tab. 2. Choose Actions > Edit Payroll Tax Forms. 3. Select 1099 from the drop-down list in the Form type field, select the applicable 1099 type from the 1099 type field, select the year, and then click the Refresh button. 4. In the Recipient Data tab, mark the checkbox for the vendor, and then enter information in the grid. 5. Process 1099 forms as usual I ve been entering transactions for a 1099 vendor all year. Why aren t those amounts displaying on the 1099 form? 1. Choose Actions > Enter Transactions. 2. Locate the transactions for this vendor, and in the Distributions tab, verify that there is a 1099 form and box selected in the 1099 column. How do I set up an employee record to print a 1099? The application supports the printing of only 1099-MISC forms with Box 7 for non-employee compensation type employees. To print Form 1099-MISC for an employee, follow these steps. 1. Choose Setup > Payroll Items and set up a Nonemployee compensation type pay item. 2. Choose Setup > Employees and add an employee with Independent Contractor selected in the Type field. This makes nonemployee compensation pay items available for selection for this employee in the Setup > Employees > Payroll Items tab and makes the employee available for 1099 processing. Why don t I have the option to print the black-and-white Copy A or 1096 during 1099 processing? The red scannable forms are still required. Because the IRS did not release specifications to produce black-and-white facsimile Copy A or 1096 forms, we cannot offer this print option. UB 8504 5

1095-C PROCESSING How do I process 1095-Cs? 1. Choose Actions > Process Payroll Tax Forms. 2. Select 1095-C from the drop-down list in the Form type field, select the form year, and then click the Refresh button. Note that you can filter the number of clients listed in the Form Selection section by using the filters in the Filter options section. 3. For each client in the Form Selection section, mark the checkbox for the form types to print. For more information, see Processing 1094-C and 1095-C forms. I have entered all of my employees 1095-C data in the Setup > Employees screen, but I am not seeing my client listed in the Actions > Process Payroll Tax Forms screen when 1095-C is selected as the form type. Due to the specific filing requirements of Form 1095-C where only those clients that fall into the Applicable Large Employer (ALE) category are required to file the forms, by default the Federal 1095-C forms are marked as Do not file in the Setup > Clients > Payroll Taxes screen. In order to be able to process the 1095-C forms on a client and make that client available in the Process Payroll Tax Forms screen, go to Setup > Clients > Payroll Taxes and unmark the Do not file checkbox on the applicable forms in the Federal 1095-C form section. How can I process 1095-C forms for only a few employees? 1. Choose Actions > Edit Payroll Tax Forms. 2. Select 1095-C from the drop-down list in the Form type field, select the form year, and then click the Refresh button. 3. In the Employee Data tab, mark the checkboxes for only the employees for whom you want to process 1095-C forms and then click the Process Client Forms button at the top of the screen or choose File > Process Client Forms. 4. In the Process Client 1095-C Forms dialog, specify the number of copies, the filing methods, and the print options for the forms and then click the Process Selected button. How do I correct the amounts on an employee s 1095-C form? You may need to do either or both of the following: Edit the employee s Part II and/or Part III information using the Part II: Offer and Coverage and Part III: Self-Insured dialogs (accessed by clicking the dialog buttons in the Personal tab of the Setup > Employees screen). Edit the information in the Employee Data tab or Client Data tab of the Actions > Edit Payroll Tax Forms screen. Why doesn t my 1095-C form display all of the data that I entered for my employee? The 1095-C form within the application prevents the reporting of certain data entry combinations that Affordable Care Act regulations have deemed invalid. For example, in the 1095-C Part III: Self-Insured dialog, if you enter Box 14 codes in the individual month fields and in the All 12 Months field, the application displays the data only in the All 12 Months field on Form 1095-C. Please review the Form 1095-C instructions that are published on the IRS website (www.irs.gov) for further information on how to correctly report Box 14, 15, and 16 information. I made changes to a form layout, but I don t want to keep those changes. How can I go back to the default layout? To go back to the default form layout, choose File > Layout Designer, open the modified layout, and then choose File > Restore Default. UB 8504 6

1094-C PROCESSING How do I enter the data for the ALE Member Information Monthly that is needed to complete Part III of Form 1094-C? 1. Choose Actions > Edit Payroll Tax Forms. 2. Select 1095-C from the drop-down list in the Form type field, select the form year, and then click the Refresh button. 3. In the Client Data tab, mark the checkboxes in the Minimum Essential Coverage column and/or select the appropriate codes in the 4980H Transition Relief Indicator column in the specific month rows or in the All 12 Months row. Note: The application calculates the totals in the Full-Time Employee Count and Total Employee Count columns based on information in the Average Full-Time Employees Worksheet report, but you can override these totals in the Client Data tab. ELECTRONIC FILING OF W-2, 1099, and 1095-C FORMS Does the application support electronic filing of W-2s? The application enables you to create the W-2 file to upload to the Social Security Administration. In the Actions > Process Payroll Tax Forms screen, change the filing method for the Copy A to Internet and then click the Process Selected button to add your client s data to a batch file. You can verify the contents of the file from the Actions > Process Internet/Magnetic Files screen by selecting the appropriate file and clicking the Preview Selected button. Click the Create Files button to create the file and store it in the file location listed at the bottom of the screen. You can then complete the filing process by uploading the file via the Social Security Administration's Business Services Online website at www.ssa.gov/bso/bsowelcome.htm. For information about filing options for the W-2 Copy A, please visit the Social Security Administration website at www.ssa.gov/employer/. If you encounter errors while trying to use the SSA software, please contact the SSA for support. Notes To determine whether you must enroll or register to file electronically, please visit the SSA website. The SSA no longer accepts file submissions via diskette. Please visit the SSA website to see other options available for submitting W-2 files. Which file format does the application use for W-2 forms? The application uses the EFW2 file format per SSA requirements. For instructions on how to create these files, enter W-2 form setup and processing in the search field on the Accounting CS toolbar. I have created my W-2 file. Is there anything else that I should do prior to sending my file to SSA? We recommend that you verify that the data in your file is acceptable by using the SSA AccuWage application. You can download that software for free by pointing your internet browser to www.ssa.gov/employer/accuwage/. Can I process W-2 files for specific states? The application can create W-2 files for all states that allow for them. In the Actions > Process Payroll Tax Forms screen, each state and/or locality that requires a Copy 1 is listed separately for each client. For each Copy 1, select the appropriate filing method, and then click the Process Selected button. Refer to the Payroll Form and Filing Information portlet on the Home dashboard for information about specific state and local payroll tax forms. UB 8504 7

How can I create a W-2 internet file that contains only a single client s information? First, process the W-2 form for a single client in the Actions > Process Payroll Tax Forms screen. Then, create the Internet file in the Actions > Process Internet/Magnetic Files screen. Repeat these steps for each client for whom you want to create a separate file. If you are prompted to either append to an existing file or to create a new one, choose to create a new file. If I make changes to employee information after I create the W-2 internet file, is the file automatically updated? No, you will need to reprocess the W-2 forms in the Actions > Process Payroll Tax Forms screen for that client. If you are prompted to overwrite the existing file, do so. You can then access the updated file in the Manage Files dialog, accessed from the Actions > Process Internet/Magnetic Files screen. Does the application support electronic filing of 1099s? The IRS electronic filing program, Filing Information Returns Electronically (FIRE), enables you to upload a 1099 file to the IRS. In the Actions > Process Payroll Tax Forms screen, change the filing method for the Copy A to Internet and then click the Process Selected button to add your client s data to a batch file. You can verify the contents of your file from the Actions > Process Internet/Magnetic Files screen by selecting the appropriate file and clicking the Preview Selected button. Click the Create Files button to create the file and store it in the file location listed at the bottom of the screen. You can then complete the filing process by uploading the file via the IRS FIRE program. For information about electronic filing of 1099s or to determine whether you must enroll or register to file electronically, visit the IRS website at https://www.irs.gov/tax-professionals/e-file-providers-&- Partners/Filing-Information-Returns-Electronically-(FIRE). If you have problems with or questions about sending the file using the IRS FIRE program, please contact the IRS. Does the application support electronic filing of 1095-Cs? The IRS electronic filing program, Affordable Care Act Information Returns (AIR), enables you to upload a 1095-C file to the IRS. In the Actions > Process Payroll Tax Forms screen, change the filing method for the Agency Copy to Internet and then click the Process Selected button to add your client s data to a batch file. You can verify the contents of your file from the Actions > Process Internet/Magnetic Files screen by selecting the appropriate file and clicking the Preview Selected button. Click the Create Files button to create the file and store it in the file location listed at the bottom of the screen. You can then complete the filing process by uploading the file via the IRS Affordable Care Act Information Returns (AIR) program. For information about electronic filing of 1095-Cs or to determine whether you must enroll or register to file electronically, visit the Affordable Care Act Information Returns (AIR) Program page of the IRS website. If you have problems with or questions about sending the file using the IRS AIR program, please contact the IRS. For more information about processing 1095-Cs, including instructions for creating a test file, see Processing 1094-C and 1095-C forms. Why is the Transmit Forms button (in the Actions > Process Electronic Forms screen) and/or the Create Files button (in the Actions > Process Internet/Magnetic Files screen) grayed out? When the Require electronic form transmission from file preview checkbox and/or the Require internet/magnetic file creation from file preview checkbox is marked in the Preferences tab of the Setup > Firm Information > Firm screen, you will need to preview the forms/files to transmit/create them. UB 8504 8

ALIGNING YOUR W-2 AND 1099 FORMS When I print Form 1099-MISC Copy A, it doesn t align with my preprinted form. How can I adjust the forms to align correctly? To adjust the alignment of Form 1099-MISC Copy A, you need to perform the following steps. 1. Choose File > Layout Designer. 2. In the Layout Designer, click the plus sign next to the 1099 Forms folder to expand it, and then expand the folder for the specific year. 3. Double-click the 1099MISa layout to open it. 4. To adjust the alignment of the entire form, choose Edit > Select All (or press CTRL+A on your keyboard) and then use the directional arrows on your keyboard to adjust the document as needed. To adjust the alignment of an individual field, click inside the field and then use the directional arrows on your keyboard to move the field to the desired location. 5. Choose File >Save to save your changes. Note: 1099MIS represents the name of the form and a represents the copy of the form. This change will affect only Copy A. If you want to adjust the alignment for the other copies you are printing, you need to make adjustments to those copies also for example, to 1099MISb or 1099MISc, etc. If you need to undo your modifications on the 1099 form and return to the initial default form, choose File > Restore Default when the form is displayed. The alignment modifications I made to my W-2s or W-2Cs in the Layout Designer are not printing on my form. Why not? Perhaps you did not save your changes using the File > Save command within the Layout Designer, or perhaps you modified the wrong form. Please refer to the following table for the Layout Designer file names and their corresponding forms. File name W2 W2AFAC W2COPY1 W2COPYA W2COPYBC W2COPYB2C W2COPYD W2Ss W3 W3fac W2cAFAC W2cCOPY1 W2cCOPYB W-2 or W-2c Copy 4-up Copy B/C Blank Perforated and Blank Unperforated Copy A Blank Unperforated Copy 1 Blank Perforated and Blank Unperforated Copy A Preprinted 2-up Copy B/C Blank Perforated and Blank Unperforated 3-up Copy B/2/C Blank Perforated and Blank Unperforated Copy D Blank Perforated, and Blank Unperforated 4-up Pressure Seal W-3 Preprinted W-3 Blank Unperforated Corrected Copy A Blank Corrected Copy 1 Blank Corrected Copy B Blank W2cCOPYC W2cCOPYD Corrected Copy C Blank Corrected Copy D Blank UB 8504 9

FORM 94x PROCESSING Which 94x forms are available for e-filing? The application currently enables you to e-file Forms 940, 941/944, 943, and 945. For more information, search on E-filing 94x forms overview in the search field on the Accounting CS toolbar. HELP & SUPPORT Help & How-To Center For answers to questions on using Accounting CS, access the Help & How-To Center by choosing Help > Help & How-To, by clicking the button on the toolbar, or by pressing CTRL+Y. You can also use the search field on the toolbar to search for topics. For more information, including sample searches, see Finding answers in the Help & How-To Center. Product support From the Support Contact Information page on our website, you can complete a form to send a question to our Support team. To speak directly with a Support Representative, call 800.968.0600 and follow the prompts. Normal weekday support is available from 9:00 a.m. to 8:00 p.m. eastern time. For additional details (including extended support hours for tax season and hours for other applications), visit the Support section of our website. You can also access the Support section from within Accounting CS by choosing Help > Additional Resources > General Support Information. Website resources and email subscriptions Visit our website to access the Tax & Accounting Community (formerly ARNE), to learn about training courses, to view blogs and articles, and more. You can access the website from within Accounting CS by choosing Help > On the Web > CS Professional Suite Home Page. We issue application update notices via email. You can sign up to receive these notices by visiting the My Account section of our website. You ll need to create a web account (if you don t already have one) and then sign up for the Email Subscription service where you can indicate which notices you want to receive. Accounting CS Ideas Community The Accounting CS Ideas Community is a forum in which you can share ideas with other users and provide feedback and suggestions to our development team. Through the forum, you can also upload and share customized reports, financial statements, letters, or check layouts that might be helpful to other firms. The enhancements that have been implemented based on customer suggestions voiced in the community are highlighted on the User Bulletin. For more information on accessing and participating in the community, see Ideas Community. UB 8504 10