N0vember 29, 2016 Presenter: Don Hemwall Q & A: Mike Smith 1 - - PowerPoint PPT Presentation

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N0vember 29, 2016 Presenter: Don Hemwall Q & A: Mike Smith 1 2 W2 Processing Release Overview The W2 software updated annually. Software for 2016 is designated as TX16. 3 Changes for 2016 W2 Tax Year Reporting General Overview

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N0vember 29, 2016 Presenter: Don Hemwall Q & A: Mike Smith

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W2 Processing Release Overview

 The W2 software updated annually.  Software for 2016 is designated as TX16.

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Changes for 2016 W2 Tax Year Reporting General Overview

 W2 Changes for 2016 – Electronic submission is due

January 31, 2017 as opposed to March 31 in past years.

 Cost of Employer-sponsored Health Coverage

reporting still required for 2016 reporting. This was implemented in Tax Year 2012.

 Coverage total is reported in Box 12, Code DD on W2.

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How W2 Processing Works

 W2 information comes from two sources: Payroll records

in PERPAY (personnel and payroll) d/b and Travel Claims in A/P system.

 W2 information is extracted from those two sources and

combined into one consolidated file.

 W2 Media file is transmitted to the Social Security

Administration (SSA).

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W2/1099 Processing Branch

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2016 W2 Processing Menu

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2016 W2 Task List (Part 1)

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2016 W2 Task List (Part 2)

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W2 Task Flowchart

 For another way of looking at the process, the same

tasks are presented in the following flowchart.

 Tasks to be performed by technical staff are indicated by the

letter ‘T’.

 Tasks to be performed by payroll staff are indicated by the

letters ‘PR’.

 Tasks to be performed by Account Payable staff are indicated

by the letter “T”.

 More suitable visual tool for technical staff.

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W2 Processing Task Flowchart

T denotes Technical Staff, PR denotes Payroll Staff, AP denotes Accounts Payable Staff

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Sources of W2 Calculations

PH = Pay History W2ED15 = Entered Amts via W2 Program W2TC15 = Travel Claims entered

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Sources of W2 Calculations

PH = Pay History W2ED15 = Entered Amts via W2 Program W2TC15 = Travel Claims entered

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W2 Processing Identification Numbers

 Two numbers used in W2 processing: Federal EIN or

State Identification Number.

 State ID hand input when prompted or read from

DISTRICT record.

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Opting Out of a Printed W2

 Maintain W2 “No-Print” Authorizations W2NPMN.  Program keeps track of employees who opt out of

receiving a printed W2.

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W2NPMN – No Print Authorization

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W2NPMN Usersec

 Security parameters allow for “U” update and “I”

Inspect

 District Access by “0” Login District, “1” Any District,

“2” Change District (Usersec CHGDIS)

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Maintain W2 “No-Print” Authorization – W2NPMN

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W2 Processing 2016 IRS Mileage Payments

 2016 rate is $0.54 per mile  Mileage payments in excess of Federal Government

allowance must be reported.

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W2 Processing Imputed Paylines

 Paylines for imputed gross occurs when taxes are owed

  • n a benefit an employee receives.

 Imputed paylines needed to be processed on a payroll

dated 12/31/2016 or earlier.

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Which Employees Get Printed

 Employees must have a pay history record to print on

the W2 report.

 They will not print even if there is Travel Claim

extracted.

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W2 Processing Voluntary Deduction 8999

 Group Life Insurance (GLI) is defaulted to Voluntary

Deduction code of 8999 in QSS/OASIS payroll software.

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W2 Processing Cell Phones

 Fringe benefits such as cell phones provided by

employer are subject to FIT, SIT, OASDI and Medicare taxes.

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W2 Processing Default Deferred Compensation

 Determine default for Deferred Compensation plans  Determine additional plan codes for alternate deferred

compensation.

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W216DC and W216DX Program Options

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Sort Options for Printing #1 District, Name (default)

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W2 Processing Submitting to IRS

 Send Copy A of W2 forms (Wage and Tax Statement)

to the SSA (Social Security Administration) by January 31st, 2017.

 NOTE: This is a change from prior years!

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W2 Processing Considerations and Cautions

 Program option record control reporting of Deferred

Compensation amounts, Dependent Child Care, GLI, Roth IRA’s, Federal/State subjectivity differences, Employer HSA’s. Be sure Program Options are setup correctly.

 QSS supports Box 12 amounts – Substantiated Employee

Expense (Code L), Uncollected OASDI on GLI (Code M), Uncollected Medicare on GLI (Code N) and Adoption Benefits (Code T). Manual entries may be needed on W2’s.

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W2 Processing Other Considerations and Cautions

 State ID entered in District Master file.  How to handle Employees with no SSN.  Security USERSEC setups for W2 processing.  W2PR16 Export File changes for 2016

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W2 Usersec Security (MTUS Manual)

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Version L Security

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W2 Processing District Record containing State ID

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Task 1-T (Tech) Install Version H W2/1099 Release

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Task 1-T (Tech) Install Version L W2/1099 Release

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Task 2-PR Maintain W2 Program Options (W2PO16)

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W2 Option Maintenance (W2PO16)

W2 Program Option Maintenance

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W2 Option Maintenance (W2PO16)

Control Window Access

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W2 Option Maintenance(W2STID) State EIN Edit Mask

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W2 Option Maintenance (W2EX16) Configure W2 Extract Program

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W2 Option Maintenance (W216DC) Deferred Compensation Voluntary Deductions

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W2 Option Maintenance (W216DX) Deferred Compensation Voluntary Deduction Ranges

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W2 Program Option Maintenance (W216DR) 403b/401k/457b Roth Contributions (Box 12)

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W2 Option Maintenance (W216CC) Dependent Care Sec125 Voluntary Deductions

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W2 Option Maintenance (W216CX) Dependent Care Sec125 Voluntary Deductions

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W2 Option Maintenance (W216FA) Voluntary Deduction Ranges Add Back FIT

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W2 Option Maintenance (W216SA) Voluntary Deduction Ranges Add Back SIT

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W2 Option Maintenance (W216HS) Add Employer HSA Voluntary Deduction Codes

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W2 Program Option (W216HC) Employer-Sponsored Health Plan Reporting

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W2 Program Option (W216HX) Extension Employer-Sponsored Health Plan Reporting

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Task 3-T

Set Up Control Files

 CTW2TP16 – contains Federal EIN for each district  CTSUFFIX – Custom list of suffix names.  CTW2RA16 – Submitter Address for W2 transmittal

file

 CTW2RP16 – Defines custom report layouts for W2

Prelist (W2RP16).

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Task 4-T (Tech)

Zero Out YTD Pay Stub Totals for Payroll

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PAY790 Version H and L Commands

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Task 5-T (Tech)

Obtain User ID and Password for File Submission

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Task 6-PR Preliminary W2 Prelist Run Options

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W2 Prelist Run Option 1 (Temp File) Run Option 2 (Extract File)

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W2 Prelist Print W2ED15 Changes only

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W2 Prelist Main Window Additional Report Settings

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W2 Prelist “S” Report Option Select Field Ranges Window

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W2 Prelist Report Totals

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Task 7-PR Print Pay History Report (PAY830) QCC Job Menu

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Pay History Report (PAY830) Main Window

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Pay History (PAY830) DI/SSN Select Window

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Task 8-PR Include Employees Without a Pay History Record (PHUPDT)

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Task 9-PR Entering Adjustments

Pay History Benefit Adjustments

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Pay History Adjustments

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Voluntary Deduction Adjustments Pay History Form

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Health Care Adjustments

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Task 10-T (Tech)

Extract W2 Data Y16W2EXTRACT

 Execute Y16W2EXTRACT.  Payroll history, deduction history and payroll

adjustments records are extracted for each 2016 payroll check.

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Task 11-T (Tech)

Report of W2 Records from Pay History

 Execute Y16W2REPORT.  Travel Claims are not included in W2 Prelist at this

point.

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Task 12-T (Tech): Optional Including Car Travel Claims

 Execute Y16W2TCEXT and Y16W2CKTCRPT  Include Car Travel Claims before running Final Merge.

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Task 13-AP Adjusting Travel Claims A/P Branch (TCPYMT)

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Car Travel Claims (TCPYMT) Mileage Flag “M”

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Vendor Maintenance (VEUPDT) Changing Vendor Tax ID

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Task 14-T (Tech)

Merge All Sources of W2 Information

 Execute Y16W2FNLMRG to create combined file even

if there are no Car travel claims to process.

 Use caution when re-running Y16W2FNLMRG.

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Task 15-T (Tech)

Print W2 Prelist with Combined Information

 Execute Y16W2REPORT.  W2 Prelist will contain combined W2 information.  Pass the Point of No Return Considerations.

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Task 16-PR

Edit W2 Information (W2ED16)

Adjust W2 amounts using W2ED16

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W2 Edit Program (W2ED16)

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W2ED16

F3 – Open Advanced Search

Employee Search Window

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W2ED16 Options

 State Gross versus Federal Gross Amounts, same or

different

 District List Drop Down Box  Show SSN button  Reasonable Maximum Amount feature for data entry

in amount fields

 Clear screen option sets amounts in all boxes to zero

to prevent an employee from receiving a W2.

 All amount fields must be positive.

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W2 Edit (W2ED16) New Items added 2012

 Box12-DD/ER-HC: cost

  • f employer provided

health care

 Box12-DD/ER-AJ:

Adjustments to employer provided health care

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W2 Edit (W2ED16) W2 Data Source

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W2ED16 and Xprt Box

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Task 17-T (Tech)

Final W2 Prelist Report

 Payroll Staff final

review, use W2ED16 for any last minute corrections and rerun report.

 Report of W2 Edit

Changes (W2RP16)

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Task 18-T (Tech)

Ready to Print W2 Forms

 Payroll approves the

Final W2 Prelist.

 Main method of printing

W2 forms: laser printing.

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Task-18T W2s Converted to PDF

 Moore-Wallace 1286 and

1288 are also supported in this process.

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2016 W2 Sample

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Interval Between W2 Distribution and Creation of W2 File for SSA Shortened for 2016

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Task 19-T (Tech)

Create Electronic Transmittal File for SSA

 Execute Y16W2FILE.  Transfer W2 Transmittal file to your PC using

Reflections and Minisoft (Version H) or DBVIS (Version L) - see 2016 W2 Processing Manual

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Task 20-T (Tech) Create Transmittal Totals Report

 Execute Y16W2TFTOTAL.

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Task 21-T Saving History Files

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 Execute Y16w2save (Version H

  • nly)

 There is no W2/1099 save

command in Version L. The production files are already isolated by year in the /var/opt/qss/w21099 directory

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Special Notes for W2 Processing

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More Items to be Noted

 If an employee SSN changes in the database during the

year and the W2 file is already extracted, the employee will retain the bad SSN.

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Another Version H and Version L Comparison in the Manual

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QSS Wants to Hear from You

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Click the Give Feedback Link Fill out our survey

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Time for “Live” Q&A

 You will need to enable your audio pin

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