The TxEIS How To Guide Series. Business. How to: PROCESS W-2S. Developed by the TEXAS COMPUTER COOPERATIVE

Transcription

1 The TxEIS How To Guide Series Business How to: PROCESS W-2S Developed by the TEXAS COMPUTER COOPERATIVE

2 Copyright 201 by Texas Computer Cooperative All rights reserved 1314 Hines Avenue San Antonio, TX

3 CONTENTS 7BOverview... 3 Prerequisites... 4 Checklist Overview... 4 W-2 Processing Prerequisites... 4 Generate YTD and Quarterly Reports... 7 Generate the W-2 Validation Report Enter Third Party Sick Pay Create a Backup W-2 File Create the W-2Report File Finalize the W-2 Processing Update the District EA Options Reprint the W-2s Appendix How W-2 Box Amounts are Populated

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5 7BOVERVIEW This TxEIS How To guide provides a step-by-step process of verifying and producing the annual W-2 submission for all local education agency (LEA) employees using the Human Resources application. The LEA s name and address from the Tables > District Information > District Name/Address tab in District Administration is printed on the W-2 forms, and on the reporting entity s (RE) W-2 file record. The LEA s name and address entered in the parameters on the Human Resources > HR Reports > Quarterly/Annual Reports > HRS W-2 Forms is included in the W-2 file for the RA (submitter) record. NOTES: The Social Security Administration (SSA) recommends that all employers who have the ability to create an electronic filing W-2 (EFW2) use the Business Services Online (BSO) system to file reports. For more information about SSA s Business Services Online system, visit Employers with 250 or more W-2 forms are required to electronically file. The deadline for e-filers is extended from the end of February to the end of March. Refer to the W-2 Instructions page at for further information on specific dates. W-2 forms must be properly addressed and mailed to employees on or before the deadline, which is generally January 31 st. The BSO password is only valid for one year. Be sure you can access your account. New LEA employees must set up a new account. Download the current year AccuWage program from the SSA website to assist you in identifying formatting errors prior to filing W-2s. The following additional tax resources are available at Publication 15 Employer s Tax Guide (Circular E) Publication 15-A Employer s Supplemental Tax Guide Publication 15-B Employer s Tax Guide to Fringe Benefits 3

6 Prerequisites This guide assumes you are familiar with the basic features of the TxEIS Business systems and have reviewed the TxEIS Business Overview guide. For more detailed information about individual fields, please see Help in TxEIS Human Resources and Employee Access. This guide is based on TxEIS Checklist Overview The following steps are covered in this guide: Generate the YTD and quarterly reports. Generate the W-2 validation report. Enter third party sick pay. Create a backup W-2 file. Create the W-2Report file. Finalize W-2 processing. Update the district Employee Access options. (If requested) Reprint the W-2s. W-2 Processing Prerequisites Prior to performing the W-2 processing steps, review and address the following tasks if necessary: If your district has multiple payroll frequencies, only one W-2 is created for each employee if a specific payroll frequency is not selected. It is recommended that you balance/reconcile each payroll separately and run all payrolls to register the final calculations. Ensure that all payrolls and adjustments are completed. You do not need to interface to Finance, but the data should be posted to the employee s master record. Ensure that the prior tax year s W-2 data is saved to the historical record. 4

7 For LEAs with a self-funded health coverage plan, ensure that the Emplr-Sponsored Health Coverage field is populated on the Human Resources > Maintenance > Calendar YTD Data page. You can use the Human Resources > Utilities > Mass Update W2 Employer Sponsored Health Care page to mass update the data. If your LEA is not selffunded for health coverage, run the HRS Combined YTD Deduction Register to get the qualifying medical plan deduction codes. The amounts on the report should equal Box 12 - DD on the W-2. 5

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9 GENERATE YTD AND QUARTERLY REPORTS Generate the HRS Calendar YTD and HRS Worksheet reports to verify that the fourth quarter totals and the previously reported 941 Worksheet quarter totals equal the total YTD amounts. If the totals do not balance, it is possible that a previous quarter s data was changed in TxEIS and a 941C was not reported; if that is the case, then make the necessary adjustments to correct the issues. Human Resources > Reports > HR Reports > Year to Date Reports > HRS Calendar YTD Report 1. Enter the necessary parameter data. NOTE: For W-2 balancing purposes, only the Sort by Alpha (A), Pay Campus (C), Primary Campus (P) and Calendar Year (YYYY) parameters are required. 2. Click Run Preview. The report is displayed on a separate page. 7

10 Human Resources > Reports > HR Reports > Quarterly/Annual Reports > HRS Worksheet 1. Enter the necessary parameter data. 2. Click Run Preview. The report is displayed on a separate page. 8

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13 GENERATE THE W-2 VALIDATION REPORT Review your W-2 totals by creating the W-2 Validation report. Use the report to verify totals against the HRS Calendar Year To Date and HRS Third Party Sick Pay reports. The combined totals for Calendar YTD and Third Party Sick Pay reports should balance to the Validation report. Although the third-party sick pay withholding tax displays as a separate amount on the Validation report, it is included in the employee s withholding tax amount. Refer to the How W-2 Box Amounts are Populated reference page in the Appendix for clarification about how third-party sick pay amounts and 457 deferred compensation contributions and/or withdrawal amounts are handled. If any processes are performed (e.g., check issues, check voids, or deduction refunds) that change the employee s calendar yearto-date information, regenerate the reports to verify the amounts. NOTE: The Roth annuity is not displayed on the Validation report, but is displayed in Box 12 - BB on the W-2. Caution: Do not continue until all reports are balanced. If any manual adjustments are made to the Calendar YTD, the 941 Worksheet and Calendar YTD reports should be verified again prior to proceeding. Human Resources > Reports > HR Reports > Quarterly/Annual Reports > W-2 Forms 1. Enter the necessary parameter data. At this point, only the bold parameters are required. 11

14 NOTE: All parameters below the Tax Year (####) parameter are only used when generating the W-2 submission file (W2REPORT). 2. Click Run Preview. The Validation report is displayed on a separate page. NOTE: The Calendar YTD, Quarterly 941 Worksheet, and W-2 total amounts should match. If there are discrepancies, the discrepancies should be identified and corrected. 12

15 ENTER THIRD PARTY SICK PAY If you do not have third-party sick pay, skip the next step. If the employee was directly paid third party sick pay or disability pay, proceed with this step to enter the data. NOTES: Third-party sick pay is displayed in Box 12 - J on the W-2. If the taxable fields (Withholding, Medicare, and FICA) are populated, the third-party sick pay changes the W-2 totals. Be sure to generate the HRS W-2 Forms report again for updated totals. Human Resources > Maintenance > Calendar YTD Data > Third Party Sick Pay 1. Click Add to display the third-party data fields. 2. Enter data from the third-party reports in the appropriate fields. 13

16 Review IRS Publication 15-A and your LEA s sick pay policy to determine if necessary. Third-party sick pay data affects the calculations on the W-2 and 941 Worksheet. 3. Generate the HRS Third Party Sick Pay Report to verify the totals against the third- party provider s statement. Enter the necessary parameter data. Click Run Preview. The report is displayed on a separate page. 14

17 CREATE A BACKUP W-2 FILE Prior to finalizing W-2 data, create a backup W-2 file for each pay frequency should you need to revert back to the historical data. Human Resources > Utilities > Export Human Resources by Payroll 1. Select the applicable payroll frequencies and move them to the right side of the page using the arrow buttons. 2. Click Execute. A dialog box is displayed prompting you to enter an archive password. Type a password for the exported file. Click OK. 3. A message is displayed indicating that the export process was completed. Depending on your browser settings, you are prompted to save the file or it will automatically be saved for you. After saving the file, the following message is displayed. 15

18 Click OK to close the message and return to the Export Human Resources by Payroll page. Navigate to the appropriate folder to view the file. The file is saved as a.rsf file. 16

19 CREATE THE W-2REPORT FILE Generate the W2REPORT file (i.e., submission file) and run it through the SSA s AccuWage program at A detailed AccuWage guide can be found at Caution: Do not continue the process until the W-2 Report file is verified through AccuWage. Human Resources > Reports > Quarterly/Annual Reports > HRS W-2 Forms Report 17

20 1. Enter the necessary parameter data. Be sure that the Validation Rpt (V); W2 Forms - Copy A (A), 3 Up (U), Non-preprinted 3 Up (N); or W2REPORT File (F) parameter is set to F (W2REPORT file). 2. Click Run Preview. Depending on your browser settings, you are prompted to save the file or it will automatically be saved for you. After saving the file, the following message is displayed. Click OK to close the message and return to the W-2 Forms Report page. Navigate to the appropriate folder to view the file. The file can be saved as a.txt or.csv file. 3. Click OK. The W-2 Process report is displayed. 18

21 FINALIZE THE W-2 PROCESSING At this point, the W-2s should be balanced and any AccuWage formatting issues corrected. Now, you can use the HRS W-2 Forms report page to print and finalize the W-2 forms. Human Resources > Reports > Quarterly/Annual Reports > HRS W-2 Forms Report 1. Enter the necessary parameter data. Set the Validation Rpt (V); W2 Forms - Copy A (A), 3 Up (U), Non-preprinted 3 Up (N); or W2REPORT File (F) parameter to Non-preprinted 3 Up (N). Set the Final Run - Create W-2 Historical Record? (Y/N) parameter to Y. This step finalizes the W-2 data and populates the employee s historical record. After running the report, you can verify the data on the Human Resources > Maintenance > Calendar YTD Data > W-2 Inquiry tab. 19

22 2. Click Run Preview. The W-2 form is generated on a separate page. NOTE: To restore the original W-2 historical file, use the Human Resources > Utilities > Import Human Resources Tables page to import the affected payroll frequency data prior to the final run using the export file that you previously created using the Export Human Resources by Payroll utility. 20

23 UPDATE THE DISTRICT EA OPTIONS The final step is to enable W-2 information access and update the latest year in Employee Access. This step must be done in order for the employee to have access to the W-2 Information page and print W-2s in Employee Access. Human Resources > Tables > District EA Options 1. Under Enable, select W-2 Information to enable the W-2 Information page in Employee Access. If not selected, the W-2 Information menu option is grayed out in Employee Access. 2. In the W-2 Print - Latest Year field, type the four-digit year of the latest year to which you want to grant permission for employees to print official W-2 copies. The field should not be updated until the LEA has run and finalized its W-2s. 21

24 W-2s are copies and should not be used in lieu of the LEA generating W-2s. W-2s are printed in the official format (as determined by the IRS) and can be used as the original. The field contains the latest year available to print. If the field is left blank, employees will not have the option to print a copy of any of their W-2s. The earliest available form in the system is

25 REPRINT THE W-2S If an employee needs a reprinted W-2, you can run the HRS W-2 Forms report for a single employee, or the employee can print a copy of his official W-2 from the Inquiry > W-2 Information page in Employee Access as long as the district settings allow access. 23

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27 APPENDIX How W-2 Box Amounts are Populated Below is the How W-2 Box Amounts are Populated page for a quick reference on how W-2 boxes are populated. 25

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