Overview of the W-2 editor
The W-2 editor is a tool that allows you to change a W-2, add a W-2 for an existing employee, and add W-2’s for employees that you do not process payroll for.
For example, if you need to report Federal Income Tax that was withheld and remitted by a third party, you would use the W-2 Editor to edit the employee’s W-2. If you have employees who work in more than two local tax jurisdictions, you would use the W-2 Editor to add more W-2’s for that employee.
However, you must not use the W-2 Editor if you have to file W-2’s electronically. Only W-2’s prepared using payroll that has been recorded conventionally and not edited can be filed electronically.
The W-2 Edit file doesn’t interact with your general payroll files in any way at all. Anything you do to the W-2 Edit file will not be reflected in any other reports.
This section shows you:
• How to create a W-2 Edit file
• How to Open the W-2 edit file for viewing or editing
• How to add W-2's for an existing employee
• How to Change an employee's W-2
• How to add W-2's for non-payroll Clients
• How to find a W-2 in the Edit file
• How to Delete the W-2 Edit file
• How to Print the W-2 Edit file
W-2 Editor Examples
Splitting Local Taxes.
Mr. Jones moved from Ada to Enid during the year. Both cities impose a 1% income tax. He is also subject to the Greater Erie school district tax of 2%. You need to show each amount on a W-2.
When he moved, you changed the name of his Locality #1 field from Ada to Two to remind you that there were 2 localities in that field. You also recorded his YTD Local Wages and Local Withholdings at that time.
You need to report the following on his W-2:
Locality Wages Withholdings
Ada 15,000.00 150.00
Enid 10,000.00 100.00
GESD 25,000.00 500.00
This is easy. Follow these steps:
1. Create a W-2 Edit file (if you haven’t already done so).
2. Open the W-2 Edit file.
3. Find Mr. Jones’ W-2.
4. Select Edit.
5. Go to Box 19 and change the entry to Ada.
6. Go to Box 20 and change the value to 15000.00.
7. Go to Box 21 and change the value to 150.00
8. Select Save. Mr. Jones’ W-2 is still on the screen.
9. Select Copy.
10. A new W-2 with blank boxes 1-21 appears.
11. Go to Box 19 and enter Enid.
12. Go to Box 20 and enter 10000.00.
13. Go to Box 21 and enter 100.00
14. Choose Save and select Stop. Now there are 2 W-2’s for Mr. Jones.
Recording 3rd Party FIT
Ms. Smith was disabled in an on-the-job accident. She received income from the state disability fund.
The state withheld $76.38 FIT but you are required to report it in Box 15 of Form W-3.
CCIS Payroll has a special box for 3rd party FIT in the W-2 Edit. Any money entered there is automatically placed in Box 15 of Form W-3. To record money there:
1. Create a W-2 Edit file (if you haven’t already done so).
2. Open the W-2 Edit file.
3. Find Ms. Smith’s W-2.
4. Select Edit and Go to the box labeled FIT Withheld by 3rd Party.
5. Type 76.38 and choose <tab>.
6. Press F10 or select Save to save the changed W-2.
How to create a W-2 Edit file
A W-2 edit file is created the same way that conventional paper W-2’s are and contains exactly the same information arranged the same way, in ascending Social Security Number order. The information for Boxes 13 and 14, plus all the state and local information is shown also.
You can create a W-2 Edit file as often as you like. So, in the case that you make some catastrophic error and want to start over, you simply delete the old W-2 Edit file, and create a new one.
The W-2 Edit file doesn’t interact with your general payroll files in any way at all. Any changes you make only appear on the W-2’s, and Form W-3. They do not carry onto Form 941, Form 940(EZ) or anywhere else.
1. Choose the Reports link.
2. Select the Year-end Reports | W-2 | Edit.
3. The W-2 Editor help information panel appears. (Unlike other help information panels in CCIS Payroll, this one cannot be hidden. We did that because most people will only access it once a year.)
4. Select the New button to make the file.
How to add W-2's for an existing employee
The W-2 Editor uses the employee identification information from the W-2 that is currently displayed on the screen as the basis for a new W-2. The employee’s name, address, and Social Security Number are copied to a new and otherwise blank W-2. This new W-2 is put at the end of the file.
To add a W-2:
1. Open the W-2 Edit file.
2. Use the Back or Forward arrows, the Open button, or the Find button to find a W-2 for the employee.
3. Select the Copy button.
4. A new W-2 is created and the cursor is in Box 1.
5. Record the information and press Save to save the W-2.
How to change an employee's W-2
You can change any of the information in Boxes 1 through 22 using the W-2 Editor. The Editor is free form and makes no assumptions about what you should be putting in a given field. It is especially important to remember this if you make any changes to Box 13. All items in Box 13 must have an alpha code letter. The proper letter for a particular item, like 401(k) deferred compensation, is set forth in the annual instructions issued by Social Security and the IRS.
The editor does test FICA and Medicare wages and withholdings, but you can ignore the warning messages and force the W-2 to print the way you typed it. We do not recommend ignoring any warnings. Fines and penalties for filing incorrect W-2’s range up to $50.00 per W-2!
To change a W-2:
1. Open the W-2 Edit file.
2. Use the Back or Forward arrows, the Open button, or the Find button to find the W-2 for the employee.
3. Select the Edit button.
4. Navigate to the field you want to change, make the change and press the Tab key.
5. Choose the Save button when done.
6. Choose Stop when you’re done editing W-2’s.
How to add W-2's for non-payroll Clients
The W-2 Editor can be used as a form filler to accommodate those non-payroll Clients who want you to prepare their W-2’s.
When the W-2 Editor is used this way, nothing is saved permanently, other than the Client information. In order to save the employee information for use in future years, please use the conventional methods to enter the employees, and their payroll information.
1. Begin by creating a Client.
2. Next, choose the Reports link.
3. Select the Year-end Reports | W-2.
4. Select Edit. The W-2 Editor help information panel appears. (Unlike other help information panels in CCIS Payroll, this one cannot be hidden. We did that because most people will only access it once a year.)
5. Select the New button to make the file.
6. Add the employees.
7. Choose Stop to end.
How to print edited W-2's
To print a W-2 Edit file from the W-2 Editor screen, click on Print | W2’s, or choose File | Print | W2’s.
Printing W-2’s that you have edited uses the same procedures as are used to print ordinary W-2's.
CCIS Payroll shows you only those Clients with a W-2 Edit file. Any Client without an edit file isn’t available to print here.
Please remember that is it not possible to file electronically using an edited W-2 file.
How to open the W-2 edit file
The W-2 Edit file contains all the W-2 information for a Client. To add or change a W-2, the W-2 Edit file needs to be loaded into memory. Once there, you can reach any W-2.
To load the W-2 Edit file:
1. Choose the Reports link
2. Select the Year-end Reports | W-2 | Edit.
3. The W-2 Editor help information panel appears. Select the Open button on this screen.
4. A blank W-2 appears on-screen when the file is loaded and ready to be worked on.
How to find a W-2 in the Edit file
When first created, the W-2 Edit file is in Social Security Number order. Each individual W-2 is numbered, beginning with number 1. The number of any given W-2 shows in Box a – Control Number.
You can find any W-2 by clicking the Back and Forward buttons to scroll through the file. If you know the control number, you can also retrieve a W-2 by choose Open, then entering the number in the box and selecting OK.
If you don’t know the control number, there are two other ways you can find a W-2: by last name, and by Social Security Number.
To find a W-2:
1. Load the W-2 Edit file into memory.
2. Select the Find button, or choose Edit | Find.
3. Select the menu for the method you want to use.
4. Enter the last name, or Social Security number in the box. If you enter a partial name, CCIS Payroll retrieves every name that contains the fragment you entered.
How to delete the W-2 Edit file
The W-2 Edit File is a work file that is created using the information from your permanent payroll records, or by hand for non-payroll Clients. It does not interact in any way with your permanent payroll. Any changes you make only appear on the W-2’s, and Form W-3. They do not carry onto Form 941, Form 940(EZ) or anywhere else.
When you delete a W-2 Edit file, all changes and additions that you have made to the file disappear.
To delete the W-2 Edit file:
1. Choose the Reports link.
2. Select the Year-end Reports | W-2 | Edit.
3. The W-2 Editor help information panel appears.
4. Select the Delete button and confirm your decision. The file is permanently deleted.
How to print the W-2 Edit file for review
The W-2 Edit file is printed using the same procedures as are used to print ordinary W-2's. CCIS Payroll automatically uses the W-2 Edit file for a Client if it finds one. Please remember that it is not possible to file electronically using an edited W-2 file.
To print a W-2 Edit file from the W-2 Editor screen, select Print, or choose File | Print.