Payroll Processing Guide Version 6.3

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Payroll Processing Guide

Version 6.3

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without the express written consent of Financial MicroSystems, Inc.

The software described in this documentation is furnished under a license agreement. Information contained in this documentation is subject to change without notice, and does not represent a commitment on the part of Financial MicroSystems, Inc. Financial MicroSystems, Inc. makes no warranties, either expressed or implied, regarding this computer software package, its merchantability, or its fitness for a specific purpose. The exclusion of implied warranties is not permitted by some states. The above exclusion may not apply to you. This warranty provides you with specific legal rights. There may be other rights which you have which vary from state to state.

Client Ledger System is a trademark of Financial MicroSystems, Inc. Other brands and products are the trademarks of their respective holders and should be noted as such.

First printing, August 1990. Second printing, August 1992. Third printing, April 1994. Fourth printing, November 1994. Fifth printing, November 1995. Sixth printing, November 1996. Seventh printing, October 1997. Eighth printing, October 1998. Ninth printing, October 1999. Tenth printing, November 2000. Eleventh printing, November 2001. Twelfth printing, December 2002. Thirteenth printing, December 2003. Fourteenth printing, March 2004. Fifteenth printing, December 2004. Sixteenth printing, December 2005. Seventeenth printing, December 2006. Eighteenth printing, November 2007. Nineteenth printing, November 2008. Twentieth printing, November 2009. Twenty-first printing. November 2010. Twenty-second printing. January 2012. Twenty-third printing, December 2012.

Financial MicroSystems, Inc.

3000 Langford Road, Suite 2500 Norcross, GA 30071

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Chapter 1 – CLS Passive Payroll Concepts ... 1-1

CLS Passive Payroll Concepts ... 1-2

Chapter 2 – CLS Payroll Maintenance Programs ... 2-1

Computed Transactions (CT) ... 2-2 Employee File Maintenance (EF)... 2-5 Employee File List (EL) ... 2-17 Payroll File Maintenance (PF) ... 2-19 Set CLS Payroll Options (SI) ... 2-35

Chapter 3 – CLS Payroll Reports ... 3-1

Payroll Journal (PJ) ... 3-2 Query Employee Detail (QE) ... 3-5

Chapter 4 – CLS Payroll Tax Programs ... 4-1

Payroll Tax Forms (TF) ... 4-2 Employee W-2 Forms ... 4-3 W-3 Transmittal Forms ... 4-10 Vendor 1099/1098 Forms ... 4-17 1096 Transmittal Forms ... 4-27 W-2c and W-3c Forms ... 4-34 W-2/1099 Form Requirements ... 4-39 Download Soft Tax Fonts ... 4-40 Payroll Tax Worksheets (TW) ... 4-41 Federal 941, 943 and 944 Forms ... 4-42 Federal 941-X, 943-X and 944-X Forms ... 4-47 Federal Unemployment (940) Forms ... 4-51 State Unemployment Reports ... 4-57 Align State Unemployment Continuation Sheet ... 4-60 Year-to-Date Employee/Vendor Activity ... 4-61 Download Soft Tax Fonts ... 4-61

Appendixes

A: Warning Messages ... A-1 B: Glossary ... B-1 C: CLS Ledger Limits (Payroll) ... C-1

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Chapter

One

CLS Passive Payroll Concepts

CLS Passive Payroll Concepts ... 1-2

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1-2 CLS Passive Payroll Concepts

1.1 CLS Passive Payroll Concepts

The CLS passive (after-the-fact) payroll does not actually calculate payroll or print checks. It is designed to keep track of wages and deductions and prepare payroll reports (W-2 and W-3 forms, 940/941/943 forms, quarterly state unemployment continuation sheets, etc.) for your clients' employees. CLS will also track vendor-related expenses and prepare 1099/1098 and 1096 forms.

Defining a Payroll Series

Creating the Payroll Series

You begin setting up the passive payroll by creating one or more payroll series (groups of employees) using the Payroll File Maintenance (PF) program, Menu Selection 1. Payroll series may be type E (employee series - W-2 forms), type 1-9 (vendor series - 1099), type A (vendor series - 1098), or type M (miscellaneous series - no tax forms). For example, you might set up a series beginning with 100 to record wages paid to employees in one state, a series beginning with

200 for employees in another state, and a series beginning with vendor number 1000 to record

payments to sub-contractors.

When defining a payroll series in program PF, Menu Selection 1, you will be prompted to enter information specific to that series, such as:

Journal Format (1,2)

Select an 8 or 16-column payroll journal.

Options for an employee series

Select from the following list of options:

Employer Type

Select an employer type. The default employer type is B.

B Employer name is a business name I Employer name is an individual’s name

Employee Type

Select an employee type. The default employee type is R.

A Agriculture M Military X Railroad

G Annual 944 Q Medicare Qual Gov't Empl H Household R Regular

FUTA/SUTA Print Options

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CLS Passive Payroll Concepts 1-3

C Print FUTA-exempt employees on FUTA wages lists D Print SUTA-exempt employees on SUTA wage lists

O Include SUTA tax component 2 in SUTA tax reported on 940 form P Print a SUTA continuation sheet even if there is no activity

Name Convention

Select a convention for entering employee names. The Payroll Tax Worksheets (TW) program uses this information when rearranging employee names to meet each state's requirements for the unemployment continuation sheet. The default name convention is F.

F First name entered first L Last name entered first Other

Enter an E option to force printing of state wages on the W-2 form. Enter an S option if the employer is a semi-weekly 941 depositor.

Enter a U option if all employees are subject to 6.2% SUTA (Minnesota only)

California Unemployment Series Type

In California, select the appropriate unemployment series type. The default type is 1.

California Unemployment Series Types

1 UI and DI Wages (S) 6 DI Wages Only - Voluntary Plan (L)

2 UI Wages Only (A) 7 UI Wages Only – DI Religious Exemption (R) 3 DI Wages Only (J) 8 UI Wages Only - Sole Stockholder DI Exemption (R) 4 UI and Voluntary Plan DI Wages (U) 9 UI Wages Only - Third Party Sick Pay DI Exemption (R) 5 Personal Income Tax W/H Only (P)

Use types 1-5, 8 and 9 for paper DE-6 reporting. Use types 1-7 for reporting DE-6 information using magnetic media.

Defining the Payroll or Vendor Journal

Use program PF, Menu Selection 3, to define payroll or vendor journal columns for each series. For each column, enter a column heading, the appropriate column type, column sign (+ or -), and the corresponding general ledger account number. The column types, headings and accounts will appear on the payroll journal. The column signs will be applied to payroll transactions entered in the Enter Transactions (ET) program when using Entry Mode 6.

Column types tell CLS what is in a particular column. You should not specify a column type for columns that will not be used for tax reporting on W-2 or 1099/1098 forms (e.g., uniforms, union dues). The default column types may be changed to suit your needs.

Depending on your response to the Medicare Column in PF prompt in SI, Menu Selection 1 (3,2), CLS assigns column type A to Social Security and column type M to Medicare. CLS will detect the presence of the M column type and calculate separate deductions on tax forms and worksheets. You may also combine Social Security and Medicare into one FICA column by using column type A for FICA and deleting column type M.

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Except for column 1, CLS normally allows only one account to be associated with each payroll or vendor journal column. If you want to associate a limited range of accounts (e.g., 14001 to 14099), press Y at the Range prompt for the appropriate column. Only the departmental digits will be allowed to vary. Financial statements do not need to be departmentalized to use this feature. For vendor series, you may define a default column for each individual vendor in program EF, Menu Selection 1. If the default column is column 1, you may also assign a default column 1 account. For columns 2-16, CLS will display the account entered in program PF, Menu Selection 3. Vendor transactions entered in ET will accumulate into the default column selected in EF.

401k Plans, SEPs, and Cafeteria Plans

To handle 401k plans, SEPs, etc., create the payroll journal column(s) use a K1, K2 … K9, KA or

KB column type. For Cafeteria Plans, use Q1, Q2, Q3, Q4, Q5 or Q9 column types. Assign a

minus (-) sign to the columns you define, since you want to accumulate credit balances into them. Use the pension plan liability account as the column account. Transactions will be entered into these columns as deductions from gross pay using the ET program.

 Note: Use program PF, Menu Selection 5, to make sure that the taxability options for the related column types (K1, K2 … K9, etc.) are set correctly.

Fringe Benefits

Fringe benefits such as an automobile allowance may be accumulated into a payroll journal column which has been assigned column type F and is set up to accumulate debit (+) balances. Because the entries in this column do not represent an expense to the employer, you may set up a contra column to hold the credit side of the journal entry (assigned to the same ledger account), or you may enter a single offsetting entry to the general ledger account without an employee number.  Notes:

• If fringe benefit entries will not occur often, consider making these entries as journal entries using entry mode 1, not entry mode 6. Also, be sure to enter the payroll column number in the account field, not the account number; otherwise both entries may wind up in the same column and cancel each other.

• If you prefer, you may also enter fringe benefits behind the scenes using program EF, Menu Selection 2. However, these entries will be lost if you reclose the prior period.

Tip Processing

If you need to track employee tips for a client, you will have to create a specific tip-related column on the payroll journal (column-type T) using program PF, Menu Selection 3. Tips will be entered into this column as debits (+). Since tips are reported by employees, and not paid by the employer, you may also create a tip-contra column on the payroll journal (no column type) to hold the tip offset. This column is set up for a credit (-) entry and is assigned the same ledger account (the tip clearing account) as the tip column. Tips will be entered directly from the payroll check stubs, in one column and out the next.

 Note: If you have numerous tipped employees or do not have a free column on the payroll journal after setting up the tip column, you may simply enter a single offset for all tips to the tip clearing account (without an employee number).

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J Allocated tips from which the employer need not withhold taxes.

T,T1 Tips subject to employer and employee FICA, FUTA and SUTA. This column type may be

used for all tips or for straight tips (over and above the minimum wage).

T2 Tips subject to employer and employee FICA and FUTA, but not SUTA. This column type may be used for tips deemed wages, where these wages may not be subject to state unemployment taxes.

 Note: The T2 column type is no longer needed, since all tips are now subject to SUTA in all states. The T2 type has been preserved for historical reasons.

Example of a payroll series set up to handle reported tips

Handling Two Withholding States within One Payroll Series

You may set up two gross pay columns in program PF, Menu Selection 3, to accommodate a payroll series with two withholding states. Each gross pay column should be assigned an asterisk (*) as the column type. You must also create a column for each state's income tax withheld, using column types C1 and C2.

Use program PF, Menu Selection 5, to set the taxability for each gross pay column: the gross pay column associated with state #1 should have the taxability flag for State wages #1 set to Y and the taxability flag for State wages #2 set to N; the gross pay column associated with state #2 should have the taxability flag for State wages #1 set to N and the taxability flag for State wages #2 set to

Y. Gross pay and state withholding must then be entered by state in program ET.

Employee Column Types

* Gross Pay N, N1 Uncollected FICA on tips

A FICA Withheld N2 Uncollected Medicare on tips

B Federal Income Tax Withheld N3 Uncollected FICA on Group Insurance

C, C1 State 1 income tax withheld N4 Uncollected Medicare on Group Insurance

C2 State 2 income tax withheld O Other compensation (also O1-O4)

D, D1 Local 1 income tax withheld O5 Distrib from unqual section 409(a) plan

D2 Local 2 income tax withheld O6 Military basic quarters and subsistence

Continued on the next page

CLS JCC.013 JAMERSON COLLISION CENTER Page: 1 Run Date: 11/08/07 Employee Master File List P.E. Date: 2/29/08

Series: 100 Jamerson Collision Center FEI No.: 58-1234567SUTA/SDI State: GA 999 9999 9 Employee Series 789 Hale Place Road W/H State #1: GA 3001295

Locality #1

Monroe, GA 30655 W/H State #2: Locality #2

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E Earned income tax credit O7 Excludable reimbursed moving expenses to be printed in W-2 Box 13

F Fringe benefits auto (also F1-F9) O8 Distribution from unqualified section 457 plan

G Excess group life insurance O9 Distribution from unqualified non-section 457 plan

H1 Hours worked (in) P, P1 Excess golden parachute payments

H2 Hours worked (out) P2 Nontaxable combat pay

I Information to be printed in Box 14 Q, Q1 Dependent care benefits

I1 S-Corp officer’s medical insurance Q2 Health insurance

J Allocated tips Q3 Medical reimbursements

K, K1 Section 401 (k) contributions Q4 Archer medical savings account contributions

K2 Section 403 (b) contributions Q5 Adoption benefits

K3 Section 408(k) (6) contributions Q9 Employer contrib. to health savings account

K4 Section 457 contributions R Per diem for business expenses

K5 Section 501 (c) (18) (D) contributions S Sick pay not included in income

K6 Section 408 (p) contributions - Simple IRA T, T1 Straight tips

K7 Section 409 (a) contributions T2 Tips deemed wages

K8 Kansas Public Employees Retirement U SUTA withheld

K9 Cafeteria Plan V SDI withheld

KA Roth contributions to 401(k) W Income from non-statutory stock options

KB Roth contributions to 403(b) X Don't clear column at year-end

L Gross earned under a prior entity Y FICA portion of Gross (household/ agriculture)

M Medicare withheld

 Payroll Tax Rates and Limits

In program PF, Menu Selection 4 (1), you will enter current-year and next-year rates and limits for federal and state unemployment tax calculations, and expense and liability accounts for FICA, FUTA and SUTA. These rates, limits and accounts are used for the employer's share of taxes calculations which appear at the end of the payroll journal, and when creating transactions for these amounts using the Computed Transactions (CT) program, Menu Selection 4. These rates and limits are also used to adjust incorrectly withheld FICA and SDI in program CT, and to accumulate payroll tax liabilities for the 941.

 Note: It is very important to set these rates and limits correctly or the calculations will be wrong. Since current-year rates and limits can be replaced by next-year rates and limits at the end of the calendar year, make sure you verify them at the beginning of each year and correct them if necessary.

Setting up Employees and Vendors

After defining the payroll journal, use the Employee File Maintenance (EF) program to add

employees or vendors. You will enter each employee's name and address, social security number, options (if any), local jurisdictions (for local income tax purposes), and Column 1 Account (to be used by the ET program).

When entering employees or vendors in program EF, pay attention to the following: • If you enter the last name first, you must insert a comma after the last name.

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CLS Passive Payroll Concepts 1-7 • If you select the first name convention and the last name consists of more than one word,

enter a caret (^) before the last name: George ^Van Buren.

You may assign up to six options per employee. Your choice of options determines what appears on the W-2 forms at the end of the year, and on federal 940s, 941s and the state wage reports your client must file. Available employee options are listed as follows:

Employee Options

A Do not adjust FICA/Medicare W/H for this employee using CT #1.

N Employee is not covered by a retirement plan. B Bi-weekly pay (multiplies the number of payroll

checks entered by 2 to report weeks worked).

O Marks an employee as a corporate officer for FL,

ME, MN, or SC or a seasonal employee for NC.

C Gross wages are not subject to federal unemployment taxes.

P Check Sick Pay box on W-2.

D Gross wages are not subject to state unemployment taxes.

Q Quarterly pay (multiplies the number of payroll

E Gross wages are not subject to employee SDI. S Semi-monthly pay (multiplies the number of payroll checks entered by 2.16 to report weeks worked).

F Gross wages are not subject to employee FICA/Medicare.

V Permanent Employee.

G Statutory employee. W Weekly pay (multiplies the number of payroll checks

entered by 1 to report weeks worked).

H Hold, do not print W-2. X Inactive employees; transactions will not be accepted.

L Payment made to a legal representative. Y Employee is covered by a retirement plan.

M Monthly pay (multiplies the number of payroll checks entered by 4.33 to report weeks worked).

Z Marks employee as deceased.

Entering Beginning Employee (Vendor) Balances

Beginning employee balances are entered using program EF, Menu Selection 2. To access this routine, answer Y to the Access Beginning Balances prompt in program LI, Menu Selection 3 (1). To enter employee balances, enter gross pay and deductions for each quarter of the current

calendar year. Be careful to enter the amounts in deduction columns as credit balances.

 Note: CLS can accommodate a situation where payroll transactions are entered for a ledger on a

fiscal quarter basis, but the fiscal quarter-end date does not coincide with the calendar

quarter. Be sure to set the payroll quarter-end date so that it falls within the fiscal quarter

you are processing. When you enter transactions falling into the current calendar quarter,

they will accumulate in the current-quarter fields. Transactions falling into the following calendar quarter will accumulate in the next quarter fields.

The fields marked Begin Year display balances brought forward from the end of the previous year; you may edit these balances as needed or enter new beginning balances.

The fields marked Quarter 5 can generally be ignored; access to these fields is provided to allow correction of errors. These fields are used to capture next-quarter payroll balances at year-end when processing a quarterly ledger and the fiscal quarter does not coincide with the calendar quarter at year end.

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Entering Payroll Transactions

Payroll or vendor transactions are entered using the Enter Transactions (ET) program. You may use any entry mode to enter payroll transactions, but in entry mode 6 you will be prompted for an entry for each payroll journal column you have defined. You may enter 6 as the default entry mode in program SI, Menu Selection 1 (1), or you may select entry mode 6 when you choose the source code, batch number, etc. You may also enter 6 in the Y/N field before you begin to enter a payroll check.

Enter the employee or vendor number in the description field. The employee/vendor name is displayed for confirmation. In the account field, you may enter a valid payroll account or column number. To be considered valid, the account must do one of the following:

• Match the employee's or vendor's column 1 account

• Match one of the column accounts defined when you set up the payroll journal • Meet the range test for column 1 (the gross pay column)

• If you enter payroll journal column 1, the employee's default column 1 account or vendor's

default column will be used. If you enter a column number between 2 and 16, the account

associated with that column in the payroll or vendor journal will be assigned to the transaction.

 Notes:

• If you are using entry mode 6 and want to distribute gross pay to more than one salary account, simply back into the account field when prompted for FICA (using Shift-Tab, F6 or

@), then enter the next account number and amount. You may use as many gross pay

accounts as needed.

• If you are using entry mode 6, payroll amounts should normally be entered without a sign. The sign (+ or -) associated with a column in the payroll journal will be automatically assigned to the transaction amount. If you need to override this feature, enter a plus or minus sign with the amount.

Special Considerations

Employer's Payroll Tax Calculations

The employer's share of payroll taxes is calculated by CLS and appears at the end of each payroll journal. These calculations include FICA and federal and state unemployment taxes. The rates and limits are set using program PF, Menu Selection 4.

Use the Computed Transactions (CT) program, Menu Selection 4, to create transactions for the employer's share of FICA and federal and state unemployment taxes. The payroll tax transactions will not be created unless you entered an F option (Adjust FICA against Federal Withholding) at the

CT Options prompt in program PF, Menu Selection 1. Also, it is extremely important that rates and

limits be correct before running Computed Transactions (CT).

Making sure FICA is correct

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CLS Passive Payroll Concepts 1-9 Incorrectly withheld SDI will be indicated with an asterisk (*) beside the employee's name on the payroll journal.

 Note: You may also print a payroll journal that shows only those employees with incorrect FICA or SDI.

Payroll Reports

Payroll Journal

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Employee List

You may use the Employee File List (EL) program to prepare a list of employees sorted by

employee number (see the example below), last name, social security number, or optional sort field. The employee name and address list may also include year-to-date net balances. The new

employee report shows employees hired within a specific date range. The employee missing-information report lists employees with a missing social security number or incomplete address and, optionally, a missing hire date; the corresponding worksheet allows you to fill in the missing

information.

JCC Employee List, sorted by employee number

Tax Forms and Worksheets

The Tax Forms (TF) program prints employee W-2 and W-3 forms and vendor 1099/1098 and 1096 forms in a variety of formats. The Tax Worksheets (TW) program prints 940/941/943/944

submittable forms and worksheets, federal unemployment wage lists, state unemployment continuation sheets and state unemployment tax worksheets.

W-2 Forms

You may print W-2s for the current ledger or batch process W-2s for multiple ledgers. You can print W-2s on preprinted forms using a laser or dot-matrix printer. CLS can also create all forms,

including Copy A, on blank paper using a laser printer.

You can also laser-print blank W-2s and form instructions, and print alignment masks.

W-3 Transmittal Forms

You may print W-3s for the current ledger or batch process W-3s for multiple ledgers. You can print W-3s on preprinted forms using a laser printer. CLS can also create Copy A and the employer's copy on blank paper using a laser printer.

You can also laser-print blank W-3s and print alignment masks.

1099/1098 Forms

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ledgers. You may print 1099s/1098s on preprinted forms using a laser or dot-matrix printer. CLS can create all forms except Copy A on blank paper using a laser printer; you will need preprinted forms for Copy A.

You can also laser-print blank 1099s/1098s and form instructions, and print alignment masks.

1096 Transmittal Forms

You may print 1096s for the current ledger or batch process 1096s for multiple ledgers. You may print 1096s on preprinted forms using a laser printer. CLS can create the employer's copy on blank paper using a laser printer, but you will need preprinted forms for Copy A.

You can also laser-print blank 1096s and print alignment masks.

Federal 940/941/943/944 Forms and Preliminary Reports

You must first display or print a preliminary report for any payroll series for which you want to print a

submittable 940, 941, 943 or 944 form. If you choose all series, decide whether to print separate reports or a consolidated report. Edit the information on the forms as needed. You may laser-print the 940, 941, 943 and 944 on preprinted forms or plain paper. You may also laser-print blank 940s/941s/943s/944s and print alignment masks.

Federal Unemployment (940) Wage List

Select one payroll series or all. If you choose all series, decide whether to print separate wage lists or a consolidated wage list.

State Unemployment Reports

 State Unemployment, SDI and Other Tax Worksheet

Select one payroll series or all. If you choose all series, decide whether to print separate worksheets or a consolidated worksheet.

 State Unemployment Continuation Sheets

Select one payroll series or all. If you choose all series, decide whether to print separate

continuation sheets or a single continuation sheet. Print approved OCR-scannable reports for AL, AZ, CA, CO, FL, GA, HI, IA, MD, MI, NC, NJ, OH, OR, SC, TN, TX, UT, WA, WI and other states which use OCR scanning techniques to read continuation sheets. Print customized non-OCR reports for the remaining states.

 State Unemployment Wage List – Tax 2

Select one payroll series or all. If you choose all series, decide whether to print separate wage lists or a consolidated wage list.

 Note: This is a wage listing for SUTA tax 2, not tax 1. If you want to print a tax 1 report in this format, select the Continuation Sheet Audit Trail.

 SUTA Rates and Limits by Ledger

Select a ledger for which to print SUTA rates and limits, or print the rates and limits for all ledgers.  SDI and Other Rates and Limits by Ledger

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Chapter

Two

CLS Payroll Maintenance Programs

Computed Transactions (CT) ... 2-2

Employee File Maintenance (EF) ... 2-5

Employee File List (EL) ... 2-17

Payroll File Maintenance (PF) ... 2-19

Setting CLS Payroll Options (SI) ... 2-35

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2-2 Computed Transactions (CT)

2.1 Computed Transactions

Use this program to adjust incorrectly withheld employee FICA or SDI, or to create transactions for the employer's share of FICA and federal and state unemployment taxes. The transactions created are based on rates and limits set in the Payroll File Maintenance (PF) program.

The Computed Transactions (CT) program processes employee series based on the response to the CT Options prompt for each payroll series in program PF, Menu Selection 1.

Enter CT from the CLS Main Menu and the following menu appears:

Employee FICA Adjustments

This routine will adjust incorrectly withheld FICA (Social Security and Medicare) against federal withholding.

Choose 1 from the CT menu and respond to the following prompt:

 Note: Only employee series that have been assigned an F option (Adjust FICA against Federal

Withholding) at the CT Options prompt in PF will be processed.

Would you like to continue? (Y,N)

Press Y to perform FICA adjustments.

While adjusting FICA, each payroll series and each employee name and number within that series is displayed; vendor series will be skipped. If an adjustment is made, Adjusted appears next to the employee name. Otherwise, In Balance appears.

*** Complete ***

*** Press ENTER to continue:

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Computed Transactions (CT) 2-3

FICA Adjustments for Cash Wages

Choose 2 from the CT menu to adjust FICA for cash wage employees. CLS will process the employees and create the transactions needed to adjust Social Security and Medicare against gross wages.

 Household/Agricultural Employees (1)

Use this routine to adjust FICA cash wages for household and agricultural employees. It will calculate employee FICA (Social Security and Medicare) on cash wages and place the offset in a separate gross column (Y), subject to federal and state withholding.

 Note: Only payroll series with a payroll column type Y (FICA portion of Gross – household/

agriculture) will be processed.

*** Complete ***

When FICA adjustments are complete, use the Post Transactions program (PT) to post the transactions that have been created.

 Cash Wages for Other Employees (2)

Use this routine to adjust cash wages for other employees. It will calculate employee FICA (Social Security and Medicare) on gross wages and will adjust gross wages so that cash wages equal the adjusted gross wages less any other deductions.

 Note: Only series that have been assigned a C option (Adjust FICA for Other Cash Wages – not

Household/Ag) at the CT Options prompt in program PF, Menu Selection 1, will be

processed.

*** Complete ***

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2-4 Computed Transactions (CT)

Employee SDI Adjustments

This routine will adjust incorrectly withheld SDI against state withholding. Choose 3 from the CT menu and respond to the following prompt:

 Note: Only series assigned an S option (Adjust SDI against State Withholding) at the CT

Options prompt in program PF, Menu Selection 1, will be processed.

Press Y to perform SDI adjustments.

While adjusting SDI, each payroll series and each employee name and number within that series is displayed. Vendor series and employee series without SDI will be skipped. If an adjustment is made, Adjusted appears next to the employee name. Otherwise, In Balance appears.

*** Complete ***

When SDI adjustments are complete, use the Post Transactions program (PT) to post the transactions which have been created.

Employer's Payroll Taxes

This routine will create journal entries for the employer’s portion of payroll taxes. Depending on your response to the CT Zero Transactions prompt in SI, Menu Selection 1 (3,2), CLS can also create zero amount transactions for FICA, FUTA and SUTA if no tax is due.

Choose 4 from the CT menu and respond to the following prompt:

Press Y to calculate employer's payroll taxes.

During calculation of employer payroll taxes, each payroll series and each employee name and number within that series appears.

*** Complete ***

When the payroll tax calculations are complete, use the Post Transactions program (PT) to post the transactions that have been created.

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Employee File Maintenance (EF) 2-5

2.2 Employee File Maintenance

Use the Employee File Maintenance (EF) program to add, revise, delete or query employee or vendor information, including name, address, social security number and current balances. You may also revise employee or vendor quarterly balances and check counts.

Enter EF from the File Maintenance Menu and the following menu appears:

Add/Revise an Employee or Vendor

Choose 1 from the EF menu to add or revise employee/vendor information.

Employee/Vendor

Enter the number of the employee or vendor to add or revise; press F1 to select the employee or vendor from a pop-up list. CLS automatically displays the current payroll or vendor series and basic information.

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2-6 Employee File Maintenance (EF)

number or 9999, whichever comes first. For example, if you have defined series 100 for employees and series 5000 for vendors, valid employee numbers may range from 100 to 4999 and valid vendor numbers from 5000 to 9999.

Name

Enter the employee or vendor name, up to 28 characters.

 Note: When you enter employee or vendor names in program EF, please observe the following rules:

• Enter names according to the name convention (First-name-first or Last-name-first) selected in PF.

• If you enter names with the last name first, you must enter a comma after the last name.

• If there is a title following the last name, such as III or Jr., enter it last and separate it from the name with a comma: William E. Jones, Jr. or Jones, William E., Jr.

• If you have selected the first-name-first option, and the last name consists of more than one word, enter a caret (^) before the last name: George ^Van Buren.

Address Line 1 Address Line 2 City

State Zip Code

Enter the employee or vendor address.

Soc Sec/FEI No.

Enter the employee social security number or vendor FEI number, separated by dashes if you wish.

 Employee Series Prompts

The following prompts appear if you are creating or revising an employee series. See the following pages for vendor series prompts and miscellaneous series prompts.

Column 1 Account

Enter the column 1 account to be associated with this employee. Press F1 to select from a pop-up Chart of Accounts for this ledger. You must enter an account number within the gross pay account range or matching one of the additional gross pay accounts defined in program PF, Menu Selection 3. You may use this account when entering transactions (ET) for this employee by simply entering a 1 in the account field.

Empl Options

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Employee Options

A Do not adjust FICA/Medicare W/H for this

employee using CT #1. N Employee is not covered by a retirement plan.

B Bi-weekly pay (multiplies the number of payroll

O Marks an employee as a corporate officer for FL, ME, MN, or SC or as a seasonal employee for NC.

C Gross wages are not subject to federal

unemployment taxes. P Check the Sick Pay box on the W-2 form.

D Gross wages are not subject to state

unemployment taxes. Q

Quarterly pay (multiplies the number of payroll checks entered by 13 to report weeks worked).

E Gross wages are not subject to employee SDI. S Semi-monthly pay (multiplies the number of payroll

checks entered by 2.16 to report weeks worked).

F Gross wages are not subject to employee

FICA/Medicare. V Permanent employee.

G Statutory employee. W Weekly pay (multiplies the number of payroll

H Hold, do not print W-2. X Inactive employees; transactions will not be

accepted.

L Payment made to a legal representative. Y Employee is covered by a retirement plan.

M Monthly pay (multiplies the number of payroll

checks entered by 4.33 to report weeks worked). Z Marks employee as deceased.

Locality 1 Locality 2

If this employee is subject to local taxes, you may enter the name or abbreviation of the local jurisdiction(s).

 Note: Local jurisdictions entered here will override local jurisdiction 1 or 2 defined in program PF, Menu Selection 1.

Opt. Sort Key

You may tag this employee with an alphanumeric sort key and then prepare an Employee List sorted by this code in program EL.

Hire Date Term. Date

Enter the employee hire date and, if necessary, the termination date. CLS uses the hire and termination dates to prepare new employee/hire reports (EL). Employees who have been terminated (or who do not have transactions) may be deleted at the end of the year (EP).  Note: If an employee count is shown on the unemployment wage continuation sheet:

• If no dates are entered for an employee, CLS assumes the employee was working in all three months of the current quarter.

• If hire and/or termination dates have been entered for the employee, the employee will be counted only in the months in which the employee was present on the 12th day of the month.

Male/Female (M,F)

Indicate whether the employee is male or female.

Hourly/Salaried (H,S)

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Hourly Rate

If hourly, enter the employee’s hourly rate.

Job Title

Enter the employee’s job title.

Hours per Check

Minnesota, Oregon and Wyoming: Enter the standard number of hours per paycheck. You must

set up columns (H1 and H2) in PF, Menu Selection 3, to handle hours in and out. The number of hours entered here will be used as the default for these columns in ET.

Date of Birth

Enter the employee’s date of birth.

 Vendor Series Prompts

The following prompts appear if you are creating or revising a vendor series.

Default Column Default Account

Enter the default column and account to be associated with this vendor. For column 1, you may enter a new default account. Press F1 to select from a pop-up Chart of Accounts for this ledger. You may select columns 2-16, but you may not enter a default account. CLS displays the account entered in program PF, Menu Selection 3. You may use the default column and account when entering transactions (ET) for this vendor by simply entering a 1 in the account field.

Vendor Options

Enter multiple options without spaces. To remove all options, press the space bar once. Press F1 to select from a pop-up list of vendor options.

Vendor Options (1099-MISC)

C Print corrected 1099 T Second TIN notification

H Hold, do not print vendor’s 1099 V Permanent vendor

N Name line 2 is continuation of line 1 X Inactive vendor

P Check box 9 (sales of $5000) 1,2 Use name line 1 or 2 in ET

Enter the vendor hire date and, if necessary, the termination date. CLS uses the hire and

termination dates to prepare new vendor lists (EL). Vendors who have been terminated (or who do not have transactions) may be deleted at the end of the year (EP).

Name Type (I,B)

Press I if the vendor is an individual, or press B if the vendor is a business. Press F1 to select the name type from a pop-up list.

Name Control

If you are using CLS ~ Magnetic Media™, enter the first four characters of the vendor's last name

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Account

You may enter a unique number to be used as a reference for each vendor. If you select the A option at Vendor Options prompt in PF, Menu Selection 1, this number will be printed in the

Account number field of a 1099 or 1098; otherwise, the vendor number will be printed.

Optional Sort Key

You may tag this vendor with an alphanumeric sort key and then prepare a Vendor List sorted by this code in program EL.

For a 1099-INT or 1099-DIV series:

Country/Poss.

Enter the appropriate country or possession for this vendor.

For a 1099-A series:

Acquisition Date

Enter the acquisition date of the secured property or the date when the vendor first knew the property was abandoned. Enter the date in mm/dd/yy format.

Description of Property

Enter a description of the property. For real property, enter the address, or if the address does not identify the property, enter the section, lot and block. For personal property, enter the type, make and model.

For a 1099-B series:

Sale Date

For broker transactions, enter the trade date of the transactions. For barter exchanges, enter the date cash, property, a credit or scrip is actually or constructively received. Enter the date in mm/dd/yy format.

CUSIP No.

For broker transactions, enter the Committee on Uniform Security Identification Procedures (CUSIP) number of the item reported for stocks, bonds, etc.

Description

Enter a description of the item or services for which the proceeds or bartering is being reported.

No. of Shares

For stocks, enter the number of shares exchanged.

Stock Classes

Enter the classes of stock exchanged.

Corp Name and Address

If needed, enter the corporation’s name and address.

For a 1099-C series:

Date Canceled

Enter the date the debt was canceled in mm/dd/yy format.

Debt Description

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For a 1099-R series:

Locality

If this vendor is subject to local taxes, you may enter the name or abbreviation of the local jurisdiction.

 Note: A local jurisdiction entered here will override local jurisdiction 1 as defined in program PF, Menu Selection 1.

Distribution Code

Enter the appropriate distribution code.

Box 8 Percent

Enter the percent to be printed in Box 8 of the 1099 form.

Total Dist Percent

If you are reporting a total distribution to more than one person, enter the percentage received by this vendor. If the percentage is 100, you should leave this field blank. If the percentage is a fraction, round it off to the nearest whole number (e.g., 10.4 % = 10%,

11.7% = 12%).

For a 1099-S series:

Closing Date

Enter the closing date in mm/dd/yy format.

Address or Description

Enter a description of the property, such as address, section, lot and block.

For a 1098 series:

Text for 1098 Box 4

Enter the text to be printed in Box 4 of the 1098 form.

 Miscellaneous Series Prompts

The following prompts appear if you are working with a miscellaneous (type M) series. This series type is not used for 1099s, but for vendor reports (such as a sales journal) where no W-2s or 1099s will be prepared. Miscellaneous series balances will be cleared at the end of the fiscal year.

Default Column Default Account

Enter the default column and account to be associated with this vendor. For column 1, you may enter a new default account. Press F1 to select from a pop-up Chart of Accounts for this ledger. You may select columns 2-16, but you may not enter a default account. CLS displays the account entered in program PF, Menu Selection 3. You may use the default column and account when entering transactions (ET) for this vendor by simply entering a 1 in the account field.

Options

You may assign up to six options per vendor. Enter multiple options without spaces. To remove all options, press the space bar once. Press F1 to select from a pop-up list of options.

Opt. Sort Key

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Enter the vendor hire date and, if necessary, the termination date. CLS uses the hire and

termination dates to prepare new vendor lists (EL). Vendors who have been terminated (or who do not have transactions) may be deleted at the end of the year (EP).

Accept or Escape? (A,Esc)

Press A to save the employee or vendor. Press Esc to return to the Employee/Vendor prompt without saving any changes.

Employee ‘115’ has been updated. Vendor '1001' has been added.

CLS adds or updates the selected employee or vendor and returns to the Employee/ Vendor prompt. You may select another employee or vendor, or press Esc to return to the EF menu.

Revise Employee/Vendor Balances

Choose 2 from the EF menu to revise employee or vendor balances.

Employee/Vendor

Enter the number of the employee/vendor whose balances need to be revised. Press F1 to select from a pop-up list of employees or vendors for this ledger.

Continue? (Y,N)

Press Y to continue, and the following screen appears:

 Note: When entering beginning balances, make sure deductions are entered with a minus sign.

Select quarter to edit (0-5)

Select the quarter for which you want to enter employee balances (0 = beginning of the current year, 5 = first quarter of the next year). Enter gross pay and deductions for each quarter of the current calendar year.

 Notes:

• Descriptions for columns 1-16 will appear as you defined them in the PF program. Column signs (+,-) assigned in the PF program are applied to amounts entered here.

• Press the arrow keys (←,→) to display Begin Year, Quarter 5 and Current Period balances. The fields marked Begin Year display balances brought forward from the end of the previous year; you may edit these balances as needed, or enter new beginning balances.

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are used to capture next-quarter payroll balances when processing a fiscal quarter ledger at the end of the year and the fiscal quarter does not coincide with a calendar quarter.

The fields marked Current Period display the sum of the current period transactions, regardless of quarter. You may not change these figures.

Employee '115' has been updated.

CLS updates the selected quarter once you return to the Select quarter to edit (0-5) prompt.

Revise Employee/Vendor Check Counts

Choose 3 from the EF menu to revise employee or vendor quarterly check counts.

Employee/Vendor

Enter the number of the employee or vendor whose check count you want to edit. Press F1 to select the employee or vendor from a pop-up list.

Checks - Qtr 1-5

Paychecks are counted when transactions are entered in the ET program. These figures are used, along with the employee pay period (options B, M, Q, S and W), to compute weeks worked for the state unemployment continuation sheet. You may revise these check counts here.

Accept or Escape (A,Esc)

Press A to save the revisions. Press Esc to return to the Employee/Vendor prompt without modifying the check count.

Employee '115' has been updated.

CLS updates the selected employee or vendor and returns to the Employee/Vendor prompt. You may select another employee or vendor, or press Esc to return to the EF menu.

Delete an Employee or Vendor

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Employee File Maintenance (EF) 2-13 Choose 1 to delete a specific employee or vendors, 2 to select from a list of inactive employees and vendors, or 3 to delete all inactive employees and vendors.

 Delete a Single Employee or Vendor (1)

Employee/Vendor

Enter the number of the employee or vendor to be deleted. Press F1 to select the employee or vendor from a pop-up list. CLS displays basic information about the employee or vendor.  Note: Employees or vendors with transactions or balances on file, or those with a V option,

cannot be deleted.

Would you like to delete this employee? (Y,N)

Press Y to delete the employee or vendor, or press N to return to the Employee/Vendor prompt.

Employee '106' has been deleted. Vendor '1001' has been deleted.

CLS deletes the selected employee or vendor and returns to the Employee/Vendor prompt. You may delete another employee or vendor, or press Esc to return to the EF menu.

 Delete Selected Inactive Employees/Vendors (2)

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Select Inactive Employees/Vendors to Delete (1)

Choose 1 to select employees or vendors to delete, and the following screen appears:

CLS displays all inactive employees and vendors. Use the arrow keys (↑,↓) to scroll through these employees and vendors, and enter D beside those to be deleted.

 Note: Employees or vendors with transactions or balances on file, or those with a V option, will not be listed.

View/Print Audit Trail (2)

Choose 2 from the Delete Selected Inactive Employees/Vendors menu to view or print the list of the employees and vendors to be deleted. Respond to the following prompts:

Include inactive employees/vendors with no change? (Y,N)

Press Y to include the inactive employees and vendors that will not be deleted, or press N to suppress them.

(D)isplay, or number of copies to print (D,1-9)

Press D to display the audit trail, or enter the number of copies to print. Press 1 to print a single copy. CLS will prompt you to select a printer.

CLS returns to the Delete Selected Inactive Employees/Vendors menu when the report is complete.

Delete Selected Inactive Employees/Vendors (3)

Choose 3 from the Delete Selected Inactive Employees/Vendors menu to delete the inactive employees/vendors.

Continue or Escape (C,Esc)

Press C to delete the selected employees/vendors, or Esc to return to the Delete Selected Inactive Employees/Vendors menu.

Complete

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 Delete All Inactive Employees/Vendors (3)

Choose 3 from the Delete an Employee or Vendor menu to delete all inactive employees and vendors for the current ledger, and respond to the following prompt:

***Warning***

This routine will delete ALL INACTIVE EMPLOYEES and VENDORS in this ledger! Use it with caution.

Continue? (Y,N)

Press Y to delete all of the inactive employees and vendors in the current ledger.

All inactive employees/vendors have been deleted.

CLS deletes the inactive employees/vendors and returns to the EF menu.

Query an Employee or Vendor

Choose 5 from the EF menu to query an employee or vendor, and the following screen appears:

Employee/Vendor

Enter the number of the employee or vendor to query. Press F1 to select the employee or vendor from a pop-up list. CLS displays basic information about the employee or vendor.

Press ENTER to continue:

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Press ENTER to continue:

Press Enter to view the employee or vendor check counts.

Press ENTER when finished:

Press Enter to return to the Employee/Vendor prompt. You may select another employee or vendor to query, or press Esc to return to the EF menu.

Renumber an Employee or Vendor

Choose 6 from the EF menu to renumber an employee or vendor, and the following screen appears:

 Note: Employees and vendors may be moved between series as long as the series type and column setup for both are identical. CLS cannot merge employee or vendor records.

Employee/Vendor

Select the employee/vendor to be renumbered. Press F1 to select the employee/vendor from a pop-up list.

New Number

Enter a new number for the selected employee/vendor.

Employee ‘115’ has been renumbered as ‘116’.

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Employee File List (EL) 2-17

2.3 Employee File List

Enter EL from the File Maintenance Menu and the following menu appears:

Select the report to print, and respond to the following prompts:

Payroll Series (ENTER for all)

Enter a payroll series, or press Enter to list information for all series. Press F1 to select the payroll series from a pop-up list.

Employee, Vendor, Misc (E,V,M - ENTER for all)

If you did not enter a payroll series: Select the series type to appear on the report, or press Enter to

include all series types.

Series Type (ENTER for all)

If you entered V above: Select the vendor type to appear on the report, or press Enter for all vendor

types. Press F1 to select the vendor type from a pop-up list.

Menu Selection 1 only:

Include detail?

Press Y if you would like employee (and/or vendor) detail printed on the report. Press N if you want to include only the employer information.

Show Locality?

Press Y if you would like employee (and/or vendor) locality printed on the report.

Beginning Date Ending date

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2-18 Employee File List (EL)

Menu Selections 2, 4 and 5 only:

Show YTD Balances?

Press Y if you would like year-to-date net balances printed on the report. Press Enter to accept the N default to suppress the year-to-date balances.

Employees/Vendors should be sorted by: 1 Employee Number

2 Last Name

3 Social Security No. 4 Optional Sort Key

Select an employee or vendor sort pattern (not available for batch reports).

Menu Selections 4 and 5 only:

Calendar Year

When creating a missing information report for all ledgers, CLS will analyze the current generation of each ledger in the data path, looking for missing payroll information. To restrict the search to a specific calendar year, enter the year here. CLS does not include prior generations in the report.

Include Start Dates?

Enter Y if you want start dates to be considered when searching for missing payroll information.

Minimum Payment

If you answered Y to Show YTD Balances, you may enter a minimum payment. Employees or vendors falling below the minimum amount will not be included in the report.

(D)isplay, or number of copies to print (D,1-9)

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Payroll File Maintenance (PF) 2-19

2.4 Payroll File Maintenance

Use the Payroll File Maintenance (PF) program to define groups of employees or vendors, called

payroll series. For each series, enter the employer's name, address, and federal and state

identification numbers. There is no limit to the number of payroll series you can create. You can also use this program to enter payroll or vendor journal column definitions and account ranges, set payroll tax rates and limits, or define payroll column taxability.

Enter PF from the File Maintenance Menu and the PF menu appears:

Add/Revise a Payroll Series

A payroll series defines a group of employees or vendors. CLS prepares a separate payroll or vendor journal for the employees or vendors in each series. In addition, CLS prepares all payroll tax forms (W-2, 1099/1098, 940/ 941/943/944 forms, etc.) by series.

Series numbers cannot be less than 100. Each series defines a group of employees or vendors starting with the series number and ending with 9999 or one digit less than the number beginning the next series. Employees or vendors in a series must share taxability characteristics, since you make those decisions for the entire payroll series. If they do not, define more than one series. In the case of a multi-state payroll, we recommend using one payroll series per state.

You may enter the employer name and address, and the employer's federal and state payroll tax I.D.s in program LI, Menu Selection 3 (2). This information will be used as the default when a payroll series is created in PF.

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2-20 Payroll File Maintenance (PF)

Payroll Series

Enter a series number to add or revise. Press F1 to select the series from a pop-up list.

Series Type

Enter the type of series (E is the default); press F1 to select the series type from a pop-up list. CLS clears type E, 1-9 and A series at the end of a calendar year. An M type series is not related to W-2 or 1099/1098 forms and will be cleared at the end of the fiscal year.

CLS Payroll Series Types

E Employee Series (W-2) 6 Vendor (1099-B)

1 Vendor (1099-MISC) 7 Vendor (1099-S)

2 Vendor (1099-INT) 8 Vendor (1099-R)

3 Vendor (1099-DIV) 9 Vendor (1099-C))

4 Vendor (1099-PATR) A Vendor (1098)

5 Vendor (1099-A) M Miscellaneous Series (no taxes)

Employer Name 1 Employer Name 2 Address Line 1 Address Line 2 City, State, Zip

For series type E, 1-9 or A: Enter the employer name and address as they should appear on the tax forms.

Federal I.D. No.

For series type E, 1-9 or A: Enter the employer's federal withholding I.D. (FEI) number for this series, up to 12 characters. Enter hyphens (-) as needed.

W/H State #1

For series type E, 1-9 or A: Enter the standard two-character postal abbreviation of the withholding state for this series.

I.D.

For series type E, 1-9 or A: Enter the employer's state withholding I.D. for this series, up to 12 characters.

 Employee Series Prompts

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W/H State #2

You may designate a second withholding state, but due to the added complexity of tracking gross wages and withholding by state, we do not recommend it.

I.D.

If you entered a second withholding state, enter the second state withholding I.D., up to 12 characters.

SUTA/SDI State

Enter the abbreviation of the state to be used for unemployment tax reporting. This state may be different from the withholding states above.

State Unemp. I.D.

Enter the employer's State Unemployment Tax I.D. for this series, up to 25 characters. Some codes are used only by the CLS ~ SUTA Magnetic Media add-on program (SM).

• Arizona: Enter a caret (^) in front of the check digit and branch code, if any (used by SM). If 9 is the check digit, and 123 the branch code, enter 1234567^9^123.

• California: Enter a caret (^) in front of the branch code, if any (used by SM). If 123 is the branch code, enter 1234567^123.

• Florida: Enter a caret (^) in front of the location code. If 000 is the location code, enter

12345678^000.

• Pennsylvania: Enter a caret (^) in front of the check digit and plant number. If 9 is the check digit and 123 the plant number, enter 12-12345^9^123.

• Texas: Enter a caret (^) in front of the unit number, if required. If 0089 is the unit number, enter 12-3456-7^0089.

• Wyoming: Enter a caret (^) in front of the location code (used by SM). If 12 is the location code, enter 123456789^12.

Name Control

CLS defaults to the first four digits of the company name or the first four digits of an individual’s last name, depending on the option selected at the Empl Options prompt. You may change the name control when editing the 940 form in TW.

N.J. Private Plan

Enter the disability insurance private plan number for New Jersey. This number will be printed in Box 14 of the W-2 form.

Journal Format (1,2)

Press Enter to accept the default 1 response if you would like an eight-column payroll journal, or press 2 to select a 16-column payroll journal. Press F1 to select the journal format from a pop-up list.

FICA/FUTA Source (1,2)

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2-22 Payroll File Maintenance (PF)

Empl Options

Press F1 to select name convention, employee type, FUTA/SUTA print options, California unemployment series type. Valid employee series options are listed below.

Employee Series Options

A Agricultural employee (943) R Regular (All Others)

B Employer Name 1 is a business S Semi-weekly 941 depositor

C Print FUTA exempt employees U For Minnesota, employees subject to 6.2% FUTA

D Print SUTA exempt employees X Railroad employee

E Print state wages on W-2 1 UI and DI Wages (S)

F First name entered first 2 UI Wages Only – Public Entity Employees (A)

G Annual 944 employer 3 DI Wages Only (J)

H Household 4 UI and Voluntary Plan DI Wages (U)

I Employee Name 1 is an individual 5 Personal Income Tax W/H Only (P)

L Last name entered first 6 DI Wages Only - Voluntary Plan (L)

M Military 7 UI Wages Only - Religious DI Exemption (R)

O Include SUTA tax 2 in the 940 SUTA tax 8 UI Wages Only - Sole Stockholder DI Exemption (R)

P Print SUTA continuation sheet even if no activity 9 UI Wages Only - Third Party Sick Pay DI Exemption (R)

Q Medicare Qual. Gov't Employee

 Notes:

• For railroad employees, use option X if the employees are covered by the Railroad

Retirement Tax Act (RRTA), and use option R if the employees are covered by the Railroad Retirement Board (RRB).

• California Unemployment Tax Reporting - Use types 1-5, 8 and 9 for paper DE-6 reporting.

- Use types 1-7 for reporting DE-6 information using magnetic media.

Retirement Plan

Press Y if all (or most) employees in the series are covered by a retirement plan.

 Note: If you press Y here, the square for Retirement Plan in Box 13 of the W-2 will be checked for all employees without an employee option N. If only a few employees in the series are covered by a retirement plan, press N here and use employee option Y to indicate covered employees.

Show Weeks Worked

Press Enter to accept the default Y response if you want to show the number of weeks worked by each employee on the quarterly state unemployment continuation sheet. Press N if you do not.

Show Employee Addr

Press Enter to accept the default Y response if you want each employee's address printed on the payroll journal. Press N to suppress the employee address.

CT Options

Select C if you would like the Computed Transactions (CT) program to adjust FICA for other cash wages (not household/agricultural employees) using CT, Menu Selection 3. Select F to adjust FICA against federal withholding using CT, Menu Selection 1. Select S to adjust SDI against state

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Locality #1 Locality #2

If local taxes will be reported on W-2 forms for this series, enter the name of the localities (city, county, school district, etc.) for which you will withhold local taxes. Locality #1 will be used on the W-2 form when reporting amounts in payroll journal columns assigned a D or D1 column type.

Locality #2 will be used on the W-2 form when reporting amounts in payroll journal columns

assigned a D2 column type.

 Vendor Series Prompts

The following prompts appear if you are creating or revising a vendor series.

Country/Possession

For series type 2 or 3: Enter the appropriate country or possession for this series.

Locality

For series type 8: If local taxes will be reported on a 1099 for this series, enter the name of the locality (city, county, school district, etc.) for which you will withhold local taxes.

Jrnl Format (1,2)

Press Enter to accept the default 1 response if you would like an eight-column payroll journal, or press 2 to select a 16-column payroll journal. Press F1 to select the journal format from a pop-up list.

Show Vendor Addr

Press Enter to accept the default Y response if you want each vendor's address printed on the vendor journal. Press N to suppress vendor addresses.

Vendor Options

Press F1 to select vendor options such as name convention. Valid vendor series options are listed below.

Vendor Series Options

A Show vendor account on 1099/1098 in the account number box in place of the vendor number

B Payer is a business

F First name entered first

I Payer is an individual

L Last name entered last

Payer’s RTN

For series type 2: Enter the payer’s RTN.

Name Control

If you will use the CLS ~ Magnetic Media™ add-on program, enter the Name Control assigned by

the IRS; otherwise leave this field blank.

 Miscellaneous Series Prompts

The following prompts appear only if you are creating or revising a miscellaneous series.

Report Title