T E X A S C O M P U T E R C O O P E R A T I V E
D e v e l o p e d b y t h e
How to:
PROCESS W-2
S
Copyright © 201 by Texas Computer Cooperative All rights reserved
C
ONTENTS
7B Overview ...3 Prerequisites ... 4 Checklist Overview ... 4 W-2 Processing Prerequisites ... 4Generate YTD and Quarterly Reports ...7
Generate the W-2 Validation Report ...11
Enter Third Party Sick Pay ...13
Create a Backup W-2 File ...15
Create the W-2Report File ...17
Finalize the W-2 Processing ...19
Update the District EA Options ...21
Reprint the W-2s ...23
Appendix ...25
7B
O
VERVIEW
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 > HRS5100 - 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 www.socialsecurity.gov/employer.
z Employers with 250 or more W-2 forms are required to electronically file. z 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 www.IRS.gov for further information on specific dates.
z W-2 forms must be properly addressed and mailed to employees on or before the deadline, which is generally January 31st.
z 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 www.irs.gov/publications: z Publication 15 Employer’s Tax Guide (Circular E)
TxEIS Human Resources - Process W-2s
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 2.0.0004.
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.
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 HRS3350 - Combined YTD
G
ENERATE
YTD
AND
Q
UARTERLY
R
EPORTS
Generate the HRS3000 - Calendar YTD and HRS5000 - 941 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 > HRS3000 - 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.
TxEIS Human Resources - Process W-2s
Human Resources > Reports > HR Reports > Quarterly/Annual Reports > HRS5000 - 941 Worksheet
1. Enter the necessary parameter data.
G
ENERATE
THE
W-2 V
ALIDATION
R
EPORT
Review your W-2 totals by creating the W-2 Validation report. Use the report to verify totals against the HRS3000 - Calendar Year To Date and HRS5200 - 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 year-to-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
TxEIS Human Resources - Process W-2s
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.
E
NTER
T
HIRD
P
ARTY
S
ICK
P
AY
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 HRS5100 - W-2 Forms report again for updated totals.
Human Resources > Maintenance > Calendar YTD Data > Third Party Sick Pay
TxEIS Human Resources - Process W-2s
z Review IRS Publication 15-A and your LEA’s sick pay policy to determine if necessary.
z Third-party sick pay data affects the calculations on the W-2 and 941 Worksheet. 3. Generate the HRS5200 - Third Party Sick Pay Report to verify the totals against the
third- party provider’s statement.
z Enter the necessary parameter data.
C
REATE
A
B
ACKUP
W-2 F
ILE
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.
z Type a password for the exported file. z Click OK.
TxEIS Human Resources - Process W-2s
z Click OK to close the message and return to the Export Human Resources by Payroll page.
C
REATE
THE
W-2R
EPORT
F
ILE
Generate the W2REPORT file (i.e., submission file) and run it through the SSA’s AccuWage program at www.socialsecurity.gov/employer. A detailed AccuWage guide can be found at
www.socialsecurity.gov/employer/accuwage/.
Caution: Do not continue the process until the W-2 Report file is verified through AccuWage.
TxEIS Human Resources - Process W-2s
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.
z Click OK to close the message and return to the W-2 Forms Report page.
z Navigate to the appropriate folder to view the file. The file can be saved as a .txt or .csv file.
F
INALIZE
THE
W-2 P
ROCESSING
At this point, the W-2s should be balanced and any AccuWage formatting issues corrected. Now, you can use the HRS5100 - W-2 Forms report page to print and finalize the W-2 forms.
Human Resources > Reports > Quarterly/Annual Reports > HRS5100 - W-2 Forms Report
1. Enter the necessary parameter data.
z 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).
TxEIS Human Resources - Process W-2s
2. Click Run Preview. The W-2 form is generated on a separate page.
U
PDATE
THE
D
ISTRICT
EA O
PTIONS
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.
TxEIS Human Resources - Process W-2s
z W-2s are copies and should not be used in lieu of the LEA generating W-2s.
z W-2s are printed in the official format (as determined by the IRS) and can be used as the original.
