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W-2 PREPARATION
The following instructions are to be used AFTER completing the P/R Year-End Checklist through page 1 - PERFORM YEAR-END ROUTINE. (This checklist is attached at the end of this document).
Use
BOMPR4 - YEAR END ROUTINES menu to prepare your LAST YEAR
files for W-2 printing and producing a magnetic media
file.
1. BOMPR4 OPTION 3 - ENTER PREV-YEAR ADJUSTMENTS
Use this option only if you need to make adjustments to the earnings, taxes, deductions, etc... Or if you need to add
taxable incentives, 3rd party sick pay and auto
allowance, which will appear in Box 14-Other, of the W-2. For these Box 14 items, use the following codes in the field marked "W-2" on the PRIOR YEAR ADJUSTMENTS screen.
BOX 14-Other ITEM
Taxable Incentives
3rd Party Sick Pay
Auto Allowance |
W-2 CODE
1
2
3
|
LABEL ON W2 FORM
OTHR
OTHR
AUTO
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These adjustment amounts should be entered as other earnings using a "Miscellaneous" earnings code not previously used during the
2006 reporting year. If unsure what codes are unused for the year, print an EMPLOYEE INQUIRY-SUM report, leave the EMPLOYEE# blank, and view the
final summary page. Other earnings codes are C, I, L, P, R,
U, X, Y & Z.
Guidelines for using ENTER PREVIOUS YEAR ADJUSTMENTS
· The entry screen is similar to the normal Hand/Void entry on the regular P/R menu. Use the
Field+ key to add to earnings/deductions; use the Field- key to subtract. It works just like entering a Hand or Void check. Use a made up check number.
· Use a check date from the quarter of last year to which the adjustment applies. This is important to keep your quarter end reporting accurate.
· All earnings entered via this function will increase or decrease the total wages in boxes 1, 3, and 5. The amount will increase if entered as a positive amount, or decrease if entered as a negative amount.
· If the employee's master record has a valid pension code in the PENS field, the 401K adjustment amount entered in the field DED-8 will cause that amount, (plus year-to-date DED-8) to print in Box 12 with the code "D" . The 401k (DED-8)
will not be included in the Box 1 total.
· No General Ledger transactions will be generated by this option. If required, they must be manually entered.
· After "entering" the adjustments, use menu option 4 to post the adjustments. (see next step)
2. OPTION 4 - POST PREV-YEAR ADJUSTMENTS
This option posts to payroll last year history files the adjustments entered in Step-1, menu option 3 (above).
3. OPTION 21 - CONTROL RECORD FMT 90-PRLC
This option is used to verify the Federal Employer Identification Number (EIN - same as on Form 941), Company Name and Address to be printed on the W-2s.
The Federal EIN MUST be entered with the dash (-) or any other punctuation specified. (E.G.: 75-1234567) There are a minimum of two records per company which contain the Federal EIN and both records must be verified and/or corrected.
The first "KEY" for Option 21 is "PRCODIV".
The second "KEY" for Option 21 is "PRcccddd". (c = your 3 digit company number and d = the division number). If you have multiple divisions you must check each company/division combination.
Sample Screen:
KEY :
COMPANY# :
DIVISION# :
COMPANY NAME :
COMPANY ADD1 :
COMPANY C/S/Z :
STATE :
CITY :
G/L EDIT :
FEDERAL ID :
PENSION LOCATION CODE : |
PRCODIV
004
000
---- YOUR HOTEL NAME HERE ----
123 E. ELM ST.
CEDAR RAPIDS, IA 52404
IA
CR
2
75-09876599 *Remember to include the dash*
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4. OPTION 22 - CONTROL RECORD FMT 20-PRLC
This option controls two major functions for W-2 reporting:
1. State ID code to be used on printed forms and in Magnetic Media reporting.
2. Control of Box 16 State Wages - What earnings amounts, Pension Deductions and Cafeteria plan (Section 125) amount to be used for calculation of State Wages.
State ID:
This option is used to verify the State ID & SUI-ID to be used on the W-2s. The SIT and SUI-ID numbers should be entered with any punctuation as specified by the state taxing authority.
The "KEY" for option 22-State ID record, is the state abbreviation, followed by the 6-digit company/division number. (E.G.: IA001000 or FL205001) If you have multiple divisions you must check each company/division combination.
State Wage Control:
Establish if all earnings, Pensions and Cafeteria (section 125) amounts are to effect State Wages-Box 16. The "KEY" for option 22-State W2 Wage record, is "W2S" followed by the 2 character state abbreviation, (same abbreviation used above). For Example, for California, the key would be "W2SCA". If you have employees from multiple states, you must set up one "W2Sxx" record for each state. Use the guide below to assist you in setting up the "W2Sxx" record.
Only the items shown below are required for this W2Sxx record. Enter the letter "Y" to include the item in Box 16 calculation, and enter a "N" in all items that should NOT effect Box 16.
MAINTAIN PAYROLL CONTROL FILE - FORMAT 20
KEY :
REGULAR :
OVER-TIME :
BANQUET :
VACATION :
SICK :
HOLIDAY :
TIPS-1 :
TIPS-2 :
OTHER :
EMPLOYEE PENSION :
EMPLOYER PENSION :
CAFETERIA:
MEALS :
NAME: |
W2SCA
Y On all earnings and tips, enter a “Y” to
Y have the earnings included in Box 16.
Y
Y
Y
Y
Y
Y
Y
__ Y to have the Employee Pension deduction
SUBTRACTED from taxable earnings.
__ Y to have Employer Pension contribution
ADDED to taxable earnings.
__ Y to have CAFE amount (Section 125)
SUBTRACTED from Taxable earnings.
__ Y to have the YTD amount for MEALS
added To Taxable earnings.
1 fill in a "1"
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NOTE: If your state wages (Box 16) should match your federal wages (Box 1), then use these settings:
All earnings
Employee Pension
Employer Pension
Cafeteria
Meals |
Y
Y
N
Y
N |
5. OPTION 23 - CONTROL RECORD FMT 91-PRLC
Using the record key of "SIT" followed by the two letter state abbreviation (E.G.: SITCA = California), make sure the tax authority name, income tax deduction option and state ID number fields are correctly specified. The SIT number should be entered with any punctuation as specified by the state taxing authority.
Sample Screen:
MAINTAIN PAYROLL CONTROL FILE - FORMAT 91
KEY
:
TAX AUTHORITY :
INCOME TAX ? :
STATE I.D. : |
SITCA
CALIFORNIA
Y
99-102899 |
6. PR8008 - Clear "additional amount" fields in Payroll Master File
THIS IS A REQUIRED STEP IN PREPARING W-2's.
· This step must be run prior to entering moving allowances, non-taxable incentives
and excess group life via step #8- option 13.
· Failing to do so will cause "202020.20" to print in box 10 of the W-2 form.
To run this option, type the command "PR8008" at the bottom of menu BOMPR4. For systems with multiple company-divisions, use the command "PR8008R" to run the function repetitively.
7. PR8002 - Update State Code to Check Records.
THIS IS A REQUIRED STEP IN PREPARING W-2's.
· This must be run AFTER verifying the State ID codes in steps 4 and 5 above.
To run this option, type the command "PR8002" at the bottom of menu BOMPR4. This routine will insure that all check history records will contain the proper Federal, State and SUI-ID numbers
For systems with multiple company-divisions, use the command "PR8002R" to run the function repetitively.
8. OPTION 13 - MAINTAIN LST-YR EMPLOYEE FILE
This option allows changes of employee name and address, pension code and entry
of
· Moving allowances
· Non-taxable incentives
· Excess group life
· Dependent care benefits
· Non-taxable Sick Pay
Amounts entered in these fields will effect the W-2 as follows:
ITEM
Moving Allowance
Non-Taxable Incentives
Excess Group Life
Child Care Benefit
Non Taxable Sick Pay |
BOX#
12
14
12
10
12 |
CODE
P
OTHR
C
None
J |
BOX 1,3,5 EFFECT
None
None
ADDS TO
None
None |
For
numbers 9 through 11 go
to Tax - Print and Media
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