W-2 Tax Preparation for CSS Legacy Systems

The following list is for CSS customers who use the CSS DOS-based legacy systems.  This information does not apply to customers who use CSS Windows-based products.

The following instructions are to be used after completing the Payroll Year-End Checklist through page 1 - Perform Year-End Routine (checklist is attached at the end of this document). 

Use the 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, third-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	W-2 CODE	LABEL ON W-2 FORM
Taxable Incentives	1	OTHR
3rd Party Sick Pay	2	OTHR
Auto Allowance	3	AUTO

 

These adjustment amounts should be entered as other earnings using a "Miscellaneous" earnings code not previously used during the previous 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 Payroll 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 hyphen (-) 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 Text:  

Key	:	PRCODIV
COMPANY#	:	004
DIVISION#	:	000
COMPANY NAME	:	YOUR HOTEL NAME HERE
COMPANY ADD1	:	123 E. ELM ST.
COMPANY C/S/Z	:	CEDAR RAPIDS, IA 52404
STATE	:	IA
CITY	:	CR
G/L EDIT	:	2
FEDERAL ID	:	75-09876599 *Remember to include the hyphen*

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. State Wages (Control of Box 16) - 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 amounts (section 125) are to effect State Wages-Box 16.  The KEY for option 22 - State W2 Wage record is "W2S" followed by the 2-letter 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 the Box 16 calculation, and enter a "N" in all items that should NOT effect Box 16.

MAINTAIN PAYROLL CONTROL FILE - FORMAT 20

KEY	:	W2SCA
REGULAR	:	Y  -  On all earnings and tips, enter a "Y" to have the earnings included in Box 16.
OVER-TIME	:	Y
BANQUET	:	Y
VACATION	:	Y
SICK	:	Y
HOLIDAY	:	Y
TIPS-1	:	Y
TIPS-2	:	Y
OTHER	:	Y
EMPLOYEE PENSION	:	___ - "Y" to have the Employee Pension Deduction SUBTRACTED from taxable earnings.
EMPLOYER PENSION	:	___ - "Y" to have Employer Pension contribution ADDED to taxable earnings.
CAFETERIA	:	___ - "Y" to have CAFE amount (Section 125) SUBTRACTED from taxable earnings.
MEALS	:	___ - "Y" to have the YTD amount for MEALS ADDED to taxable earnings.
NAME	:	1    - Fill in a "1."

 

NOTE:  If your state wages (Box 16) should match your federal wages (Box 1), then use these settings:

All Earnings	Y
Employee Pension	Y
Employer Pension	N
Cafeteria	Y
Meals	N

5. OPTION 23 - CONTROL RECORD FMT 91-PRLC

If 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 Text:

MAINTAIN PAYROLL CONTROL FILE - FORMAT 91

KEY	:	SITCA
TAX AUTHORITY	:	CALIFORNIA
INCOME TAX?	:	Y
STATE I.D.	:	99-102899

 

6.  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	BOX#	CODE	BOX 1, 3, 5 EFFECT
Moving Allowance	12	P	None
Non-Taxable Incentives	14	OTHR	None
Excess Group Life	12	C	ADDS TO
Child Care Benefit	10	None	None
Non-Taxable Sick Pay	12	J	None

For instructions numbers 9 through 11 - Continue to:  Tax Form W-2s continued - Print and Media.

 

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