W-2 FORMS

This option creates a print file of W-2 forms and optionally creates W-2 data files for submission to federal and state governments. You may have to process this option more than one time, depending on the number of Federal ID’s, and the number of states in which you have paid employees.

There are 3 processes that occur during this option:

(1) Creation of a printed W-2 that is given to the employee.

(2) Optional creation of a federal W-2 data file to be sent to the Social Security Administration.

(3) Optional creation of a state W-2 file for state reporting of W-2 data.

Once you have finished processing this option, you will need to take action on the various files produced by this procedure.

Click Locate server for instructions on locating the federal file.

Click Transmitting federal file for instructions on how to submit the W-2 file to the SSA.

Click Print W2s for directions on printing the employee W-2s.

Click Create diskettes to learn how to create your own federal diskettes (optional).

Determining how many times to process this option:

Before beginning this step, it is necessary to determine how many times you will need to process this option.

Please print an End of Quarter Totals report and identify the number of G/L company numbers that have earnings for this year, and which states and localities within each G/L company have earnings for the year.

Click PROCESS ONE TIME if you have a single G/L company, and ALL of the employee earnings are in a single state.

Click PROCESS ONE TIME if you have multiple G/L companies, but ALL of the employee earnings in a G/L company belong to a single state.

Click PROCESS MULTIPLE STATES if you have a single G/L company, but have earnings in multiple states.

Click PROCESS MULTIPLE STATES if you have multiple G/L companies, and each company has earnings in multiple states.

ADDITIONAL INFORMATION THAT AFFECT W-2’S AND W-2 DATA FILES:

Please read the following information for important points that may affect how you process the W-2 option.

Employee W-2s:

The system will print the name and address that displays in the employee’s file at the time this option is processed. We recommend that you wait to process this option until mid-to-late January, in order to make use of the most recent name and address information. Changes made to employee name or address after the print file is created will NOT be used!

You may print the employee W-2s in-house, or you may ‘outsource’ the print file for someone else to print for you. If you choose to print the W-2s in-house, there are 3 types of W-2 forms available to SkilMatch users. One is the traditional multi-part self-mailer that is printed on a dot-matrix (impact) printer, the second is a pre-printed laser form, and the third is the Create-a-Check laser W-2 form.

If you use the self-mailer: an employee will receive a separate W-2 mailer for each federal id/state in which they had earnings. The top copy will be sent to the state government (unless your state reports by magnetic media, or does not require that you report W-2 data), and the mailer will be sent to the employee. If your state does not need the top copy, then you may keep that as your employer copy, or you may use the W-2 register as your employer copy. The mailer will include a copy for the employee’s records, a federal copy, a state copy, and up to 3 copies for local tax reporting. If the employee had earnings in more than 2 localities, then another mailer will be created for each additional 2 localities. A “totals” page prints after the employee W-2s have printed.

If you use the pre-printed laser form: the employee W-2 is a single perforated sheet of 4 separate W-2s: Copy B (for federal return), Copy C (for employee records), Copy 2 (for state, city or local return), and another Copy 2 (for state city or local return). An employee will receive a separate sheet for each federal id/state in which there were earnings. If an employee had one local tax withheld, it will print on same W-2 sheet as the federal and state. If the employee had more than one local tax withheld, then the employee will receive an additional sheet of W-2s for each additional 2 localities. The federal and state figures will be repeated – only the local tax data will be different. A “totals” page prints after the employee sheets have printed. If you wish to keep an ‘employer’ copy, you may either print a second copy of the W-2s, or you may simply use the W-2 Register.

If you use Create-a-Check laser W-2s: the employee W-2 is a single perforated sheet of 4 separate W-2s. The employee receives one W-2 sheet per state. The employee sheet includes 4 copies: Copy B (for federal return), Copy 2 (for state, city or local return), another Copy 2 (for state city or local return), and Copy C (for employee records). The SkilMatch program will print the employee W-2s, the totals page and employer copies in a single print file. When the employee W-2 sheets have finished printing the totals page will print, and the employer sheets will begin without interruption. The employer copy has 4 employee W-2s per sheet.

It is very important that you be aware of the number of W-2s your company ordered! There is no identifiable break between the employee and employer copies! If you ordered enough W-2s to print both the employee and employer copies, then you can simply load the W-2 forms and let them print. If you only ordered enough W-2s for the employee copies, and a few extra for replacement copies, then you must be careful that the extras are not used up on the employer copies!

Federal Income Tax of over $99,999.99:

If an employee has had $100,000.00 or more withheld for federal income tax, then the system will drop the 1st digit when the W-2 is printed. You will need to hand-type the first digit onto the employee’s printed W-2.

This will NOT affect the legitimacy of the W-2!

There is a special report you should run to identify the names of those employees who have federal income tax withheld over $99,999.99.

From any line, key EMPPBCOMP and click [OK]. On the next screen, key the company number, and the beginning and ending week ending dates that include all check dates for the payroll year. In the last area, key CR if you have not yet closed the year, or key the last two-digits of the year already closed if you have processed the [Copy and Rename] option.

The data file created for reporting to the SSA can include the full amount withheld, but only through the intervention of a SkilMatch programmer. If you save to the PC File server or to the hard disk, please call us after the file has been created to have this change made (no charge).

If you save to 525MB tape, PLEASE CALL TO SCHEDULE AN APPOINTMENT WITH SKILMATCH - the programmer’s participation (no charge) occurs DURING the W-2 process, not after the file is created.

Dot Matrix Printer warnings:

There are different types of dot matrix printers in use at SkilMatch customers. Each has the margins set to best print your checks and invoices. It is possible that your printer's current left margin may not be appropriate for the printing of W-2s. The W-2 has many small boxes, so getting the proper left to right alignment many need some minor temporary adjustments for a readable, attractive W-2.

When your W-2s start printing, please look at the alignment BEFORE you have printed a lot of them. If you need help with the alignment, please call SkilMatch and ask for hardware support.

In addition, you may want to change the configuration of your printer to near letter quality to insure that the bottom copy is legible. You CANNOT change print quality in the middle of printing the file! Any changes made to the printer configuration must be made BEFORE you send your W-2 print file to the printer, or the printer will OVERRIDE our program settings! (In our office, the result was that the printer left a blank W-2 in between each printed W-2!).

Also, if you use a bulk-mailing permit, we suggest that you skip line 1 and start keying on line 2. The self-mailer does not seem to have the carbon up high enough to get a good copy printed on line 1.

Federal W-2 Reporting:

All W-2 data must be submitted electronically using the Social Security Administration’s (SSA) website.

Click Transmitting federal file for instructions.

State W-2 Reporting:

Please review your W-2 register to see which states have earnings that need to be reported.

Verify with your state government(s) as to the accepted reporting method (paper, magnetic media, or electronic transmission) and type of form for reporting. The various types of format and form may include:

(a) Specific paper forms

(b) Plain or computer paper (greenbar)

(d) Electronic transfer

As of 2014, the following states do NOT require that you report W-2 data to the state, either because there is no state tax, or because you have been reporting quarterly data. Verify current requirements.

These states include:

Alaska

California

Florida

Nevada

New Hampshire

New York

Oklahoma

South Dakota

Tennessee

Texas

Washington

Wyoming

Should your state require that you report W-2 data on magnetic media, you need to know what format the state uses. Also, some states use a ‘generic SSA’ format, and others require a ‘customized’ format.

If there is an asterisk to the right of the state name, then the state has its own custom format. We have written a custom program for that state, unless noted otherwise. The following is a list of the requirements SkilMatch is aware of at this time.

Note: We received one request to modify state formats for reporting year 2014 – Maryland.

Alabama* MMREF

Arizona MMREF

Arkansas MMREF

Colorado MMREF

Connecticut* MMREF

Delaware MMREF

Georgia* MMREF

Hawaii (Unknown)

Illinois* MMREF

Indiana* MMREF

Iowa MMREF

Kansas MMREF

Kentucky MMREF

Louisiana MMREF

Maryland* MMREF

Massachusetts* MMREF

Michigan MMREF

Minnesota MMREF

Missouri MMREF

Montana MMREF

New Hampshire MMREF

New Jersey* MMREF

North Carolina MMREF

Ohio* MMREF

Oregon* MMREF

Pennsylvania* MMREF

South Carolina MMREF

Utah MMREF

Vermont MMREF

Virginia MMREF

West Virginia MMREF

*Indicates non-generic MMREF state format. All SkilMatch customers have these custom programs on their system.

Note: We charge a conversion fee for each diskette produced.

Do not send diskettes to SkilMatch for the state conversion. SkilMatch will provide the necessary diskette(s).

W-3 Reporting:

SkilMatch do not recommend a user manually create a federal W-3. All users have access to the federal electronic processing which will create a W-3 when the federal W-2 electronic file is uploaded via BSO (IRS Business Services Online).

SkilMatch does not PRINT Federal W-2’s, only an electronic file is created. All paper W-2s are created to distribute to employees.

NOTE: If you print paper W-2’s and want to create a paper federal W-3, you should use the totals from the W-2 register. Taxable grosses on the W-2 register do take into account the limits to Social Security and other taxes with limits. Employee Social Security dollars “up to the limit” are printed and totaled.

Local Taxing Authority W-2 Reporting:

Please follow the guidelines sent to you by your taxing authorities. SkilMatch will not be aware of the local reporting requirements. There is a separate menu option for creating Local Magnetic Media. The only localities that have been programmed to use the menu option are Wilmington, DE city tax, Philadelphia, PA city tax and Philadelphia (Out of City), PA.

Before processing this option, go to Menu File Printing, Item Payroll G/L Distribution File.

Review the description of the ‘L’ type codes on the printout that is produced.

Be aware that only the first 7 letters will print on the W-2.

If you need to make an adjustment to the description, go to Menu File Maintenance, Item Payroll GL Distributions.