Reprocessing Internet/magnetic payroll tax forms

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If you need to recreate a 1099, W-2, or state payroll tax form that is being filed with the Internet or Magnetic filing method, follow the steps in the following sections.

Notes

  • If the Separate Internet/Magnetic files by staff checkbox is marked in the Preferences tab of the Setup > Firm Information > Firm screen, the staff member who originally processed the tax form(s) will need to perform the resubmission. Alternatively,  the original staff member could remove the client(s) from the original file by clicking the Manage Files button in the Actions > Process Internet/Magnetic files screen, so another staff member can reprocess the client(s).
  • If the Complete checkbox is selected for any batch files in the Manage Files dialog (accessed from the Actions > Process Internet/Magnetic Files screen), the application ignores that file when it checks to see if files can be appended, and you cannot reprocess the payroll tax form.  If you clear the Complete checkbox, you can then reprocess the form.
  • For Form 1099-MISC only: If you mark the Complete checkbox for a batch file in the Manage Files dialog (accessed from the Actions > Process Internet/Magnetic Files screen), and the file contains Form 1099-MISC, the application will create a new file when you reprocess the client's 1099-MISC.

1099 files

The IRS can accept or reject individual client records submitted in the same file. Therefore, you may not need to re-create and re-submit all of the clients in the original batch file. You can also use these steps if you are processing 1099s for recipients that were not included in the first file.

  1. Choose Actions > Process Internet/Magnetic files and click on the Manage Files button.
  2. Locate the previously submitted file that you need to correct, highlight that row and then press the red X button or press the Delete key on your keyboard.
  3. Delete the individual client record(s) from the batch file by clicking the plus sign next to the file to expand the list of clients, select the single client or multiple client rows (by pressing the CTRL key when selecting clients) and press the delete key on your keyboard.
  4. Correct the problem in the rejected client.
  5. Reprocess the 1099 form(s) for the client.
  6. Create a new file in Actions > Process Internet/Magnetic files.

    Notes

    • If you are reprocessing for only select vendors and the file includes 1099s from all vendors, verify in Setup > Vendors > 1099 Properties that the Always print form checkbox is unmarked.  This is a vendor-specific option, and needs to be marked for each 1099 vendor.  
    • If you mark the Complete checkbox for a file, the application ignores that file when it checks to see if files can be appended. However, if the file contains Form 1099-MISC, the application will create a new file when you reprocess the client's 1099-MISC.
  7. Complete the process by uploading the new file via the IRS FIRE program.

W-2 files

The Social Security Administration accepts or rejects all of the clients in the batch file submission, even if there is only a problem with one client record.

  1. Correct the reported rejection.
  2. Re-process all clients included in the file again, choose Yes to overwrite the client when prompted. You will be prompted to answer yes for each client that has a correction.
  3. Select the file batch and click on Recreate Selected while in Manage files, located in Actions > Process Internet/Magnetic files. Choose yes to overwrite the file.
  4. Choose Done.

You could also follow this process:

  1. Remove the "rejected" client record by going into Actions >Process Internet/Magnetic files and clicking on the Manage Files Button.
  2. Locate and expand the previously submitted file, and highlight the row that contains the Client ID of the file you need to correct.
  3. With the client highlighted, delete the individual client record(s) from the batch file by pressing the delete key on your keyboard.
  4. Choose Yes to proceed with removing the client.
  5. Select the same batch and click on the Recreate Selected button, choosing Yes to overwrite the file, followed by clicking done to complete the process.
  6. Correct the reported rejection in the client(s).
  7. Reprocess the W2 form(s) for the rejected client(s).
  8. Create a new file for the rejected file in Actions > Process Internet/Magnetic files. Click on Create New when prompted.

You can then complete the filing process by uploading both file(s) to the Social Security Administration via AccuWage Online.

State forms

Because each state has a different process for year-end payroll tax forms, you will need to follow a process very similar to either the 1099 or W-2 sections above. 

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