W-2 and 1099 year-end processing overview

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Important reminder!

Licenses for Payroll CS, Trial Balance CS, and Write-Up CS (but not Engagement CS) permanently expired on March 1, 2017. CSA will not include 2017 tax rates or payroll forms, so, for 2017 and beyond, you will need to process payroll in another application. We recommend Accounting CS Payroll and myPay Solutions. For more information, see the following topics.


This help topic provides an overview of the steps you will need to perform when preparing W-2s and 1099s at year end.

Our goal is to help you increase the productivity of your firm by explaining year-end issues related to your use of the Payroll Compliance module in Creative Solutions Accounting.

  • Please read all of the information in this topic carefully to ensure that your year-end processing goes as smoothly as possible. These instructions assume you have installed the Payroll Compliance module year-end updates and have read the User Bulletins in their entirety.
  • We strongly recommend that you back up your client data and global data before closing out the year. See Backup Clients [File menu].

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Special topics

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Forms CS (for W-2 and 1099 forms)

When you install Payroll CS and the Payroll Compliance application, the application copies [*.FLY] files to the 20xx W2 And 1099 Forms W-2 within your c:\WINCSI\CSASYS\Layouts folder. These files comprise current W-2, W-3, 1099, and 1096 layouts designed to correspond to the preprinted forms available from the Forms CS website.

We recommend that you purchase your forms from Forms CS. If you purchase forms from other vendors, you may need to modify the form layout for proper alignment. In some cases, the forms from other vendors may not be compatible with the form options in CSA.

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Using network printers

When printing W-2s and 1099s, the application will pause and prompt you to insert the appropriate paper in the printer each time a paper change is required. It then releases the W-2s or 1099s that it just generated.

For example, if you choose to print the W-2s as Copy A preprinted and all other copies facsimile, the application generates the Copy As, prompts you for a paper change, and then prints the Copy As. The application then repeats the process for the remaining forms.

Because of the way networks handle printing, anyone can access a network printer, and there is no way to ensure that other print jobs will not print on the forms loaded in the printer. To eliminate the possibility of other print jobs printing on W-2 or 1099 preprinted stock, you should send the forms to a local printer rather than to a network printer.

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IRS instructions for the employee or the 1099 recipient

To open a list that includes both W-2 and 1099 instructions in PDF, click here.

You can view or print these PDF files using the Adobe Reader.

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W-2 processing steps

  1. Begin by reviewing the client and employee information:

    Client Properties [File menu]

    Employees [Setup menu]

    Be sure to enter any supplemental amounts to be printed on the W-2, using the Personal & W-2 tab of the Employees window. You may want to print or preview the Earnings Report and the Payroll Tax Summary Report to assist you in reviewing the employee information.

  2. Choose W-2 Form Processing from the Utilities menu, and then choose the processing year.
  3. In the Form Selection tab of the W-2 Form Processing dialog, mark the checkbox for each type of form that you want to print, specify (for each selection) the number of copies to print, and select both the paper type and the printer to use.
    • Your Windows default printer is automatically selected as the printer for each form. You can click the Printer button to choose a different default printer, and you can select a non-default printer for any form. To minimize the number of paper changes that you will need to make during the printing process, you may use a different printer (or printer tray) for each type of paper that you will be using.
    • To create W-2 files rather than prepare them on paper, mark the checkbox labeled Create W-2 file.
  4. In the Print Options tab of the dialog, select the appropriate options for the following areas:
    • Sort order
    • Summary forms
    • FICA adjustment
    • Limited information
  5. Most of the data in the W-3 Information tab of the dialog transfers automatically from the File > Client Properties dialog. Enter or verify the information in each field.
  6. You may use the Special Variables tab of the dialog to assign specific values to employees for W-2 processing purposes.

    Note: If the description field is not filled in, you will then need to modify a W-2 layout using the Layout Editor to insert the special variable on the layout.

  7. Use the Employee Selection tab of the dialog to choose the employees for whom to print W-2s.

    Note: Print all employees is already selected as the default option, and the option selection is saved when you exit the dialog.

  8. Special setup information in the W-2 Form Processing dialog:

When you have finished making your selections in the W-2 Form Processing dialog, click the Print button to initiate the printing of the selected forms (on paper or to W-2 files). The forms will print in the order in which they are listed in the Form Selection tab of the W-2 Form Processing dialog.

See also

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1099 processing steps

  1. Begin by reviewing the client and vendor information:

    Client Properties [File menu].

    Note that the federal government now requests that a phone number be included with the payer address on the 1099. To accommodate this request, you may enter your client's telephone number in the appropriate field on the General tab of the Client Properties dialog, and that number will appear on the appropriate 1099 forms.

    Vendors [Setup menu]

    You may want to print or preview the Vendor Listing and the Vendor Checks Report to assist you in reviewing this information.

  2. Choose 1099 Form Processing from the Utilities menu, choose the processing year, and then choose the 1099 type.
  3. In the Form Selection tab of the 1099 Form Processing dialog, mark the checkbox for each type of form that you want to print and, for each selection, specify how many copies to print (if more than one) and select both the paper type and the printer to use.
    • Your Windows default printer is automatically selected as the printer for each form. You may click the Printer button to choose a different default printer, and you may select a non-default printer for any form. To minimize the number of paper changes that you will need to make during the printing process, you may use a different printer (or printer tray) for each type of paper that you will be using.
    • To create 1099 files rather than preparing 1099s on paper, mark the checkbox labeled Create 1099 file. Details
  4. In the Print Options tab of the dialog, select the appropriate options for the following areas:
    • Sort order
    • Limited information
  5. Most of the data in the 1096 Information tab of the dialog transfers automatically from the File > Client Properties dialog. Enter or verify the information in each field.
  6. You may use the Special Variables tab of the dialog to assign specific values to vendors for 1099 processing purposes.

    Note: If the description field is not filled in, you will then need to modify a 1099 layout using the Layout Editor to insert the special variable on the layout.

  7. Use the Vendor Selection tab of the dialog to choose the vendors/employees for whom to print 1099s.

    Note: Print all vendors/employees is already selected as the default option. The selection is saved when you exit the dialog.

  8. When you have finished making your selections in the 1099 Form Processing dialog, click the Print button to initiate the printing of the selected forms - either on paper or to a 1099 file. The forms will print in the order in which they are listed in the Form Selection tab of the 1099 Form Processing dialog.

See also

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Electronic filing of W-2s and 1099s

W-2s

CSA enables you to create the W-2 file to upload to the Social Security Administration (SSA). This is done by marking the Create W-2 file checkbox on the Utilities > W-2 Form Processing dialog.

Notes

  • For information about filing options for the W-2 Copy A, please visit the Social Security Administration website at www.ssa.gov/employer. If you encounter errors trying to use the SSA application, please contact the SSA for support.
  • To verify if you must enroll or register to file electronically, please visit the SSA website.

1099s

The IRS electronic filing application, Filing Information Returns Electronically (FIRE), allows you to send a 1099 file to the IRS. You can create 1099 files from within the 1099 Form Processing screen by choosing File > 1099 File Utilities. If you have problems or questions regarding how to send the file using the IRS's FIRE application, please contact the IRS.

Note: For information about electronic filing of 1099s or to verify if you must enroll or register to file electronically, visit the IRS website. If you have problems with, or questions about, sending the file using the IRS's FIRE program, please contact the IRS.

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1099/W-2 file utilities and transmitter information

Note: When 1099 and W-2 files are created, they are automatically encrypted for security and stored in the \CSASYS\MAGMEDIA\year folder. Before submitting these files to the appropriate agency you must use the Save to Submittable Format command, at which point the files are decrypted. Using the Restore from Submittable Format command will encrypt the files once again. You can use the preview function to view the file decrypted.

To create 1099 or W-2 files

Mark the Create W-2 file checkbox on the Form Selection tab of the Utilities > W-2 Form Processing dialog or the Create 1099 file checkbox on the Utilities > 1099 Form Processing dialog as appropriate. Then, when you click the Print button, the application creates the file.

Note: Marking the Create 1099 file or Create W-2 file checkbox and then printing a W-2 or 1099 more than once will add the client to the file multiple times.

To handle error corrections

If you are filing W-2 or 1099 files and you need to rerun the W-2s or 1099s, first remove the client with the incorrect information by using the W-2 or 1099 File Utilities. Then, rerun the entire print run for that client.

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State W-2 file utilities

Note: When state W-2 files are created, they are automatically encrypted for security and stored in the \CSASYS\MAGMEDIA\year folder. Before submitting these files to the appropriate agency you must use the Save to Submittable Format command, at which point the files are decrypted. Using the Restore from Submittable Format option will encrypt the files once again. You can use the preview function to view the file decrypted.

State W-2 files are only created for years 2003 and later.

To create state W-2 files

Mark the Create W-2 file checkbox on the Form Selection tab of the Utilities > W-2 Form Processing dialog. When you click the Print button, the application creates the W-2 file for federal W-2s and for each state listed in the Client Properties dialog.

To handle error corrections

If you are filing state W-2 files and you need to rerun the W-2s, first remove the client with the incorrect information by using the State W-2 File Utilities. Then, rerun the entire print run for that client.

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Special state issues for W-2s

State-specific W-2 files

CSA will create state-specific W-2 files, for the year 2003 and later, for the following states: Alabama, Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Utah, Vermont, Virginia, West Virginia, and Wisconsin. State-specific files are those for which the state requires modifications to be made to the SSA format for the file to be processed.

California W-2s

The California SDI wages will flow to the W-2 automatically. To place the withholding amount in Box 19, choose Setup > System Configuration > Withholding Items and mark the checkbox for the SDI item used.

Idaho W-2 files

Per state requirements, clients' filing cycles must be included in W-2 files. To include it, choose Setup > Idaho Filing Cycle from the W-2 Form Processing dialog. In the Idaho Filing Cycle Information dialog, select the filing cycle from the drop-down list and then click Done.

Indiana W-2 files

To place amounts in the State Adv EIC field in the file as required by the state, mark the IN State Adv EIC checkbox on the Properties tab of the Employees > Pay Item Properties dialog.

Kansas W-2 files

To place amounts in the KPERS / KP&F field in the W-2 file as required by the state, mark the KS KPERS or KP&F checkbox on the Deduction Info tab of the Employees > Deduction Item Properties dialog.

Massachusetts W-2 files

To position amounts in the Federal, Railroad, Massachusetts & Local Government Retirement Contribution field in the W-2 file as required by the state, mark the MA Federal, Railroad, and Gov't Retirement checkbox on the Deduction Info tab of the Employees > Deduction Item Properties dialog.

Maryland W-2 files

To place amounts in the Maryland State Pickup field in the W-2 file as required by the state, mark the MD State Pickup checkbox on the Deduction Info tab of the Employees > Deduction Item Properties dialog.

New Jersey W-2s

If you process New Jersey W-2s for employers who have an approved contributory Private Disability Plan, you need to complete the Box 14 description field for your SDI and SUI withholding (in the Description and W-2 Info tab of the Setup > System Configuration > Withholding Items dialog).

In addition, the Disability Insurance Plan Provider number needs to be reported on the W-2 form.

From the Setup menu in the W-2 Form Processing dialog, choose New Jersey Employer Information. In the dialog that opens, enter the employer's DIPP number and then click the Done button.

Utah W-2 files

The state has discontinued magnetic media filing effective January 1st, 2007. However, the file created can still be filed via the internet. New internet filers must register to do so at https://tax.utah.gov/w-2/.

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Modifying a W-2 or 1099 layout

For any box to print on W-2s and 1099s, the box must be included in the form's layout. That is, the application needs to know what information to print and where on the page to print it. The Payroll Compliance module already includes default layouts for the W-2, W-3, 1096, and 1099 forms. If necessary, you can modify any of these layouts using the Layout Editor. For each form there is a single layout that is shared by all clients. The application recognizes only the original form name, so any required changes must be made on the original form. For safety, however, a Restore Default option is available.

To modify an existing layout

When printing on the W-2 Copy A, 1099 Copy A, W-3, or 1096 preprinted forms, information only needs to print inside the appropriate box so that it can be scanned.

To assign special variables

For each client, you may assign 10 special variables. These are typically used to gather information otherwise not on file in Payroll CS or the Payroll Compliance module, and to enter that information into W-2s and 1099s. When you edit W-2 and 1099 layouts using the Layout Editor, you can incorporate special variables (as entered in the Special Variables tab of the W-2 Form Processing dialog or the 1099 Form Processing dialog). This information is then included on the printed form.

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Contacting CS Support

If you have questions about using this application that you cannot resolve by using the CSA help topics in our Help & How-To Center, you can contact CS Support by sending an email message to CS.Support@ThomsonReuters.com or by calling 800.968.0600.

See also: Getting help

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