W-2 Balancing

W-2 Preparation Checklist

Order current year W-2 forms

Create a new set of Local, State & Federal Tax Tables for the coming year, if necessary

Prior to first payroll in the new year, verify/change FICA wage limit on FICA deduction master

Verify all payrolls dated through 12/31/XXXX are complete. Use “All Jobs Completed” flag on Payroll/Start/Status screen

Verity the State assigned ID is set up in the State Code table

W-2 Preparation Checklist (continued)

Verify the latest release of MUNIS software and payroll year-end specific updats have been loaded to ensure the appropriate law changes will be reflected

Add/verify the W-2 codes in the Pay Type Code F/M and Deduction/Benefit

Master F/M that may be necessary for reporting W-2 box 10, 12 & 14 amounts

W-2 Preparation Checklist (continued)

W-2 Deduction W-2 Notes: Code Type Box 1 Health Savings Account 12 Box 12 can have up to four D 401K 12 totals before another form is E 403B 12 required. The second form will F 408K6 12 have the employee’s basic G 457B 12 information (name, SSN) and H 501C18D 12 the additional Box 12 totals. J Nontaxable Sick Pay 12 S SIMPLE Pension 12 T Dependent Care 10 Any employee with a Deduction W User Defined (Union, medical, etc) 14 Code having a S-2 code of D, E,

X User Defined 14 F or H will have an “X” placed Y Retirement Plans (KTRS, CERS) 14 in the pension plan square and Z User Defined (Fringe Benefits) 14 the deferred comp square of AA Roth 401K – Post-tax 14 Box 13 BB Roth 403B – Post Tax 14 DD Cost of Employer – Sponsored Health 14 EE Roth 457B – Post-tax 14

W-2 Preparation Checklist (continued)

W-2 Deduction W-2 Notes: Code Type Box A Social Security Tips 7 C Life (Group Term) 12 These deduction codes L Business Expenses 12 are rarely used by P Excludable Moving Expenses 12 school districts. Q Military 12 M Unclaimed FICA 12 N Unclaimed Medicare 12 R Medical Savings 12

W-2 Preparation Checklist (continued)

Month/Quarter-end payroll reports, as well as any reports which may be deemed necessary for year-end:

Employee Detail History Detail Check History Accumulators Report Employee Accruals Report Payroll Register Pay Register – User-defined Employee Deduction Register Quarter 941 Report Payroll History Report Monthly/Quarterly Retirement

W-2 Preparation Checklist (continued)

Review the Payroll Exceptions F/M table

Review payroll accumulator data

Run the Accumulator Gross Verify STRONGLY recommended to be run prior to generating the W-2’s, even if you run on a regular basis ** DO NOT continue until you have balanced ALL data **

W-2 Preparation Checklist (continued)

Create W-2 Records

Run the W-2 Register

Review and edit data in W-2 F/M

Create Magnetic Media for W-2’s

Validate Federal W2 Magnetic media file with AccuWage (Found on SSA’s website)

Print W-2’s

W-2 Balancing

The objective of W-2 balancing is to account for ALL earnings paid, subtracting those pay types and deduction codes that are considered tax exempt and validating the resulting value against the annual returns PRIOR to filing

W-2 Balancing

You can jump into the W-2 Wizard

from here or you can go straight

to Accumlator Gross Verify

The Wizard steps are numbered and it allows you to resume where you left off if necessary. It even has links to important information and the SSA website.

W-2 Balancing

W-2 Balancing

Possible “out-of-balance” reasons: The Exceptions Tables have been changed Accumulator amounts were updated manually in Accumulator maintenance Deduction amounts were updated in the payroll before pay amounts were

updated EE was paid only under a pay type that was exempt from taxes, but also had pre-

tax deductions withheld Deduction was deleted from the payroll warrant

W-2 Balancing

Changing Accumulator Totals From Human Resources/Payroll Menu: Payroll Payroll Administration Employee Accumulators Find

Employee # Year “XXXX” Pay/Deduction Code that is out of balance & code we know is in balance – use a “|”

W-2 Balancing

• This returns all Fiscal and Calendar accumulator records for those deductions

• In order to keep all records in sync, we will need to update the “M”onth “12”, “Q”uarter “4”, “F”iscal and “Y”early totals.

• You may also add records here for employees with sick pay that may not have had a payroll check

W-2 Balancing

Accumulator Gross Verify compares the actual totals in the EE/s accumulator files (Old Gross) to a newly calculated total (New Gross) which is calculated by MUNIS

When discrepancies are found between the “Old Gross” and “New Gross”, a record is created in the Accumulator Gross Verity output

In the event records are returned, review these records for accuracy

W-2 Balancing

You can make a spreadsheet that contains the 3 quarters of 941 information and then computes your 4th quarter totals to report: (This is also available via the Wizard)

W-2 Balancing

Create W-2 Records

W-2 Balancing

Create W-2 Register Be sure to check “Totals Only” Compare W-2 Register totals Against 941 totals using your Balancing spreadsheet

W-2 Balancing

PRIOR to printing the balanced W-2’s, create the W2 Mag Media file and process it with AccuWage/AccuW2C software - from the SSA website AccuWage software identifies most of the common format errors in wage submissions Go the SSA website for download and install http://www.ssa.gov/employer/accuwage/index.html You will need to transfer this file via File Transfer to a place on your C drive before you may upload it to AccuWage