Overview

This article provides a detailed guide to processing W2 and 1099R forms. This includes setting up processing options, verifying federal tax tables, calculating figures from payroll history, and submitting electronic files to the SSA. This guide aims to help you streamline your W2 and 1099R processing with minimal stress. Here is a high level overview of the process:

The image below is a typical display of the Payroll system main menu, highlighting the relevant options for taxes in 4gov:

Federal Tax Table

Before you proceed to the W2 processing functions, you should check the W2-related entries in your Federal Tax table for accuracy, as these are written into the work file.

You will find the Tax Tables Maintenance Menu in Payroll under either the Options and Tables Menu or the W2 Processing menu. Select the “Income Tax Info Recs” item and call up the Federal (FD) record to make sure that the Federal Income Tax information (e.g. ID number, EIN) is entered and correct.

W2 & 1099R Options

Next, you will need to set your processing options. Go to the W2 Processing Menu and select “W2 & 1099R Options”. There are three screens here, although you may not need to use all of the setups.

You will need to set to “D” (tapes are no longer accepted) and set Payment Year to the tax year to be processed (e.g. 2024). You will want to set the Combination indicator to “S” to avoid producing more than one W2/1099R per employee. You may select the sort sequence for your printed W2s here, as well. The agency name and address to be used appear at the bottom of the screen (scroll). Tax Authority Xref is not used at this time.

On the next screen, you can initialize specific Payroll Item IDs (Deduction Codes) that you may use to be summarized and appear on the W2 in Box 10 for Dependent Care Benefits (DCB) and Box 12 for various plans. Also, the EIN number and print program names are entered here. The standard W2 print format is “pp0w24” and the standard 1099R print format is “pp0992l”. If you have a custom print program created by us, it will be referenced here.

The last screen of the options is where you may identify specific employee Home Orgs or Pay Cycles to trigger the creation of 1099R type work file records, rather than a W2. You may also leave these fields blank and issue your 1099Rs manually, if so desired. Once in the work file, you will be able to use Special Maintenance to change a W2 to a 1099R and vice versa, should you need to.

Calc Figures from History

The next step is the creation of the W2/1099R work file. From the W2 Processing Menu, select “Calc Figures from History”. There are three Y/N flags to set that control which of the Box 13 fields will have the “X” printed on the W2. Usually these fields are set to Y/N/Y as shown below. The FICA Wage limit for TY2022 (for example) is $160,200.00.

Note: make SURE to enter something (e.g. 9999999.99) in the MCARE Wage limit, or else no MCARE wages or withheld amounts will print on the W2

After that step is completed, you will have a work file in place for the tax year specified in your W2 & 1099R Options record. You may begin to maintain the work file using “W2 Special Maintenance”.

Note: Every time you run this step you create a NEW work file from Payroll history. That means that running this function after previously having created the work file and then changing it using W2 Special Maintenance will scratch and replace your earlier work file!

W2 Special Maintenance

Now that you have a work file, you can review the data using the W2 Special Maintenance menu item. As shown on the screen image below, you may use the Get Next W2 (PF5) Special Function, or one of Employee No. or Social Security No. fields to call up a record for maintenance.

This screen allows you to correct or modify any of the work file details, including name/address, withholding/contribution amounts, and Box 12 items not already calculated by the system. Additional information that you choose to include on the W2 may be manually entered to appear in Box 14 (Other) fields, too. The amounts listed are as derived from your Payroll History files. 

Note: Starting in tax year 2012, you must report the cost of employer-sponsored health coverage in Box 12 using code “DD”. You will need to manually enter these amounts using W2 Special Maintenance. We have expanded the Box 12 code fields to allow entry of two-character codes, and added a fourth field to the screen.

Print W2 Forms

After you have your work file prepared, you may create the print file by selecting “Print W2 Forms”.

This will generate a report for “Summary Totals for W-2s Printed” that would open in a new tab in your browser. If that doesn't happen, you'd need to access the 4gov Reports section (top-right side Printer icon), and in the PDF FILES print folder you can find:

1. The “w2list” report with the “Summary Totals for W-2s Printed”
2. The “w2print” is the actual W2s to be printed on your pre-printed forms. By the time this file is queued, it has been formatted per the settings in a “properties” file that 4-Gov creates for you. The properties file is linked via the Report Forms Options set up in System Administration

If you will want to test print a sampling of the whole report, you can do so with the Print Options screen. Things to keep in mind:

• Make sure that you select a “short” range of pages in the Print Range options
• Set Page Scaling to “None” so that the image prints as formatted via the properties file rather than having been stretched or otherwise skewed
• If you need to alter the alignment of the printed form, vertically or horizontally, please contact the Support team to receive assistance with modifying the properties settings to effect that change.
  • This print->modify properties->reprint cycle repeats until the forms are printing correctly. This type of process is necessary due to the many varieties of laser printers in use in 4-Gov installations, and their inherent differences in margins, font selections, etc. 

Report Form Options – W2

From the SYSTEM tab at the top of the 4Gov Main Menu, select System Admin > Report Form Options and make sure that you see an entry for W2 processing (click on the drop-down icon next to the Form):

Note: The reference in the Form field directs ADOBE processing to format the printed output per settings contained in file idc\munxmexe\[Form filename].properties. In this example, the filename would be W2LFMmun.properties.

Report Form Options – 1099R

From the SYSTEM tab at the top of the 4Gov Main Menu, select System Admin->Report Form Options and make sure that you see an entry for 1099R processing (click on the drop-down icon next to the Form):

Note: The reference in the Form field directs ADOBE processing to format the printed output per settings contained in file idc\munxmexe\[Form filename].properties. In this example, the filename would be 1099mslr-mun.properties.

Format W2 Info Mag Media

To prepare the W2 file for electronic submission to the SSA, you should first have established a User ID and password to access to the SSA website at www.socialsecurity.gov/bso/bsowelcome.htm. Then, you will be able to submit your file as created using the Create EFW2 File for E-filing menu item in Payroll-HR >Payroll/Personnel. NOTE: The Employer Type field selection was added for tax year 2011. The screen displays as shown below:

Fill in all information, including the selection of contact method for the SSA to be able to reach you in the event of a problem. You may use “1” for E-mail/Internet notification or “2” for U.S. Postal Service.

• When complete, a one-page summary report (e.g. w2datrpt) is queued in the 4gov reporting with the summary of all W2s processed.
• In the ASCII FILES folder, file “W2REPORT” is queued. This is your file to be submitted, you will need to click it and download it on your PC, so that you can upload it to the SSA site.

4-Gov encourages all Payroll users to use the SSA site’s free “AccuWage” application that may be used to test the preparation of the W2REPORT file prior to final submission. You will save yourself delay and aggravation knowing that you have validated your file before the government processes it. As of 2017, SSA only provides for interactive use of the “AccuWage” utility. You will no longer be able to download it to run locally!

NOTE: The following is from SSA Publication No. 42-007

AccuWage Online is an Internet application that allows you to check EFW2 (W-2 (Wage and Tax Statement)) and EFW2C (W-2C (Corrected Wage and Tax Statement)) reports for correctness before you send them to SSA. Using AccuWage Online greatly reduces submission rejections. 

• In order to use AccuWage Online to test your wage files, you must have a valid BSO User ID and password with the Employer Services profile.
• You can access AccuWage Online by logging into your BSO account and going to the Employer Wage Reporting (EWR) application homepage.

When and where can I find AccuWage Online for 2018?

Starting in September 2017, visit www.socialsecurity.gov/employer/accuwage/index.html. 

FAQ

1. The system logged off when attempting to Print W2s or 1099Rs.
   Check that the W2 and/or 1099R print formats on the second screen of the W2 Processing Options have been entered.
2. Medicare Wages are not appearing on the W2s.
   Check the W2 Processing Options (2nd page) – the Medicare field should be 9999999.99.
3. Receiving garbage (not legible) on the W2 form employer address.
   Check the User Address/System Options from the Supplemental Options and Tables-ensure that the address is entered correctly.
4. How do I include information in Box 12?
   In W2 processing options on screen number 2 you may specify Payroll Item IDs that you wish to be summarized and appear on the W2 in Box 12. After setting those options, the Calculate Figures from History function will summarize the appropriate information. Alternatively, you may choose to enter Box 12 information using W2 Special Maintenance.
5. I need to add a new employee record to the W2 file.
   Accomplished through the W2 Special Maintenance
6. Missing W2 temp file during the W2 print.
   You need to create the file using Calc Figures from History first.
7. Received a letter from SSA/IRS: amount was wrong.
   Check the report created during file creation and note any variance with the SSA/IRS notification. Contact Help Desk for assistance. We want to identify whether the problem was in the file as created or as the file was transmitted.