Steps to Complete SSN
Verification ServiceTip: Prior to completing the Payroll End of Calendar Year Checklist, complete the SSN Verification Service option to verify the social security numbers for employees entered in the School Accounting System.
Steps to Complete SSN
Verification Service
Note: Before calculating the first payroll in January, verify the tax rates for the new year in the Tax File. Changes to the tax rates and tables for the new year for all the federal taxes, state and local income taxes, and the limits for state unemployment taxes (except in North Dakota and Kansas) are included in an update which is typically released the end of December. Be sure to install the update containing the tax changes prior to the first payroll in January, or manually enter the new rates if necessary.
_____ 1. Print the month end reports for December.
Payroll
End of Month Checklist
_____ 2. Print the quarterly reports for the fourth quarter.
Payroll
End of Quarter Checklist
_____ 3. Print the following optional reports for the current calendar year:
Payroll Register - Totals Combined: Accessed from the Payroll screen, Reports menu, Payroll Register Reports; select the Posted report selection and all Check Dates in the current calendar year. (Tip: Will need to change the Processing Month parameter to select all months.)
Social Security/Medicare Report: Accessed from the Payroll screen, Reports menu, Other Reports; select all Check Dates in the current calendar year.
Payee Totals Report: Accessed from the Payroll screen, Reports menu, Other Reports; select all Check Dates in the current calendar year.
Deduction Register by Deduction: Accessed from the Payroll screen, Reports menu, Deduction Reports; select the Posted Summary report selection and all Check Dates in the current calendar year. (Tip: Will need to change the Processing Month parameter to select all months.)
Deduction Totals Report: Accessed from the Payroll screen, Reports menu, Deduction Reports; select the Posted Summary report selection and all Check Dates in the current calendar year. (Tip: Will need to change the Processing Month parameter to select all months.)
Payroll Register - Accumulated: In order to print the Payroll Register - Accumulated report, the Accumulate Payroll Totals option must first be completed (under the Options menu on the Payroll screen); then access the Payroll Register - Accumulated report from the Reports menu on the Accumulate Payroll Totals screen and select only the calendar period.
_____ 4. Complete the W2 process, including generating, printing, emailing, and submitting W2s.
_____ A. Define which deductions, such as retirement, annuities, and child care, to post the year-end totals on the W2s. Also, define any pay codes with a Pay Code Type of Deduction or Payment In Kind to post the year-end totals on the W2s, if applicable.
Note: The system automatically accumulates taxable wages for Boxes 1-6, and 16-19; this is for other reportable information in additional boxes. For Kansas school districts only, make sure the appropriate state retirement deduction(s) is defined to post to Box 14 on the W2s with a Box 14 Description of KPERS; otherwise, the W2s will not generate.
_____ 1) Print the Deduction/Pay Code W2 Boxes Listing (from the Payroll screen, Reports menu, Other Reports) to review how the deductions and pay codes are currently defined.
_____ 2) Determine which deductions to report and the appropriate box number (and letter, if applicable) for which to post the year-end totals. If you are unsure of which deductions should be reported on the W2s, read the appropriate IRS Publications or the back of a W2.
_____ 3) To set up a deduction to post on the W2s, complete the W2 Information section in the Deduction File (from the Payroll screen, Maintenance menu, Deductions).
To mark the Retirement Plan checkbox in Box 13 on the W2 for those employees with this deduction, select the Retirement Plan (Box 13) field. A checkmark will appear in the box if the field is selected.
If the deduction should have the year-end totals post to the W2s, enter the information for the applicable W2 box(es) in the W2 Information List. To add a W2 box, complete the following in the blank line (indicated with an asterisk) at the bottom of the W2 Information List:
Enter the box number (and letter, if applicable) for where to post the year-end totals on the W2 for the deduction in the Federal Form Box ID field, or click the down-arrow button to select the correct one. For example, 403(b) annuities should post to Box 12E on the W2; dependent care benefits to Box 10; and miscellaneous items that you want the employees to be aware of, but are not reported to the IRS, such as retirement, to Box 14.
Tip: If desired, rather than defining the applicable deductions for health insurance to post to Box 12DD for the cost of employer-sponsored health coverage, a file containing the amounts to report in Box 12DD can be imported from within the Employee W2s option once the W2s have been generated (see Step E below); typically, a file is imported in order to report an amount (provided by the health insurance company) that is different than the amount withheld and expensed for the deduction. For more information on reporting employer-sponsored health coverage, click this link: http://www.irs.gov/uac/Form-W-2-Reporting-of-Employer-Sponsored-Health-Coverage.
Enter the appropriate type for which share of the deduction (Employee, Employer, or Both) to print on the W2 in the Share to Print field, or click the down-arrow button to select the correct one. To only have the share paid by the employee included in the deduction total on the W2, enter Employee. To only have the share paid by the employer included in the deduction total on the W2, enter Employer. To have the shares paid by both the employee and employer included in the deduction total on the W2, enter Both.
If 14 is specified in the Federal Form Box ID field, the Box 14 Description field is enabled. Enter a short description that will print on the W2 for the totals for this deduction in Box 14 in the Box 14 Description field. The description entered into this field can be up to 15 characters long, but keep in mind, all 15 characters may not print on the actual W2s as the field is defined with a set width on the W2 forms, and the number of characters allowed on the forms varies based on the selected W2 format, whether or not capital letters are used, and the specific letters included (for example, some uppercase and lowercase letters are wider than others). The description entered in the Deduction Check Description field will appear as the default, but can be changed.
Note: Deductions with the same Box 14 Description will be combined together on the W2. Only nine items will post to Box 14 for an employee, with only the first four of those posted items actually being printed in Box 14 on the W2.
If applicable, repeat these steps until all the W2 boxes have been added for the deduction.
Note: To remove an entry from the W2 Information List, click the Delete button to the left of the desired entry; when prompted to delete the line, click Yes.
_____ 4) To set up a pay code (typically, only for those pay codes with a Pay Code Type of Deduction or Payment In Kind) to post on the W2s, complete the Federal Form Box ID field in the Pay Code File (from the Payroll screen, Maintenance menu, Pay Codes). Enter the box number (and letter, if applicable) for where to post the year-end totals for the pay code in the additional boxes on the W2 for employees in the Federal Form Box ID field, or click the down-arrow button to select the correct one.
_____ 5) If any deductions or pay codes are designated to post to Box 14, define the order the items will post and print for employees by using the W2 Box 14 Default Order option. Reminder, only nine items will post to Box 14 for an employee, with only the first four of those posted items actually being printed on the W2.
Steps
to Define W2 Box 14 Default Order
_____ 6) After adding the necessary W2 box information for the applicable deductions and pay codes, re-print the Deduction/Pay Code W2 Boxes Listing (from the Payroll screen, Reports menu, Other Reports).
_____ B. Complete the Balancing Information option for the Check Dates in the current calendar year to ensure the payroll totals balance for W2s. After completing the Balancing Information option, if a formula has a variance (does not balance), make the necessary corrections for the applicable employees, if needed, and then repeat Steps 1-4.
Steps
to Complete the Balancing Information Option
_____ C. Generate the W2s.
Steps
to Generate Employee W2s
Note: All posted payroll calculation batches with a check date within the selected calendar year will be included on the W2s. If an employee has a negative amount on the W2 in any box except Box 14, an error message will appear in the status bar stating there are negative W2s; the negative W2s must be resolved at this time. To determine the employee(s) with the negative W2 amounts, click the Employee W2s tab, click the Find button, and review the Has Negatives column (employees with a negative amount in any box except Box 14 will appear with a checkmark in the field (column)). If applicable, edit the amounts as needed on the W2s for the specified employees, or make the necessary corrections in Payroll and then regenerate the W2s.
Tip: The Find Duplicate Social Security Numbers option is automatically completed after generating the W2s. If there were employees found with W2s which have the same social security numbers, the Find Duplicate Social Security Numbers screen will appear listing the duplicate employees. If applicable, edit the W2s or make the necessary corrections in Payroll and then regenerate the W2s.
_____ D. Print the Employee W2 Detail Report and the Employee W2 Totals Report (from the Employee W2s screen, Reports menu). Balance the gross amounts for the taxes on the Employee W2 Totals Report to your four 941s submitted to the IRS for the calendar year. These figures should be verified immediately after generating the W2s.
Note: If an employee has zeros in Boxes 1-8, but accumulations in other boxes, a message will print on the Employee W2 Detail Report stating the employee's W2 will not print or be included in the W2 electronic file.
_____ E. Complete the General screen (tab) within the Employee W2s option, and then if needed, make any necessary corrections for employees on the Employee W2s screen (tab).
Note: Corrections to an employee’s name, address, or social security number must be made in the Employee File and then will automatically be updated within the W2 File.
Steps to
Complete General Screen within Employee W2s
Tip: If desired, a file containing the amounts to post to Box 12DD for the cost of employer-sponsored health coverage can be imported at this time by selecting the Options menu on the Employee W2s screen and then Import Box 12DD Amounts; complete the import process as normal. Typically, a file is imported in order to report an amount (provided by the health insurance company) that is different than the amount withheld and expensed for the deduction. For more information on reporting employer-sponsored health coverage, click this link: http://www.irs.gov/uac/Form-W-2-Reporting-of-Employer-Sponsored-Health-Coverage.
Steps
to Continue Importing Box 12DD Amounts
_____ F. Print the W2s.
Tip: SUI recommends printing W2s to plain paper as many times as necessary to make sure they are correct before printing on preprinted forms or blank forms, if applicable.
_____ G. Deliver W2s to employees by January 31.
Tip: If printing W2s on plain paper or emailing the W2s, be sure to provide the information included on the back of a W2 to the employees.
_____ 1) If needed, print employee mailing labels (from the Employee W2s screen, Reports menu), selecting the W2s report selection.
_____ 2) If desired, the W2s can be emailed to the employees from within the Employee W2s option; the W2s are emailed as a password-protected .PDF file attachment (using the password format as specified in the Email Manager option). If W2s will be delivered electronically to employees, proper consent may be required from the employees; refer to IRS Publication 15-A for more information.
Note: In order to email the W2s to the employees, complete the following: 1) complete the General Options tab in the Email Manager option (if not already completed) by selecting the Enable Email Manager field and completing the remaining fields; 2) if needed, on the Email Addresses tab in the Email Manager option, add an email address to use when emailing W2s; 3) complete the Default Email Address ID field in the Direct Deposit/W2/1095 Options section and the Password Format field on the Payroll tab in the Email Manager option; 4) enter up to three email addresses (for Business, Personal, and/or Other) in the Employee File for each employee who will have a W2 emailed; and 5) select the Tax Forms field for each applicable email address for the employees (a checkmark will appear in the box if the field is selected). If needed, email addresses for employees can be imported; also, the Adjust Email Addresses option can be utilized to update the usage field for Tax Forms for employees.
_____ 3) For school districts with the Web Link module that allow employees to view and print their W2s in Web Link, select to display the applicable year in the Available W2 Years List in the Web Link Setup Options option and then inform the employees. The W2s accessed through the W2s option in Web Link utilize the two W2s on page format and include one Copy B, one Copy C, and two Copy 2s, along with the instructions normally included on the back of a W2. Reminder, only users defined as a supervisor, database administrator, or Web Link administrator are able to access the Web Link Setup Options option in the School Accounting System.
Note: In order for employees to access their W2s in Web Link, do the following: 1) complete the Available W2 Years and the W2 Consent Message to Display fields on the Payroll and Compensation screen in the Web Link Setup Options; and 2) in the User Security option, complete the Employee ID field and select Full Access for View W2s under the Web Link module in the User Permissions List for the applicable users.
_____ H. Create the federal W2 electronic file (by creating the W2 electronic file and selecting Federal as the Report Type) to submit the W2 information to the Social Security Administration electronically via the Internet.
Note: The W2 forms must be filed electronically to the Social Security Administration if the total number of all information returns to file (including all 1099s and W2s to be filed, along with the other forms stipulated by the Internal Revenue Service) equals 10 or more.
Steps
to Create the W2 Electronic File
_____ I. If applicable, create the state W2 electronic file (by creating the W2 electronic file and selecting State as the Report Type) to submit the W2 information to the appropriate state department. This step applies to Idaho, Illinois, Iowa, Kansas, Missouri, Nebraska, and North Dakota school districts (or school districts who withhold state income tax in those states).
Note: For school districts in Kansas City, Missouri, and St. Louis, Missouri, also create the local W2 electronic file (by creating the W2 electronic file and selecting Local as the Report Type) for local income tax to submit the W2 information to the appropriate local agency.
Steps
to Create the W2 Electronic File
_____ J. Check the W2 electronic file for accuracy by utilizing the Social Security Administration's AccuWage software program. Information on the AccuWage software program can be accessed at: http://www.ssa.gov/employer/accuwage/index.html.
Follow the instructions provided at this website to use the AccuWage Online version and test the accuracy of the data in your W2 electronic file. For any error messages that occur, make the necessary corrections and recreate the W2 electronic file(s). Continue this process until you have an error free AccuWage tested file.
Note: In most cases, an informational alert will appear when testing your W2 electronic file in AccuWage stating the Submitter EIN and Employer/Agent EIN match. If this is the only message that appears (no other error messages display) and the W2 electronic file was created (in the School Accounting System) with Self-Prepared as the Preparer Code, no further action is required.
_____ K. Submit the W2 information to the Social Security Administration and the appropriate state department, if applicable (and also local agency, if applicable). To submit the federal W2 information via the Internet, access the electronic filing system website for the Social Security Administration at: http://www.ssa.gov/bso/bsowelcome.htm.
Note: The due date for reporting W2s electronically to the Social Security Administration is January 31.
Tip: Be sure to give the employees time to verify their W2s before submitting the information to the Social Security Administration or the appropriate state department.
_____ 5. Complete the Affordable Care Act (ACA) employer reporting process, including generating, printing, emailing, and submitting 1095 and 1094 forms.
Tip: Prior to completing Step 5, implement the Affordable Care Act (ACA) Hours Tracking option within the Payroll module if it is not yet set up. The Affordable Care Act (ACA) Hours Tracking option must be set up in order to: 1) utilize the Large Employer Calculation tab in the Affordable Care Act (ACA) Reporting Setup option to determine if your organization is a large employer (refer to Step A below); 2) determine which employees are full-time and need to be included on the 1095 and 1094 forms; and 3) determine which employees must be offered health coverage for the next plan year. Refer to the Affordable Care Act (ACA) Hours Tracking Completion Checklist topic for step-by-step instructions.
_____ A. Determine if your organization is an applicable large employer for the calendar year being reported. An applicable large employer is defined within the ACA guidelines as an employer that has at least 50 full-time employees, including full-time equivalent employees, on average during the prior calendar year (i.e. 2022). To determine if an organization is considered an applicable large employer, the number of full-time employees and the number of full-time equivalent employees for each month in the prior year are added together and divided by 12. Full-time employees are those with an average of 30 or more hours of service per week during the month or 130 or more hours of service during the month. Full-time equivalent employees are calculated by combining the number of hours of service of all non-full-time employees for the month (up to 120 hours of service per employee) and then dividing the total by 120. For additional details on determining applicable large employer status, go to: http://www.irs.gov/Affordable-Care-Act/Employers/Determining-if-an-Employer-is-an-Applicable-Large-Employer.
Tip: Use the Large Employer Calculation tab in the Affordable Care Act (ACA) Reporting Setup option in the Payroll module to assist in determining if your organization is a large employer; the Large Employer Calculation tab can only be utilized if the hours worked have been tracked for all employees for the prior calendar year.
Steps to Complete
the Affordable Care Act (ACA) Reporting Setup Option
_____ B. Complete the Affordable Care Act (ACA) Reporting Setup option for the current calendar year, if not already done.
Steps
to Complete the Affordable Care Act (ACA) Reporting Setup Option
Note: Based on the settings within the Affordable Care Act (ACA) Reporting Setup option, the appropriate option for the applicable ACA forms will be enabled. For additional details to establish what forms your organization must generate for the ACA employer reporting, refer to the Affordable Care Act Forms to File topic.
Affordable
Care Act Forms to File
_____ C. Determine the employees who need to be issued a 1095 form for the current calendar year. Depending on the specific forms being generated, different groups of employees will be included; refer to the Affordable Care Act Forms to File topic to establish which groups of employees are to be included on the specific forms for your organization.
Affordable
Care Act Forms to File
Tips:
1) For organizations issuing 1095-C forms, to view a list of all the employees who were full-time during at least one month in the year (as based on the measurement period(s) prior to the current calendar year's stability period(s)), generate the Full Time Employee Listing for 1095-C Forms report (from the Payroll screen, Reports menu, Affordable Care Act (ACA) Reports), selecting the current calendar year. This report can only be utilized if the Affordable Care Act (ACA) Hours Tracking option has been set up within the School Accounting System.
2) For self-insured organizations only, to view a list of all the employees enrolled in the health coverage, obtain a file from your third-party administrator, or generate the Deduction Register by Deduction (from the Payroll screen, Reports menu, Deduction Reports) for the applicable health insurance deduction(s), selecting the Posted Summary report selection and all Check Dates in the current calendar year (will need to change the Processing Month parameter to select all months).
_____ D. Complete the ACA 1095s screen in the Employee File for the current calendar year for the applicable employees (those found in Step C above).
Steps to Complete the ACA 1095s Tab
(Screen) in the Employee File
Note: For organizations issuing 1095-C forms, if desired, utilize the Adjust ACA Employee Offer of Coverage option to quickly complete or edit the data in the Employee Offer of Coverage List on this screen for a group of employees, or copy the data entered for a prior calendar year for a group of employees. For self-insured organizations only, the information for the coverage dates of the employees (in the Employee ACA Coverage Dates List), along with the information for the covered dependents (in the Dependents and ACA Coverage Dates List), can be imported using a file obtained from your third-party administrator.
Steps
to Adjust ACA Employee Offer of Coverage
Steps
to Import ACA 1095s Covered Individuals
_____ E. Generate and validate the 1095-B forms or the 1095-C forms, whichever is applicable to your organization.
Steps
to Generate and Validate 1095-B Forms
Steps
to Generate and Validate 1095-C Forms
_____ F. Verify the information reported on the 1095s for the employees, and check to be sure all applicable employees are included. To view all the detail information to be included on the 1095s for the employees, print the Employee 1095-B Detail Report or the Employee 1095-C Detail Report, whichever is applicable to your organization, for the current calendar year. The report is accessed under the Reports menu on the Affordable Care Act (ACA) B Forms or Affordable Care Act (ACA) C Forms screen.
Tips:
1) For organizations issuing 1095-C forms, to view a list of full-time employees who are missing a 1095-C form for the current calendar year, generate the Full Time Employees Missing from 1095-Cs report (from either the Reports menu on the Affordable Care Act (ACA) C Forms screen, or the Payroll screen, Reports menu, Affordable Care Act (ACA) Reports). The employees who are missing a 1095-C form, as listed on the report, are those employees who were full-time during at least one month in the year (as based on the measurement period(s) prior to the current calendar year's stability period(s)) and the 1095 information was not completed in the Employee File for the current calendar year; so a 1095-C form will not be issued but should be since 1095-C forms must be issued to all full-time employees. This report can only be utilized if the Affordable Care Act (ACA) Hours Tracking option has been set up within the School Accounting System.
2) For self-insured organizations only, to see if any employees enrolled in health coverage are missing a 1095 form for the current calendar year, compare the Employee 1095-B Detail Report or Employee 1095-C Detail Report (whichever is applicable to your organization) to the file from your third-party administrator, or to the Deduction Register by Deduction printed in Tip 2 under Step C for Step 5 above. Any employees who are on the file from your third-party administrator or the Deduction Register by Deduction, but are not on the Employee 1095-B Detail Report or Employee 1095-C Detail Report (whichever is applicable to your organization) are missing a 1095, because the 1095 information was not completed in the Employee File for the current calendar year; so a 1095 form will not be issued but should be since self-insured employers must issue 1095s to all employees enrolled in the health coverage.
3) For self-insured organizations only, to see if any employees have dependents enrolled with health coverage for months in which the employee was not covered for the current calendar year, generate the Months with Dependent Coverage Only report (from the Reports menu on the Affordable Care Act (ACA) B Forms or Affordable Care Act (ACA) C Forms screen).
_____ G. Make any necessary corrections to the 1095-B forms or the 1095-C forms, whichever is applicable to your organization.
Note: Corrections to an employee’s information must be made in the Employee File and then will automatically be updated within the Affordable Care Act (ACA) B Forms or Affordable Care Act (ACA) C Forms option.
_____ H. Print the 1095-B forms or the 1095-C forms, whichever is applicable to your organization.
_____ I. Deliver 1095 forms to employees; generally this must be done by January 31. (Note: For 2023, this was extended to March 1, 2024.)
Tip: If printing 1095s on plain paper or emailing the 1095s, be sure to provide the information included on the back of a 1095 to the employees.
_____ 1) If needed, print employee mailing labels (from the Affordable Care Act (ACA) B or C Forms screen, Reports menu), selecting the 1095s report selection.
_____ 2) If desired, the 1095s can be emailed to the employees; the 1095s are emailed as a password-protected .PDF file attachment (using the password format as specified in the Email Manager option). If 1095s will be delivered electronically to employees, proper consent may be required from the employees; refer to the IRS instructions for 1095-B or 1095-C forms for more information.
Note: In order to email the 1095s to the employees, complete the following: 1) complete the General Options tab in the Email Manager option (if not already completed) by selecting the Enable Email Manager field and completing the remaining fields; 2) if needed, on the Email Addresses tab in the Email Manager option, add an email address to use when emailing 1095s; 3) complete the Default Email Address ID field in the Direct Deposit/W2/1095 Options section and the Password Format field on the Payroll tab in the Email Manager option; 4) enter up to three email addresses (for Business, Personal, and/or Other) in the Employee File for each employee who will have a 1095 emailed; and 5) select the Tax Forms field for each applicable email address for the employees (a checkmark will appear in the box if the field is selected). If needed, email addresses for employees can be imported; also, the Adjust Email Addresses option can be utilized to update the usage field for Tax Forms for employees.
_____ 3) For school districts with the Web Link module that allow employees to view and print their 1095s in Web Link, select to display the applicable year in the Available 1095 Years List in the Web Link Setup Options option and then inform the employees. The 1095s accessed through the 1095s option in Web Link utilize the landscape format, along with the instructions normally included on the back of a 1095. Reminder, only users defined as a supervisor, database administrator, or Web Link administrator are able to access the Web Link Setup Options option in the School Accounting System.
Note: In order for employees to access their 1095s in Web Link, do the following: 1) complete the Available 1095 Years and the 1095 Consent Message to Display fields on the Payroll screen in the Web Link Setup Options; and 2) in the User Security option, complete the Employee ID field and select Full Access for View 1095s under the Web Link module in the User Permissions List for the applicable users.
_____ J. Print the 1094-B form, or prepare, validate, and print the 1094-C form, whichever is applicable to your organization.
Steps
to Prepare, Validate, and Print 1094-C Form
_____ K. Submit the ACA information returns (the 1094-B and 1095-B forms, or the 1094-C and 1095-C forms, whichever is applicable to your organization) to the Internal Revenue Service (IRS).
Note: The ACA information returns must be filed electronically to the IRS if the total number of all information returns to file (including all 1099s, W2s, and 1095s to be filed, along with the other forms stipulated by the IRS) equals 10 or more. The School Accounting System has a direct connection to the IRS’s application in order to submit the files. With the application-to-application connection included in the School Accounting System, the process to file electronically is very simple and secure, and does not require any pre-authorization or approval process; thus, all School Accounting System users will file the ACA information returns electronically. The due date for reporting the ACA information returns electronically to the IRS is generally March 31.
Tip: Be sure to give the employees time to verify their 1095s before submitting the information.
Steps
to Submit 1094-B and 1095-B Forms Electronically
Steps
to Submit 1094-C and 1095-C Forms Electronically
_____ 6. Make a backup.
Tip: Reminder, to retain a backup for a longer period of time or make a backup to a different location in order to store it in a safe place away from the office, be sure to select to make an additional copy.