Processing/Distribute - W2

For specific regulations governing W-2 and 1099-R processing, please refer to IRS and Social Security Administration sources for official documentation and instructions. Individual states will have their own sources for documentation and instructions that must be followed. These formal, technical specifications and the W-2 process itself require careful review and attention to detail. Compliance with regulations is the responsibility of the client. It is recommended that appointed individual(s) at the client site assume responsibility for the specific knowledge that the W-2 process demands.

The federal and state deadline for delivering printed W-2s to employees is January 31 (if January 31 falls on a weekend or legal holiday, the deadline is extended to the next business day). It is important to begin testing the W-2 process as early as possible to provide adequate time for reviewing output and making corrections. The W-2 process may be run repeatedly if necessary.

The primary focus in W-2 processing is on the payroll accumulator records and the W-2 Description Files, they are of central importance in the W-2 process. The W-2 Description Files serve as report definition files for the process. They define configurations for both the extraction process and the formatting of printed forms and electronic submission files.       

BusinessPlus provides a flexible process in which the user can generate both paper W-2s and the necessary state and federal electronic submission files at the same time. W-2 Description Files contain information about how basic payroll values are extracted and about how the submission files and the printed W-2s are formatted. Description files are configurable by the client, and it is each client's responsibility to match the Description File settings to the specific payroll configurations for the site.

PowerSchool provides sample Description Files in the Year-End BusinessPlus Release. These files are provided as examples only and should never be used as-is. Clients may use these files as starting points in the development of their own description files for the year, but the files need to be modified for site-specific configurations and state-specific regulations. For a detailed discussion, refer to the W-2 Description Files section.

With BusinessPlus Payroll, it is not necessary to perform a formal closing at the end of the tax year. Instead, routine steps are performed to prepare the system for the new tax year. Among these steps are the Year-End reporting processes, particularly W-2 and 1099-R forms and electronic submission files. W-2 and 1099-R outputs (both printed forms and files) are necessarily based on unique, client-specific configurations and must be reviewed carefully for accuracy and compliance under federal and state reporting requirements.

Please read this section thoroughly to gain a full understanding of the Year-End process before undertaking these steps.

Clients should be aware that 1099-R filings are produced using the W-2 software. All of the documentation related to W-2 processing applies to 1099-R processing. There is a separate mask (PYW29R) on the standard W-2 menu to produce the 1099-R printed forms and electronic file.