Configuring W-2 Preferences and Settings

W-2 Preferences Window

1. Click the Payer List button.
2. Choose the desired payer.
3. Close the Payers & Recipients window.
4. Select the Settings menu.
5. Select W-2 Preferences.
6. Select "Applies to all NEW Payers" or "Applies to Selected Payer: Payer Name", depending on the option desired.
7. Check the boxes for the options needed for the payer or payers.
8. Click OK to save the changes.

Setting Up Default W-2 Options

1. Select the Settings menu.
2. Select W-2 Settings.
3. Check or uncheck the boxes as desired.

List of Available Preferences

• Automatically Calculate After Each Dollar Amount Entry
  • Re-calculates all amounts when the user moves to another field after entering an amount on the W-2 Returns Screen.
• Calculate Net Pay
  • Calculates net pay by subtracting deductions and withholding from wages and other compensation.
• Include Gross Tips In Net Pay 
  • Adds Gross Tips to the calculated Net Pay amount.
• Use 943 Method to Calculate Gross Wages 
  • Calculates Gross Regular wages by adding Medicare Wages, Social Security Withheld, Medicare Withheld, and Medicare Tips.

  • If you use the 943 preference, the following preferences will be turned off automatically:

    • Calculate Social Security and Medicare Wages using Gross Wages.

    • Calculate Social Security and Medicare Tips using Gross Wages.
    • Add Deferred Compensation to Social Security and Medicare Wages.
  • Check this preference to calculate gross wages when an employer pays a recipient's Social Security and Medicare withheld taxes.
  • This preference is typically used for agricultural employers.
  • When you check this preference, the software calculates Gross Wages by adding Medicare Wages, Social Security Withheld, SS Tips, and Medicare Tips.
• Calculate Social Security and Medicare Wages Using Gross Wages 
  • Sets Social Security and Medicare Wages equal to the sum of Gross Wages plus Other Compensation plus Gross Overtime.
• Add Deferred Compensation to Social Security and Medicare Wages 
  • Adds Deferred Compensation to Social Security and Medicare Wages with the exception of the Designated Roth Plan pre-defined amount types (Roth Contribution Section 401(k) Plan, Roth Contribution Section 403(b) Sal Red, and Roth Contribution Section 457(b) Plan).
• Calculate Social Security and Medicare Tips Using Gross Tips 
  • Sets Social Security and Medicare Tips equal to Gross Tips.
• Calculate Social Security and Medicare Withheld Amounts
  • Calculates Social Security Withheld as a percentage of Social Security Wages.
  • Calculates Medicare Withheld as a percentage of Medicare Wages plus 0.9% of Medicare Wages and Medicare Tips over $200,000 for the entire year.
• Warn if Social Security and Medicare Withheld are Inaccurate 
  • Displays a warning when the Social Security Withheld is not 6.2% of Social Security Wages or Medicare Withheld is not 1.45% of Medicare Wages plus 0.9% of Medicare Wages and Medicare Tips over $200,000 for the entire year.
• Adjust Social Security and Medicare Withheld if Inaccurate
  • Automatically enters the calculated withholding amount into the Social Security Withheld or Medicare Withheld fields.
• Add Deferred Compensation to Total Payments on Form 940 
  • Causes the Deferred Compensation amount to be added to Form 940, Part 2, Line 3.
  • This amount is also included in the FUTA Journal.
  • Roth IRA pre-defined amount types (Roth Contribution Section 401(k) Plan, Roth Contribution Section 403(b) Sal Red, and Roth Contribution Section 457(b) Plan) will not be included.

The W-2 Settings Window

The W-2 Settings window can be used to set the program to populate state and local wages fields on the W-2 form. Changes made here will apply to all payers in the program.

The available options are:

• Set State 1 Wages equal to Gross Wages.
  • Forces State 1 wages to equal Gross Regular (Subject Wages) on the W-2 Returns screen.
• Set State 2 Wages equal to Gross Wages.
  • Forces State 2 wages to equal Gross Regular (Subject Wages) on the W-2 Returns screen.
• Set Local 1 Wages equal to Gross Wages.
  • Forces Local 1 wages to equal Gross Regular (Subject Wages) on the W-2 Returns screen.
• Set Local 2 Wages equal to Gross Wages.
  • Forces Local 2 wages to equal Gross Regular (Subject Wages) on the W-2 Returns screen.
• Warn if Recipient TIN is left blank during entry.
  • Forces an error message to display when the user attempts to select OK or Save and the Recipient TIN is left blank.

Changing W-2 Settings

1. Click the Settings menu.
2. Select W-2 Settings.
3. Check or check the appropriate checkboxes.
4. Click OK.