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This procedure outlines the steps to be taken to close the USPS calendar year-end.

Process any NC1 payments

Be sure to run the NC1 pay types for life insurance premiums over $50,000 before your last payroll of the calendar year. See the chapter called Reporting Taxable Amount of Life Insurance Premiums in the USPS User Guide.

Process any NC2 payments

Be sure to run the NC2 pay types for adoption assistance before your last payroll of the calendar year. See the chapter called Adoption Assistance in the USPS User Guide.

Process any NC3 payments

Be sure to run the NC3 pay types for non-cash taxable benefits before your last payroll of the calendar year. 

Verify SSN Numbers

Using W2MAINT, SSN can be verified at any time prior to printing W2's.

  • SSAEVS - creates the EVSREQ2K.SEQ file to send to the Social Security Administration
  • EVSTRN - used once the Social Security Administration returns your file.  Please note, the file will need to be name EVSVER2K.SEQ and file transferred into Reflections.

Quarter-End Closing

  • 1. Run QRTRPT selecting the demand option (N).
  • 2.  In the "Totals" section of QRTRPT, the gross and adjusted gross should balance using a manual calculation

        Gross
      - Annuities Adjusted gross calculated
    The Adjusted gross calculated should equal the adjusted gross amount from QRTRPT. This should be true for all adjusted gross figures in the "Totals" section
  • 3. All deduction checks for the quarter should equal the total deductions showing on QRTRPT. Be sure to verify the electronic transfers of federal and Medicare payments as well. This should be true for every deduction code

  • 4. The total gross showing on QRTRPT should equal the total of all payroll clearance checks created during CHKUPD for the quarter.

  • 5. It is recommended that you balance the W2REPT quarterly to minimize problems at calendar year-end.

    •  Run W2PROC. Check the W2ERR.TXT report for errors.

    • Complete and balance the W2REPT Reconciliation Worksheet for the quarter following the directions on the Worksheet.

    • Balance the deduction totals (taxes and annuities) on the W2REPT.TXT report with the totals from the DEDRPT.TXT reports from the quarter

    • Balance the gross amounts on the W2REPT.TXT report with PAYRPT.TXT reports for the quarter 

      These amounts may not balance due to the way W2PROC handles certain amounts (e.g. Medicare pickup)
    • If errors are discovered, check employees that had exception processing during the quarter such as voided checks, error adjustments, or manual changes in USPSCN. The AUDRPT program can be useful in identifying these problems
  • 6. Run PAYDED, to generate a non-zero deduction listing. To do so, set the "Payment Option" to A, leaving the "Pay Cycle" and "Deduction Codes" fields blank. On DEDRPT.TXT, verify that there are no outstanding deduction amounts.

  • 7. The total of all board paid amounts (if tracked on the system) should equal the total of all warrant checks to the vendor or deduction company.

  • 8. Complete and file any required quarter-end submission forms.

  • 9. For city withholdings, take the total gross times the percentage to be sure the tax withheld and submitted are correct.

    Mobile employees could cause discrepancies.

  • 10. Run ODJFSRPT setting the "Create a submission file" to N to generate a report only

    • Check all totals carefully for accuracy.

      If necessary, adjustments can be made using USPSCN/ATDSCN.
  • 11. When all data is correct, run ODJFSRPT again, this time indicating that you want to create a tape file for submission.

  • 12. Only if hard copies of quarter end reports are desired, run the following:
    •  USRPT/EMPMST (all data)

    •  USPRPT/ERNSUM (all data for the quarter) – condensed version of ERNREG (170 column report)

    •  ERNREG – (all data for the quarter)

    •  QRTRPT – (all data –demand report)

      If you ARE ready to complete W2 Processing , Proceed to Step 13.

      If you are NOT ready to complete W2 Processing, Proceed to W2 Processing at a Later Date

W2 Processing NOW

  • 13.  Check W2 abbreviations on city DEDNAM records. The W2 form will truncate the abbreviation to six characters even though the field in DEDNAM allows twelve characters.

  • 14.  If you have any employees who have Sylvania, Bowling Green, Oregon, Napoleon, Perrysburg, Maumee, Toledo or Whitehouse City tax withheld, the tax information can be filed electronically. NWOCA will submit this data on your behalf. Insure the entity codes are on the respective DEDNAM city tax records. The information cannot be filed electronically unless the entity code is present (SYLV,  BOWLI, OREGO,  NAPOL, PBURG, MAUME, TOLED WHOUS)

Contact NWOCA with any other cities that require electronic reporting.

  • 15.  For any cities using either the Regional Income Tax Agency (RITA) or the Central Collection Agency (CCA) to report city tax information, verify the tax entity code, the appropriate RITA and/or CCA three digit code, and RITA and/or CCA description are entered on the city USPSDAT/DEDNAM record. (Ex. Swanton- RITA Entity Code RO784) Contact RITA or CCA to obtain the entity codes.

  • 16.  For any cities using either the Regional Income Tax Agency (RITA) or the Central Collection Agency (CCA) to report city tax information, verify employee's DEDSCN 'Employe/Residence' flag is defined.
  • 17.  Insure the OSDI four digit code appears first in the W2 abbreviation field in DEDNAM, followed by the school name if there is space. The four digit code is required on the W2.

  • 18.  Verify health savings account DEDNAM type is set to I.

This amount will be placed in Box 12 with code W.

  • 19.  Enter any non-taxable third party sick pay in the 001 Third party pay field.

This amount will be place in Box 12 with code J.

  • 20.  Enter any taxable third party sick pay following Third Party Sick Pay steps.  
  • 21.  Enter any excludable moving expenses in the 001 Move Exp field.

This amount will be placed in Box 12 with code P.

  • 22.  Enter any fringe benefits in the 001 Fringe benefits field.
  • 23.  If NC1 payment for life insurance was not processed prior to calendar year end, do the following:
  • Increase the QTD and YTD gross and taxable gross of the 001 DEDSCN record by the amount of the taxable premium.
  • Increase the YTD gross and taxable gross on the 002 DEDSCN record by the amount of the taxable premium.
  • Increase the YTD gross and taxable gross on the city DEDSCN record IF required by the municipality. 
  • Increase the YTD gross and taxable gross on the FICA and/or Medicare DEDSCN by the amount of the taxable premium.
  • Obtain payment from the employee for the FICA (6.2% of the taxable premium) and/or Medicare (1.45% of the taxable premium).
  • Increase the YTD Deduct Total field on the FICA/Medicare DEDSCN(s) by the payment amount.
  • Process a USAS transaction for the board share of Medicare.
  • Enter the taxable premium on the 001 DEDSCN Life Insurance Cost field.
  • Enter the taxable premium on the QTD, YTD, and FYTD fields for Non-cash earnings on JOBSCN (screen 3).

This amount will be placed in Box 12 with code C.

  • 24. If not using the DPCARE deduction type, enter the amount of dependent care in the 001 DEDSCN Dependent Care field.

This amount will be placed in Box 10.

  • 25.  Enter the cost of company vehicle in the 001 DEDSCN Vehicle lease field.

This amount will be added to the total and taxable gross fields on the Federal and Ohio causing W2REPT to be higher.  This amount will be placed in Box 14.

If these expenses were originally paid on the USAS side, this will create a balancing difference between QRTRPT and W2PROC.  W2PROC may show higher gross amounts than actually paid through the USPS side.

  • 27.  Enter health reimbursement arrangement amounts in the 001 DEDSCN Hth Reimb field.

This amount will be placed in Box 12 with code FF.

  • 28. Enter adoption assistance amount in the 001 Adopt. assist. field.

This will be treated as an excludable fringe benefit.  This amount will be placed in Box 12 with code T.

  • 29.  Verify cost of employer sponsored health care.

  • If updates to employees are necessary, enter the amount in the 001 DEDSCN Emplr Hth field.  USPLOAD can be used to mass update changes.

This amount will be placed in Box 12 with code DD.

  • 30.  Run W2PROC (saying "N" to Create Tape file prompt). 

W2ERR.TXT is the error report.

W2REPT.TXT is report of all W2 information.  

W2FORM.TXT is no longer used.

W2BREAK.TXT shows where the W2 forms should be separated for possible distribution. The report lists each sort field and its starting control number. This report does not apply to Name or SSN sort options.

W2FORM.DAT is used by NWOCA to print the actual W-2's for your district. If employees have more than two state, city, or OSDI tax records, the extra W-2 form necessary to accommodate this information will print on the W-2 immediately following the employee's primary W-2.

W2TAPE.SEQ which will be submitted to the federal and state taxing entities for you by NWOCA.

W2CCA.SEQ and/or W2RITA.SEQ is generated for those districts reporting city tax information to RITA or CCA. This file is used by NWOCA to submit the city tax information on your behalf.

W2CITY.DAT is used for other city submissions and should not be printed.


  • 31.  Verify the W2ERR.TXT report. 
  • 32.  Verify and balance the W2REPT.TXT report.  Make any necessary changes to the data and rerun W2PROC. This program can be run as many times as necessary until all data is correct.
  • 33.  When all W2 data has been verified and is accurate run W2PROC again (Saying "Y" to the Create Tape file prompt)
  • 34.  Send email (mail_staff_fis@nwoca.org) to NWOCA (within 48 hours) stating W2 are ready for printing.  Also include in the email the sorting method for employee copies (if something other than sorting when W2PROC was run), and delivery method - pick up or mail.  Notification will be sent by NWOCA personnel when the W2's have been printed.

  • 35.  Mail the State IT-3 form and select city taxation form(s) (if applicable) to NWOCA.

NWOCA

209 Nolan Parkway

Archbold, OH  43502

Attn:  Fiscal Department

If necessary, an IT-3 form can be printed here

  • 36.  Run YTDRPT if desired. This report generates year-to-date totals and a benefit statement for all employees, pay groups, or individual employees.

  • 37.  Run OAPSE if desired. This report generates a listing of employee name, SSN, birthday, and year-to-date gross.

  • 38. Run the procedure @PAY:USPS_CALENDAR_COPY or from the MENU>USPSCALEND.  This procedure creates a copy of your files.

  • 39. From the USPS_ANN menu, run the CALENDARCD program.  This procedure generates a standard set of calendar year-end reports on PAYROLLCD.
  • 40.  Verify that the reports were copied to PAYROLLCD.
  • 41.  Run QRTRPT and select option Y to zero out all data for the quarter and calendar year. Do NOT zero of fiscal year data.

  • 42. To insure the data cleared correctly, run the QRTRPT program again and verify that the year to date and quarter to date totals on the report are zero.

W2 Processing at a later date

  • 43. Run the procedure @PAY:USPS_CALENDAR_COPY or from the MENU>USPSCALEND.  This creates a copy of your files and allows W2's to be processed at a later time.
  • 44. Send an email to NWOCA personnel (mail_staff_fis@nwoca.org), indicating that you wish to use your  _D account for W2 Processing.
  • 45. Run QRTRPT and select option Y to zero out all data for the quarter and calendar year.  Do NOT zero out fiscal year data.
  • 46. To insure the data cleared correctly, run the QRTRPT program again and verify that the year to date and quarter to date totals on the report are zero.
  • 47. Continue with January payroll processing

Ready to process W2's from the D account

  • 48. Log into _D account using username and password provided in the email instructions received from NWOCA.
  • 49  Check W2 abbreviations on city DEDNAM records. The W2 form will truncate the abbreviation to six characters even though the field in DEDNAM allows twelve characters.
  • 50.  If you have any employees who have Sylvania, Bowling Green, Oregon, Napoleon, Perrysburg, Maumee, Toledo or Whitehouse City tax withheld, the tax information can be filed electronically. NWOCA will submit this data on your behalf. Insure the entity codes are on the respective DEDNAM city tax records. The information cannot be filed electronically unless the entity code is present (SYLV,  BOWLI, OREGO,  NAPOL, PBURG, MAUME, TOLED WHOUS)

Contact NWOCA with any other cities that require electronic reporting.

  • 51.  For any cities using either the Regional Income Tax Agency (RITA) or the Central Collection Agency (CCA) to report city tax information, verify the tax entity code, the appropriate RITA and/or CCA three digit code, and RITA and/or CCA description are entered on the city USPSDAT/DEDNAM record. (Ex. Swanton- RITA Entity Code RO784).  Contact RITA or CCA to obtain the entity codes.

  • 52.  For any cities using either the Regional Income Tax Agency (RITA) or the Central Collection Agency (CCA) to report city tax information, verify employee's DEDSCN 'Employe/Residence' flag is defined.
  • 53.  Insure the OSDI four digit code appears first in the W2 abbreviation field in DEDNAM, followed by the school name if there is space. The four digit code is required on the W2.

  • 54.  Verify health savings account DEDNAM type is set to I.

This amount will be placed in Box 12 with code W.

  • 55.  Enter any non-taxable third party sick pay in the 001 Third party pay field.

This amount will be place in Box 12 with code J.

  • 56.  Enter any taxable third party sick pay following Third Party Sick Pay steps.  
  • 57.  Enter any excludable moving expenses in the 001 Move Exp field.

This amount will be placed in Box 12 with code P.

  • 58.  Enter any fringe benefits in the 001 Fringe benefits field.
  • 59.  If NC1 payment for life insurance was not processed prior to calendar year end, do the following:
  • Increase the QTD and YTD gross and taxable gross of the 001 DEDSCN record by the amount of the taxable premium.
  • Increase the YTD gross and taxable gross on the 002 DEDSCN record by the amount of the taxable premium.
  • Increase the YTD gross and taxable gross on the city DEDSCN record IF required by the municipality. 
  • Increase the YTD gross and taxable gross on the FICA and/or Medicare DEDSCN by the amount of the taxable premium.
  • Obtain payment from the employee for the FICA (6.2% of the taxable premium) and/or Medicare (1.45% of the taxable premium).
  • Increase the YTD Deduct Total field on the FICA/Medicare DEDSCN(s) by the payment amount.
  • Process a USAS transaction for the board share of Medicare.
  • Enter the taxable premium on the 001 DEDSCN Life Insurance Cost field.
  • Enter the taxable premium on the QTD, YTD, and FYTD fields for Non-cash earnings on JOBSCN (screen 3).

This amount will be placed in Box 12 with code C.

  • 60. If not using the DPCARE deduction type, enter the amount of dependent care in the 001 DEDSCN Dependent Care field.

This amount will be placed in Box 10.

  • 61.  Enter the cost of company vehicle in the 001 DEDSCN Vehicle lease field.

This amount will be added to the total and taxable gross fields on the Federal and Ohio causing W2REPT to be higher.  This amount will be placed in Box 14.

If these expenses were originally paid on the USAS side, this will create a balancing difference between QRTRPT and W2PROC.  W2PROC may show higher gross amounts than actually paid through the USPS side.

  • 63.  Verify cost of employer sponsored health care.
  • If updates to employees are necessary, enter the amount in the 001 DEDSCN Emplr Hth field.  USPLOAD can be used to mass update changes.

This amount will be placed in Box 12 with code DD.

  • 64.  Enter health reimbursement arrangement amounts in the 001 DEDSCN Hth Reimb field.

This amount will be placed in Box 12 with code FF.

  • 65.  Enter adoption assistance amount in the 001 Adopt. aassist. field.

This will be treated as an excludable fringe benefit.  This amount will be placed in Box 12 with code T.


  • 66.  Run W2PROC (saying "N" to Create Tape file prompt). 

    W2ERR.TXT is the error report.

    W2REPT.TXT is report of all W2 information.  

    W2FORM.TXT is no longer used.

    W2BREAK.TXT shows where the W2 forms should be separated for possible distribution. The report lists each sort field and its starting control number. This report does not apply to Name or SSN sort options.

    W2FORM.DAT is used by NWOCA to print the actual W-2's for your district. If employees have more than two state, city, or OSDI tax records, the extra W-2 form necessary to accommodate this information will print on the W-2 immediately following the employee's primary W-2.

    W2TAPE.SEQ which will be submitted to the federal and state taxing entities for you by NWOCA.

    W2CCA.SEQ and/or W2RITA.SEQ is generated for those districts reporting city tax information to RITA or CCA. This file is used by NWOCA to submit the city tax information on your behalf.

    W2CITY.DAT is used for other city submissions and should not be printed.


  • 67.  Verify the W2ERR.TXT report.  Verify and balance the W2REPT.TXT report.  Make any necessary changes to the data and rerun W2PROC. This program can be run as many times as necessary until all data is correct.

  • 68.  When all W2 data has been verified and is accurate run W2PROC again (Saying "Y" to the Create Tape file prompt)
  • 69.  Send email (mail_staff_fis@nwoca.org) to NWOCA (within 48 hours) stating W2 are ready for printing.  Also include in the email the sorting method for employee copies (if something other than sorting when W2PROC was run), and delivery method - pick up or mail.  Notification will be sent by NWOCA personnel when the W2's have been printed.

  • 70.  Mail the State IT-3 form and select city taxation form(s) (if applicable) to NWOCA.

    If necessary, an IT-3 form can be printed here

    NWOCA

    209 Nolan Parkway

    Archbold, OH  43502

    Attn:  Fiscal Department

  • 71.  Run YTDRPT if desired. This report generates year-to-date totals and a benefit statement for all employees, pay groups, or individual employees.

  • 72.  Run OAPSE if desired. This report generates a listing of employee name, SSN, birthday, and year-to-date gross.

  • 73. Run the procedure @PAY:USPS_CALENDAR_COPY or from the MENU>USPSCALEND.  This procedure creates a copy of your files.

  • 74. From the USPS_ANN menu, run the CALENDARCD program.  This procedure generates a standard set of calendar year-end reports on PAYROLLCD.
  • 75.  Verify that the reports were copied to PAYROLLCD.
  • 76.  Run QRTRPT and select option Y to zero out all data for the quarter and calendar year. Do NOT zero of fiscal year data.

  • 77. To insure the data cleared correctly, run the QRTRPT program again and verify that the year to date and quarter to date totals on the report are zero.



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