This procedure outlines the steps to be taken to close USPS for the calendar year-end in the Redesign

Process any Life Insurance payments

Be sure to process the Life Insurance pay type for life insurance premiums over $50,000 before your last payroll of the calendar year.
See the chapter called Life Insurance Premium in the USPSR Manual
This will update the Federal, State, City, OSDI and Medicare total and taxable gross figures for W2 reporting purposes.
Medicare withholding will be updated on the W2 Report. Can run W2 Report and Submission to verify

Month-End Closing

Quarter-End Closing

In the "Totals Summary" section of the Quarter Report, the gross and adjusted gross should balance using a manual calculation.

                      Gross

                    ‾ Annuities

                    Calculated Adjusted Gross

Be sure to verify the electronic transfers of Federal and Medicare payments as well. This should be true for every Payroll Item code.
In the redesign software there is no clearing of quarter to date totals.
These amounts may not balance due to the way W2Report 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 made through Core/Adjustments. The Audit Report (Reports/Report Manager/SSDT Audit Trail can be useful in identifying these problems.

  • Format-Choose format from drop down
  • Page Size-Choose from drop down.
  • Orientation-Choose from drop down (landscape or portrait)
  • Name- Default is Audit Report can be changed if desired.
  • Summary Report-If you only want a summary report click the box
  • Start Date- Enter a start date you wish to begin your audit from.        
  • End Date- Enter an end date you wish to process the report through.
  • Click Generate Report
Mobile employees could cause discrepancies.


{}IF YOU ARE READY TO COMPLETE W2 PROCESSING,* PROCEED TO STEP 23 *W2 Processing.
IF YOU NEED TO BEGIN JANUARY PAYROLL PROCESSING BEFORE COMPLETING W2 PROCESSING, Leave December reporting period Open and create your January reporting period through Core/Posting Period and make that Current. After your January pay has been completed you can then process W2's.

* W2 Processing

23. ____ Go to Core/Payroll Item Configuration. Check W2 abbreviations on all city Payroll Item Configuration records.

24. ____ In Core/Payroll Item Configuration- If you have any employees who have certain cities that require the tax information be filed electronically. Your ITC can submit this data on your behalf. Insure the Tax Entity Codes are on the respective Payroll Item Configuration city tax records.

***NOTE-The specific city information cannot be filed electronically unless the entity code is present.

25. ____In Core/Payroll Item Configuration- 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 Payroll Item Configuration record. Contact RITA or CCA to obtain the entity codes.

26. ____Contact your ITC with any other cities that may require electronic reporting and are not setup as such.

27. ____In Core/Payroll Item Configuration-Insure the OSDI four digit code appears first in the W2 abbreviation field in Payroll Item Configuration, followed by the school name if there is space. The four digit code OSDI code is required on the W2.

28. ____Using the Core/Adjustments option make any necessary changes to the YTD gross, YTD taxable gross, on the 001 Federal Payroll Items for the W2 forms. Sources of these changes may be fringe benefits, life insurance costs, adoption assistance, third party pay, or a leased vehicle.-See supporting documents for details.

29. ____If an employee has reportable dependent care information that needs to appear in Box 10 of the W2 form, there are two ways of reporting:

Enter the Dependent Care amount by going to Core/Adjustments

A) Click
B) Find the Employee by typing in a few characters of the first or last name or id
C) Under Payroll Item from the drop down Choose Federal Tax, Code:001
D) Under Type Choose Dependent Care
E) Enter or choose a Transaction Date from the calendar
F) Enter in the Amount for Dependent Care
G) A Description can be added if desired
H) Click
OR

***NOTE- Questions on whether the dependent care is reportable or not should be directed to your district legal adviser

30. ____ If you are notified of a Third Party payment and it is taxable you will need to enter the appropriate Adjustments for Total Gross and Taxable gross.

A) Go to Core/Adjustments

B) Find the Employee

C) Choose the Payroll Item from the drop down

D) Choose the Type-Total Gross

E) Enter or choose a Transaction Date

F) Enter in the Amount of the Third party Pay

G) A Description can be added (optional)

H) Click Save

I) Follow the same steps as above for the Taxable Gross

***NOTE- These adjustments will need to be made on the 001, 002, city if honored, OSDI and Medicare records accordingly.-See Third Party Document

If Medicare tax was not withheld by the Third Party vendor then an Adjustments journal entry for Medicare-Amount Withheld will need to be processed. The board will pay the employee and employer amount and can ask the employee for reimbursement if desired.

31.____ If Third Party payment is not taxable you will need to do the following:

A) Go to Core/Adjustments

B) Find the Employee

C) Choose the Payroll Item from the drop down

D) Choose the Type-Third Party Pay

E) Enter or chose a Transaction Date

F) Enter in the Amount of the non taxable Third party Pay

G) A Description can be added (optional)\

H) Click Save

***NOTE-This information will go on the W2 in Box 12 as a Code J.

32.____ Creating W2 report--Go to Reports/W2 Report and Submission

A) Output Type-Report is defaulted

B) Format-Choose the format type you want from the drop down option

C) Report Title-W2 Report is the default. This can be changed if desired

D) Federal ID Number-Should be defaulted from data in Organization. Check for accuracy

E) State Id Number-Should be defaulted from data in Organization. Check for accuracy

F) Kind of Employer-S-State and Local Government Employer is default. Can be changed through drop down option

G) Sort Options-Choose from the drop down option how you wish to sort your report

H) Report for Year-Current calendar year is defaulted. Can be changed if desired

I) Include Fringe Benefits in Box 14?-If you wish to have specific Payroll Item appear in Box 14 check this box and then type name or code of the Payroll Item code in this box, click on the Payroll Item, and then click

I) Click

**NOTE** There is an option available to process the report for selected employees if desired:

You can type a few characters of employees first or last name or ID in the and then click on that employee and click


A W2 Report will be created


33.____ Print the W2 Report and verify the data. Make changes to the data, if necessary, and rerun W2 Report and Submission again. This program can be ran as many times as needed until all data is correct.

34.____ Creating W2 SSA Submission File--When all W2 data has been verified and is accurate run W2 Report and Submission again this time choosing the Submission option

A) Output Type-Submission

B) Federal ID Number-Should be defaulted from data in Organization. Check for accuracy

C) Additional Federal ID Number-If additional Federal ID number is available enter here

D) State ID Number- Should be defaulted from data in Organization. Check for accuracy

E) Kind of Employer- S-State and Local Government Employer is default. Can be changed through drop down option

F) Sort Options- Choose from the drop down option how you wish to sort your report

G) Report for Year- Current calendar year is defaulted. Can be changed if desired using drop down option

H) Employer Name- Should be defaulted from data in Organization. Check for accuracy

I) Employer Address first line -Should be defaulted from data in Organization. Check for accuracy

J) Employer Address second line- Should be defaulted from data in Organization. Check for accuracy

K) Employer City- Should be defaulted from data in Organization. Check for accuracy

L) Employer State- Should be defaulted from data in Organization. Check for accuracy

M) Employer Zip Code- Should be defaulted from data in Organization. Check for accuracy

N) Contact Name-Enter name of employee creating the tape file (required)

O) Contact Phone Number-Enter phone number of person creating tape file (required)

P) Contact Phone Extension-Enter extension of person creating tape file (optional)

Q) Contact Fax Number-Enter fax number for person creating tape file (optional)

R) Contact Email Address-Enter email address of person creating tape file (required)

S) Click

This will produce a file called W2TAPE.SEQ which will be need to be securely emailed to your ITC for federal and state reporting.

ITC appending instructions for SSA File

Create a directory ex.-W2-R_18 of your own to transfer these W2TAPE.SEQ files to.

Rename the W2TAPE.SEQ file to something defining the district Ex. MAW2TAPE.SEQ (The MA defining the district)

When you append the district data be sure that you pull these files from your directory.

They should then be included in your W2MAST.SEQ file that you submit for all of your districts.


35. ____ Creating a W2RITA submission file--In Reports/W2 Report and Submission/Submission

ITC appending instructions for RITA file

Create a directory ex. W2-R.18 or W2-R_RITA.18 of your own to transfer these W2RITA.SEQ files to.

Rename the W2RITA.SEQ file to something defining the district Ex. MAW2RITA.SEQ (The MA defining the district)

When you append the district data be sure that you pull these files from your directory.

They should then be included in your W2MSTRITA.SEQ file that you submit for all of your districts.


36. ____ Creating a CCA submission file-In Reports/W2 report and Submission/Submission

ITC appending instructions for CCA file

Create a directory ex. W2-R.18 or W2-R_CCA.18 of your own to transfer these W2CCA.SEQ files to.

Rename the W2CCA.SEQ file to something defining the district Ex. MAW2CCA.SEQ (The MA defining the district)

When you append the district data be sure that you pull these files from your directory.

They should then be included in your W2MSTCCA.SEQ file that you submit for all of your districts.


37.____ Creating a City submission file--in Reports/W2Report and Submission/Submission

ITC appending instructions

Create a directory ex.-W2-R.18 or W2-R_CITY.18 of your own to transfer these W2CITY.SEQ files to.

Rename the W2CITY.SEQ file to something defining the district Ex. MAW2CITY.SEQ (The MA defining the district)

Follow Creating City record instructions document to create each districts city .SEQ file

When you append the district data be sure that you pull these files from your directory.

They should then be included in your W2MAST.SEQ file for the specific city that you submit for all of your districts.


38.____Creating the XML file-- that will be used to print the actual W2's using EDGE software. In Reports/W2 Report/Submission click on XML
A) Output Type-XML
B) XML Title-W2 Form Data is the default
C) Federal ID Number-Should be defaulted from data in Organization. Check for accuracy
D) State ID Number- Should be defaulted from data in Organization. Check for accuracy
E) Kind of Employer- S-State and Local Government Employer is default. Can be changed through drop down option
F) Report for Year- Current calendar year is defaulted. Can be changed if desired using drop down option
G) Employer Name- Should be defaulted from data in Organization. Check for accuracy
H) Employer Address first line -Should be defaulted from data in Organization. Check for accuracy
I) Employer Address second line- Should be defaulted from data in Organization. Check for accuracy
J) Employer City- Should be defaulted from data in Organization. Check for accuracy
K) Employer State- Should be defaulted from data in Organization. Check for accuracy
L) Employer Zip Code- Should be defaulted from data in Organization. Check for accuracy
M) Include Fringe Benefits in Box 14?-If you wish to have specific Payroll Item appear in Box 14 check this box and then type name or code of the Payroll Item code in this box, click on the Payroll Item, and then click
***NOTE-(A maximum of 3 selected items will print in box 14, Vehicle Lease will always appear first in Box 14 and then 2 other items) Leave empty to not include specific payroll items in box 14.

**NOTE** There is an option available to process the report for selected employees if desired:

You can type a few characters of employees first or last name or ID in the and then click on that employee and click

N) Click

***NOTE-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 .
39.____Inform your ITC (within 48 hours) with instructions on how to print the W-2 forms. Notification will be sent by your ITC personnel when the W2's have been printed.

40.____ Mail the State IT-3 form and select city taxation form(s) (if applicable) to your ITC.

ITC instructions for printing W2 from EDGE using XML file

Create a W2-R.XX or W2-R_XML.18 directory of your own to transfer these W2 Form Data.XML files to.

Rename the W2 Form Data.XML file to something defining the district Ex. MAWDATA.XML (The MA defining the district)

Using EDGE, click on the Import/Export option then click Continue, select the "Get Payer Information from File" option. Click on W2 and hit Ok. Find your
W2-R_XX subdirectory. Find the .xml file of the district that you are importing.
You will then choose the Print option in the EDGE software. Click on Forms and find the district that you are processing, click on W2. Choose the copy version that you are going to print.

  

You have completed the USPS Calendar Year End Closing procedures