W2 Process Notes
The New MMREF-1 format is required for employers with 250 or more W2s. The employer must obtain a PIN/Password from SSA. They must keep
a copy of data for four years and file another return if errors occur. The
schools must contact their local state agency to determine if their state will
use the MMREF-1 format. The institution can submit an MMREF-1 file
using one of the following formats:
• Online Wage Reporting Service (OWRS)
• Electronic Data Transfer (EDT)
• VAN (Value Added Network)
• Diskette, tape cartridges
There are several forms that must be filled out prior to running W2s. The
forms are as follows:
Address Hierarchy for W-2s, 1099-Rs, or 1042-Ss Available on
GTVSDAX: Crosswalk Validation Form.
The method for creating the W-2, 1099-R, or 1042-S mailing addresses
based on an address hierarchy appears below. Essentially, this method
prioritizes the various address types for each recipient entered on the
Identification Form (PPAIDEN) through the use of the Crosswalk Validation
Form (GTVSDAX).
Once the hierarchy of address types are prioritized on GTVSDAX, the yearend processes will use this information to determine the addresses of
recipients. For example, if on GTVSDAX the PR (Permanent) address is
given the first priority, a sequence of 1, and the BU (Business) address is
given second priority, a sequence of 2, then the year-end processes (W-2,
1099-R, or 1042-S—whichever you select) prints (or produces on magnetic
tape or diskette) all PR addresses on file for recipients. If a PR address is not
available, then the system uses the BU address. In order to establish an
address hierarchy on the GTVSDAX form do the following:
1. Access the Crosswalk Validation Form (GTVSDAX).
2. Perform the Insert Record function.
3. Enter W2ADDR, 1042ADDR, or 1099ADDR in the Internal Code field.
Make your choice based on the year-end process for which you want to
create the hierarchy.
4. Enter the sequence number of the address type being used for the
hierarchy. For example, if you want the W-2, 1042-S, or 1099-R process to
select a MA (Mailing) address type as the secondary address, you would
enter 2 in the Internal Seq field.
5. Enter ADDRESS in the Internal Group field.
6. Enter the address type in the External Code field, such as PR
(Permanent).
7. Enter a description, to identify the type of address entered, in the Desc
field. For example, W2 Permanent Address.
8. Save the record.
9. Repeat for all address types that are part of the hierarchy used when
mailing W-2s, 1099-Rs or 1042-Ss.
10. Use the Query feature to display existing address information for
specific
codes. Enter W2ADDR, 1042ADDR, or 1099ADDR to query.
Other Suggestions:
For 1042 for code, enter 1042ADDR, under seq input 1, and under Group
input in all caps ADDRESS, next to external code input the two-digit
address type code used in payroll and input desc as 1042 Mailing Address.
Save.
PTREMPR: The employer rule form must be completed with the employer
information
Access the Employer Rule Form (PTREMPR) and complete all fields. Make
sure the federal ID number is correct. In the Employer State Information
block, create records for all states that you withhold tax for and specify the
correct account number for each state. This information prints in Box 16 of
the United States W-2.
PXAMTAP: The magnetic tape rule form must be completed with the
employer information and tape attributes. In most cases, the Transmitter
Name and Address will be the same as the Organization Name and Address.
Complete the Employer Information Window and the Physical Tape
Attributes Window illustrated below.
Starting with the 2001 tax year, the MMREF-1 format is required. As part
of this enhancement, SCT has added support for Pressure Seal U.S. Cut
Sheet Laser forms using Moore form 1280Z. The MMREF-1 Specifications
will assist clients with electronic W-2 reporting. Detailed instructions for
completing this form may be found in the HR 5.0 Release Guide, beginning
on page 112.
Enter values in the MMREF-1 Electronic Filing Form (PXAMMEF) and
save. Complete all three areas of the form (Submitter Information, Company
Information, and Employer Information). Complete the Third Party FIT
Withheld field in the Employer Information area if applicable. In most
cases, the Submitter Name and Address fields will be the same as the
Company Name and Address fields.
The W-2 Company Information Area supplies data on the company that
should receive MMREF-1 annual filing instructions. Detailed instructions
for completing this form may be found in the HR 5.0 Release Guide,
beginning on page 115.
The W-2 Employer Information Area supplies data on the employer
reporting employee wage and tax information. To access this area, select
Employer Information from the Navigation Frame. When you select the W2 Employer Code, information will default to the rest of the form. Add or
revise this information as needed.
PXAREPT: The tax reporting rule form must be completed for the W2 tax
report code.
You will fill in all deduction or earn codes that pertain to the box code for
the W2’s.
Access the Tax Reporting Rule Form (PXAREPT). In the Key block, enter
W2.Move to the Box Identification block. Each record in this area
corresponds to a box on the W-2 form.
Example: Box 1 is Wages, Tips and other compensation. You
will insert your Federal Deduction code in the Benefit/Deduction code.
If you have an earn code that should be included in the box 1 gross
you would enter it in the earn code box. You will also choose if it is
to show applicable gross/employee amount/employer amount or none.
For box 1, the applicable gross will be selected.
All data in this block, except that for boxes 17 and 18, is supplied by SCT
and should not be modified without consulting SCT. You must set up a Box
17 and a Box 18 for each state for which you deduct state income tax. For
each box, enter the box number followed by the two-character state code, as
illustrated in the following example: For each box record in the Box
Identification block, you must list the benefit/ deduction codes (from the
PTRBDCA Benefit/Deduction Code field) and/or the earnings codes (from
the PTREARN Earnings Code field) associated with the specified box. This
selection is made in the Benefit/Deductions block and the Earnings block as
described below.
Move to the Benefit/Deduction Code block. The vast
majority of W-2 boxes will be specified in the Benefit/Deduction Code
block.
Very few, if any, will make use of the Earnings Code block.
Example:
Box Description
17NJ New Jersey state wages
17OH Ohio state wages
17PA Pennsylvania state wages
18NJ New Jersey state tax withheld
18OH Ohio state tax withheld
18PA Pennsylvania state tax withheld
List the Benefit/Deduction codes that pertain to the box chosen. Often this
will be just one code. Also, a box is not usually associated with both a
benefit/ deduction code and an earnings code. For each Benefit/Deduction
code listed, indicate which of the three amounts (Applicable Gross,
Employee Amount, or Employer Amount) should be placed in the box. If
necessary, you can list more than one.
**Note: For Boxes 1 and 2:include 1042S (Non-resident alien codes) if
applicable After completing the PXAREPT form with all benefit/deduction
codes for each box code, you are ready to begin the W2 process.
Note: It is very important not only to list the correct benefit/deduction
code(s), but also to specify the right amount indicator(s).
Boxes 15D and 15P no longer need to be defined on PXAREPT. It is
recommended that the data for these boxes be deleted from the form to
aid in runtime performance. If the box is to contain earnings, move to the
Earnings block and list the relevant earnings codes.
PROCESSES:
Below are the steps that you will follow to create the W2 file as
well as the magnetic media.
PXRW2US: The process that is run to create the W2 file.
pxrw2us.lis: The file that is created by running the PXRW2US
process.
pxrmtw2: This is the table that is populated by running the W2
process. It is used by the magnetic media processes
(PXPMTW2/PXPDSW2)
When you run the United States W-2 (PXRW2US), you will be asked to
enter a tax quarter. If you select quarters 1 through 4, the system will create
data for the quarterly magnetic tape process. It will not create hard copy W2s. Quarterly reports are useful for 941 reconciliation.
If you select A (All quarters), the system will produce both hard copy W-2s
and the data for year-end magnetic tape or diskette processing.
The W-2 process can be run multiple times. Each time, it will create a hard
copy print file and populate a table used to create the magnetic tape(s) or
diskette file. (There is no harm in just running it multiple times.) Parameter
documentation for job submission is located in Chapter 20 of the User
Manual.
The U.S. W-2 Report (PXRW2US) typically used to create the hard copy W2s. This program produces two outputs, a print file (pxrw2us.lis) and an
error report (pxrw2us.err). It also places information into the PXRMTW2
table.
Note: The W-2 MMREF-1 File (PXPW2MM) must be run after the U.S. W2 Report (PXRW2US) and before the W-2 MMREF-1 Tape File
(PXPW2TP) in order to populate the formatted file (W2REPORT).
Run the W-2 MMREF-1 File (PXPW2MM). This process produces two
outputs, a print file (pxpw2mm.lis) and an error report (pxpw2mm.err). It
also places information into a formatted file (W2REPORT) from the data in
the PXRMTW2 table.
Run the W-2 MMREF-1 Tape File (PXPW2TP). This process produces a
print file (pxpw2tp.lis) and converts data from the W2REPORT file to tape
layout (W2TAPE). For complete information on the PXRW2US,
PXPW2MM, and PXPW2TP processes,
Diskette Magnetic Media Steps:
The W-2 MMREF-1 FILE (PXPW2MM) generates a file (W2REPORT) in
MMREF-1 format for use in filing US W-2 information diskette.
Note: File must be run after the W-2 process and before the tape is created
in order to populate the formatted file (W2Report)
Tape Magnetic Media Steps:
The W-2 MMREF-1 Tape File (PXPW2TP) converts the diskette files
(W2REPORT) to tape layout (W2TAPE) for use in filing W-2 information.
It requires no parameters for Job Submission.
Run the W-2 MMREF-1 File (PXPW2MM). This process produces two
outputs, a print file (pxpw2mm.lis) and an error report (pxpw2mm.err).
Parameters for PXPW2MM:
Tax Year: Tax Reporting Year.
Tax Quarter: A to report for the full year.
Resubmit File Indicator: Y or N Indicates whether or not the file will be
resubmitted to the SSA
Modifications to (PXRW2US)
W-2 Format to print W-2s:
1—Standard IRS 1-up
2—Laser 4-up
3—Totals only—Choose to print only totals for the
whole year. This does not print individual W-2s.
4— Laser (pressure sealed) forms
The W-2 name will be taken from PPAIDEN. To override the
PPAIDEN name for W-2 purposes, enter the name in the Social Security
field on PEAEMPL.
Use of the Comment Form (PPACMNT) is not compatible with
MMREF-1 reporting requirements. If you want to use a name different than
the one appearing on the Identification Form (PPAIDEN) for the W-2
Employee Name on the U.S. W-2 Report and on the files produced by the
W-2 MMREF-1 File (PXPW2MM) and the W-2 MMREF-1 Tape File
(PXPW2TP), then complete the Social Security Name fields on the U.S.
Regulatory Information window of the Employee Form (PEAEMPL).
Note: If a name is not specified in the Social Security Name fields on
PEAEMPL, the name that prints on the W-2 will be taken from PPAIDEN.
***IMPORTANT INFORMATION***
County Code must be set up on STVNATN. Codes are listed in the SSA
MMREF guide.
Banner W2’s do NOT have subtotals. The system assumes that you will
be creating magnetic media.
If you are printing laser forms, see the user notes sent with the
regulatory release for instructions.
If you have errors on addresses for employees, check the address info on
PPAIDEN to ensure that they have a valid address for the address type
chosen.
If you receive an error that an employee has a negative amount in a
certain box, check his PEIDTOT form for any codes that are being
selected for that particular box.
All totals are being selected from PEIDTOT/PEIJTOT
If corrections are needed for employee totals, use the PHAADJT form.
You can also correct applicable gross totals using PHAADJT.
New MMREF-1 format
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Required for employers with 250 or more W-2s
Must obtain a PIN/Password from SSA
Keep copy of data for four years
File returned if errors found
Concern - state adoption of MMREF-1