2020 Year End

This is a copy of the information that we sent to our clients in the 2019 Year End email. If you have not received that email or would prefer to read the information here we have made it available.

Sincerely,

Danielle Klopfenstein

Please note:  There have been changes to our year end notes.  Please read the whole document.

W-3/W-2s are due to the IRS by February 1, 2021.

You need to file Form 1099-NEC on or before February 1, 2021, using either paper or electronic filing procedures. File Form 1099-MISC by March 1, 2021, if you file on paper, or March 31, 2021, if you file electronically.

MAKE SURE YOU HAVE ALL THE INTERNET DOWNLOADS BEFORE PRINTING W-2S.

The payroll module holds multiple years worth of data.  You will be able to select the reporting year for printing W-2s.  I recommend making a duplicate company as an extra backup.

Preliminary Procedures

  1. Print the State and Federal Quarterly reports for the year.
  2. Print an Earnings Detail for the year using check dates of 1/1/20-12/31/20. Print in summary with include deductions checked.
  3. Make a backup of your data.  Before making a backup, make sure no one else is accessing JobView.  We HIGHLY recommend copying your data to another place on your hard drive.  To do this, login to JobView, click on File, click on Duplicate Current Company.  Make the company ID “20W2”, use your full company name, and make the data path c:\jvdata\2020w2.

year end 2020 part 1

 IF you are on a network you will want to use your network drive instead of c: (for example f:).  IF you have more than one company, you may want to use the folder name of 20abw2 (ab being 2 letters from the company name), and make the company ID “0abw2”.  After clicking proceed, the system will ask you if you want it to create the folder you just entered in the data path, click yes.  Now log in to the W-2 area.  I suggest changing the company color bar in this area.  To do this, go to setup, company, Misc. Tab.  Click on Company Specific Title Bar.  Click on Background color.

year end 2020 part 2

Basic options for printing w-2s for employees, IRS and the w3 for the IRS.  Please print a copy of each to keep for your company records.

  1. Print the W-2 forms on plain paper for verification purposes. Printing W-2 forms does not change or clear the data.  Make sure you select 2020 as the reporting year on the “printing options” tab of your W-2 report (see above screen.) You now have the option to Include Section 125 deductions in Box 14.
  2. Verify that there is a W-2 form for each employee to whom you paid any wages or salary in 2020. You should check each W-2 against each employee’s earnings record, your earnings detail or your copy of his/her last paycheck stub to be certain of the following:
    1. The social security number is correct.
    2. The federal taxable gross is correct.
    3. The federal income tax withheld is correct.
    4. The state income tax withheld is correct.

If your totals do not balance, there is a payroll recalculate under the Utilities option. 

If any changes are made, re-run W-2s, verify again.

  1. You should be ready to print W-2s.
  2. After printing W-2s, verify all information on the actual W-2s.  It is a good idea to verify your totals against your reported totals on your 941s. 

** Even if you have time to print W-2s before your first payroll in 2021, we recommend making a duplicate company backup plus make a backup on some type of media (CD, USB, etc). 

If you are utilizing the electronic filing for the SS Admin/IRS, please verify the totals in the file created against your 941 reports before submitting to the IRS. Check the box to generate disk file for electronic filing and enter your User ID.

You have several form options to pick from when printing W-2s.  If you are using the options which print on blank paper, make sure you have ordered proper envelopes to match for mailing to your employees. 

Information for uploading to the state of Oklahoma:

Here are instructions from the State website on entering your w2 information: https://www.ok.gov/tax/documents/Instructions%20for%20using%20the%20Oklahoma%20Tax%20Commission%20W2%20Data%20Entry%20Program.pdf

When creating/printing your w-2s in Jobview you can have the system create your file to upload to the State of Oklahoma.  Use the options below to create the file.  Select Generate disk file, enter the file name as stated from the state web site:

W2_001_999999999_2020.txt (001 = file sequence number, 2020 = Tax Year, 999999999 = YOUR FEIN)

Click the include state information button.  Include your email for notifications.

When the system creates the files, it will create two, one for the federal and one for the state.  Be sure that you locate the state file using the format stated to upload on the state website at: https://oktap.tax.ok.gov/OkTAP/Web/_/

Follow the instructions on the state site for uploading w2/w3s.  PLEASE make sure you select the correct format file: w2_001_999999999_2020.txt 

year end 2020 part 3

Oklahoma Taxpayer Access Point (OkTAP) will be available for electronically transmitting of 2020 W2/W3 files beginning January 1, 2021. As a reminder, tax year 2020 information is due by January 31, 2021.

If you need assistance with any of these procedures, please call our office at 354-0395 to set up an appointment.

Year end procedures performed over the phone are billed at our regular hourly rate.

1099 Information- The update from A-Systems should have changed all existing vendors to the new 1099 format 1099-NEC. Please make any changes in your vendor files for vendors which require a 1099-INT or 1099-Misc form. You can change this option on the Miscellaneous tab in each vendor setup.

Entering 2021 invoices does not affect 1099s. 

Only payments with a check date of 2020 will be included on the 2020 1099s.

At the top of the 1099 screen, you select the year you wish to print 1099s for.  Use the recalculate paid this year balances button to import the paid amounts.  You can verify these amounts by printing a Posted Invoice Analysis using paid dates from 1/1/20 to 12/31/20. Print this in summary by vendor.  I suggest selecting only the vendors to which you are sending 1099s.

Be sure to tag the vendors to print.

year end 2020 part 4

Be sure to check the second tab – Form specific settings 

year end 2020 part 5

On the Form Specific settings tab you will mark the forms to print, use this area to adjust line spacing and select to print your 1096.

If the vendor prints 1099 without an amount make sure each vendor for which you wish to print a 1099, has the print 1099-NEC box checked and the box #1 is selected in vendor setup.

There is a recalculate option in the 1099s which allows you to refigure the amount paid for 2020 even if you have already posted 2021 checks.  Be sure to recalculate for 2020 after finishing your 1099s.

IF YOU HAVE ANY QUESTIONS, PLEASE DO NOT HESITATE TO CALL OUR OFFICE at 354-0395 or email us at walludp@gmail.com.

Please make the necessary changes in your email contacts: danielle@wallundata.com is no longer a valid email address.  Please use wallundp@gmail.com, thanks!

Please note, there is a separate process for closing your year end figures (Profit & Loss) to your retained earnings account.  If you need help or information about this, please call our office and we will forward you the instructions.  If you need additional help, we will be happy to schedule an appointment with you!

Happy New Year!

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