Federal W2 Problems

• Employee is exempt from FICA: If the employee is exempt from FICA but his W2 shows that FICA is being withheld then:
  
  
  1. Create a new addition Payroll Item and make it FICA exempt .
     
     
  2. Go into W2 and 1099 -> Setup W2's -> W2 Amt Boxes Screen and make sure the new Payroll Item Code shows up in Box 1. If not then add the correct code.
     
     
  3. Run create W2's again.
  
  
• You used FICAMD and the system is not splitting FICA and Medicare on the W2's.
  
  
  1. Make sure you have the Force correct Amt into FICA/Med WH checkbox enabled on the Setup W2 Screen.
     
     The system will figure FICA and Medicare figures, based totally upon the Gross, regardless of the figures actually entered through out the year.
     
     
  2. You just need to enter the FICAMD payroll item into Box 4: Social Security W/H and leave Box 6: Medicare W/H Blank. The system will split the figures for you on the W2's and W3.
     
  
  
• The employee's Locality Tax Withholding are not showing up correctly or not at all. This means either:
  
  
  1. Make sure that the person has the Locality showing up in at least the Top Local Field. If both Top Local and Bottom Local are left blank the system will not generate any locality W2's.
     
     Note: I had one person who didn't set the Top Local but kept bring up the locality on the bottom of the screen to check the Payroll Items, which were fine. But when they tried to run local W2's nothing printed.
     
     
  2. You do not have the Locality Tax Jurisdiction setup properly under Employee File Maintenance.
     
     The most common case is the Locality deduction is there (ie: STA), but they didn't setup the Locality addition (ie: GAGROS).
     
     
  3. They didn't setup the Locality Payroll Item Codes in Setup W2's option correctly.
     
     The most common case again is they didn't setup the Payroll Item Codes for the Locality (ie: GAGROS & STA) at all.
  
  
• When you run Create W2/W3 you get a message similar to the one below:
  
  Employee 2 has FICA/Med adjustment of: 11.72
  
  
  1. During W2 Setup you entered FICAMD in both Box 4: Social Security W/H and Box 6: Medicare W/H.
     
     If you have been using the FICAMD Payroll Item Code you just need to enter FICAMD into Box 4: Social Security W/H and leave Box 6: Medicare W/H Blank. The system will split the figures for you on the W2's and W3.
     
     
  2. You actually understated the FICA/Med withholding for the employee listed by the amount listed.
     
     If you had overstated the FICA/Med withholding the amount listed will be negative.
     
     In either case the system will correct the amount printed on the W2 to the correct figure. But you should go back and correct the figures in the system.
     
  
  

State Issues

• If you have employees earning wages in only (1) state and select a State Run everything should print fine.
  
  If you have employee wages in more then (1) state and select a State Run, you will need to select which state W2's you want to produce. You do this by going to the State Tab and selecting the desired state in the Top State box.
  
  Note: If you have wages in a single state the W3 will have the states abbreviation in box 15 and the Employer's State ID Number filled in. If you have (2) or more state wages then the W3 will have an "X" in box 15 and no Employer's State ID Number.
  
  
• The employee's State Tax Withholding are not showing up correctly or not at all. This means either:
  
  
  1. You do not have the State Tax Jurisdiction setup properly under Employee File Maintenance.
     
     The most common case is the State deduction is there (ie: GASTWH), but they didn't setup the State addition (ie: GAGROS).
     
     
  2. They didn't enter the State Payroll Item Codes in the Setup W2's option correctly.
     
     The most common case again is they didn't setup the Payroll Item Codes for the State (ie: GAGROS & GASTWH) at all.
     
     
  3. I had a couple of cases where the customer setup a Locality with the same Code and Description as the State. (ie: AR - Arkansas). So when there thought they were picking the State Jurisdiction they were actually picking the Locality.
  
  
• They have only (1) state setup and you have the state setup correctly in Setup W2's. But when they try to close out of Setup W2's you get an Invalid Bottom State message.
  
  The client must have had (2) or more states setup last year and they didn't delete last years Tax File. They need to either Reselect the desired Tax Year on the Setup W2's Screen or take W2 and 1099 -> Delete Tax File.