W-2/1099 Magnetic Media

W-2/1099 Magnetic Media

Version 6.3

Financial MicroSystems, Inc.

Client Ledger System documentation copyright 2012 Financial MicroSystems, Inc. All rights reserved. Absolutely no part of this documentation may be copied, photographed, reproduced, translated or reduced to any electronic medium without the express written consent of Financial MicroSystems, Inc. The software described in this documentation is furnished under a license agreement. Information contained in this documentation is subject to change without notice, and does not represent a commitment on the part of Financial MicroSystems, Inc. Financial MicroSystems, Inc. makes no warranties, either expressed or implied, regarding this computer software package, its merchantability, or its fitness for a specific purpose. The exclusion of implied warranties is not permitted by some states. The above exclusion may not apply to you. This warranty provides you with specific legal rights. There may be other rights which you have which vary from state to state. Client Ledger System is a trademark of Financial MicroSystems, Inc. Other brands and products are the trademarks of their respective holders and should be noted as such. First printing, November 1994. Second printing, November 1995. Third printing, November 1996. Fourth printing, October 1997. Fifth printing, October 1998. Sixth printing, October 1999. Seventh printing, November 2000. Eighth printing, November 2001. Ninth printing, December 2002. Tenth printing. December 2003. Eleventh printing. December 2004. Twelfth printing, December 2005. Thirteenth printing, December 2006. Fourteenth printing, November 2007. Fifteenth printing, November 2008. Sixteenth printing, November 2009. Seventeenth printing, November 2010. Eighteenth printing, November 2011. Nineteenth printing, November 2012.

Financial MicroSystems, Inc. 3000 Langford Road, Suite 2500

Norcross, GA 30071 Telephone: (770) 446-5709 Fax: (770) 446-1802

www.clientledgersystem.com

CLS ~ W-2/1099 Magnetic Media™

Table of Contents

1.1 Introduction ..................................................................................................................... 2

1.2 Installation ....................................................................................................................... 5

1.3 Processing Steps ............................................................................................................ 7

1.4 Employee W-2 Information ............................................................................................. 8

1.5 Vendor 1099/1098 Information ........................................................................................ 24

Appendixes

A: Filing Checklist ............................................................................................................ A-1

B: Error Messages ........................................................................................................... B-1


1.1 Introduction

The CLS ~ W-2/1099 Magnetic Media™ program (TM) allows you to create W-2 files that can be transmitted to the Social Security Administration via the Internet or to create 1099/1098 files that can be transmitted to the IRS via the Internet.

You will use the Magnetic Media program to create and edit an intermediate file containing employer/employee or payer/vendor information. Then use the intermediate file to create one or more magnetic media files for submission to the proper authority. W-2 files are sent to the SSA, 1099/1098 files to the IRS.

State Reporting of W-2 and 1099 Information State records will be written to disk only if the W/H State and the State Withholding I.D. are defined for each payroll series. The state records use the standard EFW2 (formerly called MMREF-1) format for W-2 forms, and the format specified in IRS Publication 1220 for 1099/1098 forms. If your state requires a different format, these files will not be submittable to the withholding state. Also keep in mind, that state filing deadlines may not be the same as the documented federal deadlines. Please check with the withholding state for more information.

Magnetic Media Filing of W-2 Information Magnetic media filing is required if you have 250 or more W-2s to report for one employer. W-2 magnetic media files are submitted electronically. The Magnetic Media program writes the submittable file to an export path, from which it can then be transmitted to the Social Security Administration using the Internet.

• A User ID is required for filing W-2 forms using the Internet. To register, call the Social

Security Administration at (800) 772-6270, or log onto the Business Services Online (BSO) Home Page of the SSA Web-site: www.socialsecurity.gov/bso and select Register.

The User ID is assigned to the individual submitting the file, not the company. A User ID is required for each person submitting W-2 files.

When requesting a User ID, you must provide your firm’s name, address and EIN. You must also furnish your name, social security number, date of birth, contact phone and e-mail address. If the information is correct and SSA records indicate that you are an employee of the firm, the User ID will be assigned immediately. The firm will be notified about the User ID assignment.

2 - Introduction

http://www.socialsecurity.gov/bso


To access the SSA Internet options, you will select a password. If you register online, you will be asked to create a password during registration. If you register by calling the 1-800 number, you will need to access the SSA Web-site to select a password. To do so, log onto the BSO Home Page and select Complete Phone Registration. Your User ID will remain valid indefinitely, as long as the password is changed at least once a year. If you provide an email address during registration, SSA will send a reminder when your password is approaching expiration. After you have registered, select Request Access to BSO Services from the BSO Home Page. Select the wage reporting services that you will perform online. Indicate that you will report wages to SSA and you will be able to do so immediately. To view the status of submitted files or get information on name and SSN errors, an activation code will be mailed to your employer before access to these services is allowed. When you receive your activation code from SSA, select Activate Access to BSO Services from the BSO Home Page.

Filing W-2 Information using the Internet The deadline for filing W-2s electronically is April 1, 2013. Files will be accepted beginning December 10, 2012. The Social Security Administration accepts electronically submitted test files year-round. Instructions for using the Internet to file W-2 forms can be obtained from the SSA Web-site: www.ssa.gov/employer/bsohbnew.htm. Notes:

• When you transmit W-2 information electronically, you will be given the SSA name for the file at the end of the transmission. Write it down – you will need it later.

• If you transmit W-2 files to the SSA, you will not receive notification of bad files by mail. One or two working days after the original transmission, use the wage reporting software to check the status of the file(s) you submitted, using the name the SSA has given to your file. This will be your only notification if files need to be replaced.

Magnetic Media Filing of 1099/1098 Information Magnetic media filing is required if you are submitting 250 or more 1099/1098 returns of a single type for a client. 1099/1098 magnetic media files are submitted electronically. The Magnetic Media program writes the submittable file to an export path, from which it can then be transmitted to the IRS using the Internet. An application for filing electronically (form 4419) can be submitted either online at http://fire.irs.gov/ , faxed to (877) 477-0572 or mailed to: Internal Revenue Service Enterprise Computing Center – Martinsburg Information Reporting Program 230 Murall Drive Kearneysville, WV 25430

Introduction - 3

http://www.ssa.gov/employer/bsohbnew.htm

http://fire.irs.gov/


Filing 1099/1098 Information using the Internet The deadline for filing 1099/1098s electronically is March 31, 2013. Files will be accepted beginning January 3, 2013. The deadline for 1099 test files submitted electronically is February 15, 2013. You may use the Internet to file 1099/1098 forms at http://fire.irs.gov/. For additional information, contact the IRS toll-free at (866) 455-7438. Notes:

• When you transmit 1099/1098 information, you will be given the IRS name for the file at the end of the transmission. Write it down – you will need it later.

• If you transmit 1099 files to the IRS, you will not receive notification of bad files by mail. One or two working days after the original transmission you must use the wage reporting software to check the status of the file(s) you submitted, using the name the IRS has given to your file. This will be your only notification if files need to be replaced.

Requesting an Extension of Time or a Waiver from Filing W-2 forms or 1099/1098 forms. Send requests for extension of time (form 8809) or waiver from filing (form 8508) to:

Internal Revenue Service Enterprise Computing Center - Martinsburg Information Reporting Program Attn: Extension of Time Coordinator 240 Murall Drive, Mail Stop 4360 Kearneysville, WV 25430 A request for an extension of time may also be created by the CLS ~ W-2/1099 Magnetic Media™ program and transmitted electronically to the IRS.

4 - Introduction

http://fire.irs.gov/


1.2 Installation Note: If you used an earlier version of CLS to create submittable W-2 or 1099 files, ALL

EXISTING INTERMEDIATE FILES (e.g., 2010) must be deleted from your computer's hard drive! Please refer to the After Installation section on the next page for instructions.

Installing CLS ~ W-2/1099 Magnetic Media™ The following steps should be followed only if you are installing the CLS ~ W-2/1099 Magnetic Media™ program separately from CLS: 1. Prior to installing the CLS ~ W-2/1099 Magnetic Media™ program, determine the directory

where it should be installed:

a. Start CLS and select any ledger. At the CLS Program Selection Menu, enter DS. The MS-DOS prompt provides the drive letter and path where the Magnetic Media program is to be installed.

b. Type Exit and press Enter to return to CLS, and then press F10 to leave CLS.

c. If you are installing the network version of CLS, make sure that no other workstation is

currently using CLS. 2. Insert the CLS CD-ROM in your CD drive, and wait 20-30 seconds. The installation process

should start automatically. If it does not start automatically, click on Start, then Run and enter D:\setup.exe (where D represents your CD-ROM drive).

3. Enter your company name, five-digit customer number, and the product key that appears

on your invoice. Follow the on-screen instructions to select the appropriate CLS product, then enter the drive and path where it is to be installed.

After Installation Novell Netware Installations If you are installing the network version of the Magnetic Media program on a Novell server, remember to exit to the MS-DOS or Command prompt, select the CLS program path, and flag all the files in the CLS program path as shareable-read-write:

Installation - 5


In a Novell Netware version 3.xx environment: f:\newcls> flag *.* srw

In a Novell Netware™ version 4.xx, 5.xx or 6.xx environment: f:\newcls > flag *.* shrw

Adding the CLS ~ W-2/1099 Magnetic Media™ Program to the CLS Menu If the CLS ~ W-2/1099 Magnetic Media™ program is being installed as a new package, you must add this program to the CLS menu structure before you can use it. To do so, follow these steps:

1. Start CLS, and log onto the JCC sample ledger (or any existing ledger).

2. Select the System Initialization (SI) program, and choose Menu Selection 2, Password Maintenance.

3. Press the down-arrow until you see the TM Payroll Tax - Magnetic Media prompt, which appears in the list of Report Processing Programs. If you see a value of 0 next to the prompt, change it to 3. Press A at the Accept or Escape? (A,Esc) prompt to accept the change.

The Magnetic Media program will now appear as a selection on the Report Processing sub-menu.

Deleting Existing W-2 and 1099/1098 Intermediate Files If an earlier version of CLS was used to create magnetic media files, please follow these instructions to delete existing intermediate files:

• From the Payroll Tax - Magnetic Media (TM) menu, choose the appropriate Menu Selection (Employee W-2 Information or Vendor 1099/1098 Information).

• Select Intermediate File Management, then choose the Delete Intermediate File routine.

• Delete each intermediate file created with an earlier version of CLS.

• You may press F1 to list the existing intermediate files. Note: You may wish to back up the existing intermediate files using program BU, Menu

Selection 5, before deleting them.

6 - Installation


1.3 Processing Steps

1. Enter/Revise Transmitter Information Enter the name and address of the person or organization submitting the magnetic media files.

2. Intermediate File Management • Create/Update Intermediate File

• Add Ledgers to Intermediate File

• Edit Information in Intermediate File (add, revise and delete payroll series and employees/vendors, and revise employee/vendor balances)

• List Information in Intermediate Files (ledgers on file, employer/payer information and employee/vendor information)

3. Write Intermediate File to Disk Write the employee/vendor information to an export path on the hard disk for transmission to the SSA or IRS.

4. List Employers/Employees (or Payers/Vendors) on Disk

5. Print Laser Diskette Labels Print diskette labels for your backup of the W-2 or 1099 file.

Processing Steps - 7


1.4 Employee W-2 Information

Use this routine to enter information about the transmitter of the magnetic media files and perform intermediate file maintenance such as creating an intermediate file, adding and/or deleting ledgers, and editing payroll information in the intermediate file. When you are satisfied with the information in the intermediate file, you are ready to create the submittable magnetic media files. You may also list employers and employees in the magnetic media file and laser-print backup disk labels. Except for the transmitter information, all work performed within the TM program applies to the current intermediate file. You must use Menu Selection S to select a different intermediate file. Note: If the intermediate file becomes damaged, use program VF, Menu Selection 4, to recover

it.

Downloading Soft Tax Fonts CLS uses soft tax fonts to create various form outlines on plain paper using an HP-compatible laser printer. Depending on your response to the Download Soft Tax Fonts (0-2) prompt in SI, Menu Selection 1 (3,2), you may download the fonts once per session or before printing each set of forms. The TM program also contains a menu selection that lets you download fonts. This routine should only be run if printing from another application has interfered with the downloaded fonts and they are no longer available to your printer.

8 - Employee W-2 Information


Enter/Revise Transmitter Information (W-2) From the Employee W-2 Information menu, choose 1, Enter/Revise Transmitter Information, to enter the name and address of the person or organization submitting the W-2 magnetic media files. Information entered here will apply to all W-2 magnetic media files prepared using CLS.

Revise W-2 Transmitter Name and Address (1) Annual Filing Instructions should be sent to: Company Name Enter the name of the organization transmitting the W-2 magnetic media file(s). Foreign Address? (Y,N) Press Y if the address below is a foreign address (e.g., outside of the U.S., U.S. territory, or possession). The appropriate prompts will be displayed. Address Line 1 Address Line 2 City, State, Zip Enter the address of the organization transmitting the W-2 magnetic media file(s). Notification of Problems should be sent to: Submitter Name Enter the name of the organization that should receive notices of any problems with the submitted file(s). Foreign Address? (Y,N) Press Y if the address below is a foreign address (e.g., outside of the U.S., U.S. territory, or possession). The appropriate prompts will be displayed. Address Line 1 Address Line 2 City, State, Zip Enter the address of the organization that should receive notices of any problems with the submitted file(s).

Revise W-2 Transmitter Setup Information (2) Submitter's EIN Enter the submitter's employer identification (EIN) number. Default User ID Enter your User ID assigned by the SSA. Problem Notification (1-2) Indicate how you would like to be notified of any problems with submitted file(s). Press F1 to select from a list of choices. Preparer Type (A,L,S,P,O) Enter your preparer type (A for accounting firms). Press F1 to select from a list of choices. Contact Name Enter the name of the person submitting the file(s), not the company name.

Employee W-2 Information - 9


Telephone: Work Telephone: Fax E-mail Address Enter your telephone number, fax number, and (optionally) your e-mail address.



Intermediate File Management (W-2) From the Employee W-2 Information menu, choose 2, Intermediate File Management, to create the intermediate file, which will contain the employer and employee payroll information. Also use it to add ledgers to and delete ledgers from the intermediate file, edit or list employer and employee information in the file, or delete the intermediate file. Remember, except for the transmitter information, all work performed within the TM program applies to the current intermediate file. Use Menu Selection S to select a different intermediate file. Note: If you are using CLS in a network environment, we recommend that each user create a

separate intermediate file.

Create/Update Intermediate File (1) Use this routine to create or update the intermediate file, which will contain the employer and employee payroll information. File Number (1-999) Enter a file number for the new W-2 intermediate file. Press F1 to select from a pop-up list of existing intermediate files. File Description Enter a description for the intermediate file. This description is used by CLS only to provide a reference for the operator. Payment Year Enter the payment year. The payroll quarter-end date for all ledgers in the intermediate file must be December 31 of the payment year. Data Reported (1-2) Select the type of W-2 data to be reported. Press 1 to select original submission, or press 2 for a resubmittal. Press F1 to select the data type from a pop-up list. Notes:

• If you are resubmitting a disk that was returned because it could not be processed, select Resubmittal.

• W-2c forms should be filed on paper. There is no maximum number of corrections that the transmitter may file on paper.

Employee’s User ID Enter the User ID issued to you by the SSA. Replacement WFID If this is a resubmittal, enter the wage file identifier for this file issued by the SSA. Accept or Escape? (A,Esc) Press A to accept the intermediate file setup. Press Esc to return to the File Number (1-999) prompt without saving the setup.



Intermediate file has been created. Intermediate file has been updated. CLS creates or updates the selected intermediate file and returns to the File Number (1-999) prompt. You may create another intermediate file, or press Esc to return to the W-2 Intermediate File Management menu.

Add Ledger to Intermediate File (2) Use this routine to import payroll information into the intermediate file; multiple ledgers can be imported into an intermediate file. You may import all employee series in a ledger, or selected series - one at a time. Data Drive or Path Enter the data drive or path where the ledger to be added to the intermediate file is located. The default is the current data path. Ledger I.D. Enter the I.D. of the ledger to be added to the intermediate file. Press F1 to select from a pop-up list of ledgers in the designated path. File Generation Enter the ledger generation to be added to the intermediate file. CLS automatically defaults to the current generation. Press F1 to select the generation from a pop-up list. Ledger Name Period Ending CLS automatically displays the name and period-end date for the selected ledger. Payroll Series (ENTER for all) Enter a payroll series, or press Enter to import all payroll series for this ledger into the intermediate file. Press F1 to select the series from a pop-up list. Establishment Number Enter the establishment number. This number is used to identify military wages from certain employers. It may also be used as a reference for the payroll series. Other EIN Used This Year If another Employer Identification Number was used this year, enter the number here. Continue? (Y,N) Press Y to continue. Updating Intermediate File.... Complete CLS adds the selected series to the intermediate file and returns to the Data Drive or Path prompt. You may add another ledger or series to the intermediate file, or press Esc to return to the W-2 Intermediate File Management menu.

Delete Ledger from Intermediate File (3) Use this routine to delete an entire ledger from the intermediate file.



Ledger I.D. Enter the I.D. of the ledger to be deleted from the intermediate file. Press F1 to select from a pop-up list of ledgers in the intermediate file. File Generation Ledger Name Period Ending CLS automatically displays the file generation, name and period-end date for the selected ledger. Would you like to delete ledger from intermediate file? (Y,N) Press Y to delete the selected ledger from the intermediate file. Press N to return to the Ledger I.D. prompt without deleting the ledger from the intermediate file. Deleting 'LAF.000'.... Ledger 'LAF.000' has been deleted from intermediate file. CLS deletes the selected ledger from the intermediate file and returns to the Ledger I.D. prompt. You may delete another ledger, or press Esc to return to the W-2 Intermediate File Management menu.

Edit Information in Intermediate File (4) Use this routine to edit employer or employee information in the intermediate file. Payroll series and employees may be revised, added to, or deleted from the intermediate file. You may also edit employee balances in the intermediate file. Changes made here affect only the intermediate file and the magnetic media file, not the actual information and figures used within CLS. To make permanent payroll changes, edit the information in programs EF and PF, and then add the ledger to the intermediate file again.

Add/Revise/Delete a Payroll Series (1) Use this routine to add a payroll series to, or delete a series from the intermediate file. You may also revise a payroll series. Ledger I.D. Enter the I.D. of the ledger that contains the payroll series to be edited. Press F1 to select from a pop-up list of ledgers in the intermediate file. File Generation Ledger Name Period Ending CLS automatically displays the file generation, name and period-end date for the selected ledger. Continue? (Y,N) Press Y to continue, and the following screen appears. For an existing payroll series, CLS displays the information entered in program PF, Menu Selection 1, as the default. You may revise a payroll series in the intermediate file without affecting the setup in PF. Payroll Series Enter the number of the payroll series you want to add, revise or delete. Press F1 to select the series from a pop-up list.



Employer Name Enter the correct employer name. Foreign Address? (Y,N) Press Y if the address below is a foreign address (e.g., outside of the U.S., U.S. territory, or possession). The appropriate prompts will be displayed. Address Line 1 Address Line 2 City, State, Zip Enter the correct employer address. Employment Type (A,F,H,M,Q,R,X) Enter the correct employment type for employees in this series. Press F1 to select the employee type from a pop-up list.

Employee Types A Agriculture Q Medicare Qual Govt Empl F Annual 944 Employer R Regular (All Others) H Household X Railroad M Military

Federal I.D. No. Enter the employer identification number. W/H State #1, I.D. Enter the standard two-character postal abbreviation of the withholding state for this series and the employer's state withholding I.D. for this series. W/H State #2, I.D. If necessary, you may designate a second withholding state and enter the second state withholding I.D. Locality #1, #2 If local taxes will be reported, enter the default locality name(s) or code(s) here. Also indicate the appropriate tax type. Press F1 for a pop-up list of local tax types. Last Year to File If this is the last year for which W-2s will be filed for this employer, enter Y here. Establishment No. Enter the establishment number. This number is used to identify military wages from certain employers. It may also be used as a reference for the payroll series. Other EIN Used If another Employer Identification Number was used this year, enter the number. Third Party Sick Pay If any employees in this payroll series have third party sick pay amounts to be reported, enter Y here. Third Party Tax If federal income tax was withheld by a third party, enter the total amount for all employees in this



series. Note: State records will be written to diskette only if the W/H State and Withholding State I.D.

are entered for each payroll series. The state records use the standard EFW2 (formerly MMREF-1) format. If your state requires a different format, these files will not be submittable to the withholding state.

Accept, Delete or Escape? (A,D,Esc) Press A to accept the payroll series, press D to delete the selected series, or press Esc to return to the Payroll Series prompt. Series '100' has been updated. Series '1000' has been added. Series '2000' has been deleted. CLS updates, adds or deletes the selected series and returns to the Payroll Series prompt. You may select another payroll series, or continue to press Esc to return to the Edit Information in W-2 Intermediate File menu.

Add/Revise/Delete an Employee (2) Use this routine to add an employee to, or delete an employee from the intermediate file. You may also revise an employee's information on file. Ledger I.D. Enter the I.D. of the ledger that contains the employee to be edited. Press F1 to select from a pop-up list of ledgers in the intermediate file. File Generation Ledger Name Period Ending CLS automatically displays the file generation, name and period-end date for the selected ledger. Continue? (Y,N) Press Y to continue, and the following screen appears. For an existing employee, CLS displays the information entered in program EF, Menu Selection 1, as the default. You may revise employee information in the intermediate file without affecting the employee setup in program EF. Employee Enter the number of the employee you want to add, revise or delete. Press F1 to select the employee from a pop-up list. Employee Name Enter the employee name. Foreign Address? (Y,N) Press Y if the address below is a foreign address (e.g., outside of the U.S., U.S. territory, or possession). The appropriate prompts will be displayed. Address Line 1 Address Line 2



City, State, Zip Enter the employee address. Soc Sec No. Enter the employee’s social security number. Locality #1, #2 If local taxes will be reported, enter the employee locality name(s) or code(s) here. Also indicate the appropriate tax type. Press F1 for a pop-up list of local tax types. Statutory Employee Press Y if the employee’s wages are subject to Social Security and Medicare withholding, but not to Federal income tax withholding. Retirement Plan Press Y if the employee is covered by a retirement plan. Third Party Sick Pay If this employee has third party sick pay amounts to be reported, enter Y here. Accept, Delete or Escape? (A,D,Esc) Press A to save the employee information, press D to delete the employee, or press Esc to return to the Employee prompt. Employee '115' has been updated. Employee '110' has been added. Employee '150' has been deleted. CLS updates, adds or deletes the selected employee and returns to the Employee prompt. You may select another employee, or continue to press Esc to return to the Edit Information in W-2 Intermediate File menu. Revise Employee Balances – W-2 Wages and Taxes (3) Use this routine to revise W-2 wages and taxes in the intermediate file. Ledger I.D. Enter the I.D. of the ledger with the employee balances to be edited. Press F1 to select from a pop-up list of ledgers in the intermediate file. File Generation Ledger Name Period Ending CLS automatically displays the file generation, name and period-end date for the selected ledger. Continue? (Y,N) Press Y to continue. Employee Enter the number of the employee with balances to be revised. Press F1 to select from a pop-up list of employees for this ledger. CLS displays balances for the selected employee. Use the arrow keys (↑,↓) to scroll through the balances and make changes where necessary. When you are satisfied with the employee



balances, press Esc to move directly to the Accept or Escape? (A,Esc) prompt. Accept or Escape? (A,Esc) Press A to accept the employee balances. Press Esc to return to the Employee prompt without saving any changes. Employee '115' has been updated. CLS updates the balances for the selected employee and returns to the Employee prompt. You may select another employee, or continue to press Esc to return to the Edit Information in W-2 Intermediate File menu.

Revise Employee Balances – W-2 Box 12 Amounts (4) Use this routine to revise W-2 box 12 amounts in the intermediate file. Ledger I.D. Enter the I.D. of the ledger with the employee balances to be edited. Press F1 to select from a pop-up list of ledgers in the intermediate file. File Generation Ledger Name Period Ending CLS automatically displays the file generation, name and period-end date for the selected ledger. Continue? (Y,N) Press Y to continue. Employee Enter the number of the employee with balances to be revised. Press F1 to select from a pop-up list of employees for this ledger. CLS displays balances for the selected employee. Use the arrow keys (↑,↓) to scroll through the balances and make changes where necessary. When you are satisfied with the employee balances, press Esc to move directly to the Accept or Escape? (A,Esc) prompt. Accept or Escape? (A,Esc) Press A to accept the employee balances. Press Esc to return to the Employee prompt without saving any changes. Employee '115' has been updated. CLS updates the balances for the selected employee and returns to the Employee prompt. You may select another employee, or continue to press Esc to return to the Edit Information in W-2 Intermediate File menu.



List Information in Intermediate Files (5) Use this routine to display or print information in intermediate files. You may print a list of the ledgers being reported. You may list employer information that shows totals by series, or you may print an employee information report that shows balances for each employee. You may list employers and employees with missing information that should be corrected.

List Ledgers on File (1) Use this routine to list ledgers in the intermediate files. Respond to the following prompts: File Number (ENTER for all) Select the intermediate file for which you want to print a report, or press Enter to include all intermediate files in the report. Press F1 to select the intermediate file from a pop-up list. Continue? (Y,N) Press Y to continue. (D)isplay, or number of copies to print (D,1-9) Press D to display the report, or enter the number of copies to print. Press 1 to print a single copy. Current printer: [HP Laser: Portrait ]? (Y,N) Press Enter if your printer selection is correct; if not, press N to change your selection. Press F1 to select from a pop-up list of available printers. Press Enter again at the Ready? (Y,N) prompt to begin printing. When the report is complete, CLS returns to the File Number (ENTER for all) prompt. You may print another report, or press Esc to return to the List Information in W-2 Intermediate Files menu. List Employer Information (2) List Employee Information (3) Missing ID Worksheet (4) Use these routines to list employer information (totals by series), employee information (balances for each employee) or employers and employees with missing information which should be corrected. Include State Information (Y,N) Press Y to include state information on this report; employers/employees will be consolidated by state identification number. Press N to suppress the state information; employers/ employees will be consolidated by FEI number. File Number (ENTER for all) Select the intermediate file for which you want to print a report, or press Enter to include all intermediate files in the report. Press F1 to select the intermediate file from a pop-up list. Ledger I.D. If you entered a file number above, you may enter a specific ledger I.D. or press Enter for all ledgers. Continue? (Y,N) Press Y to continue.



(D)isplay, or number of copies to print (D,1-9) Press D to display the report, or enter the number of copies to print. Press 1 to print a single copy. Current printer: [HP Laser: Portrait ]? (Y,N) Press Enter if your printer selection is correct; if not, press N to change your selection. Press F1 to select from a pop-up list of available printers. Press Enter again at the Ready? (Y,N) prompt to begin printing. When the report is complete, CLS returns to the Include State Information (Y,N) prompt. You may print another report, or press Esc to return to the List Information in W-2 Intermediate Files menu.

Delete Intermediate File (6) Use this routine to delete a W-2 intermediate file. File Number (1-999) Enter the number of the W-2 intermediate file to be deleted. Press F1 to select the file from a pop-up list. File Description Payment Year Data Reported Employee’s User ID CLS automatically displays information about the selected intermediate file. Would you like to delete this file? (Y,N) Press Y to delete the selected intermediate file. Intermediate file '1' has been deleted. CLS deletes the selected W-2 intermediate file and returns to the File Number (1-999) prompt. You may delete another intermediate file, or press Esc to return to the W-2 Intermediate File Management menu.

Write Intermediate File to Disk (W-2) When you are satisfied with the employer and employee information in the intermediate file, choose 3, Write Intermediate File to Disk, from the Employee W-2 Information menu to create the magnetic media file(s). You may also use this routine to file an extension request.

Request Extension of Time (1) You may file a request for an extension of time via the Internet, in lieu of completing form 8508. Extensions must be filed using electronic transfer if there are more than 10 employers involved. All employee series for which you would like an extension must be in the file, including the employer name and address and employer I.D. Note: You will need a Transmitter Control Code (TCC) issued by the IRS before you can file for

an extension of time to file W-2 forms using magnetic media or electronic transfer, even though it is not needed in order to file the W-2s themselves. The TCC must be entered using program TM, Menu Selection 2 (1).



Magnetic Media Export File The export file name and path will be displayed. Create Backup Copy on a Floppy? You may back up the export file to a floppy disk. Backup Floppy Drive If you chose to back up to a floppy drive, enter the drive letter (A or B) here. Continue? (Y,N) Press Y to create the magnetic media file on the selected drive. CLS will warn you if the disk in the selected drive is not blank or you are about to overwrite an existing file. Note: You may use program BU, Menu Selection 6, to display the files on the backup diskette. Writing 'JCC.013'...... Complete CLS creates the request for an extension of time on the designated drive and returns to the Write W-2 Intermediate File to Disk menu. Use program TM, Menu Selection 1 (4, 1), to verify that the file contains all employers for whom an extension is being requested.

Submit Employee Information (2) Use this routine to create the magnetic media file. If you are making a backup on diskettes, make sure you label them as they are created. If you do not label the W-2 diskettes properly, there will be no way to determine the correct diskette sequence later. Respond to the following prompts: Create Federal or State File (F,S) Enter F for submitting a Federal W-2 File to Social Security Administration. Enter S for submitting a State W-2 File to a state agency. If you’re submitting a Federal File, employees will be consolidated by FEI number. Otherwise, employees will be consolidated by state identification number. Withholding State If you’re submitting a State File, enter the two-character withholding state. Include Local Information (Y,N) If you’re submitting a State File, press Y to include local wage and withholding information. Press N to suppress local information. Data Reported (1-2) Enter 1 if the data being reported is the original submission. Enter 2 if this is a resubmission. Replacement WFID If this is a resubmission, enter the wage file identifier for this file issued by the SSA. Employee’s User ID Enter the User ID issued to you by the SSA. Magnetic Media Export Path The export path name will be displayed.



Magnetic Media Export File The default export file name will be displayed; it can be changed if necessary. Create Backup Copy on a Floppy? You may back up the export file to a floppy disk. Backup Floppy Drive If you chose to back up to a floppy drive, enter the drive letter (A or B) here. Continue? (Y,N) Press Y to create the magnetic media file on the selected drive. CLS will warn you if the disk in the selected backup drive is not blank or you are about to overwrite an existing file. Writing 'JCC.013'...... Complete CLS creates the file and returns to the Write W-2 Intermediate File to Disk menu.

List Employees/Employers on Disk (W-2) From the Employee W-2 Information menu, choose 4, List Employers/Employees on Disk, to list employers and employees in the magnetic media file. If you have requested an extension of time, you may also use this routine to verify the contents of the extension request. Detail or Summary Listing (D,S) Press Enter to accept the default D response and print a detail report of the information in the file, or press S to print a summary report. Read file from (1) Floppy or (2) Hard Drive Choose 1 if the magnetic media file is on a floppy drive, or 2 if it is on the hard disk. Magnetic Media Floppy Drive If you selected 1 above, enter the floppy drive which contains the disk to be examined. Magnetic Media Export Path If you are listing employee information, and selected 2 above, the export file path will be displayed. Magnetic Media Export File If you are listing employee information, and selected 2 above, enter the export file name here; press F1 for a pop-up list of the files in the selected directory. If you are listing extension of time information, the export file name and path will be displayed. Continue? (Y,N) Press Y to continue. (D)isplay, or number of copies to print (D, 1-9) Press D to display employers and employees in the file, or enter the number of copies to print. Press 1 to print a single copy. Current printer: [HP Laser: Portrait ]? (Y,N) Press Enter if your printer selection is correct; if not, press N to change your selection. Press F1 to select from a pop-up list of available printers. Press Enter again at the Ready? (Y,N) prompt to



begin printing. When the report is complete, CLS returns to the Detail or Summary Listing (D,S) prompt. You may list the records on another diskette, or press Esc to return to the Employee W-2 Information menu.

Print Laser Diskette Labels (W-2) From the Employee W-2 Information menu, choose 5, Print Laser Diskette Labels, to print labels for the backup diskettes. Disk labels may only be printed with a laser printer. CLS supports Avery laser labels for 3½″ diskettes (product no. 5196). Label Size (1,2) Select the disk label size. Press 1 to print labels for 3½″ disks. Number of Pages Enter the number of pages of disk labels to be printed. Continue? (Y,N) Press Y to continue. Current printer: [HP Laser: Portrait ]? (Y,N) Press Enter if your printer selection is correct; if not, press N to change your selection. Press F1 to select from a pop-up list of available printers. Press Enter again at the Ready? (Y,N) prompt to begin printing. CLS prints the diskette labels and returns to the Label Size (1,2) prompt. You may print additional labels, or continue to press Esc to return to the Employee W-2 Information menu.



1.5 Vendor 1099/1098 Information

You may use this routine to enter information about the transmitter of the magnetic media files and perform intermediate file maintenance such as creating an intermediate file, adding ledgers to and deleting ledgers from it, editing payer and vendor information in the intermediate file, and deleting it. When you are satisfied with the information in the intermediate file, you are ready to create the submittable magnetic media file. You may also list the payers and vendors in the magnetic media file and laser-print backup disk labels. Except for the transmitter information, all work performed within the TM program only applies to the current intermediate file. You must use Menu Selection S to select a different intermediate file. Note: If the intermediate file becomes damaged, use program VF, Menu Selection 4, to recover

it.

Downloading Soft Tax Fonts CLS uses tax fonts to create various form outlines on plain paper using an HP-compatible laser printer. Depending on your response to the Download Soft Tax Fonts (0-2) prompt in SI, Menu Selection 1 (3,2), you may download the fonts once per session or before printing each set of forms. The TM program also contains a menu selection which lets you download fonts. This routine should only be run if printing from another application has interfered with the downloaded fonts and they are no longer available to your printer.

Vendor 1099/1098 Information - 23


Enter/Revise Transmitter Information (1099/1098) From the Vendor 1099/1098 Information menu, choose 1, Enter/Revise Transmitter Information, to enter the name and address of the person or organization submitting the 1099/1098 magnetic media files. The transmitter information entered here will apply to all 1099/1098 magnetic media files prepared using CLS. Transmitter Control Code (TCC) Enter the transmitter's five-character alphanumeric control code assigned by the IRS. This code must be entered. To apply for the Transmitter Control Code, file IRS Form 4419 – Application for Filing Information Returns Magnetically/Electronically. Operating System/Hardware Enter the operating system you are using. The hardware name is optional. Transmitter's Mailing Address: Name 1 Name 2 Address City State, Zip Code Enter the name and address of the organization transmitting the 1099/1098 magnetic media file(s). Foreign Address? (Y,N) Press Y if the above address is a foreign address (e.g., outside of the U.S., U.S. territory, or possession). Federal I.D. Enter the transmitter’s federal identification number. Contact Name Enter a contact name for the transmitter of the magnetic media files. E-mail Address Optionally enter an e-mail address for the contact person. Telephone Enter a telephone number for the contact person. Accept or Escape? (A,Esc) Press A to accept the transmitter information. Press Esc to return to the Vendor 1099/1098 Information menu without saving the changes. Transmitter information has been updated. CLS updates the transmitter information and returns to the Vendor 1099/1098 Information menu.

24 - Vendor 1099/1098 Information


Intermediate File Management (1099/1098) From the Vendor 1099/1098 Information menu, choose 2, Intermediate File Management, to create the intermediate file, which will contain the vendor series and vendor information. Also use it to add ledgers to and delete ledgers from the intermediate file, edit or list payer and vendor information in the file, or delete it. Remember, except for the transmitter information, all work performed within the TM program applies to the current intermediate file. Use Menu Selection S to select a different intermediate file. Note: If you are using CLS in a network environment, we recommend that each user create a

separate intermediate file. Floppy disk(s) will be required only when all of the information in the intermediate file is correct and ready to submit.

Create/Update Intermediate File (1) Use this routine to create or update the intermediate file, which will contain payer and vendor information. File Number (1-999) Enter a file number for the new 1099/1098 intermediate file. Press F1 to select from a pop-up list of existing intermediate files. File Description Enter a description for the intermediate file. This description is used only by CLS to provide a reference for the operator. Payment Year Enter the payment year. The payroll quarter-end date for all ledgers in the intermediate file must be December 31 of the payment year. Data Reported (1-4) Select the type of data to be reported in the magnetic media file. Press 1 to select original submission. Press 2 if you are sending a replacement file or 3 for a correction file. Press 4 if you are sending a test file. Press F1 to select the data type from a pop-up list. Notes:

• Select Replacement if the IRS had problems processing the original file.

• Select Correction if the original file was processed, but contained erroneous information. Unless 250 corrections are required for a single 1099 type for a single employer, the corrections may be filed using paper forms. If you need to file a correction using the TM program, please contact our technical support staff for instructions.

• Test files may be submitted electronically until February 15, 2011. Test files must contain actual payer address information. Vendor information in test files may be fictitious; you should include at least 11 vendors for each payer in the test file.



Accept or Escape? (A,Esc) Press A to accept the intermediate file setup. Press Esc to return to the File Number (1-999) prompt without saving the setup. Intermediate file has been created. Intermediate file has been updated. CLS creates or updates the selected intermediate file and returns to the File Number (1-999) prompt. You may create another intermediate file, or press Esc to return to the 1099/1098 Intermediate File Management menu.

Add Ledger to Intermediate File (2) Use this routine to import vendor information into the intermediate file. Multiple ledgers can be imported. You may import all vendor series in a ledger, individual series or a selected series type. 1099/1098 Type Select the vendor type to be imported. Press F1 to select the 1099/1098 type from a pop-up list. You may also press the asterisk (*) key to import all vendor types. Data Drive or Path Enter the data drive or path where the ledger to be added to the intermediate file is located. The default is the current data path. Ledger I.D. Enter the I.D. of the ledger to be added to the intermediate file. Press F1 to select from a pop-up list of ledgers in the designated path. File Generation Enter the file generation to be added to the intermediate file. CLS automatically defaults to the current generation. Press F1 to select from a pop-up list of existing file generations. Ledger Name Period Ending CLS automatically displays the name and period-end date for the selected ledger. Vendor Series (ENTER for all) Enter a vendor series, or press Enter to import all vendor series for this ledger into the intermediate file. Press F1 to select the series from a pop-up list. Minimum Payment Enter the amount below which 1099s/1098s should not be prepared. Continue? (Y,N) Press Y to continue. Updating Intermediate File.... Complete CLS adds the selected series to the intermediate file and returns to the 1099/1098 Type prompt. You may add another ledger or series to the intermediate file, or press Esc to return to the 1099/1098 Intermediate File Management menu.



Delete Ledger from Intermediate File (3) Use this routine to delete an entire ledger from the intermediate file. Ledger I.D. Enter the I.D. of the ledger to be deleted from the intermediate file. Press F1 to select from a pop-up list of ledgers in the intermediate file. File Generation Ledger Name Period Ending CLS automatically displays the file generation, name and period-end date for the selected ledger. Would you like to delete ledger from intermediate file? (Y,N) Press Y to delete the selected ledger from the intermediate file. Press N to return to the Ledger I.D. prompt without deleting the ledger from the intermediate file. Deleting 'LAF.000'.... Ledger 'LAF.000' has been deleted from intermediate file. CLS deletes the selected ledger from the intermediate file and returns to the Ledger I.D. prompt. You may delete another ledger from the intermediate file, or press Esc to return to the Vendor 1099/1098 Intermediate File Management menu.

Edit Information in Intermediate File (4) Use this routine to edit payer or vendor information in the intermediate file. Vendor series and vendors may be revised, added to, or deleted from the intermediate file. You may also edit vendor balances in the intermediate file. Changes made here affect only the intermediate file and the magnetic media file, not the actual information and figures used within CLS. To make permanent changes, edit the information in programs EF and PF, and then add the ledger to the intermediate file again.

Add/Revise/Delete a Vendor Series (1) Use this routine to revise a vendor series, or to add a series to or delete a series from the intermediate file. Ledger I.D. Enter the I.D. of the ledger which contains the vendor series to be edited. Press F1 to select from a pop-up list of ledgers in the intermediate file. File Generation Ledger Name Period Ending CLS automatically displays the file generation, name and period-end date for the selected ledger. Continue? (Y,N) Press Y to continue. Prompts will vary depending on the series type. For an existing vendor series, CLS displays the information entered in program PF, Menu Selection 1, as the default. You may revise a vendor series in the intermediate file without affecting the setup in PF.



Vendor Series Enter the number of the vendor series you want to add, revise or delete. Press F1 to select the series from a pop-up list. Series Type Select the vendor series type. Press F1 to select the series type from a pop-up list. Name Line 1 Name Line 2 Address City, State Zip Code Enter the correct payer name and address. Line 2 Type (1,2) You may use Name Line 2 as the transfer agent or as a continuation of Name Line 1. Press F1 to select the line 2 type from a pop-up list. Telephone Enter the payer’s telephone number. Taxpayer ID (TIN) Enter the taxpayer's identification number. The TIN may be an Employer Identification Number (EIN) or Social Security Number (SSN). Name Convention (F,L) Enter the correct payee name convention. Press F if payees have been entered in CLS with the first name first, or press L if they have been entered with the last name first. Press F1 to select the name convention from a pop-up list. Name Control This four-character name control must be obtained from the label on the 1099 package sent to the payer. If it is not available, it should be left blank. Foreign Entity Press Y if the selected vendor series is a foreign company and income is paid by the company to a U.S. resident. Last Year to File Press Y if this is the last year returns will be filed under this payer name and taxpayer identification number (TIN). Combined Fed/State File Press Y if this vendor's file is to be forwarded to a state agency by the IRS. Also press Y if this is a test file for CFSF approval. Not available for 1099-A, 1099-B, 1099-C, 1099-S or 1098 forms. Note: Check to make sure your state participates in a combined federal/state filing program.

Some states require that you give prior notification and receive approval. You must first send a test file (set the intermediate file data reported type to 4) to the IRS (by February 15, 2010 for files submitted electronically). You must receive approval from the IRS before sending the actual vendor information.



W/H State #1 (Optional) If this file is a combined federal/state return, or you are planning to mail the file directly to the state, the withholding state must be entered here. Accept, Delete or Escape? (A,D,Esc) Press A to accept the vendor series, press D to delete the selected series, or press Esc to return to the Vendor Series prompt. Series '1000' has been updated. Series '2000' has been added. Series '4000' has been deleted. CLS updates, adds or deletes the selected series and returns to the Vendor Series prompt. You may select another vendor series, or continue to press Esc to return to the Edit Information in the 1099/1098 Intermediate File.

Add/Revise/Delete a Vendor (2) Use this routine to add a vendor to or delete a vendor from the intermediate file. You may also revise a vendor's information on file. Ledger I.D. Enter the I.D. of the ledger which contains the vendor to be edited. Press F1 to select from a pop-up list of ledgers in the intermediate file. File Generation Ledger Name Period Ending CLS automatically displays the file generation, name and period-end date for the selected ledger. Continue? (Y,N) Press Y to continue. Prompts will vary depending on the series type. For an existing vendor, CLS displays the information entered in program EF, Menu Selection 1, as the default responses. You may revise vendor information in the intermediate file without affecting the vendor setup in program EF. Vendor Enter the number of the vendor you want to add, revise or delete. Press F1 to select the vendor from a pop-up list. Soc Sec/FEI No. Enter the vendor’s social security or FEI number. Soc Sec/FEI Type (1-3) Indicate whether the number entered above is a social security number or EIN. Enter 3 if the type is unknown. Press F1 to select the type from a pop-up list. Name Line 1 Name Line 2 Address City, State Zip Code



Enter the correct vendor name and address. Note: If the payee name is a company name, please use either of the following methods to enter

the company name:

• Enter a caret (^) before the company name (EF).

• Select the last name entered first option in program PF, Menu Selection 1.

Foreign Address? Press Y if the above address is a foreign address (e.g., outside of the U.S., U.S. territory, or possession). Name Type (I,B) Select the name type. Press I if name line 1 is an individual, or press B if name line 2 is a business. Press F1 to select the name type from a pop-up list. Name Control Enter the first four characters of the vendor's last name (e.g., Jim Jordan, Tom Lee, Mary Smith-Jones). A dash (-) and an ampersand (&) are the only acceptable special characters. Other special characters and spaces should be removed.

• If the vendor name is the business name (excluding sole proprietorships), enter the first four characters of the business name (e.g., ABC Cafe).

• Do not enter the word the when it is the first word of the name, unless there are only two words in the name (e.g., The Southern Bank, The Cellar).

Account Enter any number assigned by the payer to the payee (e.g., checking or savings account number). You may use this code to reference individual vendor records. If used, this code must be unique for each vendor. Second TIN Notice This prompt appears if the selected vendor belongs to a 1099-MISC, 1099-INT, 1099-DIV, 1099-PATR or 1099-B series. Press Y if this payer has been notified twice within three years that the vendor provided an incorrect name and/or TIN combination. For vendors in a 1099-MISC series, respond to the following prompt:

Sales of $5,000 Press Y to indicate sales of $5,000 or more of consumer products to a person on a commission basis for resale anywhere other than in a permanent retail establishment.

For vendors in a 1099-INT series, respond to the following prompt:

CUSIP No. For broker transactions only: enter the Committee on Uniform Security Identification Procedures (CUSIP) number of the item reported for stocks, bonds, etc. Country/Poss. If necessary, enter the foreign country or U.S. possession to which the withheld tax applies.



For vendors in a 1099-DIV series, respond to the following prompt: Country/Poss. If necessary, enter the foreign country or U.S. possession to which the withheld tax applies.

For vendors in a 1099-A series, respond to the following prompts:

Acquisition Date Enter the acquisition date of the secured property or the date when the vendor first knew the property was abandoned. Enter the date in mm/dd/yy format. Personally Liable Press Y if the borrower is personally liable for repayment of the debt.

Desc of Property Enter a description of the property. For real property, enter the address, or if the address does not identify the property, enter the section, lot and block. For personal property, enter the type, make and model.

For vendors in a 1099-B series, respond to the following prompts:

Proceeds (1,2) Select the appropriate proceeds type. Press 1 to select gross proceeds, or press 2 to indicate gross proceeds less commissions/option premiums. Press F1 to select the proceeds type from a pop-up list. No Loss on Box 2 Press Y if the recipient was unable to claim a loss on his tax return. Sale Date For broker transactions, enter the trade date of the transactions. For barter exchanges, enter the date cash, property, a credit or scrip is actually or constructively received. Enter the date in mm/dd/yy format. CUSIP No. For broker transactions only: enter the Committee on Uniform Security Identification Procedures (CUSIP) number of the item reported for stocks, bonds, etc. Shares Exchanged Enter the number of shares of the corporation’s stock which were exchanged in the transaction. Stock Classes Enter the class of stock that was exchanged. Description Enter a description of the item or services for which the proceeds or bartering is being reported.

For vendors in a 1099-S series, respond to the following prompts:

Closing Date Enter the closing date in mm/dd/yy format. Rec'd Property Press Y if the transferor received or will receive property (other than cash and consideration



treated as cash in calculating gross proceeds) as part of the consideration for the property transferred, or if the transferor receives property (other than cash) or services to satisfy a debt. Address/Description Enter a description of the property, such as address, section, lot, and block.

For vendors in a 1099-R series, respond to the following prompts:

Distribution Code Enter up to two distribution codes; at least one code is required. IRA, SEP, SIMPLE or Roth Conv Press Y if you are reporting a distribution from an IRA, SEP, SIMPLE IRA, or Roth IRA Conversion. Taxable Amount Determined Press N if the taxable amount for gross distribution cannot be calculated. Total Distribution Press Y if a total distribution payment has been made which closed out the account. Total Dist Percent If you are reporting a total distribution to more than one person, enter the percentage received by this vendor. If the percentage is 100, leave this field blank. If the percentage is a fraction, round it off to the nearest whole number (e.g., 10.4 % = 10%, 11.7% = 12%). Year of Roth Contribution Enter the first year a designated Roth contribution was made.

For vendors in a 1099-C series, respond to the following prompts:

Date Canceled Enter the date the debt was canceled in mm/dd/yy format. Discharged in Bankruptcy Press Y if the debt was discharged in bankruptcy. Personally Liable Press Y if the borrower is personally liable for repayment of the debt. Debt Description Enter a description of the origin of the debt.

Accept, Delete or Escape? (A,D,Esc) Press A to save the vendor file, press D to delete the vendor, or press Esc to return to the Vendor prompt. Vendor '1001' has been updated. Vendor '1015' has been added. Vendor '1050' has been deleted. CLS updates, adds or deletes the selected vendor and returns to the Vendor prompt. You may select another vendor, or continue to press Esc to return to the Edit Information in 1099/1098 Intermediate File menu.



Revise Vendor Balances (3) Use this routine to revise vendor balances in the intermediate file. Ledger I.D. Enter the I.D. of the ledger with the vendor balances to edit. Press F1 to select from a pop-up list of ledgers in the intermediate file. File Generation Ledger Name Period Ending CLS automatically displays the file generation, name and period-end date for the selected ledger. Continue? (Y,N) Press Y to continue. Prompts will differ depending on the series type. Vendor Enter the number of the vendor with balances to be revised. Press F1 to select from a pop-up list of vendors for this ledger. CLS displays balances for the selected vendor. Use the arrow keys (↑,↓) to scroll through the balances and make changes where necessary. When you are satisfied with the vendor balances, press Esc to move directly to the Accept or Escape? (A,Esc) prompt. Accept or Escape? (A,Esc) Press A to accept the vendor balances. Press Esc to return to the Vendor prompt without saving any changes. Vendor '1001' has been updated. CLS updates the balances for the selected vendor and returns to the Vendor prompt. You may select another vendor, or continue to press Esc to return to the Edit Information in 1099/1098 Intermediate File menu.

List Information in Intermediate Files (5) Use this routine to display or print information in intermediate files. You may list ledgers in intermediate files. You may list payer information which shows totals by series, or you may print a vendor information report which shows balances for each vendor. You may list payers and vendors with missing information that should be corrected.

List Ledgers on File (1) Use this routine to list ledgers in the intermediate files. Respond to the following prompts: File Number (ENTER for all) Select the intermediate file for which you want to print a report, or press Enter to include all intermediate files in the report. Press F1 to select the intermediate file from a pop-up list. Continue? (Y,N) Press Y to continue. (D)isplay, or number of copies to print (D,1-9) Press D to display the report, or enter the number of copies to print. Press 1 to print a single copy. Current printer: [HP Laser: Portrait ]? (Y,N) Press Enter if your printer selection is correct; if not, press N to change your selection. Press F1 to



select from a pop-up list of available printers. Press Enter again at the Ready? (Y,N) prompt to begin printing. When the report is complete, CLS returns to the File Number (ENTER for all) prompt. You may print another report, or press Esc to return to the List Information 1099/1098 Intermediate Files menu.

List Payer Information (2) List Vendor Information (3) Missing ID Worksheet (4) Use these routines to list payer information (totals by series), vendor information (balances for each vendor) or payers and vendors with missing information which should be corrected. Include State Information (Y,N) Press Y to include state information on this report; payers/vendors will be consolidated by state identification number. Press N to suppress the state information; payers/vendors will be consolidated by FEI number. File Number (ENTER for all) Select the intermediate file for which you want to print a report, or press Enter to include all intermediate files in the report. Press F1 to select the intermediate file from a pop-up list. 1099/1098 Type (ENTER for all) If you wish, you may list information for a specific type of 1099 or for 1098s. Ledger I.D. (ENTER for all) If you wish, you may list information for a specific ledger. Vendor Series (ENTER for all) If you chose a specific ledger, you may list information for a selected vendor series. Continue? (Y,N) Press Y to continue. (D)isplay, or number of copies to print (D,1-9) Press D to display the report, or enter the number of copies to print. Press 1 to print a single copy. Current printer: [HP Laser: Portrait ]? (Y,N) Press Enter if your printer selection is correct; if not, press N to change your selection. Press F1 to select from a pop-up list of available printers. Press Enter again at the Ready? (Y,N) prompt to begin printing. When the report is complete, CLS returns to the Include State Information (Y,N) prompt. You may print another report, or press Esc return to the List Information in 1099/1098 Intermediate Files menu.

Delete Intermediate File (6) Use this routine to delete a 1099/1098 intermediate file. File Number (1-999) Enter the number of the 1099/1098 intermediate file to be deleted. Press F1 to select the file from a



pop-up list. File Description Payment Year Data Reported CLS automatically displays information about the selected 1099/1098 intermediate file. Would you like to delete this file? (Y,N) Press Y to delete the selected 1099/1098 intermediate file. Intermediate file '2' has been deleted. CLS deletes the selected 1099/1098 intermediate file and returns to the File Number (1-999) prompt. You may delete another intermediate file, or press Esc to return to the 1099/1098 Intermediate File Management menu.

Write Intermediate File to Disk (1099/1098) When you are satisfied with the payer and payee information in the intermediate file, choose 3, Write Intermediate File to Disk, from the Vendor 1099/1098 Information menu to routine to create the magnetic media file(s). You may also use this routine to file an extension request.

Request Extension of Time (1) You may file a request for an extension of time via the Internet, in lieu of completing form 8508. Extensions must be filed using electronic transfer if there are more than 10 payers involved. All vendor series for which you would like an extension must be in the file, including the vendor name and address and vendor I.D. Magnetic Media Export File The export file name and path will be displayed. Create Backup Copy on a Floppy You may back up the export file to a floppy disk. Backup Floppy Drive If you chose to back up to a floppy drive, enter the drive letter (A or B) here. Continue? (Y,N) Press Y to create the magnetic media file on the selected drive. CLS will warn you if the disk in the selected drive is not blank or you are about to overwrite an existing file. Note: You may use program BU, Menu Selection 6 to display the files on the backup diskette. Writing 'JCC.013'...... Complete CLS creates the request for an extension of time on the designated drive and returns to the Write 1099/1098 Intermediate File to Disk menu. Use program TM, Menu Selection 3 (4, 1), to verify that the file contains all payers for whom an extension is being requested.

Submit Vendor Information (2) Use this routine to create the magnetic media file. If you are making a backup on diskettes, make



sure you label them as they are created. If you do not label the 1099/1098 diskettes properly, there will be no way to determine the correct diskette sequence later. Respond to the following prompts: Create Federal, State or Combined File (F,S,C) Enter F for submitting a Federal File to IRS. Enter S for submitting a State File to a state agency, or C for creating a Combined Federal/State File. If you’re submitting a Federal File, vendors will be consolidated by FEI number. Otherwise, vendors will be consolidated by state identification number. Note: For Combined Federal/State Files, state information will be forwarded to the withholding

state only if the Combined Fed/State File prompt is set to Y for the vendor series. Data Reported (1-4) Enter 1 if this is an original submission. Enter 2 if this is a replacement file (i.e., the original file could not be read by the IRS). Enter 3 if the file contains corrected information. Enter 4 if you are creating a test file. Magnetic Media Export Path The export path name will be displayed. Magnetic Media Export File The default export file name will be displayed; it can be changed if necessary. Create Backup Copy on a Floppy You may back up the export file to a floppy disk. Backup Floppy Drive If you chose to back up to a floppy drive, enter the drive letter (A or B) here. Continue? (Y,N) Press Y to create the magnetic media file on the selected drive. CLS will warn you if the disk in the selected backup drive is not blank or you are about to overwrite an existing file. Note: You may use program BU, Menu Selection 6, to display the files on the diskette. Writing '123.013'...... Complete CLS creates the magnetic media file on the designated drive and returns to the Vendor 1099/1098 Information menu.

List Payers/Vendors on Disk (1099/1098) From the Vendor 1099/1098 Information menu, choose 4, List Payers/Vendors on Disk, to list payers and vendors in the magnetic media file. If you have requested an extension of time, you may also use this routine to verify that the file contains the extension request. Detail or Summary Listing (D,S) Press Enter to accept the default D response and print a detail report of the information in the file, or press S to print a summary report.



Read file from (1) Floppy or (2) Hard Drive Choose 1 if the magnetic media file is on a floppy drive, or 2 if it is on the hard disk. Magnetic Media Floppy Drive If you selected 1 above, enter the floppy drive that contains the disk to be examined. Magnetic Media Export File If you selected 2 above, the export file name and path will be displayed. Continue? (Y,N) Press Y to continue. (D)isplay, or number of copies to print (D, 1-9) Press D to display payers and vendors in the file, or enter the number of copies to print. Press 1 to print a single copy. Current printer: [HP Laser: Portrait ]? (Y,N) Press Enter if your printer selection is correct; if not, press N to change your selection. Press F1 to select from a pop-up list of available printers. Press Enter again at the Ready? (Y,N) prompt to begin printing. When the report is complete, CLS returns to the Detail or Summary Listing (D,S) prompt.

Print Laser Diskette Labels (1099/1098) From the Vendor 1099/1098 Information menu, choose 5, Print Laser Diskette Labels, to print labels for the backup diskettes. Disk labels may only be printed with a laser printer. CLS supports Avery laser labels for 3½″ diskettes (product no. 5196). Label Size (1,2) Select the disk label size. Press 1 to print labels for 3½″ disks. Payment Year Enter the payment year. Number of Pages Enter the number of pages of disk labels to be printed. Continue? (Y,N) Press Y to continue. Current printer: [HP Laser: Portrait ]? (Y,N) Press Enter if your printer selection is correct; if not, press N to change your selection. Press F1 to select from a pop-up list of available printers. Press Enter again at the Ready? (Y,N) prompt to begin printing. CLS prints the diskette labels and returns to the Label Size (1,2) prompt. You may print additional labels, or continue to press Esc to return to the Vendor 1099/1098 Information menu.



aAa Filing Checklist • Once the magnetic media files have been created, it is extremely important to verify the

contents of the file by printing a list of what is in each file.

• From the appropriate menu (W-2 or 1099/1098), choose the List Employees/Employers on Disk (or List Payers/Vendors on Disk) routine. Print a detailed listing of the information in the files.

• By taking this extra step, you can avoid the rejection of your magnetic media files for items that can be corrected before the files are submitted.

• When reviewing the listing of the information on the magnetic media disk, check for:

• Missing social security numbers • Incorrect names because the caret rule was not followed (see Name Convention in the

CLS Payroll Guide) • Incorrect dollar amounts • Incorrect name controls (1099s only)

• Make a backup copy of the magnetic media files in case those submitted to the proper authority (SSA, IRS or state) aren’t processed correctly.

Verify W-2 Information You should compare the employee information in the magnetic media file(s) with the 941 forms submitted for this year to verify the data before submitting the files. Compare the data from the magnetic media files as follows: • Soc. Security Wages with line 5a of the 941 forms

• Soc. Security Tips with line 5b of the 941 forms

• Medicare Wages and Tips with line 5c of the 941 forms

• Total Income Tax W/H with line 3 of the 941 forms

• The Advance EIC Payments with line 9 of the 941 forms

Appendix A–1


aBa Error Messages

Caution: Changing payment year will cause intermediate file to be deleted. This message appears if you change the Payment Year in the intermediate file. CLS will delete the existing intermediate file and create a new one with the new payment year. If necessary, place data disk in drive 'A'. Ready? (Y,N) This message appears if the ledger data is on a floppy disk drive when a ledger is added to the intermediate file. With the disk in place, press Y to continue. If necessary, place backup disk in drive 'A'. Ready? (Y,N) CLS prompts you to insert the disk on which you want to create the backup file. With the disk in place, press Y to continue. Invalid Generation The selected ledger generation was not found. Invalid intermediate file The selected intermediate file is not valid and has not been created. Invalid Ledger I.D. The selected ledger I.D. was not found. Invalid employee Invalid vendor The selected employee or vendor does not exist. (Ledger I.D.) already exists in intermediate file. Update? When adding ledgers to the intermediate file, CLS checks the file and warns you if the ledger you are adding already exists in the intermediate file. (Ledger I.D.) doesn't exist in intermediate file. The selected ledger is not in the intermediate file. (Ledger I.D.) doesn't exist in intermediate file - cannot delete. The selected ledger has not been added to the intermediate file. Magnetic media file does not exist on diskette The selected magnetic media file has not been created. Not an employee series. The selected series is not an employee series.

B-1 Appendix


No employee series found. No vendor series found. The ledger being added to the intermediate file does not have an employee or vendor series defined. Quarter Ending Date for this ledger is '3/31/11'. Continue? CLS will not automatically add a ledger to an intermediate file unless the quarter-end date is also the correct calendar year-end date. Series '100' already exists in intermediate file. Overwrite? (Y,N) When adding ledgers to the intermediate file, CLS checks the file and warns you if the series you are adding already exists in the intermediate file. *** Warning: Invalid payroll column types found in series ‘1000’. This message appears if payroll columns have not been defined correctly. Check the payroll column setup (PF) for the payroll series you would like added to the intermediate file.

Appendix B–2

Documents

W-2/1099 Magnetic Media