Payroll Year-End Preparation

User Group Meetings
We are holding Payroll User Group meetings 11/28/2013, 12/5/2013, and 12/12/2013. Please click here for more information or to sign up.

What types of W-2s do you need?
If you file electronically with the Social Security Administration, any type of W-2 will do. You can use either the 4-up or 2-up format, and we can customize the Payroll program to match those forms. If you do not file electronically, you will need to get the 2-up style with red pre-printed boxes.

Issues last year with the blank 4-up form and envelopes.
A custom format was created in the program to match envelope DW4DNALT. If you use this envelope, please contact support so that we may send you the custom format.

Health care costs are now a requirement.
This year, every employer is required to display their health care costs on the W-2. If you are tracking this through the Payroll program, make sure that the deductions and expenses are labeled correctly in Program Setup>Database Setup>Deductions & Expenses>Tab 2 (for each deduction and expense). If you are tracking health care costs on a spreadsheet, we can import that into the program before the end of the year. Please contact support for details at either (855) 272-7638, or through your Help menu (Help>Contact Customer Support>Request Support Phone Call or Email Support).

Manual Help: New Year Prep/Old Year Wrap Up
Go to Help>View Documentation>Download Latest Manual (if you are using the latest version, you will be notified). Return to Help>View Documentation and select Manual. Open “New Year Prep/Old Year Wrap Up” in the Contents pane for a useful guide to this yearly process.

Video Help: Processing W-2s
Visit the following link for a helpful video on processing W-2s:

Update on the Affordable Healthcare Act
In July 2013, the Obama Administration announced they are delaying the mandate for businesses to provide health coverage until 2014, and have since further delayed that mandate until 2015. This announcement affects employers with 50 or more full-time employees; they will not be subject to penalties until 2015. This does not change the mandate for individuals to have insurance starting in 2014.

Export for PPACA Subsidy Exposure and Liability Calculator

As part of the Affordable Healthcare Act, employers are required to provide affordable health care to eligible employees. If the cost is not considered “affordable,” the employer faces potential penalties if the employee chooses to purchase insurance from the marketplace, and receives a subsidy to help offset the cost. As a result, our customers are beginning to work with their insurance reps to determine penalty risks. In order to calculate this employee demographic, information needs to be provided to the agents:

  1. Employee ID
  2. Employee Name (last name, first name)
  3. Sex
  4. Date of birth (MM/DD/YY)
  5. (F)ull or (P)art time
  6. (H)ourly or (S)alaried
  7. Hourly rate or Salary amount
  8. Estimated annual W-2 amount (if hourly, this is hourly rate x average hours in pay period x pay frequency; if salary, this is the salary amount).
  9. Average weekly hours – this is not needed for full time employees. For part time employees, this is the average hours in pay period converted to weekly hours (i.e., 70 hours in pay period and bi-weekly=average hours/2).
  10. Date of hire
  11. Federal tax status (S or M)
  12. Federal allowances
  13. Employee zip code from contact information
  14. Job class

This export is found in the Payroll program: Go to File>Export>Employee Exports and select “PPACA Subsidy Exposure and Liability Export.” This file can be exported to Microsoft Excel, as depicted here:


Sheri Trotter