Section 2: Setup Procedures



Step 1: W-2 Forms


Procedure


  • Verify that your W-2 supplies have been ordered, shipped and received.
  • Mark your calendar, for next year, to contact RDA to order W-2 supplies, or purchase the RDA W2 Print Service.


Comments


  • Next year, to avoid substantial setup fees and end-of-the-year rush, contact RDA to order W-2 supplies or purchase the RDA W2 Print Service.
  • Visit our website to obtain more information on the RDA W2 Print Service.


Step 2: SSA User ID


Procedure


  • Reminders for Current Registrants:
    • PLEASE NOTE:  Beginning for tax year 2023, BSO (Business Services Online) User ID and passwords no longer exist.  BSO Accounts are now accessed via Login.gov,  ID.me or Social Security Online account. The SSA recommends using ID.me since it's more user friendly.
    • The registration process has changed for wage reporting services. For more information visit www.ssa.gov/employer/navigate.htm


  • To obtain a User ID, do the following:


  1. Access the Business Services Online
    • Use the employer reporting website at www.ssa.gov/bso. For your convenience, RDA has added a button to the W2 Setup submenu (in OpenRDA), and the EFW2/W2 Submenu (in Xpert) that takes you directly to the SSA website. The button is called URL to SSA.GOV/BSO.
    • Or, call the Employer Reporting Branch at (800) 772-6270.
  2. Follow the on-screen instructions; Be aware that you will be required to provide personal information such as Driver's License, Passport, SSN, DOB, email address, etc.  You may also have to provide a picture of yourself using your mobile device or computer webcam.
  3. Refer to NOTE 1 below for the definition and importance of your Name in the Registration process, User ID and password.
  4. Next, you will be asked to REQUEST ACCESS TO BSO SERVICES.
    • Here you are asked to select option(s) that best describe the type of business you plan to conduct with the SSA.
    • Please select the first option – REPORT WAGES TO SOCIAL SECURITY
  5. Click Request.
    • Your USER ID will be provided immediately on screen.
    • PLEASE NOTE that after registering it will take 10 - 15 days to receive your access code to be able to use the SSA services including Accuwage and filing W2s
    • If you have questions regarding registration with the SSA, call the Help Numbers listed on the SSA website.


Comments


  • Submitters and employers filing annual wage reports (AWR) must register for a USER ID number using Id.me, Login.gov or Social Security Online accounts. The USER ID represents an electronic signature of the individual that is responsible for the accuracy of the Form W-2 data being filed and must be included in the RA Submitter Record of the Electronic File.
  • A USER ID and PASSWORD are required to submit AWR files using the Internet Wage Reporting Service within Business Services Online; they are also needed to use other Business Services Online features.
  • If your organization has multiple EINs, you only need one User ID and Password.


  • NOTE 1:
    • Password:
      • User-defined
      • Depending on which account is used, requirements can be from 8 characters to over 12 characters (see requirements when account is being set up at the step to set your password)
      • User ID and password will be used to log in to BSO to file W-2s electronically, and entered in the W2 Employer Master
    • Your Name:
      • This is YOUR name, not your organization's name
      • The name you submit MUST be exactly as it appears on your Social Security Card
      • If you have been employed at your organization for 8 months or less, the system may not be able to match your name and Social Security Number to the EIN for your organization. In this case, you should contact the SSA's 800 number that is provided on the SSA enrollment form.
      • While applying for a User ID, if you make errors after 3 attempts, the SSA system will lock you out. If this should happen, call the SSA's 800 number. They will help you determine why the information you entered was rejected. The representatives will reset the form, allowing you to try again to make the correct entries.


Step 3: URL to IRS Instructions (Optional Step for Printing IRS Instructions)


Procedure


  1. You may choose to print the IRS instructions now, or at a later time.
  2. Go to HR → Payroll W2 Processing → Other → W2 Setup (in Xpert, go to Payroll → EFW2/W2 Submenu)
  3. Click URL to www.irs.gov/instructions.
  4. Scroll down through the table until you find the General Instructions for Form W-2.


Comments


  • If you cannot access the website, it may be because:
    • You need to set the correct Browser Type in your security profile; to do this, go to My Settings → Preferences Tab → Browser (in Xpert, go to System Administration → Security Submenu → Xpert Users/Security Master (select User) → Preferences Tab → Browser Type); make the appropriate selection, and click Save.
    • Your operating system is outdated and cannot use the URL from the submenu; in this case, open your web browser, and type www.irs.gov/instructions.


Step 4: URL to IRS Publications (Optional Step for Printing IRS Publications)


Procedure


  1. You may choose to print the IRS publications now, or at a later time.
  2. Go to HR → Payroll → W2 Processing → Other → W2 Setup (in Xpert, go to Payroll → EFW2 W2 Submenu)
  3. Click URL to www.irs.gov/formspubs.
  4. Scroll until you find the W-2 Form.


Comments


  • If you cannot access the website, it may be because:
    • You need to set the correct Browser Type in your security profile; to do this, go to My Settings → References Tab → Browser (in Xpert, go to System Administration → Security Submenu → Xpert Users/Security (select User) → Preferences Tab → Browser Type); make the appropriate selection, and click Save.
    • Your operating system is outdated and cannot user the URL from the sub-menu; in this case, open your web browser, and type www.irs.gov/formspub.


Step 5: Verify New Programs Loaded


Procedure


  1. It is imperative that you have received the latest Payroll and/or W-2 programs; otherwise, amounts or data may print in the wrong box, or not print at all.
  2. To verify PROGRAMS have been loaded, check the Compiled Dateby doing the following:
    • Go to System Administration → Version Control → Program Update Status
    • The Installed and Compiled dates are listed for each module.
    • In Xpert, the dates are listed at the top of the Xpert menu.


Step 6: Run Updates for Programs (if needed)


  • RDA strongly recommends that updates are run on a monthly basis.


Procedure


  • MAKE SURE ALL USERS ARE OUT OF THE PAYROLL MODULE BEFORE RUNNING.


  1. Go to System Administration → Version Control (in Xpert, go to System Administration → Programs Update Menu)
  2. Click Download Instructions, and print the document on how to download programs and run updates.
  3. Download Programs – Click if you need new programs; follow instructions.
  4. Update Program(s)– Determine which programs you need to update; in most cases, at this time of year, you will be updating all programs:
    • UTL Tab (in Xpert, update XPERT UTILITIES)
    • F-B-P Tab – Use to update Financial Management and Procurement-related modules (in Xpert, update FINMGT, etc.).
    • HR Tab – Use to update Payroll and Personnel-related modules (in Xpert, update XPERT PAYROLL, etc.).
    • REV Tab – Use to update Revenue modules.
    • If you select Update Payroll (in OpenRDA), both the Payroll module and the Payroll W2 module will be updated. Users MUST be out of the Payroll module before running the update. (In Xpert, update XPERT PAYROLL and Update/Install W2s must both be run).
    • If you select Update/Install W2 (in Xpert), only the W2 program is updated; if you only need to run updates for W-2s, this would be the appropriate selection
  5. After running updates for your programs, click Cancel.
  6. Go to System Administration → Version Control → Program Update Status
  7. Verify that the Compiled Date is the accurate date for Payroll; (See Section 2 Step 5)


Comments


  • Copies the following data to the W2/EFW2 Employer Master.
    • Employer ID Number (EIN) from the Payroll Setup Variables (strips out the hyphen).
    • Employer Name and Address from the OpenRDA setup.
    • First 15 characters of the Organization Name to the Employer ID field.
  • System uses the EFW2 Employer Master to generate W2s.


Step 7: Verify W2 Employer Master


Procedure


  1. Go to HR → Payroll W2 Processing → Other → W2 Setup → Employer Master (in Xpert, go to Payroll → EFW2/W2 Submenu → Payroll EFW2 Setup Submenu → Employer Master)
  2. Highlight the Employer Master.
  3. Highlight the Employer ID.
  4. Click Select.
  5. Verify the following:
    • Employer Identification Number
    • Federal EIN IMPORTANT: Federal EIN must NOT include a dash
    • Employer Name and Address
      • NOTE: The Address 2 field (Delivery Address) does not need to be populated, unless it is different than Address 1 (Location Address). If Address 2 is blank, the file will automatically use what is in the Address 1 field.
    • User ID:
      • If filing W-2s electronically, enter the 8-digit alpha User Identification Number assigned to you by the SSA when you registered to submit W-2s electronically.
      • If filing electronically, and the field is left blank, an error message displays when you create the W2 Electronic File.
      • If not filing W-2s electronically, leave the field blank.
      • Use the same User ID for all EINs, if you have multiple EINs.
    • Password:
      • Per the SSA Website: Renew your Password every 90 days (your User ID does not expire, even if your Password does); if necessary, call the SSA Employer Number for assistance: (800) 772-6270
      • If filing W-2s electronically, enter the 8-character alpha/numeric Password you chose when you registered; if less than 8 characters are entered, an error message displays when you save.
      • If filing electronically, and the field is left blank, an error message displays when you create the W2 Electronic File.
      • Use the same Password for all EINs, if you have multiple EINs.
  6. Password Expiration Date – Enter the date provided by the SSA.
  7. Save – Click if changes were made.
  8. Click Cancel.


Comments


  • AFTER running the W2 updates, and BEFORE printing W-2s, you should always verify that the EFW2 Employer Master was updated with the proper Employer Name, Address and EIN.
  • If multiple employers exist, multiple EFW2 Employer Masters should exist.
  • If filing electronically, the User ID and Password entered on this screen will be used in the creation of the electronic file.
  • When you access the SSA website, you will need to provide the User ID and Password there as well.
  • If RDA is electronically filing your W-2s, they will obtain your User ID and Password from this screen.


Step 8: Verify Tax Deduction


  • NOTE: These are Employee Deductions.


Important Notes


  • If employees have any tax deductions that are not flagged as ACTIVE, the tax deduction will not compute in the payrolls and therefore, there will be no earnings to be reported on Form W-2 in the corresponding wage boxes (Federal, State, Social Security and/or Medicare Wages).
  • If an employee is claiming EXEMPT status from Federal withholding on his W-4, do NOT inactivate the Federal deduction; instead, flag it as Active and Exempt.


Procedure


  • Use to verify that ALL employees have Federal, State, FICA, FICA-M, MEDICARE and MEDICARE-M deductions.


  1. Go to HR → Payroll Reports → Verification Reports → Deductions -> Employees without Deductions Report (in Xpert, go to Payroll → Payroll Verification Submenu → Employees without Deductions Report)
  2. Optional Report Title – Type a title if desired, or leave blank to use the default title.
  3. Range on the Deduction Type that you want to make sure no employees are missing. So, range on FEDERAL to FEDERAL, FICA to FICA, FICA-M to FICA-M, MEDICARE to MEDICARE, MEDICARE-M to MEDICARE-M, and STATE to STATE. You will be ranging separately on each of these six deductions, which means you will be running this report six times.
  4. Select Active Employee Deductions flag – Set to TRUE.
  5. Select Non-Active Employee Deductions flag – Set to FALSE.
  6. Click Print Report; if nothing prints, then all employees do have that tax deduction.
  7. If employees are listed on the report, it means they are missing that tax deduction, which MUST be corrected.


Comments


  • If an employee changes his/her marital status during the year, the Deduction Description assigned to the employee does NOT change; you should change the Filing Status in the employee's Personnel Demographics.
  • NEVER flag for deletion a tax deduction that reflects earnings; it can be set to INACTIVE, but should not be flagged for DELETION; if it has been, you can use the Change Deduction Amounts process to back-load the taxable wages (you would be adjusting the Gross, rather than the Amount).


Step 9: Verify W2 Types in Deductions


Procedure


  1. Go to HR → Payroll → Setup → Deductions → Deduction Descriptions (in Xpert, go to Payroll → Setup Submenu → Deduction Descriptions)
  2. NOTE: To make verification easier, use the Define List button on the Deduction Description Browse Screen to display the W2 Deduction Type on the Browse Screen in the first column (enter a 1 to make it column 1).
  3. Access the first Deduction Description that needs correcting.
  4. Locate the W2 Deduction Type field, and change if necessary.
  5. Save
  6. Repeat until all Deduction Descriptions' W2 Deduction Types have been verified and changed as necessary.


Comments


  • The W2 Deduction Type assigned to each Deduction Description dictates where, if anywhere, the deduction will be reflected on Form W-2.
  • Each Deduction Description should be checked to verify the correct setting of the W2 Deduction Type; if the types are incorrect, the boxes on the W-2 will not be updated properly.
  • If you have two Employer IDs (EINs), they cannot share the same Deduction Description codes for anything that affects W-2s, such as deferred compensation or annuity plans, retirement, insurance cafeteria plans, FICA, Medicare, Federal, State, etc.


Step 10: Verify State Tax Deduction Description(s)


  1. Go to HR → Payroll → Setup → Deductions → Deduction Descriptions (in Xpert, go to Payroll → Setup Submenu → Deduction Descriptions)
  2. Highlight your STATE TAX deduction.
  3. Click Select.
  4. Verify the following:
    • Short Description field:
      • The State Federal Abbreviation Code MUST be the first word of the description, and display in UPPERCASE (for ex., GA, VA, ND). Examples of a correct Short Description are VA STATE or VA STATE TAX. The first 2 letters of the Short Description are what will display in Box 15 of the W-2's (for example, VA); if the 2-letter state abbreviation does not come first, then the description in Box 15 will be ST, which will not be acceptable for filing.
    • Identification Number field:
      • Enter ONLY your State Identification Number in this field (ex: 1234567-DX)
      • Prints at the bottom of the W-2
      • Use no more than 11 characters if using the 4-to-a-Page W-2 forms
    • W2 Deduction Type – STATE: (this is not the Deduction Type field)
  5. Click Save if changes were made, or Cancel if no changes were made.
  6. Repeat the above steps for any additional STATE TAX deductions you may have.
  7. Click Cancel.


Comments


  • W-2s allow for the printing of TWO states; if you have employees working in more than TWO states, additional W-2s will print for additional states.
  • To expedite the review of deductions, select the Define List button to sort the Browse by W2 Deduction Type.


  • DOL– If using the W2 program for Unemployment reporting:
    • DOL Account Number should be entered in the DOL field of the STATE Deduction Description.
    • This field is editable only for STATE Deduction Descriptions.
    • The State Wages + Sheltered Wages will be reported as Unemployment earnings in the EFW2 Employee Master.


Step 11: Verify Required Label in Local Tax Deduction Description(s)


Procedure


  1. Go to HR → Payroll → Setup → Deductions → Deduction Descriptions (in Xpert, go to Payroll → Setup Submenu → Deduction Descriptions)
  2. Select your LOCAL TAX deduction.
  3. Verify the following:
    • Short Description:
      • The Short Description must include, in UPPERCASE, a word indicating the type of local tax (ex. CITY, COUNTY, SCHOOL, OTHER)
      • What is typed here determines what loads in the Local Type field in the EFW2 Employee Master.
        1. CITY = C
        2. COUNTY = D
        3. SCHOOL = E
        4. OTHER = F
        5. If none of the above is included in the Short Description, the type of local tax will default to CITY.
      • Information loads in the master, but does not print on the W-2.
      • Information is included in the Electronic Filing.
    • W2 Deduction Type - Select LOCAL (this is not the Deduction Type field).
    • Identification Number:
      • Enter the name of the City, County, School or Other (ex. Pittsburgh, Albion, etc.).
      • The field allows for 15 characters; only the first seven characters print on the W-2 in the Local label.
  4. Click Save.
  5. Repeat the above steps for any additional LOCAL TAX deductions.
  6. Click Cancel.


Comments


  • W2s allow for the printing of TWO local taxes; if you have employees with more than TWO local taxes, you must print additional W2s for the additional local taxes.
  • To expedite the review of deductions, select the Define List button to sort the Browse by W2 Deduction Type (enter a 1 to make it column 1).


Step 12: Set W2 Types


Comments


  • The Set W2 Types process needs to be run in order for a W2 Type to be indicated for each employee on the electronic W-2 file.
  • The W2 Type designates each employee as being either subject to both FICA and Medicare, subject to neither, or subject to Medicare only. This designation is required by the SSA.
  • The process evaluates the employee's lifetime gross and deduction amounts for FICA and MEDICARE; it does not evaluate the status of the Active flag.
  • The process assigns a W2 Type of either "0", "1" or "2" on the Status tab in Personnel Demographics. A designation of "0" (which indicates that the employee is subject to both FICA and Medicare) or "2" (which indicates that the employee is subject to neither) will translate to a W2 Type of "R" on the MMREF1 screen and the electronic W-2 file once W-2s are loaded. A designation of "1" (which indicates that the employee is subject to Medicare only) will translate to a "Q" on the MMREF1 screen and the electronic W-2 file.
  • Since assigning of W2 Control Numbers is by Employer ID and then by W2 Type, the W-2s for employees subject to MEDICARE and FICA print first; the W-2s for employees subject to MEDICARE only print next; this print order will assist you in completing Box B on the W-3 form, as well as printing in the required order on the electronic file.
  • This process does not provide a report


Procedure


  1. Go to HR → Payroll W2 Processing → Other → W2 Setup → Set W2 Types (in Xpert, go to Payroll → EFW2/W2 Submenu → Set W2 Types)
  2. Selected FICA Deduction Description ID:
    • Type your FICA Deduction Description Identification exactly as it exists (ex: FICA).
    • Make sure the ID is typed correctly.
  3. Ranging is not necessary, unless you have multiple FICA Deduction Descriptions.
    • If you have multiple FICA Deduction Descriptions, you need to run the Set W2 Types process for each FICA Deduction Description, ranging on the employees that have each respective deduction.
  4. Selected MEDICARE Deduction Description ID:
    • Type your MEDICARE Deduction Description Identification exactly as it exists (ex: MEDICARE).
    • Make sure the ID is typed correctly.
  5. Ranging is not necessary, unless you have multiple Medicare Deduction Descriptions.
    • If you have multiple MEDICARE Deduction Descriptions, you need to run the Set W2 Types process for each MEDICARE Deduction Description, ranging on the employees that have each respective deduction.
  6. Click Run Report.
  7. Click Cancel.
  8. To verify the correct assignment of the W2 Type, do the following:
    • Click Query → Personnel Demographics.
    • Ensure that Select when Current Employee False and Select when Current Employee True are both checked.
    • Click on the Range tab, and turn on the range for Last Paid Date. Enter the first day of the calendar year in the FROM and the last day of the calendar year, or, the most recent pay date (If you have ran a payroll in the new year, use this pay date) in the TO.
    • Click Select, and a browse list of all employees paid during the calendar year (or beyond) will appear.
    • Click Define List.
    • W2 Type should be put in position 1 with a length of at least 1, so that the Browse List will sort by W2 Type for easier identification.
    • Click Select.
  9. Review the W2 Types:

      • 0 = subject to FICA and Medicare.
      • 1 = subject to Medicare only.
      • 2 = not subject to either FICA or Medicare, or the FICA Deduction Description was entered incorrectly in the Set W2 Types process.
      • Employees with "0" or "2" will be grouped together with a W2 Type of "R" in the MMREF1, once W-2s are loaded.
  10. If the W2 Type is not accurate for the current reporting year, the W2 Type can be changed on the employee's MMREF1 Maintain Screen.


Step 13: Setup Employer Master Records


  • This step may not be required by your organization


  • If you have two Employer IDs (EINs), they cannot share the same Deduction Description codes for anything that affects W2s, such as deferred compensation or annuity plans, retirement, insurance cafeteria plans, FICA, MEDICARE, FEDERAL, STATE, etc.
  • If your organization has more than one EIN, and new deductions were added during the calendar year, you should review all Deduction Masters to verify that the associated EIN is correct; select the Correct EIN if necessary.
  • If you find that there are several deductions that need correcting, you can refer to Appendix E for instructions on setting Employer Masters in mass; if you have concerns, contact RDA for assistance.


Step 14: Statutory Employees

  • A statutory employee is an independent contractor under IRS common law that is treated as an employee, by statute, for tax withholdings. For a standard independent contractor, an employer cannot withhold taxes, as this would change the independent contractor relationship into an employer-employee relationship. See https://www.irs.gov/businesses/small-businesses-self-employed/statutory-employees for more information


Procedure


  1. Go to HR → Personnel → Reports → Employee Lists → Employee List (in Xpert, go to Personnel → Report Submenu → Employee List Report Submenu → Employee List)
  2. Range on Status of STATUTORY EMP to STATUTORY EMP, if you are using this Status (see NOTE 1).
  3. Click Run/Print Report.
  4. Verify that all employees with a Status of STATUTORY EMPLOYEE are listed on the report; correct the employee demographic master (in Payroll) if necessary.


Comments


  • The OpenRDA W2 program will check this box if the employee's Status Title in his/her Personnel Demographics Master is STATUTORY EMP.
  • NOTE 1: Status Titles are created in the Personnel module; if you currently do not have this Status, it must be created and assigned to any employees that are statutory; the ID must be STATUTORY EMP.