2001 Tax Forms Instructions

Installing The Patch | What's New With Payroll W2's For 2001 | Things To Do After Loading This Patch
Using The New Features | What Prints Where On the Payroll W2

BEFORE LOADING THIS PATCH

Record the current setup of your pre-tax screen
in Payroll program 50, System Defaults.

This information must be edited after loading this update
and it is much easier to do if you know the current settings.

This page was posted to help users install and use the Payroll patch for Tax Year 2001.

Please review all the information on this page.
There are many changes to the tax forms for 2001 and there may be things
you need to do within your data to properly use these new forms.

Instructions For Installing The 1099s/W2s Patch For 2001

How To Install This Patch

This patch consists of 3 files:

	PATCH5.ZIP	This file contains the programs and must be installed using the DeltaDOS utility (just like previous patches).
	TAXDATA.ZIP	This file contains data files for company AA for the Payroll and General Ledger modules. These files contain new help articles.
	TAXSYS.ZIP	This file contains the updated SCFM, FR and PL files.

STEP 1	Installing PATCH5.ZIP Copy PATCH5.ZIP to the Roundtable Software Advantage PROGS directory and decompress it. This will produce the file PATCH5.DPF, which can be installed with the DeltaDOS utility. Click here for details on using this utility.
STEP 2	Installing TAXDATA.ZIP Copy this file to the Roundtable Software Advantage DATA directory and decompress it. Allow it to overwrite the existing AA data files.
STEP 3	Installing TAXSYS.ZIP Copy this file to the Roundtable Software Advantage SYS directory and decompress it. Allow it to overwrite the existing data files.
STEP 4	Run System Administrator Program 7, Update Files For Payroll, both the data files and the PL file needs to be updated. For the other modules (General Ledger, Accounts Payable and Accounts Recievable) only the PL file needs to be updated.
STEP 5	Copy Tax Form Formats From 00 To Company–Specific PL File If you have a company–specific PL file, you’ll want to copy the new tax form formats that you’ll use from the 00 PL file to your company PL file. This is done through the Copy option of System Administrator program 11, Modify Reports. This step only needs to be done for modules that have company-specific PL files. After copying the new format(s), you can use the Delete option in this program to remove the old formats. Copying New Formats Go to System Administrator program 11, Modify Reports. Select the Copy option. Enter the module code you want to work with. For example, PR for Payroll. Enter Company Number 00. Enter the program number used for printing W2/1099 forms for the specific module you are working with: Program Module 23 General Ledger 81 Accounts Payable 26 Payroll 33 Accounts Receivable At Format Number, use the F6 key to view a list of available formats. Select the one you wish to use, taking note of the description for this format. Choose this format based on the printer you plan to print these forms on (see below). At Destination Company, enter your company number. If you get a message saying the PL file does not exist, select Cancel and then TAB back out of this program--you do not have a company-specific PL file and therefore do not need to copy these formats; you can use the default formats directly from the 00 PL file. You can continue on with your next module. Enter a New Description for this form. For example, "2001 W2 60 lpp". After selecting OK, the program will save your new format. Repeat these steps for each form you need to use. Deleting Old Formats Go to System Administrator program 11, Modify Formats. Select the Delete option. Enter the module code you want to work with. For example, PR for Payroll. Enter your company number. Enter the program number used for printing W2/1099 forms for the specific module you are working with: Program Module 23 General Ledger 81 Accounts Payable 26 Payroll 33 Accounts Receivable At Format Number, use the F6 key to view a list of available formats. Select the one you wish to delete. Select OK and the program will delete the specified format. Repeat these steps for each format you want to delete.
STEP 6	Decide Which Format To Use Each tax form has 3 possible formats available: one for dot matrix printers, one for laser printers set to 60 lines per page and one for lasers set to 66 lines per page. If you are printing your tax forms on a dot matrix printer, use the format for dot matrix. If you are printing to a laser printer, the best results are obtained by setting the printer to 60 lines per page and using the 60 LPP format. If you cannot change the lines per page for your printer and the printer is set to 66 lines per page, use the 66 LPP format. NOTE: Most laser and inkjet printers are set to 60 lines per page as the factory default. Because most Advantage reports assume 66 lines per page, you may have had your printer changed to 66 lines per page previously. If you are uncertain of how to proceed, call your dealer for further assistance. Also note that many inkjet printers are incapable of properly printing W2/1099 forms.

If using the Payroll module, please continue reading all of this documentation,
especially Things You Might Need To Do After Loading The Patch.

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What’s New With Payroll W2’s For 2001

Form W2 Changes

The form is now a full 8½" wide
Separate box for employee’s last name
Old Box 12 is gone
New Box 12 has space for up to 4 special disclosure items such as 401(k) amounts
Boxes after 12 have been renumbered to reflect the removal of the old box 12
The Locality Name box has been moved to the end of the line
The checkboxes in old box 15 are now in box 13 and there are only 3: Statutory Employee, Retirement Plan (formerly, Pension Plan) and Third-party sick pay (new). Advantage only addresses the Retirement Plan box.

Software Changes

Payroll program 26, Tax Forms, now has a range on employee number.
For 2001, the reporting of 4 additional disclosure items into box 12 have been added:

	Code E	403(b) Plans
	Code F	408(k) SEP Plans
	Code S	408(p) SIMPLE Plans
	Code K	20% Excise Tax on Golden Parachute Payments

The "Print on W2" column under the Pre-Tax option of Payroll program 50, System Defaults, now has options available to allow you to indicate which code should print for box 12 items.
The employee’s last name is extracted for printing in the new name area of form W2.
Although no longer required by the IRS, the software still prints a Totals W2 to help you fill out your W3 form.
The software does not produce a second W2 for an employee with more than 4 special disclosure items to be printed in box 12. If an employee has more than 4 items, the software does print a notification of this condition in the employee’s address box of the affected employee’s W2 and you will have to produce the additional W2 manually.

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Things You Might Need To Do After Loading This Patch

Change The "Print On W2" Flag In System Defaults

If you have reported 401(k) amounts in previous years, you MUST make these changes in order to print W2’s successfully!

Because the possible values for the "Print On W2" flag have been increased, your previous answers will be thrown out by System Administrator program 7, Update Files. For any of your pre–tax deductions that were previously flagged as "Y" in the "Print On W2" column, you’ll need to go through the Pre–tax option of Payroll program 50, System Defaults, and enter a "1" in that column for those deductions.

If you have other deductions that you want to report on the W2 form, you can add them to the Pre–tax list in System Defaults, entering the appropriate code in the "Print On W2" column. For tax year 2001, you’ll have to manually add these deductions to each employee. For on–going use, refer to the discussion How To Implement Deductions For The New Box 12 Codes E, F and S below.
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Format Employee Names Properly

For the best results, the names should be swapped—they should be entered through Payroll program 6, Employee Master, in the form of "Last Name, First Name MI". This format will produce the best and most consistent results. For example (Are Names Swapped: Yes):

Name In File	Last Name Extracted	First Name/MI Extracted
Henderson, Mary Jo	Henderson	Mary Jo
de la Hoya, James	de la Hoya	James
Gates-Peters, Amy J.	Gates-Peters	Amy J.
Robert B. McPherson	Robert B. McPherson

If you have entered the employee names as "First Name MI Last Name", the program attempts to extract the last name by taking the last group of non–blank characters. For example (Are Names Swapped: No):

Name In File	Last Name Extracted	First Name/MI Extracted
Mary Jo Henderson	Henderson	Mary Jo
James de la Hoya	Hoya	James de la
Amy J. Gates-Peters	Gates-Peters	Amy J.
McPherson, Robert B.	B.	McPherson, Robert

Note that in either case, names that are not entered in conformance to the way the "Are Names Swapped" prompt is answered will produce dramatically incorrect results (See Robert B. McPherson).

If you need to edit many employees, you can use Payroll program 21, Quick Edit, to access only the Employee Name field. In this program, you can specify the employee name field twice: once for viewing and once for editing. That way, you don’t have to remember the "old" name while entering the "new", reformatted name.

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Using The New Features In This Patch

How To Implement Deductions For The New Box 12 Codes E, F and S

These special disclosure items are all some type of retirement plan that can reduce the taxable wage basis for FWT. Therefore, they are implemented in the same manner as 401(k) deductions. They must be implemented as a deduction number lower than the deduction numbers for FWT. If monies are deposited into the plan each pay period, the deduction would be added to the employee master. If the plan is only paid into once per year, you can post the deduction manually through program 14, Post Payroll.

How To Report Code K–20% Excise Tax On Golden Parachute Payments

If you made excess "golden parachute" payments to certain key corporate employees, report the 20% excise tax on these payments in box 12 preceded by code "K". If these excess payments are considered wages, this 20% tax must be included in box 2 as part of federal income tax withheld.

If the excess payments are to be considered as wages this must be handled as a separate check within Advantage. To do this, set up a pay type in program 1. This would be a salary–type of pay (not rate per hour). You also need to set up a deduction type in program 3, being certain to flag the deduction with a Federal Reference of 1 for FWT. You can also set up a table to calculate the 20% tax or just manually calculate and enter the amount through Payroll program 14, Post Payroll as you are entering the check.

If the payments are not considered wages, the deduction can be added to any check, but will have to be calculated manually and posted through Payroll program 14, Post Payroll, under the Deduction option.

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