Step 6

KVS PR - Annual Report

This report, reports on the annual FICA and Medicare Wages. To run the Annual Report, follow these steps. This report  will be used later to balance to the W2 report

• In your prior year payroll choose Reports > Quarterly/Annual Report
• Process Options  
  • Annual Wage Report
  • Year Ending = 12/31/20XX
  • Enter State Name for your Municipality
  • Send to Queue
  • Choose All Employees unless you report W2's by separate job close codes
  • Click OK
  • The report can be viewed/printed in the spooler (PRQANUAL.###)

Step 7

Balance Earnings History to YTD Earnings Register

These 2 reports are used for balancing. Make sure the Earnings and History reports match.  

➢ Earnings History Report: Run the Earnings History report with the following options:

• In prior year PR, choose Reports > Earnings History report
• Enter Check Date Range 01/01/20XX - 12/31/20XX
• Select Include Summary Totals Only
• Select QUEUE
• Click OK

Once the report has spooled it will be in the spooler under the name PRQ32OUT.###

Step 8

Year-End Recommended Reports

At the end of the calendar year we recommend running a Full Payroll Register with All Employees, Individual Deduction  Register with YTD Totals, and the Benefit Report.

Full Payroll Register with All Employees:

Once spooled this report will be in the spooler (PRQREGIS.###)

Individual Deduction Register with YTD Totals:

• In prior year PR, choose Reports > Individual Deduction Register
• Select YTD Deductions
• Select Suppress If YTD Deduction Amt is Zero
• Unselect Print Employers from Current Payroll Only
• Select Print All Deductions
• Select QUEUE and Click OK

Benefit Report

Only run this report if you keep track of paid time off in the KVS PR module  

• In prior year PR, choose Reports > Benefit Report
• Choose desired Report by and Sort By
• Select Suppress Zero Benefits
• Select Print Benefit Break Down (Only if user enters a date the benefit code was used)
• Enter Benefit Date Range 01/01/20XX - 12/31/20XX (Only if user enters a date the benefit code was used)
• Select Queue

Step 9

Setup Employer Sponsored Health

If by IRS regulation you need to report code DD in Box 12 on the W2's and it has not been tracked throughout the calendar year we have a few different option to add the Benefit Paid record. Code DD is used to report the total cost of health insurance premiums for an employee. If this needs to be reported we have 2 options for setup. Either of the options selected are tools to be used to help with  adding the records. Manual changes will most likely be necessary for some employees.

OPTION 1: PRBPD02

Create YTD Amount for Full Premium

This option only creates the YTD amount in the Benefits Paid Record based on a single/married option.

• All single employees will be updated with the annual amount for single coverage
• Any exceptions will need to be manually changed on an employee basis
• All married employees will be updated with the annual amount for family coverage
• Any exceptions will need to be manually changed on an employee basis

1a. Set Up Deduction - This deduction must be different code than the employee portion (See screen shot example on  next page).

• In prior year PR, choose Setup > Deduction F/M
• Enter a Deduction number for Employer Health Premiums (This may already be in the list)
• Complete the Deduction Setup with the following Information  
  • Desc - ER Health
  • Abbrv - ER Health
  • Check off Employer Pays
  • Input a valid GL Account for both employee and employer pays
  • W2 Description = DD
  • Check Off Rate Table Maintenance
  • Click on the Rate Table Maintenance Tab
  • On the first line enter the following:
    • Code = 01 • $/% = $
    • Amt = YTD amount for single coverage
• • On the second line enter the following:  
  • Code = 02
  • $/% = $
  • Amt = YTD amount for family coverage
• Click Ok to save the deduction record

1b. Add Benefit Paid Records to Employees with YTD Earnings:

• From Logon screen of prior year PR, choose Run Cobol
• Enter Program Name to Run - PRBPD02
• Did You Back Up - Click Yes only if a backup exists
• Work Status - Choose who is being updated  
  • All - All Employees (caution both full time and part time employees will be updated regardless if the  part time employees have coverage)
  • Full Time - Will only update employees if their work status starts with an "F"
  • Part Time - Will only update employees if their work status starts with a "P"
• Benefit Paid Code to Be Added - enter the code that needs to be added as a Benefit Paid
• Rate Table - more often this is left blank. The rate table selected will be updated to all employees selected
• Apply Rate Code Based on Single/Married - If checked this will update single employees with the YTD  amount from Rate Table Maintenance code 01 and married employees for code 02
• Click OK when from is complete to run the process
• OK to Begin? - Click Yes to run the process

When finished skip Create YTD Amount for Employer Portion Only and move to Verify Data

OPTION 2: PRBPD03

Create YTD Amount for Employer Portion Only:

2a. Set Up Deduction - This deduction must be the same code as the employee portion  

• In prior year PR, choose Setup > Deduction F/M
• Enter a Deduction number for Health Premiums
• Complete the deduction setup with the following Information
• Click Modify  
• Check off Employer Pays
• Input a valid GL Account for both employee and employer pays
• W2 Description = DD125
• If using Rate Table Maintenance Click on the Rate Table Maintenance Tab
• Make sure there is a corresponding code for the employer portion
• Click Ok to save the deduction record

2b. Add Benefit Paid Records to Employees with YTD Earnings

• From Logon screen of prior year PR, choose Run Cobol
• Enter Program Name to Run - PRBPD03
• Did You Back Up - Click Yes only if a backup exists
• Complete the Form - A row will be added for each different rate that an employee has  
  • Ded # - Enter the deduction code for Health Insurance
  • Empe Type - Enter the Employee Type - This needs to match the employee setup for the Benefit Paid Record  to be updated  
    • T - Rate Table
    • $ - Dollar Amount
    • % - Percentage
  • Empe Tbl # If Empe Type = T enter the corresponding rate table
  • Employee $
    • If Empe Type = T will display from rate table
    • Otherwise enter value on employee record
  • Empr Type Enter Employer Type  
    • T - Rate Table
    • $ - Dollar Amount
    • % - Percentage
  • Empr Tbl # - If Empr Type = T enter the corresponding rate table
  • Employer $  
    • If Empe Type = T will display from rate table
    • Otherwise enter value on employee record
    • Empe % - Enter % the employee pays of their coverage

2c. Add additional rows for every value that an employee could have:

• Update YTD on Employer Benefit Paid Only  
  • Checked - Will create the Benefit Paid Record with a frequency of 0
  • Unchecked - Will create the Benefit Paid record with the same frequency as the deduction record
• • OK when from is complete to run the process
• • Click OK when from is complete to run the process
• • OK to Begin? - Click Yes to run the process

3. Verify Data Added: The records that were updated by running either option above can be checked by  running the Individual Deduction Register

• In prior year PR, choose Reports > Individual Deduction Register
  • Report By - Choose how you want the report sorted
  • Include - YTD Deduction
  • Deduction Options - Uncheck Print All Deduction  
    • Answer Y for ER Health Deduction Only
  • Report Destination - Send to Queue
  • Click OK  
• Once finished the report will be in the spooler with the file name PRQINDED.###

4. File Maintain Employees: Any employee who is incorrect on the Individual Deduction register needs to be  manually changed. To change follow these steps:

• In prior year PR, choose F/M > Employee Master F/M
• Search for employee(s) that need modifications
• Once on employee record, click on Benefits Paid F/M
• Make necessary changes so the correct amount is being reported on the W2
• Once finished Click OK and repeat for all employee(s)

Step 10

KVS PR - Verify Deduction Codes Have Correct W2 Description

Only Deductions that have a W2 description print on the W2's. Verify each deduction has an appropriate deduction code.

• In Prior Year PR, Choose Setup > Deduction F/M
• For every deduction look at the W2 Description - Leave the box blank if no W2 reporting is required

Valid Codes for Box 10

CHILD - Child Care Deduction

Valid Codes for Box 12

A - Uncollected Social Security or RRTA tax on tips.

B - Uncollected Medicare tax on tips.

C - Taxable cost of group-term life insurance over 50,000.

D - Elective deferrals to a section 401(k) cash or deferred arrangement plan (including a SIMPLE 401(k) arrangement).

E - Elective deferrals under a section 403(b) salary reduction agreement.

F - Elective deferrals under a section 408(k)(6) salary reduction SEP.

G - Elective deferrals and employer contributions (including non-elective deferrals) to a section 457(b) deferred compensation plan.

H - Elective deferrals to a section 501(c)(18)(D) tax-exempt organization plan.

J - Nontaxable sick pay.

K - 20% excise tax on excess golden parachute payments.

L - Substantiated employee business expense reimbursements.

M - Uncollected social security or RRTA tax on taxable cost of group-term life insurance over 50,000 (former employees only).

N - Uncollected Medicare tax on taxable cost of group-term life insurance over 50,000 (former employees only) P - Excludable moving expense reimbursements paid directly to the employee.

Q - Nontaxable combat pay.

R - Employer contributions to an Archer MSA.

S - Employee salary reduction contributions under a section 408(p) SIMPLE plan.

T - Adoption benefits.  

V - Income from exercise of non-statutory stock option(s).

W - Employer contributions (including employee contributions through a cafeteria plan) to an employee’s health savings account  (HSA).  

Y - Deferrals under section 409A on a nonqualified deferred compensation plan.

Z - Income under section 409A on a nonqualified deferred compensation plan.

AA - Designated Roth contributions under a section 401(k) plan.

BB - Designated Roth contributions under a section 403(b) plan.

CC - HIRE exempt wages and tips (2010 only).

DD - Cost of employer-sponsored health coverage.

EE - Designated Roth contributions under a governmental section 457(b) plan

Valid Codes for Box 14

414H – Retirement deduction

401(a) – Retirement Plan

SEC125M/I – Section 125 Plan PAUC – PA Unemployment Compensation

Special Codes for Box 12 and 14

DD125 – Use this code to track employer sponsored health insurance when the employee and employer portions use the same  deduction code and the employee deduction is a Section 125 plan. The employer portion will print in Box 12 with DD and the  employee portion will print in Box 14 with SEC125M/I.

If a code other than those listed above is used, the deduction will be reported in Box 14. Leave the field blank if No W2 reporting is  required.

Step 11

Verify Benefit Code Setup Has Correct Fringe Benefit Selection

Fringe Benefits needed to be reported in box 14 of the W2's. To check if a Benefit code is setup as a Fringe Benefit,  follow the steps below:

• In Prior Year PR, Choose Setup > Benefit F/M
• Check the "Fringe" check box for any benefit code that needs to be reported as Fringe in box 14

Step 12

KVS PR - W2 Report and W2 Forms

After all previous steps have been run and balanced continue on with running the W2 Report and Forms.

• In prior year PR choose Reports > W2-Forms
  • Report Type - W2 Forms
  • Sort By - Choose desired sort for W2 Forms o Report By - Choose desired sort for W2 report
• Enter the two-character State Abbreviation Code
• Number of Test Patterns - for the number entered a test form will print with all X's
• Enter Third Party Sick Pay Code - Choose the benefit code that third-party sick is paid from
• Subtotal Local Taxes Separately on W2
  • Yes - will report each local code individually
  • No - will report the local codes together
• Summarize W2 Codes for box 14 -
  • Checked - All deduction amount with the same W2 Description will combine together in Box 14
  • Unchecked - All deductions will be listed individually on the W2. Not Summarizing may cause employees  to receive and overflow W2. Only 4 codes will fit in box 14 on 1 W2.
• Adjusting Print Start Enter 00 for the first time
  • If after printing W2 on plain paper an adjustment is necessary, Enter a number 1 - 90
    • 90 represents 1 line while 45 represents ½ a line. This allows an adjustment to be made when  generating the W2 print
    • Adjust Starting Print Line (U)p or (D)own Enter U or D
• Include SUI Withholdings on W2
  • Yes - Will print SUI withholding on W2
  • No - Will not print SUI withholding on W2
• Employee Processing - Select All employees unless you want to report by specific job class codes
• Click OK

The W2 Report automatically generates and is located in the spooler (PRQW2RPT.###) The W2 Forms print file is located in the spooler as PRQ19RP1. Each time the W2 Forms are generated, this file is  overwritten.

Review and verify the W2 REPORT prior to printing W2 forms.

• Verify totals on W2 report matches the YTD totals on the Earnings Register and Annual Report.
• Verify totals on W2 report matches the totals on the W2 Forms
• Verify All 4 quarters of 941 filed for the year equal YTD totals on W2 Report
• PLEASE NOTE: New York state wages will not match the total state taxable wages on the W2 total page as New York requires that federal taxable wages be reported in Box 16.

To print W2 Forms

The first time print the forms on plain paper

• In prior year PR choose the spooler
• Select the PRQ19RP1 file
• Select Direct Accu/Print
• Choose desired Printer
• Click OK

Verify W2 Forms

• Verify alignment by holding up W2 form to printout
• If alignment is off - re- spool the W2 Form and Adjust Print Start
• Verify all deductions with a W2 description are listed in the correct box on the W2
• Verify any fringe benefit is listed as "Fringe"
• Verify grand total W2 Form equals YTD totals on the Earnings Register and Annual Report

If there are any issues verifying the W2's contact KVS support for assistance.

Step 13

KVS PR - Create State W2 File

To create a W2 file to submit to the municipalities state follow these steps:

Note: NY State clients skip this step. NY clients only need to process the quarter file.

• In prior year PR, choose Processes > Create Tape Files > W2 Tape File
  • Filing Choice - Choose appropriate state
  • Resubmission - Leave this box unselected
  • Payment Year = 20XX
  • Employee Processing - Select "All Employees" unless you submit by job class to the  state.
  • State Id Number - This is assigned by your state
  • State Code - Colorado = 08; Connecticut = 09; Indiana = 18; Kentucky = 21;  Massachusetts = 25; Ohio = 39; Pennsylvania = 42
  • User ID - This is assigned by your state
  • Contact Name  
  • Contact Phone
  • Contact Email
  • Contact Fax
  • Third Party Sick Pay Benefit - Enter the code you use to report third party sick pay
  • Pref Method of Notification  
    • Select “1” for email  
    • Select “2” for regular mail; if selecting “2” be sure that Address-2 field on the  General Municipality screen is populated. Without the address the process will  error out.
  • Deduction Codes for Local Retirement Contribution - This option is only necessary for  Massachusetts clients
  • Click OK When ready to process
  • Compare Earnings Register against the display - only submit if the file matches. If  there is a discrepancy contact support

This will create a file named PRSTW2OUT1, in the prior year directory (for example, K:\KVS\PR_MAS20XX)

Step 14

KVS PR - Create W2 File

To create a W2 file to submit to the Social Security Administration. follow these steps. This can  be skipped if filing a paper form.

❖ In prior year PR, choose Processes > Create Tape Files > W2 Tape File

• Filing Choice - W2 File
• Resubmission - Leave this box unselected
• Payment Year = 20XX
• Employee Processing - Select "All Employees" unless you submit by job class to the  state.
• State Id Number - This is assigned by your state
• State Code - Colorado = 08; Connecticut = 09; Indiana = 18; Kentucky = 21;  Massachusetts = 25; New York = 36; Ohio = 39; Pennsylvania = 42
• User ID - This is assigned by Social Security Administration
• Contact Name
• Contact Phone
• Contact Email
• Contact Fax
• Third Party Sick Pay Benefit - Enter the code you use to report third party sick pay
• Pref Method of Notification
  • Select “1” for email
  • Select “2” for regular mail; if selecting “2” be sure that Address-2 field on the  General Municipality screen is populated. Without the address the process will error out.
• Kind of Employer - Choose appropriate response
• Click OK when ready to process
• Compare Annual Report against the display - only submit if the file matches the  report. If there is a discrepancy contact support

This will create a file named PRW2OUT1, in the prior year directory (for example,  K:\KVS\PR_MAS20XX)