DYNALOGIC, INC - 2005 W2 INSTRUCTIONS

 

 

When printing the W2s, please print a test file prior to releasing the entire file on forms. If you have any questions or notice any discrepancies on your forms, please contact Jim or Laura at Dynalogic.

 

Another item of note: After your get your Circular E, you will need to update your tax tables from the Annual Table for the year 2006. Please make sure this is done in the dypr2006 directory only.

 

Please refer to our Payroll Year End preparation instructions (2005 Payroll-Yrend.doc) for additional information.

 

This remaining information in this letter discusses the electronic filing process.

 

Most of the W2 processing programs have not changed much for the year ending 2005. This is the fifth year that electronic filing is using the MMREF-1 format. Please see the IRS publication MMREF-1 for complete information. It is important for each of you to test the transmittal file created with our software using the IRS program ACCUWAGE for 2005 (which can be downloaded from the following site):

 

www.socialsecurity.gov/employer

 

Within this site under “Employer Information Website Index” select Wage Reporting Software

Under “SSA Software”, select AccuWage Information and Software

From that page select AccuWage Software – 2005 Tax Year for the MMREF-1 format.

Download AccuWage Version 1.1.0

 

The AccuWage software identifies many, but not all, wage submission format errors. AccuWage does not verify names and SSNs. But testing your transmittal file with AccuWage will decrease the likelihood your file will be rejected by the SSA.

 

Note:  Electronic filing is considered the “best practice” for submitting Form W-2 data to SSA.

 

 

Changes for 2005 Year

 

1. Social Security Wage Base is $90,000.

 

Please see the IRS MMREF-1 Publication for additional information.

 

You can download the MMREF-1 publication from the www.socialsecurity.gov/employer site

 

Within this site under “Employer Information Website Index” select Wage Reporting Software

Under “SSA Software”, select AccuWage Information and Software

There is a reference to the MMREF-1 format that takes you to the Forms and Publications page.

You can download MMREF1-TY05 as either a Word Document or as a PDF.

 

2005 Changes include:

 

      RA-SUBMIT-PIN shortened from 17 to 8 characters

      New “Box 13” (really is Box 12)

            RW-NON-TAX-COMBAT-PAY   RT-NON-TAX-COMBAT-PAY   Y

            RW-DEF-SECTION-4091A    RT-DEF-SECTION-4091A    Z

            RO-INC-SECTION-4091A    RU-INC-SECTION-4091A    Q

 

  

Magnetic Media or Electronic Filing file information

 

Name of file W2REPORT

 

Length of each record: 512 bytes

 

This file consists of the following records:

Code RA Submitter Record              Required
Code RE Employer Record               Required
Code RW Employee Wage Record          Required
Code RO Employee Wage Record          Optional
Code RS State Record                  Optional
Code RT Total Record                  Required
Code RU Total Record                  Optional
Code RF Final Record                  Required

 

Please see the IRS publication for specific information about the contents of each record.

 

Program input information

 

The following information describes the fields that must be filled in to generate the transmit file. These screens are found in programs R01505FL (Create a new W-2 work file) and R01505MD (Maintain the W-2 work file).

 

Screen 1: Employer Information.

This screen identifies the Employer (or Company) that paid the income reported on the W-2 forms.

 

Payment year is 4 digits (ccyy).

 

Employer addresses is 22 characters since that’s all that is allowed on the transmit file. The first line of the address is for Attention to, Suite, or Room #. The second line of the address is for the actual PO Box or Street address.

 

Zip code has been separated into the two fields of 5 characters and 4 characters each.

 

3rd Party Sick Pay indicator is on this screen. (0=No, 1=Yes).

3rd Party Sick Pay Tax withheld is on this screen.

 

Other EIN (Employer Id Number) – this field is needed if this year you submitted a Form 941 or 943 to the IRS or W-2 data to the SSA with a different EIN.

 

Company terminated indicator. (0=No, 1=Yes).

 

 

Screen 2: Transmitter Information (now called Company Information)

This screen identifies who is to receive the MMREF-1 annual filing instructions.

 

Company addresses is 22 characters since that’s all that is allowed on the transmit file. The first line of the address is for Attention to, Suite, or Room #. The second line of the address is for the actual PO Box or Street address.

 

Zip code has been separated into the two fields of 5 characters and 4 characters each.

 

Submitter PIN (Personal Id Number) is for the employee who is authorized to submit this file.

 

Resubmitted file. (0=No, 1=this file is being resubmitted).

 

WFID. This field represents the WFID (Wage File ID) displayed on the notice sent to you by the SSA and is only required if the file is being resubmitted.

 

Software Code field indicates the software used to create your file. Values include: 98=In-House program, 99=Off-the-Shelf software.

 

Screen 3: Authorization information (now Return Processing information)

This screen identifies who is to be notified of unprocessable data and where the data should be returned.

 

Return Processing addresses is 22 characters since that’s all that is allowed on the transmit file. The first line of the address is for Attention to, Suite, or Room #. The second line of the address is for the actual PO Box or Street address.

 

Zip code has been separated into the two fields of 5 characters and 4 characters each.

 

Contact Name, Phone, and Extension indicate the person the data would be returned to.

 

Contact Email field is needed if the method of contact indicated below is e-mail.

Contact Fax field.

 

Preferred Method of Contact indicates how the IRS should contact you if there is a problem. Options include 1=Email, 2=Postal.

 

Preparer Code indicates who prepared this file. Options include A=Acct Firm, L=Self, S=Service Bureau, P=Parent Company, O=Other.

 

 

Information about the remaining screens can be found in the Dynalogic Payroll User Manual.