PAY WARE
–
Payroll
Windows
System

2001 Year-End Tax Update
Dear Pay-Ware Client:
Happy Holidays. Enclosed is your Version 4.9 Year End Update CD, which contains 1) all
"patches" & upgrades to version 4.9, 2) the 2001 Year End Close and W-2 processing
routines as well as the 3) first round of year 2002 Federal & State Tax Table Updates.
It is Critical to install this update BEFORE running the Year-End Closing routine and
W-2’s for 2001.
Win 95 is now 7 years and 5 “generations” old. Microsoft will not support it any longer and
we thus cannot guarantee Pay-Ware for Windows performance on that operating system
either. You should upgrade to Win’98 or NT or 2000 or XP.
Included in this Pay-Ware update are all the documented changes to the tax tables which we
have received as of Dec. 12, 2001. These changes are summarized on the next page.
As a special note, be aware that all W-2s are now being generated through Crystal Reports.
We have taken extra care to print them as precisely as possible. If the print lineup is not
acceptable we strongly suggest you try various paper trays and/or other Printers & Printer
drivers to see if the fit is improved. Crystal Reports may also be used to adjust
margins/spacing as needed. Any modified reports should be "saved in the Payware\Custom
folder and the Print W2 should be rerun.
We will post updated Tax Changes to our Website www.pay-ware.com after January 1 as a
downloadable file with instructions. We will advise you by email with the required
password when updates are posted if we have your E-mail address.
Please E-mail us your E-mail address so we can do this: support@pay-ware.com .
We will NOT mail a January Tax Update disk unless you contact us and request
it.
Best Wishes for 2002 and thanks for using Pay-Ware.
Service Technologies Staff
Tax Table Changes
The year 2002 Tax Table changes included in this update are summarized in the chart
below.
State New W/H Formula S. Ded / Exmp./ Dep. Chgs
FED
FICA
AK
AZ
CA
DC
HI
IA
ID
MD
ME
MI
MN
MO
MT
NC
ND
NJ
NM
NV
OK
OR
RI
UT
WA
WY
Credits
SUI Limit
Inflation Adj Brackets To 4700S-6900H-7850M / 3000-Exmp
OASDI to 84900
Incr to 26000
Red.- based on Fed
Red.- New Tables
To 2960S - 5920M&H/
Red – New Tables
Red – New Tables
Red –New Tables
Red- Top bracket
Red – New Tables
Red – New Tables
Red – New Tables
Incr-new bracket
New Tables
To 79 Ea
Incr to 29300
Incr to 18600
/To 2900/
/To 2400/
/To 3000/
Incr to 21000
Incr to 21000
Incr to 18900
Incr to 15500
Incr to 17400
EE ER /Incr 23500 Limit
Incr to 15900
Incr to 20900
Incr to 10500
To 6900H - 4700S – 7850M /
/To 3000/
/To 2900/
Based on Fed
New Tables
Red – based on Fed
Red – New Tables
To 146
/ SDI to 44000
Incr to 28500
Incr to 14700
These are the updates we have received as of Dec 12. We expect additional changes will be
reported after this disk is mailed. If you think there has been a reported tax item change for your
area, which is not on this chart, please contact us so we can check into it.
We will post updated Tax Changes to our Website www.pay-ware.com after January 1 as a
downloadable file with instructions. We will advise you by email with the required
password when updates are posted.
Please E-mail us your E-mail address so we can advise you of updates:
support@pay-ware.com .
We will NOT mail a January Tax Update disk unless you contact us and request it.
Installation and Setup
1. Installation Procedure – Network Server Files
You will need a password from Service Technologies to Install this Update sales@pay-ware.com
Identify the network Drive where Platinum for Windows system files are installed - (P: for example)
Identify the name of Platinum for Windows system folder on that drive - (“Platinum” for example)
Be sure all users are out of Platinum and Pay-Ware. Insert the 2001 Year End Update CD into the
drive of your computer. 1)Open the Start>Run box. Browse to the CD Drive and select PW1201.exe. Once
the path\Filename is in the box, Click OK and the "standard" Windows installer (2) should appear. 3)The 3rd
box will ask for a password.
1)
2)
3) Enter "horse" for the password
Once the update "unpacks" the usual sequence of installation windows will appear. Click "Yes" to accept the
license agreement and then specify the Drive\Directory Path where Payware is installed. Once this is confirmed
by clicking Next - the file movement process will begin.
2. Client File Installation
The Pay-Ware Clients will need to be reinstalled on all Workstations running Pay-Ware. You will get an
On-Screen Prompt the first time you try to start a Pay-Ware Menu Item indicating that the Client files need
to be updated. This is generally an automatic process - Just follow the on-screen instructions until finished.
Year-End Processing
To insure a proper year-end close to your payroll system, the procedure below is suggested.
1. Be sure the enclosed Year-End Pay-Ware Update is installed before you
close payroll for 2001. Payrolls can still be processed for 2001 after the
update has been installed.
2. Completely finish the month of December (the Monthly Reports printed and the month
closed; no January, 2002 Payroll dates or transactions should be entered yet).
3. Print and analyze the final Payroll Journal to be certain each employee’s Year-To-Date
earnings are correct (include all employees: active, terminated, and leave of absence).
4. Make a backup of Pay-Ware Payroll for safety purposes
Note: You do “NOT” have to copy the PB files from your company key directory to a new company key directory. The
Year-End Close will automatically rename the current year balance files (Employee Balances, Attendance Balances,
D/R/A Balances and the Tax Tables) with a file suffix “XX”, where “XX” is the year being closed (e.g.: PBEMPBAL.00).
5. Run Pay-Ware’s YEAR-END CLOSE routine on the Utilities Menu. Note: After this step is
complete, you may run W-2s and Quarterly Reports for 2001 at your convenience, even
after beginning 2002.
6. Set Pay Period Information to “NEW MONTH” (other fields will automatically update) and you
are ready to process your first 2002 Payroll.
W-2 Processing
After the Year-End Close is performed, W-2s may be processed at any time. W-2 Processing
is found on the Utilities Submenu. Pay-Ware will print the following W-2 Form formats.
2 up Track Feed
Laser Form # 5405
Laser Forms 5206 or 5218
2 up Laser #520(1x2)
4 up “Box”(2x2)
4 up Horizontal (1x4)
The information printed on W-2 forms is contained in a file named PBW2 located in the \PLATINUM
SYSTEM\[Company Key] directory. When you run the Prepare W-2 Utility, the PBW2 file is
updated with information from the Employee Master file and the Balance files. In order for a D/R/A
plan to appear on the W-2, its Defaults (in File Maintenance > Cafeteria Plans) must have a
W-2 Category assigned in field 4. We suggest you review these defaults for all Plans to ensure
they are set up accordingly.
The recommended process for generating end-of-year W-2 forms consists of five steps.
Detailed instructions for each step follow this summary.
1. Run the Build W-2 Utility option to update the PBW2 file with all the information
necessary to generate W-2 forms.
2. Run the Print W-2 Forms option in the ‘Trial’ mode to plain paper and check the printed
output.
3. If corrections are necessary, use the W-2 Information Maintenance option to make the
needed changes: This will update the PBW2 file with the changed details.
4. Print the forms again in ‘Trial’ mode to verify any changes made.
5. Align and Print the W-2’s to form stock in Trial Mode. This allows easy reprinting of "lost"
forms. Reprinting in "Final" mode clears the working file and archives it to history
(Printing may be done in "Final" Mode after April 30)
Special note for LOCAL TAX Reporters. Be sure the Local Tax Description (field 8)on Tab 2 of the EE Master
contains the name of any Local Tax Authority for these Employees. This name is fed to the Build W-2 Utility so
it will automatically print on their W-2 Form. Otherwise you must add it after the fact.
1. Build W-2 Information
This procedure updates the PBW2 file with all information necessary to generate the final W-2 forms.
Select Build W-2 INFORMATION from the Utilities menu. This option (when initially accessed) provides a
Report Maintenance screen similar to all Report Maintenance screens.
You will receive this message when the file is
successfully built.
Tips Earning Class <Alt Z>
Type (or select from the zoom window) the Earnings Type Key that is
Used for tips. If tips are not used, specify None by typing a zero <0>.
INCLUDE LOCAL TAXES IF
ANY
Type <Y> if local taxes should be reflected on the W-2’s. If local taxes
should not be reflected, type <N> .
YEAR TO SEARCH FOR
D/R/A’S
Type all four numbers of the calendar year for which you are generating
the W-2’s and searching the DRA file (e.g. 01). Note: if DRA’s are to be
included on the W2, you must set the W2 category on the Cafeteria Plan
Defaults screen.
The Trial w-2's may now be printed (see section 3) to plain paper and information verified for
accuracy. Any adjustments are made as follows.
2. W-2 INFORMATION MAINTENANCE
If, after examining the Printed Trial W-2’s, corrections are needed, use the W-2 INFORMATION
MAINTENANCE Option. The Correct W-2’s Screen is where you can recall employee records and
make any necessary changes exactly as they will appear on the W-2s. This option also updates
the PBW2 file, when any changes are made and saved.
Important Note: because this option only accesses the PBW2 file, changes made will not update any
other Pay-Ware data files (such as the Employee Master or D/R/A files). If information is changed in those
files, the BUILD W-2 INFORMATION Utility must be rerun so the PBW2 file will contain the most recent
information.
Employee records may be recalled by Employee Key, Employee Name, Dept or State/Soc. Sec.No.
sequence. There are 3 Tabs showing all W-2 Fields. These values may be adjusted & resaved.
3. Print the W-2 Forms (Trial Mode)
Trial Mode (Plain Paper recommended)
The Print W-2 Forms option allows you to print “formatted” W-2’s, which should be examined
carefully to determine if any changes are necessary. You can also specify whether you will be
submitting W-2 information on magnetic media (diskettes). The MMREF-1 mag media file will be
regenerated each time a trial printing is made. Trial mode W-2s may be reprinted to the Screen or
to hard copy (usually plain paper) for easy review and verification.
From the Utilities menu, select PRINT W-2 FORMS. From the “Order By” sub-menu, select the
desired W-2’s print range & sequence Employee Key, Department, Employee Name or State/SSN.
Fill out all appropriate fields on the parameter screen (below) and process.
Check for alignment by comparing any hard copy output to the desired form.
Tab 1 - Parameters
BEGINNING KEY <F9>
Define the range of W-2's to print (or generate Mag Media for). Press <Enter> to
default <<FIRST>>(or select from the F9 Lookup) the key to start with.
ENDING KEY <F9>
Enter the ending Range key <F9> .
PRINT EMP KEY AS CTRL
NO.
The Employee Key (as defined in the Employee master file) will be printed in Box
1 as the Control number if you specify Y in this field. Enter N, leaves Box 1 blank.
PRINT COMPANY NAME
Specify <Y> Yes to print the company name, Otherwise specify No <N>.
TRIAL/FINAL
A Trial (T) printing can be generated as often as desired, and should be
examined to see if any changes should be made before printing in Final (F)
mode. All information remains in the PBW2 file until the W-2’s are run in Final
mode: the details for each employee are then moved to a history file called
PBW200. Note that there is no file listing or report for this history file; however, a
third party application (for example, Crystal) can be used to examine the history
data.
It is recommended NOT to run in final mode until after April 30.
This will allow easy regeneration of misplaced individual W2s.
Remember all W-2's are generated via Crystal Reports. They may be
edited to allow for individual laser printer variations.
Select the appropriate Format Option for the form you are using.
Select ”A” - Default Setting will print 2-up Forms to either a
Dot Matrix or to a Laser Printer - (EE & ER Versions).
Select ”B” to print Laser Form 5405 4 up Box (2x2) EE Version.
(Four copies of ONE EE per Pg.)
“BR” prints ER copies of 4 up-Box.
(ONE copy ea of Four DIFFERENT EE’s)
Select “C” to print Laser Form 5206 (1x4-Full Width) EE Version.
(ONE EE/Pg.)
“CR” prints ER copies of Form (1x4).
(ONE copy ea of Four DIFFERENT EE’s)
Select “D” to print Laser Form 5218 (has Box 13 checkboxes ) (1x4-Full Width) EE Ver.
(ONE EE/Pg.)
“DR” prints ER copies of (1x4).
(ONE copy ea of Four DIFFERENT EE’s)
W-2 FORMAT
Selection: <A>
2up/2EE per Pg.
<B> & <BR> (ER copy)
Form # 5405
<C> & <CR> (ER copy)
4up Box(2x2)
Form
# 5206 4up(1x4)
No Checkboxes for Box 13
<D> & <DR> (ER copy)
Form # 5218 4up(1x4)
Has Checkboxes for Box 13
Options B, C & D print 4 copies for ONE Employee per Page. Options BR, CR & DR (Employer
format) print 4 DIFFERENT Employees/Pg.
Tab 2 Magnetic Media Generation – See SSA Website for complete information - http://www.ssa.gov/employer/
GENERATE MAGNETIC MEDIA –
Diskettes Only
- MMREF-1 Format only
Check the box to submit records on Magnetic Media using 3.5"diskettes. One or
more files (depending on the amount of disk space needed) named W2REPORT.???
will be created in your \PLATINUM\[Company Key] directory when you output W-2’s.
Each of the files will be of a size that can be copied to a floppy disk, and will have
extensions of .001, .002, etc. An instruction screen will list the filenames created.
SSA Filing Instructions are on its Website: http://www.ssa.gov/employer/
All the following fields are REQUIRED for Magnetic Media.
CONTACT NAME
Enter a Contact name for your Organization.
PHONE NO.
Enter a Phone No. for your Organization.
PERSONAL PIN NO.
Enter a PIN No. for your Organization.
E-MAIL ADDRESS
Enter an E-mail Address for your Organization.
FAX NO.
Entera Fax No. for your Organization.
RESUBMISSION FILE
Enter (Y)es if this file is a Resubmission – Otherwise enter N.
RESUBMIT TLC NO.
If this is a Resubmitted File - include the SSA's provided Resubmit ID No.
BUSINESS TERMINATED
Enter a (Y)es here if this business has Terminated operations.
BUSINESS CODE
Select the appropriate Business Code from the Lookup Window <Alt Z>.
Print W-2s to Form Stock for Distribution
Once all changes are made, alignments have been verified and the File looks correct, the W -2s
can be printed to Form stock for distribution to employees. Note that a Trial (T) printing can be
generated as often as desired. We recommend against printing the forms in Final Mode until
after April to allow easy review of W-2 data and generation of needed replacement W-2’s.
All information will remain in the PBW2 file until the W-2’s are run in Final mode: the details for each employee
are then moved to a history file called PBW2.00. Note that there is no file listing or report for this history file;
however, a third party application (for example, Crystal) can be used to examine the history data.
Remember all W-2s are now being generated through Crystal Reports. We have
taken extra care to print them as precisely as possible. If the print lineup is not
acceptable we strongly suggest you try various paper trays and/or other Laser
Printers & Printer drivers to see if the fit is improved. Crystal Reports may also be
used to adjust margins/spacing as needed. Any modified reports should be "saved in
the Payware\Custom folder and the Print W2 should be rerun.
Complete Magnetic Media filing information (including which states use the MMREF1 format) is available on the Social Security Website at http://www.ssa.gov/employer/
End of Document