E-NEWS DECEMBER

When Should You Perform W2, 1099 and 1098 Activities?

• • 1. The proper time to follow W2 preparation procedures is after the last paid payroll in the calendar year and before the first paid payroll in the new calendar year. Paid payroll is defined by the date on the payroll check – not by the pay period ending date. If your paid payroll includes all or part of days worked in December, but checks are not dated and issued until sometime in early January, then W2 steps should be followed before January paychecks are issued.
    2. You will need to prepare certain steps to save the current calendar year payroll information and clear year-to-date amounts before issuing your first payroll in January. Once these steps are performed, you may print W2’s at any time.
    3. You may perform normal 1099 activities any time after you have issued the last accounts payable checks for the year. You do not have to print 1099’s before issuing checks in the new year.
    4. If you will be preparing 1098’s for your RLSS system, then you must make certain that transactions dated in the current calendar year are recorded before proceeding. 1098’s review loan histories for specified dates allowing you to print 1098’s at any time – even after new year transactions are entered.

W-2’s and 1099 MISC and NEC Calendar Year End Checklist
What can you do now to be prepared for processing 1099 MISC and NEC?

 Read through and be familiar with IRS instructions:
• Instructions for Forms 1099-MISC and 1099-NEC (01/2022) | Internal Revenue Service (irs.gov)

 Review the GMS Instructions in the HELP Manual
• #330 Complete 1099’s – GMS Accounting Online Help (helpgmsactg.com)

 Review the Vendor file information is correct based on IRS Form W-9 that the vendors provided to you:

• • • Vendor Name
    • Vendor Mailing Address
    • Confirm the Federal ID #
    • Eligible box MUST be checked
    • If a 1099 MISC will be required, 1099 Box must contain a number where the 1099 MISC amount will be reported based on the IRS Instructions
    • If a 1099 NEC will be required, place a checkmark next to in the checkbox next to 1099NEC and the 1099 box will be populated with the number 1.

What can you do before processing your last paychecks dated in 2022?

 Read through and be familiar with IRS instructions:

• • https://www.irs.gov/pub/irs-pdf/iw2w3.pdf

 Review the GMS Instructions in the HELP Manual

• • W2 Processing – GMS Accounting Online Help (helpgmsactg.com)

 Special Issues to Consider

• • Do you have 3rd party sick pay that will need to be reported on your W2’s?
  • Did any of your present or terminated employees receive life insurance more than $50,000?
  • Have you made any expense reimbursements that are considered taxable?
  • Do you have an employer sponsored health plan that needs to be reported?
  • Do you have a cafeteria plan?
  • Did you withhold dependent care benefits from any employees that must be reported in Box 10 on W2’s?
  • Do you have a qualified pension plan?
  • Did you withhold any Ohio School District taxes?
  • Did you have employees who made contributions to a deferred compensation retirement plan?

 Make sure all employee information is correct.

• • Employee Name is spelled correctly
  • Social Security numbers are entered correctly
  • Address changes

 Confirm that year-to-date payroll information is correct.
 Print and review state and Local Tax Analysis

What must be completed after the last payroll check issued with a December 2022 pay date and before the first payroll check dated in January 2023?

 All special issues have been considered and completed.
 Make sure that tasks from above listing have been completed
 Prepare Fourth Quarter Payroll Reports
 Reconcile 2022 Quarterly Payroll Reports to the YTD Payroll Register.
 Save/Clear YTD Amounts

• Refer HELP manual for detail instructions
• W2 Processing – GMS Accounting Online Help (helpgmsactg.com)

 Install December Software revisions before proceeding

NOTE: You may now proceed with processing your first payroll in January. W2 printing may take place at your convenience

What can you do before processing your last paychecks dated in 2022?

 Read through and be familiar with IRS instructions:

• • https://www.irs.gov/pub/irs-pdf/iw2w3.pdf

 Review the GMS Instructions in the HELP Manual

• • W2 Processing – GMS Accounting Online Help (helpgmsactg.com)

 Special Issues to Consider

• • Do you have 3rd party sick pay that will need to be reported on your W2’s?https://www.irs.gov/pub/irs-pdf/iw2w3.pdf
  • Did any of your present or terminated employees receive life insurance more than $50,000?
  • Have you made any expense reimbursements that are considered taxable?
  • Do you have an employer sponsored health plan that needs to be reported?
  • Do you have a cafeteria plan?
  • Did you withhold dependent care benefits from any employees that must be reported in Box 10 on W2’s?
  • Do you have a qualified pension plan?
  • Did you withhold any Ohio School District taxes?
  • Did you have employees who made contributions to a deferred compensation retirement plan?

 Make sure all employee information is correct.

• • Employee Name is spelled correctly
  • Social Security numbers are entered correctly
  • Address changes

 Confirm that year-to-date payroll information is correct.
 Print and review state and Local Tax Analysis

What must be completed after the last payroll check issued with a December 2022 pay date and before the first payroll check dated in January 2023?

 All special issues have been considered and completed.
 Make sure that tasks from above listing have been completed
 Prepare Fourth Quarter Payroll Reports
 Reconcile 2022 Quarterly Payroll Reports to the YTD Payroll Register.
 Save/Clear YTD Amounts

• Refer HELP manual for detail instructions
• W2 Processing – GMS Accounting Online Help (helpgmsactg.com)

 Install December Software revisions before proceeding

NOTE: You may now proceed with processing your first payroll in January. W2 printing may take place at your convenience

Service and Assistance

January is by far the busiest month of the year for our Software Technical Support Team. Thank you in advance for your patience and understanding.  We strive to provide each of our clients with the best service we can.

GMS Service Hours are 8:30 am to 5:00 pm ET Monday through Friday

Place a service call by calling    800-933.3501 or via the website at:

Request a service call – Grants Management Systems (GMS) (gmsactg.com)

GMS Chat Room Hours are 8:00 am to 4:30 pm ET Monday through Friday

If you have a quick question, you can use the GMS Chat Room via

Chat Conversation (alive5.com)  or

Click on Help, Chat in the upper left corner of your software