Purpose of this Document:
This document details the necessary steps to be followed in order to complete the Year End Process in TempWorks Software. It involves the completion of Data Integrity Checks, creating and printing the W2's and 1099's, and creating state and federal mag media files.
Year End Process General Information:
- Year End Processing can be run at System level or at EINC (Entity) level for reporting once your year has been closed.
- The year must be closed by TempWorks if you are a hosted client.
- Please call our support line to schedule your Year End process by the end of November.
Accessing Year End Processing in Enterprise:
To access the Year End Processing in Enterprise, navigate to pay/bill, then select year end from the list of options on the left:
If the year is not yet displayed, you will need to add the year you need to process:
- To do this, click on the sign located in the upper right.
- The form below will be displayed.
- Add the year and select either System level or the EINC from the drop-down.
*Note* You can only have one year created per Entity. You will then be brought in to the Year End worksheet.
Year End Overview:
Once you have selected the year end option in pay/bill, you will see the following page:
This step by step process will walk you through closing the year. Below we will cover each step, as well as best practices.
Please review each step in detail before beginning the process.
If you have questions throughout, don't hesitate to contact TempWorks, but please note there are also tool tips built in.
Placing your mouse over icons or reports will provide you with additional details regarding that item.
Closing the year in Enterprise requires the following 6 steps:
- Run Integrity Check
- Initialize New Year
- Generating W-2 and 1099 data
- Downloading W2's, 1099's, W3's, 1096's, and Employer W2's
- Pass Mag Media Data Check
- Download Federal, State, and Local Mag Media files
First, click on 'Run Check' to run the data integrity check.
- The Integrity check is checking for potential errors and missing data.
Once you've completed the integrity check, the Data Integrity Check Report will be displayed. Use this report to view the any errors or potential discrepancies.
Data Integrity Check Report Reviews the Following:
- Checks for errors in employee names, addresses, etc.
- Checks for wage discrepancies.
- Gives warnings for things that need to be verified such as employees with over 9 exemptions.
*Note* Viewing this report does not re-run the check. The report is displaying the results of the most recent check.
Once You Review the Report, You Will Have Two Options:
- Correct errors, if applicable, or contact TempWorks for assistance.
- If any information has been changed and/or you've corrected errors, rerun the integrity check and integrity check report to ensure accuracy.
- If no errors were received, the Integrity Check Addressed step should be automatically marked 'Complete' and the 'Check Finished' box will be grayed out.
- If there are errors or discrepancies that you wish to approve, manually click on the 'Check Finished' box to mark this step complete.
Next, There Will Be Two Reports You Can Run to the Right of the Checklist:
- Run the Estimated 1099 Count Report:
- This report provides an estimate of how many 1099's will be created in the system at year end.
- This report is helpful in knowing how many 1099's to order.
- Run the Estimated W2 Count Report:
- This report provides an estimate of how many W2's will be created in the system at year end.
- It is helpful to run this report to know how many W2's to order.
Initializing the New Year is essentially the point of no return. It is best practice to ensure you have closely reviewed the 'Data Integrity Check' report and the 'Tax Deposit' or 'Payroll Journal' report to ensure all items are accurate.
Initializing the year takes all current year information, saves it off, and sets the system up for the New Year. Any corrections or voids that need to take place after this step has been completed will need to be done with the assistance of TempWorks.
Once you've confirmed the information is accurate and you are ready to initialize the New Year, click on 'Run Init' to initialize the New Year.
*Note* This must be done by a TempWorks support rep if you are hosted client.
To generate W2 data, click on 'Generate' to the right of W2.
To generate 1099 data, click on 'Generate' located on the right of 'Generate 1099 Data.'
*Note* Generating, regenerating, and refreshing W2 and 1099 data must be done at System level.
*Note* You can refresh the employer and employee data (if you've made any changes) by using the more options drop-down. If this is necessary, once you've completed the refresh, you need to regenerate the data. To complete this, click on 'more options,' select 'Refresh Employer Data,' and then click on 'Regenerate.'
Once you've generated the data, is it best practice to review the following reports to ensure accuracy.
Federal W2 Summary: This report breaks out the wages and tax withheld amounts shown on the W2's for Federal taxes. This can be expanded to see the detail per employee.
State W2 Summary: This report breaks out the wages and tax withheld amounts shown on the W2's for State taxes. It summarizes by state and can be expanded to see the detail per employee.
Local W2 Summary: This breaks out the wages and tax withheld amounts shown on the W2's for Local taxes. It summarizes by state and can be expanded to see the detail per local and employee.
Once you have generated the W2 and 1099 data, when ready, download this information by clicking on 'Download' in Step 4.
Once you click on 'Download,' you will be prompted with the following screen:
- Select your desired sorting option. You can sort by Employee, Branch, or State.
- Additionally, you can filter based on EINC, State, Branch, and Employee Status.
- Optionally, check the 'Include Employees' who opted for an electronic W2 box if you wish to also download paper W2's for these employees.
- If you wish to download two states or local jurisdictions per W2, check the box accordingly.
*Note* It is considered best practice to download only one state and only one local juris per W2.
Once you've selected your desired sorting and filter options, click 'Download' located on the lower right.
Your W2's will be downloaded onto a CSV file and can be saved to a desired location - TempWorks will either print and mail your W2's for you (please contact your Account Manager if you are interested in this option) or this downloaded file can be provided to your third party printing provider.
If using WebCenter, you have the option to make W2's accessible for employees via the Employee Portal.
To enable the employees to pull this information:
- Use the 'more options' drop-down.
- Select 'Enable WebCenter W2 Download.'
This makes the information accessible on the Employee Portals and employees can then download their W2's electronically.
*Note* Only W2's are available via the employee portal. 1099's are not accessible via the employee portal.
If you find that there are errors in the data and you need to make corrections, retract the WebCenter W2's by using the same drop-down to disable WebCenter W2's. This will remove the ability to each employee to pull their W2 from WebCenter. Once the corrections are made, you can then enable WebCenter W2's again.
To print your 1096's and Employer W2 Form, click on 'Print' located to the right of each option.
It is good practice to verify the W3 against your Federal W2 Summary. The W3 should match the Federal W2 Summary report.
*Note* TempWorks does not offer W3 printing at this time. However, relevant information to fill out your own W3 can be found from the W3 summary report after the mag media files have been generated.
TempWorks will not generate Mag Media files unless the 'Mag Media Data Check' has been run.
Click on 'Run Check' to complete this process:
Once you've completed the check, the Mag Media Data Integrity Check report will be displayed. Use this report to view any possible errors. Errors may occur if there is missing employer information that needs to be included in the Mag Media file.
If errors occur, it is recommended to contact TempWorks as depending on the error, it may be necessary to refresh or regenerate data in steps 2-4.
The Mag Media Data Integrity Check report is similar to the Data Integrity Check report; however, instead of looking at the core check data, it looks at the W2 data which is used to generate the mag media files from.
*Note* Errors are not permitted to move past this step. All errors must either be fixed, or the pryear table must be manually updated.
Once the Mag Media checks have been completed, you can download the Federal, State, and Local Mag Media files.
Click on 'Download' next to each option to generate and download the data. Once you've generated the data, pull the Mag Media Totals Report report. This report will show the mag media data (which is basically the W2 data) by state, local, and federal.
Upload the files to the respective government agencies.
If at any time changes are made and you need to regenerate the Mag Media files, you can do so by selecting 'Regenerate Mag Media' from the 'more options' drop-down.
Completing the Year
Once all of the above steps have been completed, the year will automatically be marked as complete.
Note to Self Hosted Clients:
If at any time you are unable to complete a step, and therefore unable to move on to the next step, you'll need to update the pryear table directly.
Once the table has been updated within Enterprise, the user will need to navigate away from the year end screen for it to refresh.