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The December newsletter contain several articles related to calendar year-end changes taking place in both the USPS and USAS applications. Due to the detailed material in each article, we provided links below so you can easily click on a specific topic that is relative.
USPS-R
- W2 Submission Information
- FFCRA (Families First Coronavirus Response Act)
- W2 Report and Submission Information
- Deceased Employees Final Payment Processing
USAS-R
- 1099-NEC
- 1099 Submission Information
- Vendor YTD Taxable Amounts
News You Can Use About W2 Reporting
New for CY2020? The ability for a district to submit their own W2 submission files. This must be a mutual decision between the ITC and the district as there is additional setup required for this option to be available.
Updates have been made that will now allow the user to create their own W2 submission files that contains all pertinent data required for uploading. This will hold true for the SSA, RITA, CCA, and City options. We have also added the capability of creating State submission files for a variety of surrounding states. You can go to Reports/W2 Report and Submission/ W2 State Options and choose which state you would like to create a submission file for by clicking the bubble next to the state. Available states are-Ohio, Indiana, Kentucky, Michigan, Pennsylvania and West Virginia. Each State setup requires different data so must be populated accordingly. The ITC and district will need to determine who will be submitting the tape file to the other state.
Login accounts are required to be able to upload your file to the appropriate sites.
For the SSN file an account setup on the Business Services Online (BSO)- https://www.ssa.gov/bso/bsowelcome.htm
For RITA-https://www.ritaohio.com Electronic submission is required if 250 or more W2's have been issued for RITA
For CCA-http://ccatax.ci.cleveland.oh.us/ Electronic submission is required if 100 or more W2's have been issued for CCA
For the state of Ohio an account on Ohio Business Gateway (OBG)- https://gateway.ohio.gov/wps/portal/gateway/BusinessGateway/Home
The state of Ohio encourages all employers to submit their W-2 information electronically regardless of how many W-2 forms have been issued.
For West Virginia-https://mytaxes.wvtax.gov/_/ Electronic submission is required if 25 or more W2's have been issued for West Virginia.
For Michigan-https://mto.treasury.michigan.gov/eai/mtologin/asuthenticate?URL=/ Electronic submission is required if 250 or more W2's have been issued for Michigan
For Kentucky-https://revenue.ky.gov/Business/Pages/Employer-Payroll-Withholding.aspx Electronic submission is required if 25 or more W2's have been issued for Kentucky
For Indiana-https://intime.dor.in.gov/eServices/_/ Electronic submission is required if 25 or more W2's have been issued for Indiana
For Pennsylvania-https://www.etides.state.pa.us/ESignature/Account/LogOn Electronic submission is required if 10 or more W2's have been issued for Pennsylvania.
FFCRA and W2 Reporting
Fields have been added to the Federal (001) Payroll Item record that will allow for FFCRA (Families First Coronavirus Response Act) data to be entered for reporting on the W2 Report and the employee W2. These fields can be populated with the sick leave pay amount that was utilized for COVID-19 related purposes. All related information must be tracked by the district on a spreadsheet and can then be manually entered or Mass Loaded on the Federal 001 Payroll Item. *Note this data will only appear on the W2 Report as well as in Box 14 on the Employee's W2. The data is NOT submitted on the tape file and would need to be reported using Worksheet 1 for the 941 https://www.irs.gov/pub/irs-pdf/i941.pdf. (Remember that since most school districts do not withhold Social Security they more than likely would not qualify for a reimbursement)
A covered employer must provide to an employee that it has employed for at least 30 days
- Self- Amount that can be entered allows for 2 weeks (up to 80 hours) of paid leave at the regular rate of pay, $511.00 per day limit. If employee is unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider), and/or experiencing COVID-19 symptoms and seeking a medical diagnosis.
- Other-Allows for 2 weeks (up to 80 hours) of paid sick leave paid at 2/3 the employees regular rate of pay, $200.00 per day limit. If employee is unable to work because of a bona fide need to care for an individual subject to quarantine (pursuant to Federal, State, or local government order or advice of a health care provider), or care for a child (under 18 years of age) whose school or child care provider is closed or unavailable for reasons related to COVID-19, and/or the employee is experiencing a substantially similar condition as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of the Treasury and Labor.
- Emergency-Amount that can be entered allows for up to 10 additional weeks of paid expanded family and medical leave at 2/3 the employee’s regular rate of pay. If employee is unable to work due to a bona fide need for leave to care for a child who’s school or child care provider is closed or unavailable for reasons related to COVID-19.
This information (up to 3 options including Vehicle Lease) will be available in Box 14 on the W2. Defined as the following on the W2. If Vehicle Lease is defined and employee has all three COVID codes defined only Vehicle Lease, Self COVID and Other COVID will appear in box 14.
- COVID-SE
- COVID-OT
- COVID-EM
More News You Can Use About 1099 Reporting
1099-NEC
Self Reporting
Useful links:
- Warning messages will now appear on the W2 Report along with errors and info messages all in the same location.
- Refer to the W2 Report and Submission documentation to better understand these messages and possible ways to correct them.-
Listed below are some important facts pertaining to processing a final payment for a deceased employee:
Important Fact-
- Wages that were constructively received by the employee while he or she was alive are reported on Form W-2 as any other regular wage payment, even if you may have to reissue the payment in the name of the estate or beneficiary.
Processing Facts-
- If the payment was processed in the same calendar year the employee died, you must withhold social security and Medicare taxes on the payment and report the payment on the employee’s Form W-2 only as social security and Medicare wages to ensure proper social security and Medicare credit is received.
- If the payment was made after the year of death, (i.e. employee died in 12/2019 and payment to estate is being processed in 1/2020), do not report it on Form W-2, and do not withhold social security and Medicare taxes.
Reporting of the payment-
- Whether the payment is made in the year of death or after the year of death, you also must report it in Box 3 of Form 1099-MISC, Miscellaneous Income, for the payment to the estate or beneficiary. Use the name and taxpayer identification number (TIN) of the payment recipient on Form 1099-MISC.
Please refer to the USPS-R Deceased Employee Final Payment documentation for further details.
REDESIGN STATUS | |
|---|---|
223 Sites Live on Redesign | 144 Total Wave 6 Sites |
17 Participating ITCs | 366 Total Districts Participating |
Please view the Current List of Districts & Status to see a comprehensive list of school districts along with their ITC, implementation status and the wave they are scheduled to migrate from Classic to Redesign.
The following terminology is used to determine where in the implementation process the entity is currently at:
Implementing: The ITC is running test imports and balancing reports on the entity. The district and ITC are working to schedule dates to begin dual processing and go live.
Paralleling: The entity is inputting all production transactions into both Classic and Redesign.
Live: The entity is using Redesign for production processing; no parallel processing is being performed; Classic is available in 'read-only' mode.
Vendor YTD Taxable figures vs non-taxable amounts
The 1099 program will use the Vendor’s YTD Taxable Total to report on the appropriate 1099 form. By default, the Taxable checkbox will be marked when making a Vendor’s Adjustment updating both the YTD Taxable and YTD amounts on the vendor. If this ‘Taxable’ box is unchecked by the user, only the YTD Amounts will be updated and this adjustment will not be included on the 1099 form. An example might be that the district wants to track all payments made to the vendor including the payments made by a debit/credit card. Since these debit/credit card payments are the responsibility of the credit card company to report, the school district would uncheck the ‘Taxable’ box on the vendor adjustment, but would still be able to keep track of all monies paid.
Another example may be to subtract travel expenses or a meal paid to the vendor by entering the negative adjustment and unchecking the ‘Taxable‘ box on the vendor adjustment.
