Instructions for W2s 2005

This software program is being supported through the 2005 tax year. All users are being encouraged to select the PENSOFT® PAYROLL PLUS or PENSOFT® PAYROLL PLUS PROFESSIONAL for future payroll needs.

The program is used to prepare payroll, write checks, do labor reports and W2s. For the 2005 year, patches are available. The curent W2 patches are for the 2004 year. There was NO update to the W2 for the 2005 software There is a magnetic media patch available on the web for the 2005 tax year.

Notice: If you are currently using PenSoft Payroll Plus, disregard these instructions.

There are no significant changes to the W2 format for 2005. Therefore, you may print W2s using the MicroTel Payroll Version you are currently using (7.1.4 or higher).

If you have registered to have Telfarm print your W2s for you, please complete the section: Verify Employee Accuracy and then send your BACKUP FILE to Telfarm as soon as your final Payroll is complete for the year. Allow 2 weeks for processing.

Magnetic Media reporters will need a W2 update program. If you are reporting by magnetic media, please contact Telfarm for 2005 W2 Patch Version 7.5.0 as there are changes to the file structure which will affect your electronically produced file or get the patch on the web.

Ordering W2 Forms (MicroTel DOS Version ONLY):

If you ordered W2 forms from Telfarm, for up to 20 employees, your W2s are included with this mailing.
If you need W2s for 20 or fewer employees, you may request them from Telfarm by calling (517)355-4700 or by e-mail at telfarm@msu.edu. Be certain to specify the number you want, they type - either ink jet style or dot matrix style and if you also need envelopes and how many. One W3 will be included with each order.
If you need more than 20 W2s, please order them from Greatland Corp. (formerly Nelco) at 800-968-1099; or www.greatland.com.

Before Running Option 14 - W2s Verify employee information accuracy:

Prior to printing W2s we recommend that you complete the following steps to verify employee Information accuracy and year to date totals:

Selection #7 - List Employee Information
Choose #14 - New Hire and W2 reports on printer
Select #2 - Ignore dates and choose all workers with no dates
This printed report shows if there is a missing name, address or SS number
Selection #17 -VERIFY YTDs AND CHECKS
Choose #1 - This menu selection produces a comparison report to help you see if there is any difference between the paycheck record totals and the calculated year to date totals for each employee. Refer to " Error Correction Instructions " (yellow sheet or reprint from web).

W2 Printing Instructions:

If you have had problems printing W2s in the past, we recommend that you print continuously - NOT one at a time - as this seems to confuse some printers (particularly dot matrix printers). We also suggest that you DO NOT use print alignment first due to printer inconsistencies.

Dot matrix printers

You will go through this process two times. Two sets of 3 carbonless forms (2 per page) If printing one page at a time (not recommended), printing may stop in the middle of a page. If it does not continue by itself, wait about 30 seconds, then press F10 to go on. DO NOT PRESS BUTTONS ON THE PRINTER as this interrupts the printer's memory for details about the file being printed.

Ink jet and laser printers

Print four different forms (3 government - 2 per page and 1 employee - 3 per page) Screen messages will ask you to select either the employee copy or government copies with each set. If printer stops or jams, do not press any printer buttons, press Escape and begin again starting with the next worker number.

Selection #14 - W2s (Version number 7.1.4 or higher):

If any of the information on this screen is missing or incorrect, changes must be made before continuing with the W2 production process.

Employer Information must be complete:

Employer name and address
Federal Employer ID number

Check program settings for type of printer and printer port for the W2 forms

If you changed printers this year, be certain you have selected the right printer for W2 printing. Note: Laser Y means either a laser or ink jet printer. Laser N means a dot matrix printer. Press F1 for Help. Go to Main Menu #21 - Customization; #1 - Payroll Customization; #3 -

Printer; #1- Printer Set-up. Change the W2 selection at the bottom right of the screen if necessary. Print alignment should only be changed if the first W2s are not lined up properly.

Whether you are using an ink jet, laser or a dot matrix printer, there are four basic parts to completing W2s

Producing the 2005 W2 file to print (select the workers to include):
The date is displayed. If the date is 0 (zero), it means no W2 print file is available. If the date is 2004, the file is actually the W2s produced last year. In both cases, answer No -Do not use this file.
Select from the list:
For best results select a few workers (about 4) and print them on plain paper. Hold them up to the W2 forms to check the alignment. If alignment adjustments are necessary, go to the Main Menu Selection 21; 1 - Payroll Customization; 3 - Printers; 5 - Vertical adjustments. Change as needed.

When you have determined that alignment is correct, select the employees you want to include in the W2 printing process. This becomes the new W2 print file with 2005 employee totals.

If printing all employees at one time, use this file again for each set of W2 forms.

Caution: If you practice with a file produced for just a few employees, or make any changes to your employee's files after you have produced the W2 file, you should start again with a new W2 print file. In other words, when it asks if you want to use this file (after changes) say No and then select the workers to be included.

Printing the W3 information (or 6559 if reporting by magnetic media)
This prints the information that you will transfer onto the W3 form or 6559 file.
Some printers eject a blank page between the W3 and printing the W2. It's OK.
Printing the W2 forms
For best results, print continuously.
Alignment print is NOT recommended
Some printers start up slowly. Be patient. Read and follow the screen messages carefully.

Reminder: We will NOT be sending a new year update for MicroTel Payroll (DOS version). When you receive your Telfarm Enrollment form for 2006, please read about the PenSoft Payroll Plus options and make your selection and return to Telfarm as soon as possible. Payment for PenSoft programs the first year will be handled through your Telfarm enrollment. PenSoft Payroll programs will be mailed directly from PenSoft after December 19, 2005. You will also receive the Telfarm Track CD and instructions from Telfarm which will customize your PenSoft to include features necessary for our agricultural payroll clients.

NOTE: Although the MicroTel Payroll W2 process follows the Social Security Administration's guidelines, employers may have some unique questions or concerns about filing, penalties, corrections, errors, etc. We recommend each employer obtain a copy of "Instructions for W2 and W3" for the current year as well as Circular A, Agricultural Employer's Tax Guide. By phone, call 1-800-TAX-FORM or through the IRS web site: http://www.irs.gov/ - Search for Forms and Publications (W2 information).