to the MAG-FILER User Manual
Transcription
to the MAG-FILER User Manual
MAG-FILER ® User Manual 915 W Second Avenue Suite 10 Spokane WA 99201-4501 MAG-FILER Sales/Support (800)565-6576 FAX (509) 624-0139 Email: [email protected] http://magfiler.spokanecomputer.com Copyright Notice All information in this manual is confidential and proprietary. This information shall not be duplicated, reproduced, transmitted, transcribed, stored in a retrieval system, translated into any language, in any form or by any means, electronic, mechanical, or otherwise without the express written permission of Spokane Computer, Inc., West 915 Second Avenue Suite 10, Spokane, Washington, 99201. Disclaimer Spokane Computer, Inc. (the Company) makes no representations or warranties with the respect to the contents herein and specifically disclaims any implied warranties for continuing Internal Revenue Service or Social Security Administration approval or filing. The obligation of Spokane Computer Inc. is limited to correcting any errors discovered in the IRS/SSA filing within a reasonable period of time. The Company shall not be liable for Internal Revenue Service or Social Security Administration approval of any filing by a user. Any instructions contained herein ARE ADVISORY ONLY. Payers/Employers Responsibilities It is the Payers/Employers responsibility for submitting correct and accurate 1096, 1097, 1098, 1099, 3921, 3922, 5498, W-2G, 1042-S, W-2 and W-3 data to the IRS or SSA according to their publications: 2015 updates to Publication 1220 - Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G 2015 Publication 1187 - Specifications for Filing Form 1042-S Foreign Person’s U.S. Source Income Subject to Withholding Electronically Social Security Specifications for Filing Forms W2 Electronically (EFW2) for Tax Year 2015 IRS 2015 General Instructions for Certain Information Returns (Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G) 2015 Instructions for Forms W-2 and W-3 2015 Instructions for Form 1042-S Publication 1179 – General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and W-2G, and 1042-S Publication 1141 - General Rules and Specifications for Substitute Forms W-2 and W-3 All data in MAG-FILER must be validated to the accounting system it came from. In any event, the Company’s liability shall be limited to a refund of the purchase price paid for this product. MAG-FILER is updated to IRS and SSA specifications on a yearly basis. For more information on the IRS and SSA Year 2015 compliance contact their Internet sites: SSA - www.socialsecurity.gov - Select “Business Services”. IRS - http://www.irs.gov/Businesses - Select “Information Returns Processing”. © 2015 Spokane Computer Inc. All rights reserved. Printed in the U.S.A. MAG-FILER QUICK START PROCEDURES The following briefly explains the steps required to electronically file your data to the IRS or SSA. You must have an IRS Transmitter Control Code (TCC #) in order to send your 1097, 1098, 1099, 3921, 3922, 5489, or W2G files to the IRS. Create a new account at https://fire.irs.gov . 1042S filing requires a different TCC#. Apply separately by using the Form 4419 from the IRS FIRE system https://fire.irs.gov. You use the same TCC# for future year’s filing. The SSA requires all transmitters to register for W2 reporting. Register at the following site http://www.socialsecurity.gov/bso/bsowelcome.htm and select Register or call 800-772-6270. 1. Installation Select from two program installs: Streamlined to install the program locally or Custom for network installs. MAG-FILER’S data base – magdataYYYY.mdb can be directed to a local or network drive on either install. 2. Program start up Select Mag-Filer 2015 from the Windows Start menu or from the Windows shortcut. 3. Set up each Payer/Employer Click Continue with Mag-Filer and at the Mag-Filer Payer Information – 2015 Tax Year window, click New Payer button. Enter Payer information relating to the form you are reporting. Select the Filing type (1099MISC, 1099INT, W2, etc.) from the drop-down menu at the bottom of the window. Note: Use the <Tab> key or the mouse to advance to each field and click Save upon record completion. 4. Enter Payee/Employee data Manually enter each Payee or import data from an ASCII file format (refer to the manual for importing). Select the Payer by clicking on the file from the list window on the left. The payer line will be highlighted. Click the Payees and then the New button. A blank Payee window will appear to begin entry. Select Import to bring records into MAG-FILER from an ASCII file. Note: Use the <Tab> key or the mouse to advance to each field and click Save upon record completion. New Import - See Importing Data into MAG-FILER in the User Manual. QuickBooks Import - See QuickBooks Import in the User Manual. MAG-FILER Previous Year’s Data Import - See Import Previous Year’s Magfiler Payer and Payee Data, Import Previous Year’s Magfiler Name and Address or Only Payer Data in the User Manual. McKesson, Flexi, CMI, EDS, and Other set up Imports - Refer to your accounting software for instructions to import data into MAG-FILER. Import formats have been created. See Importing Data into MAG-FILER starting at step 15 of the User Manual. 5. Verify Payee data Validate all payee data entered or imported. Select Report from the Mag-Filer Payee Information window to verify and check totals of data entered. The Totals window displays totals for the number of records and each amount field. Click Run Report to print out Payees for verification. 6. Print pre-printed forms or laser created substitute forms for Payer, Payee, State, or Copy A. Click the Print Forms button from the Mag-Filer Payee Information window. To print Pre-Printed Forms (prints data to form): Select Pre-Printed Forms (Copies A, B, etc.), Send to: and What to Print. Do NOT select Which Copy. To print laser created substitute forms (prints form image and data to blank paper): Select Which Copy, Send to: and What to Print. Do NOT select Pre-Printed Forms. MAG-FILER uses the Windows default printer and must be set before MAG-FILER start up. Note: The printer can be changed per payer at the Print Preview screen. 7. Create the file for upload to the IRS, SSA, or State. You MUST file to the IRS and SSA electronically (E-File) if your payee count is 250+ for one Filing Type. Check with your individual state(s) for their filing limits. . a. Select the E-File button from the Mag-Filer Payer Information window for multiple filing or from the Payee Information window for individual filing. Payer(s) displayed on the left marked Yes in the E-File column will be sent to the file for uploading to the IRS or SSA. b. Completely fill out the E-Filing Information window. Payers that will be included in the E-file will display on the left. c. Click OK to create the file for uploading to the IRS, SSA, or State. Do not send both electronic filing and IRS/SSA Copy A’s paper filing for the same payer. TABLE OF CONTENTS Introduction .......................................................................................................................................... 1 Early Entry and Forms Print/Preliminary MAG-FILER Versions..................................................... 2 Customer Service ................................................................................................................................ 2 Contacting the Internal Revenue Service (Forms 1097, 1098, 1099, 3921, 3922, 5498, W-2G, and 1042-S) .................................................................................................................................... 4 Contacting the Social Security Administration (W-2) ................................................................... 5 IRS Registration Information ............................................................................................................. 6 SSA Registration Information ............................................................................................................. 6 Filing Due Dates ................................................................................................................................ 6 Extensions of Time.............................................................................................................................. 7 Keeping Copies................................................................................................................................... 8 Getting Started ..................................................................................................................................... 9 Installation.......................................................................................................................................... 9 Installation Procedure ................................................................................................................... 10 High-Level Overview ........................................................................................................................ 16 Working with Payer Information ..................................................................................................... 19 Entering New Payer Information ..................................................................................................... 19 Editing an Existing Payer Record .................................................................................................... 24 The Payer Information Right-Click Menu.................................................................................... 24 Deleting a Payer Record .................................................................................................................. 25 Working with Payee Information ..................................................................................................... 26 Entering New Payee Information ..................................................................................................... 26 Editing an Existing Payee Record .................................................................................................... 31 The Payee Information list - Right-Click Menu ........................................................................... 32 Email Payee Copies – 1099-MISC ONLY ........................................................................................ 34 IRS TIN Matching ............................................................................................................................. 36 Copying a Payee Record .................................................................................................................. 37 Deleting a Payee Record .................................................................................................................. 37 Importing Data Into MAG-FILER ................................................................................................... 38 Types of Data Formats ..................................................................................................................... 38 Formatting Requirements for SDF and Delimited Files .................................................................. 38 Methods of Importing Data .............................................................................................................. 42 Define Import File Format Method .............................................................................................. 42 Import a previous year’s configuration file .................................................................................. 49 Import CSV File Method .............................................................................................................. 50 Import Previous Year’s MagFiler Payer and Payee Data, Only Payer Data, or Name and Address Only .................................................................................................................................................. 52 Procedure to Import Previous Year’s MagFiler Data ................................................................... 52 Import Previous Year’s Data Right-Click Menu .......................................................................... 55 QuickBooks Import ........................................................................................................................... 56 Create a PRN file method ............................................................................................................. 56 Integration method to import QuickBooks 1099-MISC data (all versions) ................................. 60 Printing Reports and Forms ............................................................................................................. 61 Totals Report.................................................................................................................................... 61 Printing Forms ................................................................................................................................. 64 Print Corrected Payees .................................................................................................................... 70 Batch Print Payers ........................................................................................................................... 70 Select Print Payees .......................................................................................................................... 70 E-filing................................................................................................................................................. 71 E-File Check List Prior to Filing ..................................................................................................... 71 IRS FILING – Forms 1099 IRS (Incl. 1097, 1098, 3921, 3922, 5498, W-2G)................................. 71 Registration .................................................................................................................................. 72 Procedure to File to the IRS ......................................................................................................... 72 IRS 1042-S FILING.......................................................................................................................... 77 Procedure to File Form 1042-S to the IRS ................................................................................... 77 SSA FILING ..................................................................................................................................... 78 Registration .................................................................................................................................. 78 Procedure to File Form W-2 to the SSA ...................................................................................... 79 W-2 STATE FILING......................................................................................................................... 81 State Filing Numbers ................................................................................................................... 83 Procedure to W-2 State File ......................................................................................................... 84 1099 STATE FILING ....................................................................................................................... 84 State Filing Numbers ................................................................................................................... 85 Procedure to 1099 State File ........................................................................................................ 86 E-File Button Right-Click Menu ...................................................................................................... 86 Combined Federal/State Filing (1099) ............................................................................................ 88 Procedure to create Test Files for Applying to the IRS Combined Federal/State Program ......... 89 Procedure to File for Combined Federal/State to the IRS ............................................................ 89 Corrected Returns ............................................................................................................................ 91 Filing Corrected Returns to the IRS ................................................................................................ 92 Procedure to File Corrected Returns to the IRS ........................................................................... 92 Procedure to File Previous Year Corrected Returns to the IRS ................................................... 95 Filing Corrected Returns for 1042-S ............................................................................................... 95 Procedure to File Corrected 1042-S Returns to the IRS .............................................................. 95 Filing Test Files ............................................................................................................................... 99 Replacement Filing .......................................................................................................................... 99 Replacement Procedure.............................................................................................................. 100 IRS Original Replacements ........................................................................................................ 100 IRS Corrected Replacements by (Fire) System ......................................................................... 101 1042-S Replacements................................................................................................................. 101 SSA Replacements ..................................................................................................................... 101 Filing a Request for an Extension of Time .................................................................................... 103 Procedure to File a Time Extension Request Electronically for Payers .................................... 103 Procedure to File a Time Extension Request Electronically for Recipient Statements ............. 104 Utilities Menu ................................................................................................................................... 105 Data Backup ..................................................................................................................................... 106 Introduction INTRODUCTION MAG-FILER® is a Windows-based program that allows you to easily enter or import Payer and Payee information and produce a file in the appropriate format to electronically (e-file) upload to the IRS and/or SSA. It also prints payee copies of Forms 1097, 1098, 1099, 3921, 3922, 5498, W-2G, 1042-S, and W-2. The program only supports the contiguous 48 states including Alaska and Hawaii for W-2 printing and e-filing. MAG-FILER does NOT support 2678 Agent, Common Paymaster, 3504 Agent W-2 reporting, Forms 1094, 1095, 1099QA or 5498-QA. If you are also required to file W-2 information with your state, MAG-FILER produces a separate file that can be sent to states accepting the SSA EFW2 specifications. MAG-FILER files to states in the IRS combined federal state filing program and to individual states for Kentucky (MISC and W2G), Maine (W2G), Mississippi (MISC, W2G, 1042S) Oregon (MISC and W2G), and Pennsylvania (1099-R). Note: Depending on the Filing Type (1099-MISC, W-2, etc.) used, references to Payer in this documentation and in the software may refer to an Employer, Recipient/Lender, Filer, Creditor, Provider, Corporations/Brokers, Corporation, Trustee/Issuer, Donee, Transferor, Issuer or Withholding Agent. The Payee may refer to Payee, Borrower, Student, Recipient, Debtor, Policyholder, Transferor, Transferee, Participant, Shareholder, Beneficiary, Donor, Winner, or Employee. The program is compatible with Windows 2000/XP/Vista/7/8. MAG-FILER can be installed locally, on a file server or installed anywhere and shared to others on your network. MAG-FILER uses the Microsoft Access data format. The Internal Revenue Service (IRS) and Social Security Administration (SSA) require that companies with 250 or more Payees/Employees file 1097’s,1098’s, 1099’s, 3921’s, 3922’, 5498’s, W-2G’s, 1042-S, and W-2’s electronically—they do not accept the copy A paper filing if over the 250 limit. The IRS and SSA only accept files electronically. CDs and diskettes are not acceptable. Although the requirement is for Payers with 250 or more Payees to file electronically, a Payer with any number of Payees may file using this method. 1. Information can either be entered manually, or imported from another accounting system. Use the tab key or mouse to move through each records entry fields. MAG-FILER can store information for an unlimited number of Payers and Payees. (See “Entering New Payer Information and Entering New Payee Information”) Enter information from previously printed official forms, or by importing data as an ASCII file created from Excel®, QuickBooks®, or other accounting software. (See “Importing Data into MAG-FILER”) Note: ALWAYS VALIDATE DATA AFTER ENTRY OR IMPORT AND RUN REPORTS TO BALANCE. 2. Reports and forms can be printed. The Totals Report can be printed to allow you to proof the information that’s been entered into MAG-FILER. You can then print laser-created 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, and 1042-S forms to blank paper, blank perforated forms or IRS/SSA official forms. These forms can be given to Payers, Payees, and states. (See “Printing Reports and Forms”) 1 Introduction 3. MAG-FILER electronically files Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, 1042-S, & W-2 information with the IRS or SSA. This method allows transmitters to electronically transmit Payer files to the IRS, SSA, or to States requiring W-2 reporting. Run E-File to create a file that you will upload to the IRS, SSA, or State. (See “E-Filing”) Note: IRS electronic filing (1099’s/1042-S) requires an IRS Transmitter Control Code (TCC) and an account at the IRS FIRE (file upload) site: http://fire.irs.gov. Apply for a TCC by submitting Form 4419 online to the IRS. First time Internet users must create an account before login to upload your file(s). Note: Social Security Administration (W-2 e-filing) requires that first time users register to file electronically with a User ID (User Identification Number) and password. Call 800-772-6270 or check their web site at www.socialsecurity.gov/bso/bsowelcome.htm and Register. If you are also required to file W-2 information with your state, MAG-FILER produces a separate file that can be sent to the state via upload, CD, or diskette. Check with each state involved for their specifications. (See “W-2 State Filing”) You may also be able to participate in the Combined Federal/State Filing Program, in which the IRS forwards certain 1099 information to the state for you. To participate, you must send the IRS a test file and be approved for this program. (See “Combined Federal/State Filing (1099)”) Early Entry and Forms Print/Preliminary MAG-FILER Versions Each year, an Early entry and Forms Print or Preliminary version of MAG-FILER is available to enter or import Payer/Payee information and to print proof reports and forms. Then at year-end a Final version of the program is automatically distributed to all of our clients. The Final will be installed to the same location as the forms print or preliminary programs. This final version includes electronic filing (E-File) with the latest specifications from the IRS and SSA including updates after the preliminary release. Note: Always check the addendum distributed with the Final for any changes to this MAG-FILER User Manual. Customer Service Before calling Customer Service, attempt to answer your question by either referencing this manual for MAG-FILER operations, viewing the available Help <F1> screens that contain field definitions of each form or by checking Frequently Ask Questions at our web site: http://magfiler.spokanecomputer.com/MagFiler_Support.aspx 2 Introduction Help information is available by: Selecting Help from the main window menu bar to the right of E-File. Links available are: Tutorials Tutorials will take you through some basic operations of the program. You must have access to the Internet. Select from the following: Creating a CSV from Excel, Importing your CSV to MagFiler, Proofing, Printing Forms, Emailing 1099MISC Forms, E-Filing – IRS and SSA, State Filing – 1099 and W2 and Exporting a Backup Copy. User Manual This is the MAG-FILER documentation explaining the operations of the program. Form Specific Definition First select the Operating system from the Help Format – Chm (Win Vista/7/8 operating system). Then choose Form Specific Definition that contains base instructions and MAGFILER formatting for each Form type (i.e., MISC, INT). See the IRS and SSA Form instructions for detailed information on filling out the forms. Other links are: E-File Help, Mag-Filer Importing, Steps to E-filing, Mag-Filer web site, MS Access, E-Mail to Mag-Filer, IRS web site, and SSA web site. Additional information in this window displays the current version of the program, contact phone, and location of the MAG-FILER programs and its data. Selecting Help from the main window to the left of Utilities. This displays the categories: Help: Displays all HELP links. About: Displays the current version and the contact information of MAG-FILER. Pressing the <F1> function key when a Payer or Payee information window is displayed. This displays a Help screen that provides field definitions for the Filing Type (1099-MISC, W-2, etc.) of the payer or payee being entered. For additional help, contact the MAG-FILER Customer Support center, Monday - Friday from 7:30 a.m. to 4:00 p.m. Pacific Time. MAG-FILER support is FREE. Telephone Number: Fax Number: Email: FAQ site: 1-800-565-6576 Select ext. 202 for support 1-509-624-0139 [email protected] http://magfiler.spokanecomputer.com/MagFiler_Support.aspx 3 Introduction Please have the following information available for better assistance: Need the Exact Error Message at what point in the program. The version of operating system you are using, i.e., Windows 98(2nd)/2000, XP, Vista or 7/8. Whether you are operating stand-alone or on a network. The type of printer you are using. Contacting the Internal Revenue Service (Forms 1097, 1098, 1099, 3921, 3922, 5498, W-2G, and 1042-S) Assistance is available year-round, Monday through Friday Monday through Friday to payers, transmitters, and employers for the following issues: Electronic, paper filing, and tax law questions from the payer community related to the correct preparation and filing of business information returns (Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498, 8027, 8596, and W-2G). Electronic, paper filing, and tax law questions related to the electronic filing of Forms 1042-S, and 8955-SSA. o Tax law and paper filing instructions for Forms W-2 and W-3 Contact the IRS at 1-866-455-7438, 1-304-263-8700 (international), or call 1 304-579-4827 for Telecommunications Device for the Deaf (TDD). The IRS address for filing information returns electronically is https://fire.irs.gov and the address for filing test information returns electronically s https://fire.test.irs.gov. You may send an email to [email protected]. When sending emails concerning specific file information, include the company name and the electronic filename or Transmitter Control Code (TCC). Do not include Tax Identification Numbers (TINs) or attachments in email correspondence, because electronic mail is not secure. You can also mail general inquiries regarding the filing of information returns and your comments/suggestions to: Internal Revenue Service 230 Murall Drive Mail Stop 4360 Kearneysville, WV 25430 Following are additional resources and information available for information returns: Forms and Publications – Contact your forms vendor or obtain IRS publications and tax forms by going to Forms and Publications on www.irs.gov or by phone. Form 4419, Application for Filing Information Returns Electronically (FIRE) – Can be applied for on-line by going to https://fire.irs.gov/ and selecting Fill-In Form 4419 from the Menu Options Or Go to www.irs.gov and click on Forms and Pubs. Click Current Forms & Pubs and enter “Form 4419” in Find box. Click Find. Fill out, sign, date, and send to the IRS address shown above. If you prefer, Form 4419 can be faxed to the IRS at 1-877- 477-0572 from within the U.S. or 1-304-579-4105 from outside the U.S. 4 Introduction Form 8508, Request for Waiver From Filing Information Returns Electronically – Go to www.irs.gov and click on Forms and Pubs. Click Current Forms & Pubs and enter Form 8508 in Find box. Click Find. Form 8809, Application for Extension of Time to File information returns – Can be requested on-line by going to https://fire.irs.gov/ and selecting “Extension of Time Request” from the Menu Options. Or Go to www.irs.gov and click on Forms and Pubs. Click Current Forms & Pubs and enter “Form 8809” in Find box. Click Find. Internal Revenue Bulletin (IRB), a weekly IRS tax guidance – You can find the bulletins at http://www.irs.gov/irb/. Filing Information Returns Electronically – Go to www.irs.gov and search for “Filing Information Returns Electronically”. Mailing address for paper filing of information returns – Go to www.irs.gov and click on Forms and Pubs. Click Current or Prior Year Forms pubs and enter “Form 1096” in Find box. Click Find. Payee/recipient questions – Go to Help & Resources tab on http://www.irs.gov for assistance with individual taxpayer returns or account related issues. 1042-S tax law questions concerning the requirements for withholding of tax on payments of U.S. source income to foreign persons, call 1-267-941-1000 (not toll-free). Form 1042-S general inquiries concerning the filing of information returns should be sent to the following address: Internal Revenue Service Attn: 1042-S Reporting 230 Murall Drive Mail Stop 4360 Kearneysville, WV 25430 All requests for an extension of time to file information returns, forms 1097, 1098, 1099, 3921, 3922, 5498, W-2G, and 1042-S with the IRS/IRB filed on Form 8809 or request for an extension to provide recipient copies, and requests for undue hardship waivers filed on Form 8508 should be sent to the following address: Internal Revenue Service Attn: Extension of Time Coordinator 240 Murall Drive Mail Stop 4360 Kearneysville, WV 25430 Contacting the Social Security Administration (W-2) Calls pertaining to W-2 filing specifications, problems after submitting and registering can be directed to the SSA by calling 800-772-6270. Assistance for Business Services Online (BSO) site and AccuWage software, visit www.socialsecurity.gov/employer/bsohbnew.htm, call 1-888-772-2970 Monday – Friday, 8:30 a.m. to 4:00 p.m., EST, or email: [email protected] 5 Introduction For information on requests for extensions of time, waivers, or filling out W-2’s, call the IRS toll free 1-866-455-7438. To request a waiver, apply 45 days before the due date of the report. Use IRS Form 8508. Mail your requests to the addresses as stated in the previous section, “Contacting the Internal Revenue Service.” W-2 form information can be obtained by calling the IRS at 1-800-829-3676, accessing their Internet site: http://www.irs.gov/Forms-&-Pubs or notifying your forms vendor. IRS Registration Information IRS (Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, or 1042-S) If you are electronically filing to the IRS, you MUST have a Transmitter Control Code (TCC). To apply for a TCC, submit Form 4419, Application for Filing Information Returns Electronically, to the IRS as soon as you know you will need to file. One transmitter can process an unlimited amount of different Payers and their Payees under their approved IRS TCC. TCC numbers for Form 1042-S filing is different from 1099 filing and usually begins with a 22xxx. Form 4419 may be completed online at https://fire.irs.gov. First, you will need to select “Create New Account” to obtain your User ID, Password, and PIN. Then Log on and select Fill-In Form 4419. Review the “Important Notes” screen to ensure that you have the correct information to proceed. To complete your submission, you must click the “Yes, I am authorized to sign this document on behalf of the transmitter” box to submit the application. Transmitters may file Form 4419 throughout the year; however, to ensure timely filing, submit Form 4419 at least 30 days before the due date of the returns(s) for current year processing. If your application is approved, a five-character alpha-numeric Transmitter Control Code (TCC) will be assigned. The IRS will not issue a TCC over the phone or by email. If you do not receive a reply from the IRS within 45 days, contact us at 866-455-7438. Once the transmitter is approved it is not necessary to reapply in future years unless you skip a year and use a service bureau or you discontinue transmitting files. Upon receiving your TCC#, you can log on to the IRS site: https://fire.irs.gov/firev1r/ for future filings. IRS passwords expire every 90 days. SSA Registration Information The Social Security Administration requires all submitters of Form W-2 that file electronically to obtain a User ID (PIN) and Password. The SSA will remind you at login when to change your password, normally every 90 days. Obtain your User ID (PIN) and Password by registering at the SSA web site www.socialsecurity.gov/bso/bsowelcome.htm , select Register or by calling 1-800-772-6270, Monday through Friday, 7 a.m. to 7 p.m. EST. Filing Due Dates Refer to IRS Publication 1220, 1042-S Publication 1187, SSA EFW2 Publication, and Instructions for yearly official due dates and delivery procedures. 6 Introduction NOTE: If any due date falls on a Saturday, Sunday, or legal holiday, the return or statement is considered timely if filed or furnished on the next day that is not a Saturday, Sunday, or legal holiday. IRS (Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, or 1042-S) Electronically filed IRS Forms 1097, 1098, 1099, 3921, 3922, and W-2G must be filed no earlier than January 20, 2016 with a due date of March 31, 2016 and Forms 5498, 5498-SA, and 5498-ESA must be filed no later than May 31, 2016. Forms 1042-S must be filed no later than March 15, 2016. The current year’s program (MAG-FILER 2015) must be used for the preparation of Tax Year 2015 information returns and prior tax years beginning January 20, 2016 through December 1, 2016. SSA (W-2) SSA Forms W-2 must be electronically filed no later than March 31, 2016. For tax year 2015, Business Services Online (BSO) filers may upload their files beginning on December 7, 2015, Recipient/Participant/Employee Forms Due Dates The due date for providing Recipient/Participant copies of form 1097 is on or before the 15th day of the 2nd calendar month after the close of the calendar quarter (on or before May 15; August 15; November 15; February 15 of the following year). Due date for providing Recipient/Participant copies of forms 1098, 1099, 3921, 3922, W-2G or Employee (W-2) is January 31. Forms 1099-B, 1099-S, and 1099-MISC (if amounts are reported in boxes 8 or 14) are due to the Recipient/Participant by February 15. This also applies to statements furnished as part of a consolidated reporting statement. Forms 5498 due date to Participants is January 31 for FMV/RMD and May 31 for contributions. Forms 5498-SA due date to Participants is May 31. Forms 5498-ESA due date to Beneficiary’s is due April 30. Forms 1042-S is due before March 15. Extensions of Time All extensions of time to file Forms 1042-S, 1097, 1098, 1099, 3921, 3922, 5498, W-2G, and W-2 to the IRS on paper, online or electronically are requested by completing Form 8809, Request for Extension of Time to File Information Returns. If you are requesting extensions of time for more than one payer, the extension of time requests must be submitted online or with an electronic file through the FIRE system. 7 Introduction Extension requests completed online via the FIRE System will receive an approved one-time automatic 30-day extension. No waiting for a written IRS approval. Extensions must be done before the forms original electronic filing due date. To request an Extension of time: The fill-in Form 8809 may be completed online via the FIRE system. At the IRS web site, click “Extension of Time Request” and then click “Fill-in Extension Form”. Fill out the form for each payer. The TCC may be left blank if requesting an extension for W-2 or if a TCC has not been applied for. This option is only used to request an automatic 30-day extension. If you are requesting an additional extension, you must submit a paper Form 8809. Requests for an additional extension of time to file information returns are not automatically granted. Requests for additional time are granted only in cases of extreme hardship of catastrophic event. The IRS will only send a letter of explanation approving or denying your additional extension request. If mailing Form 8809, it must be postmarked no later than the earliest due date of the returns. Refer to IRS Publication 1220, SSA EFW2 Publication or IRS Publication for 1042-S filing for more information. Requesting an extension for 1 Payer may be done by mailing Form 8809 or by completing the fill-in form online. Requests for an extension of time to file forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, 1042S, and W-2 for more than 1 Payer must be submitted electronically or online. IRS encourages the filers to utilize the online fill-in form 8809 in lieu of the paper form 8809. (See “Filing a Request for an Extension of Time”) Important: If requesting a second 30-day extension of time, submit the information return files as soon as prepared. Do not wait for an IRS response to the second request. To submit extension of time requests to the IRS/IRB, send them by US Postal Service, truck, or airfreight to the following address: Internal Revenue Service Attn: Extension of Time Coordinator 240 Murall Drive, Mail Stop 4360 Kearneysville, WV 25430 Keeping Copies Note: Always save a copy of the IRS, SSA, or W-2 state file, all reports, and payee hard copies. IRS - Generally, keep copies of the information returns filed with the IRS or have the ability to reconstruct the data for at least 3 years from the reporting due date, exceptions are: (a) Retain for 4 years all information returns when backup withholding is imposed. (b) A financial entity must retain a copy of Form 1099-C, Cancellation of Debt, or have the ability to reconstruct the data required to be included on the return, for at least 4 years from the date such return is required to be filed. SSA – IRS requires that you retain a copy of your W-2 Copy A data or to be able to reconstruct the data for at least four (4) years after the due date of the report. 8 Getting Started GETTING STARTED This section provides information that will get you started using MAG-FILER. It is divided into the following two subsections: “Installation” describes how to install MAG-FILER on your system. “High-Level Overview” provides a high-level overview of how to use MAG-FILER. Installation The procedure you use to install MAG-FILER varies slightly depending on whether you are installing on a stand-alone workstation or on a network. MAG-FILER’s installation program is new for every year with data manually entered, imported or transferred over from the prior year’s program. Streamlined – A new install from the web and should more easily work within User Rights constraints. The program will be installed to your workstation while Data Files (magdataYYYY.mdb) can be stored in your Documents folder or to Network Drives for multiusers. One other bonus of this install is the Auto Update feature which will keep you on the very latest version if MAG-FILER is updated for any reason. This option is NOT compatible with Windows versions XP and earlier, on terminal services, Citrix systems, and for updating the MAG-FILER 2015 Early Entry print version. Custom – Select this choice if you are comfortable with network rights related issues and you want to direct where the programs and Data Files will be installed. In this installation procedure, the MAG-FILER program and data files are typically located on the network server to be accessed by one or multiple workstations and for backup purposes. This version may also be used for local workstation installs. Check for updates from the MAG-FILER Getting Started window. Use for installation to terminal services, Citrix systems, XP (and earlier versions) and for updating the MAG-FILER 2015 Early Entry print version. Install MAG-FILER to the server’s directory and set up a Windows shortcut to \MagFiler\YYYY\mag.exe (YYYY represents the current tax year) at each workstation for accessing the program. The program must be installed to the same mapped drive on all user workstations. All (authenticated) users must have full control (R/W access) to MAG-FILER’s Program Files\Mag-Filer\YYYY and its data location in Mag-Filer\ YYYY. Terminal servers, such as Citrix, are compatible as long as the users have rights to read, write, create and delete files. Database – MAG-FILER 2015 database is named magdata2015.mdb. Select from two choices: Documents or Specify location. Updates for program and Print versions and reinstalls will not prompt for the database location. Documents defaults to C:\Users\my documents. Specify location does not default to a location and new folder (s) must be created for the new year. For instructions to create a new location, refer to “ Specify location – Creating a new location for MAG-FILER’s 2015 database” at the end of the installation section. 9 Getting Started Additional Items: MAG-FILER communicates to the MDAC drivers which connects to the MS Access (.mdb) files. Microsoft Access program is not used – only the file format. A MAG-FILER PDF printer will automatically install. Use MAG-FILER PDF printer to make copies of the forms created by MAG-FILER. If you have a TEQuote PDF printer, it must be uninstalled from your Windows printers. Installation Procedure Checks before Installation. Exit out of any applications currently running. Also check Printers and Faxes for a printer called TEQuote PDF and remove it from Control Panel - Add Remove Programs. The CD installation should automatically start but if not, click on the SetupMag.exe file found on the CD. The CD contains the Custom install described below. Desktop display settings at each user’s workstation must be set to Normal or Smaller 100% for proper forms and reports printing. Regional currency settings must be 0.00 (two decimal places). During the installation process, you will be asked to select a database (magdataYYYY.mdb) location for 2015. To check the location of your 2014 database, Open MagFiler2014. At the Payer Information window, select the HELP button to the right of the E-File button. Database: will display your current magdata2014.mdb location. Note this database location to aid in creating a new 2015 folder. Streamlined install – The program auto installs to the local workstation only. Data files can be stored in the Documents default folder C:\Users\Mag-Filer\YYYY on the local workstation or by specifying a new or existing network drive. 1. Select this version from magfiler.spokanecomputer.com. MAG-FILER’s DOWNLOADS web page at 2. At the MAG-FILER window (URL magfiler.spokanecomputer.com/files/setup/2015/clickonce), press Install. Click the setup file displayed at the bottom left of the window. Select Run in the Open File window and then Install the application. The program will automatically be installed to the local workstation in the Users\AppData folder. 3. Next the Data Location window for the database file called magdata2015.mdb will appear. Make your selection from one of the following. Documents folder – This is the default choice for single user installs. Data will be stored in the “Document” (Win7/8) or “My Documents” (XP) folder on your local computer. Specify Location – Browse to create or attach to an existing network database. For instructions to create a new location, refer to “ Specify location – Creating a new location for MAG-FILER’s 2015 database” at the end of the installation section. 10 Getting Started 4. Select whether to password protect MAG-FILER’s database. At the prompt, Activate Security?, check YES to require a user login each time the program is opened. Starting MAG-FILER after the initial install with Security checked will launch the Manage Users window. The users list must contain at least one administrator. Select New User to create User Names and passwords for each user of the program. User Names & Passwords are not case sensitive. Data can only be accessed by a valid username and password each time the program is started. Program reinstalls require Security checked. To edit or add additional users or administrators after a Security install, select Utilities and Manage Users. The MAG-FILER secured database (magdataxxxx.mdb) can only be accessed through MAGFILER and not by MS Access. Call MAG-FILER support if the database needs to be unlocked because of forgotten usernames and passwords. NOTE: Files created for e-filing to the IRS, SSA, W-2 State reporting, and TIN Matching are NOT secured by MAG-FILER. These files after upload to the web sites could be secured, for example, by zipping with passwords or moving them to secure sites on your network. Importing of previous year’s payer and payee data or only payer data requires the previous year’s user names and passwords to be set the same in the current year’s program. 5. Next, the installation program will prompt for a password. Enter the password provided on the separate addendum, MAG-FILER 1099/W2 FINAL IMPORTANT INFORMATION, included in your copy of MAG-FILER. If you downloaded the program and manual from the web site, the addendum is included in front of the manual or in your download instructions that were faxed or emailed. 6. Open the program using the MAG-FILER 2015 shortcut on the desktop to begin entry or importing of data. The Payer Information window must be blank on a new install. 7. Be sure to check the database location for magdata2015.mdb. At the Mag-Filer 2015 Payer Information window, select the HELP button to the right of the E-File button. Database: will display your current magdata2015.mdb location. Note this database location. Custom install – The program installs to a local workstation or network system. Install MAG-FILER to the server’s directory (defaults to Program Files) and set up a Windows shortcut to Program Files\Mag-Filer\YYYY\mag.exe (YYYY represents the current tax year) at each workstation for accessing the program. 1. A Select Destination Directory displays to either take the default for a local install or press Browse to install the program to a different location. This window allows you to specify where the MAG-FILER program will reside. The MAG-FILER program defaults to the folder \Program Files\Mag-Filer\2015. Local workstation install – At the Select Destination Directory window, press the Next button. MAG-FILER files will be installed to the default directory (C:\Program Files\Mag-Filer\2015). Network install – At the Select Destination Directory window, click the Browse button to change the program destination. Select the drive from the prompt at the bottom and then a folder(s), if required. After selection the destination displays in the prompt at the top of the window. Click OK to continue. 11 Getting Started 2. Next, the installation program will prompt for a password. Enter the password provided on the separate addendum, MAG-FILER 1099/W2 FINAL IMPORTANT INFORMATION, included in your copy of MAG-FILER. If you downloaded the program and manual from the web site, the addendum is included in front of the manual or in your download instructions that were faxed or emailed. 3. When finished with the install, open the program from the MAG-FILER 2015 desktop shortcut. 4. Next a Data Location window will appear. Documents folder – This is the default choice for single user workstation installs. Data will be stored in the “Document” (Win7/8) or “My Documents” (XP) folder on your local computer. Specify Location – Browse to create or attach to an existing network database. For instructions to create a new location, refer to “ Specify location – Creating a new location for MAG-FILER’s 2015 database” at the end of the installation section. 5. Select whether to password protect MAG-FILER’s database. At the prompt, Activate Security?, select YES to require a user login each time the program is opened. Starting MAG-FILER after the initial install with Security checked will launch the Manage Users window. The users list must contain at least one administrator. Select New User to create User Names and passwords for each user of the program. User Names & Passwords are not case sensitive. Data can only be accessed by a valid username and password each time the program is started. Program reinstalls require Security checked. To edit or add additional users or administrators after a Security install, select Utilities and Manage Users. The MAG-FILER secured database (magdataxxxx.mdb) can only be accessed through MAGFILER and not by MS Access. Call MAG-FILER support if the database needs to be unlocked because of forgotten usernames and passwords. NOTE: Files created for e-filing to the IRS, SSA, W-2 State reporting, and TIN Matching are NOT secured by MAG-FILER. These files after upload to the web sites could be secured, for example, by zipping with passwords or moving them to secure sites on your network. Importing of previous year’s payer and payee data or only payer data requires the previous year’s user names and passwords to be set the same in the current year’s program. 6. Open the program using the MAG-FILER 2015 shortcut on the desktop to begin entry or importing of data. The Payer Information window must be blank on a new install. 7. Be sure to check the database location for magdata2015.mdb. At the Mag-Filer 2015 Payer Information window, select the HELP button to the right of the E-File button. Database: will display your current magdata2015.mdb location. Note this database location. The re-installation of MAG-FILER does not affect previously entered data. However, it is always advisable to back up your data files from the (My)Documents\Mag-Filer\YYYY\ MagDataYYYY.mdb folder from a local install or Program Files\Mag-Filer\YYYY\Data from a network install. 12 Getting Started Early Entry Forms Print/Preliminary Install - Customers who requested the early entry/forms print, preliminary or test version will do a final install to the Program Files\Mag-Filer\2015 directory. It is advisable before install to back up your magdata2015.mdb file. Select the Custom install. You should get the message that the Directory already exists and select YES to overwrite. After install, when the program is opened, the current year’s data should display.The final install will add updated programs including the E-File option. Database location changes after install - Click on the HELP button (to the right of the E-File button) from the Payer Information window to display the Database location. The data file may be moved to a different location for multiuser access and backup purposes. Once the database file is relocated, you need to link the database to the program. For a non-security install, link the database by r-clicking on the New Payer button, Select Database or for a security install, edit the mag.ini file located in Program Files\Mag-Filer\YYYY. Specify location – Creating a new location for MAG-FILER’s 2015 database To check the location of your 2014 database, Open MagFiler2014. At the Payer Information window, select the HELP button to the right of the E-File button. Database: will display your current magdata2014.mdb location. Note this database location for setting up the new folder 2015. 1. A Select Database window displays with Look in: and a default file name of magdata2015.mdb. You will be creating a new location for your 2015 database. 2. Click the Down arrow located at the end of the Look in: field to display all available drive locations. Select a drive and folder location. Refer to the database location of MAG-FILER 2014. 13 Getting Started For example; if your 2014 data is in Program files\Mag-Filer\2014 and you want to create a new 2015 folder in Mag-Filer: a. Click on the folder Program Files so that it displays in the Look in: field. b. Then click again on the Then click again on the folder Mag-Filer under Name so that it displays in the Look in: field. 3. Mag-Filer displays in Look in: with folder(s) from the previous year(s) under Name. 4. Click the Create New Folder icon located across from the Look in: field and enter 2015 replacing the words New folder and press Enter. This window will display when finished. . 5. Click on the newly created 2015 folder so that it now displays in the Look in: and select the Open button at the bottom right of the Select Database window. 14 Getting Started 6. This message will display. Click Yes to create. 7. Continue with opening MAG-FILER 2015. A blank Payer information window should display. 8. Check your 2015 database location. At the Payer Information window, select the HELP button to the right of the E-File button. Database: will display your current magdata2015.mdb location. 15 Getting Started High-Level Overview This section gives you a quick overview of what you need to do to get started using MAG-FILER. The following steps 1-7 must be accomplished for a successful filing to the IRS or SSA. Use the tab key or mouse to move through each records entry fields. 1. Select MAG-FILER from the Windows Start menu or the shortcut on your desktop. Note: You must have a valid windows default printer assigned; otherwise the program will not start up. The program takes you to a Getting Started window. Select Continue with Mag-Filer to display the Payer Information detail window: If you require Payer and/or Payee data to be transferred from the previous year, refer to the “Import Previous Year’s Payers and Payees” section. 2. Click the New Payer button to enter the Payer (company) information. 16 Getting Started Note: If you have not entered or imported any Payer information, this window’s fields will be blank. The Payer Information window is used to identify the Payer, and the information it contains makes up one record in the MAG-FILER database. One of these screens needs to be filled out for each form type (specified in the Filing Type field) for each Payer. For example, if Bob’s Market is filing three form types (i.e., W-2, 1099-Misc, and 1099-R), this screen must be filled out three times for Bob’s Market, once for each form type. (See “Working with Payer Information” for details about filling out this screen.) If you are a transfer agent, you must fill out this screen for each form type for each one of the Payers for whom you are filing. If you have entered information into MAG-FILER for multiple Payers and/or multiple filing types, a list of Payers will display to the left of the MAG-FILER Payer Information window. You can select a Payer from the list by highlighting the desired line—either by moving the highlight bar with the arrow keys on the keyboard, by clicking on the desired line with the mouse pointer. You can also use the Search bar below the list of Payers to locate a particular Payer or tax identification number. Note: You can double-click on an item in this list to display the Payee Information window for that Payer. 3. After entering the information that identifies a Payer and filing type (or selecting the desired Payer/Filing type), click on the Payees button. The program displays the Payee Information detail window with the Payee list on the left. See the following window: 17 Getting Started This screen is used to identify the Payee and to enter information that’s specific to the type of filing (1099-MISC, W-2, 1099-INT, etc.) you are performing for the Payee. The top part of this screen (name and address information) is the same regardless of the type of filing. The fields that appear on the bottom half of the screen are different for each type of filing. 4. Click New to enter the applicable information for each Payee. Note: Field definitions for the fields on each of the different Payee Information screens are available by pressing the <F1> function key or Help. This window displays a Payee Information list on the left of the detail window. 5. After entering or importing the Payees for the current Payer/filing type, click on the Report button to check and print the Totals Report for proofing the Payee information. (See “Printing Reports and Forms”) 6. If applicable, print the Payees laser-created or preprinted forms. (See “Printing Reports and Forms” for more information about printing options.) 7. Create a file for electronic filing by clicking the E-File button from the Payee window for an individual Payer or from the Payer Information detail window for multiple Payers. The IRS and SSA no longer accept diskettes or CD’s. (See “E-Filing” for detailed information) 18 Working with Payer Information WORKING WITH PAYER INFORMATION The Payer Information detail window with the Payer list on the left is used to identify the Payer and specify the type of filing (1099-MISC, W-2, etc.) being performed. The Payer list can be expanded to view additional columns such as TIN, address information, and Rec#. An example Payer Information detail window is shown below. Entering New Payer Information To enter a new Payer to the system, click on the New Payer button. This clears the fields on the Payer Information detail window so you can enter the Payer information. All data is entered starting in the left most position of each prompt with exceptions of amounts, drop-downs, and check boxes. Always select from a drop-down prompt. For additional formatting in the entry window, click Help, Entry Window Help. After completing the Payer Information detail window, click on the Save (on the right of the Name field) button to save the information. Note: 1042-S Entry - Valid characters for all name and address fields are alpha, numeric, blank, ampersand (&), hyphen (-), comma (,), apostrophe (‘), forward slash (/), pound sign (#), period (.), and the percent (%). The percent [% (used as “in care of”)] is valid in the first position only. The City field CANNOT contain numeric characters. Payer List This list on the left, displays all Payers setup in MAG-FILER. Payers can be selected by using the mouse, slide bars, and the interactive Search. The Payer list can be expanded on the left to view additional information such as TIN, address, Ref# and Rec#. Search can be used to find a Name, TIN, or File Type. To view all payers, clear out any data in the search box. Use for editing and viewing data information. 19 Working with Payer Information The following defines the buttons, fields, and check boxes on the Payer Information detail window: New Payer Button This clears the fields on the Payer Information detail window so you can enter information for a new Payer. Right-click items on this button are: Select Database - opens a Select Database window to link to a different current year’s database. Payer Report - Prints a report of payers. Copy Payer - Click this option to copy the Payer displayed. Name, address, EIN, and contact information. Filing Type must be selected and entry Saved. Payees Button This displays the Payee Information detail window so you can enter or view Payee information for the currently selected Payer and filing type. (See “Working with Payee Information”) E-File Button This displays the E-Filing Information window, which allows you to enter filing parameters and create files IRS, SSA, and W-2 States e-filing. (See “E-Filing) Help Button This will take you to MAG-FILER’s Help window for assistance. Payer Information Name Enter the company name of the Payer. A Payer includes a Recipient/Lender (Form 1098 & 1098-E), Filer (Form 1098-T, 1099-K, 1099-S), Lender (Form1099-A), Payer (Forms 1099-B, DIV, G, INT, MISC, SA, OID, PATR, Q, R, and W-2G), Issuer (Form 1097-BTC) Creditor (Form 1099-C), Provider (Form 1099-H), Corporations/Brokers (Form 1099-CAP), Corporation (Form 3922), Trustee/Issuer (Form 5498, 5498-SA, and 5498-ESA), Donee (Form 1098-C), Transferor (Form 3921), Employer (Form W-2), and Withholding Agent (Form 1042-S). The second line below the Name is used for a continuation of the Payer name or the name of the transfer agent. The IRS definition of a transfer agent or paying agent is the entity that has been contracted or authorized by the payer to perform the services of paying and reporting backup withholding (Form 945). When printing Copy A forms, some forms do not have extra spacing for the second payer. Be sure to do a test print before running the entire batch. Do NOT use the second line of this field to enter any part of the address. Address, City, State, Zip This prompt is the mailing address of the Payer. If the Payer address is out of the U.S., enter most of address in address and the rest in City, leave the state field blank and check the Foreign Corp box. If you are a transfer agent, enter your mailing address in this field, not the Payer’s. Fed EIN# This is the Payer’s Federal Employer Identification Number. Enter your nine-digit number without the dash. 20 Working with Payer Information EIN# (else SSN#) Check Box By default, this check box is checked, indicating that the number in the Fed EIN# field is an Employer Identification Number. If the Payer has not been issued an EIN, and is using a Social Security Number instead, uncheck this box. Dashes will automatically be entered for you depending on whether the Fed EIN# is a SSN or EIN. Note: This box is always checked on 1042S filing. Ref # Use this field for reference purposes only. Example, if this payer was a correction from a previous year, you might enter 2013 correction. This field does not print or is included in the file to the IRS or SSA. Contact information Enter Payer contact name, title or department, email address (required emailing payee copy), phone #, and fax#. 1042-S requires a contact, title and phone #. Form Specific Information Filing Type This specifies the type of information that’s being filed with the IRS or SSA. Select a valid form type from the drop-down list. State Filing Numbers Use these fields to enter state payer numbers for forms printing and state reporting. Enter the 2 letter state abbreviation with the assigned payer state number in the state filing table. You can have multiple St/Payer state numbers in one Payer. Forms 1042-S, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-K, 1099-MISC, 1099-OID, 1099-R, W-2, and W-2G are set up for printing and reporting to states. Note: Enter the state and state Payer number in the state filing table of the Payer window for forms printing to Forms 1042-S, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-K, 1099-MISC, 1099-OID, 1099-R, W-2, and W-2G. E-File Check Box Check this box to mark a Payer for file creation during the E-File process. When New Payer is selected the E-File box will be automatically checked. Batch Print Check Box Check this box to print multiple Payers and their forms. Payers must be all the same file type i.e., 1099-MISC. Combined Fed/State Check Box Check the box if you are participating in the Combined Federal/State Filing Program (See “Combined Federal/State Filing (1099)”) 1098T method change Institutions must check this box if the reporting method changed from the prior year. 21 Working with Payer Information Additional fields Payers may need additional information reported. Additional fields for W2 Only and 1042S Only fields will display upon selecting their Filing Types at New Payer set up. 1099 Only additional information can be found in Utilities, Advanced 1099 Settings. Check the Advanced 1099 Settings to display on all Payers. 1099 Only Foreign Corp Check Box If the Payer is a foreign entity that’s Payees are U.S. residents, check this box. FATCA filing Check Box FATCA filing requirement of certain foreign financial institutions (FFI’s). Check this box if there is a FATCA filing requirement. An FFI with a chapter 4 requirement to report a U.S. account maintained by the FFI that is held by a specified U.S. person may satisfy this requirement by reporting on Form(s) 1099-DIV, 1099-INT, 1099-MISC, 1099-OID, and 1099-R under the election described in Regulations section 1.1471-4(d)(5)(i)(A) or (B). Checking this box on the Payer of the form types previously mentioned will print an x in the FATCA check box and e-file all payees in the payer as FATCA filing. Transfer (or Paying) Agent Check Box Check the box if you are filing on behalf of the Payer. If you check this box, enter the Agent name on the second line of the Payer Name and the Agents address in the Address field. Office Code (optional) Enter an office code (4 positions) of the payer; otherwise, enter blanks. For payers with multiple locations, this field may be used to identify the location of the office submitting the information return. This code will also appear on backup withholding notices. Name Control (optional) For a business, use the first four significant characters of the business name or leave blank if you do not know. Disregard the word “the” when it is the first work of the name, unless there are only two words in the name. A hyphen (-) and an ampersand (&) are the only acceptable special characters. Names of less than four (4) characters should be left-justified, filling the unused positions with blanks. 1042S Only Chapter - Required Select a withholding agent (Payer) indicator chapter 3 or 4. This field cannot be blank. Status – Required Select a withholding agent (Payer) status from the drop-down. This field cannot be blank. Country Code If the withholding agent (Payer) is a foreign entity select the proper country code. GIIN (optional) Enter the withholding agents (Payer) Global intermediary identification number. 22 Working with Payer Information Foreign Taxid (optional) Enter the withholding agents (Payer) foreign tax identification number. Pro Rata Check Box Withholding agent must check this box to notify the IRS that an NQI that used the alternative procedures failed to properly comply with those procedures. Blank if NOT applicable. QI/WP/WT EIN Check Box Normally the EIN# will only be checked for 1042S and this box will be blank. Check QI-EIN if you are filing Form 1042-S as a Qualified Intermediary, withholding foreign partnership (WP-EIN), or withholding foreign trust (WT-EIN). NQI-EIN Check Box Check NQI-EIN if you are filing as a Nonqualified Intermediary, that is not a U.S. agent or a Qualified Intermediary. W-2 Only Note: MAG-FILER does not support W2 Agent reporting. Employment Type Enter the type of employment applicable to this W-2 Employer from the drop-down list. Kind of Employer This is a required field. Select from the drop-down, N – None Apply (default), F-Federal Govt, S-State/Local Govt Non-501c, T- 501c Non-govt, and Y-State/Local tax exempt 501c. Establishment # This is a four-position identifier, which further distinguishes the employer reported, such as various store or factory locations or types of payroll. Ph Ext Enter a Payer’s phone # extension if available. Other EIN# If an IRS Form 941 or 943 has been submitted for the same tax year as this report, and the form contained a different EIN than this report’s EIN, enter the EIN from Form 941 or 943. 3rd Party Withholding Enter the total federal income tax withheld by a third-party (generally, insurance companies) from sick or disability payments made to the Employees in the Employer file. Third-Party Sick Pay Check Box Check this box, if this Employer paid Third-Party Sick Pay. 23 Working with Payer Information Editing an Existing Payer Record Existing Payer records can be edited by displaying the record, making the desired change, and clicking the Save (on the right of the Name field) button to save the information. You can display a specific Payer record by locating the desired record in the list on the left hand side of the Payer Information list window, then clicking on the Payer line. The Payer Information Right-Click Menu To use these functions, place the mouse pointer on the list of Payers, and then press the right mouse button. The right-click menu appears with some options containing additional menus. A check mark in the additional menus shows you how the list is currently sorted and the current search option in Find. Select any one of the sort or find orders by clicking on the desired line in the menu. Sort To sort the Payer list, click Sort and select one of three options, Sort by Name, Sort by Type, Sort by EIN#, Sort by E-File Yes/No, or Sort by Rec#. Find To find a particular Payer record, click Find and select the field by which you want to search. A popup window is displayed that allows you to enter the specific Name, Type, or Employer Identification Number that you would like to find. NotePad To view state totals for Payee states after the filing of Payers that were checked Combined Federal/State, click NotePad. The system starts the Windows Notepad program and displays the information in the Notepad window on the selected payer. E-File To toggle the selected Payer’s E-File column from a Yes to No click the menu’s E-File option, or press the Ctrl+E keys. Multiple payers with a Yes in the E-File column will include the selected Payer(s) in the E-File process. The absence of a check corresponds to a No setting for the selected Payer’s E-File column setting and will not be included in the E-File process. 24 Working with Payer Information Refresh If you are running MAG-FILER on a network, where users at more than one workstation may be working with the currently displayed Payer information, use this option. The program updates the information, incorporating the latest changes made by all users on the network. Payer Report To print out all Payers currently entered in MAG-FILER, click Payer Report. A list of the Payers, form types, EIN’s, E-File Y/N, address, and # Payees will print for review. Click on the printer icon to print. Flag All Payers to E-File and Not to E-File This option will change ALL Payers in the list to Yes or No in the E-File column. MAG-FILER looks at the Yes in this column to determine what data to use for the e-file creation. Flag All Payers to Not Batch Print This option will change all Payers in the list to not Batch Print. The Payer List, Print column will display No on all Payers. You would use this to clear out any selected Payers that were set Yes to Print and allowing for a new selection. To select Payers for Batch Printing, check the Batch Print check box in the Payer detail window, thus changing the Print column in the Payer list to a Yes. Delete Current Payer and All Payees Filed Under This Payer This option will delete the selected Payer and all of its Payees. Deleting a Payer Record You can delete a Payer record from either the Payer Information list window or from the Payer Information detail window. Note: All Payees under the selected Payer will also be deleted. To delete a Payer record from the Payer Information list window on the left: 1. Locate and click on the Payer record to be deleted. 2. Click Utilities on the window’s menu bar to display the Utilities menu. Then click Delete Current Payer and All Payees Filed Under This Payer. Or select the payer record and press the Ctrl+Delete keys. To delete a Payer record from the Payer Information detail window on the left: 1. Display the Payer detail record to be deleted. 2. Click on the Delete (on the right of the Name field) button to delete the information. The program displays a popup window prompting you to confirm the deletion. 3. Click OK to delete the record. 25 Working with Payee Information WORKING WITH PAYEE INFORMATION The Payee Information detail window is used to identify the Payee and provide specific financial information pertaining to the current filing type. This is a split window that displays a Payee list on the left with the detail of the selected payee on the right. The Payee list on the left can be expanded to view additional data from the detail window. An example Payee Information detail window is shown below: Note: Fields below City, State, and Zip will change per each form type. Entering New Payee Information To enter a new Payee record, click the New button. This clears the fields on the Payee Information window so you can enter Payee data. All data is entered starting in the left most position of each prompt with exceptions of amounts, drop-downs, and check boxes. Always select from a drop-down prompt. For additional formatting in the entry window, click Help and select Entry Window Help. After completing the Payee Information detail window, click on the Save (on the right of the Name field) button to save the information. 1042-S Entry - Valid characters for all name and address fields are alpha, numeric, blank, ampersand (&), hyphen (-), comma (,), apostrophe (‘), forward slash (/), pound sign (#), period (.), and the percent (%). The percent [% (used as “in care of”)] is valid in the first position only. The CITY field CANNOT contain numeric characters. 26 Working with Payee Information 1042-S Entry and W2G – A choice of buttons New and New/Print are available for these form types. New allows the user to create a record the usual way and New/Print button allows you to create a record and print the form for the recipient immediately after clicking on the Save to save the record. Payee List This list on the left, displays all payees under the payer name shown on the top window bar. Payees can be selected by using the mouse, slide bars, and the interactive Search. Expand the window from the left to display additional information from the Payee detail. Search can be used to find a name, TIN, or account number for editing a Payee record. To view all payees, clear out any data in the search box. Errors check box can be used to find Payee’s that have missing or required information. Clicking the box will isolate any payee and its detail so that you can edit the record. The following defines the fields and check boxes on the Payee Information detail window. New Button This clears the fields on the Payee Information detail window so you can enter information for a new Payee. New/Print Button This clears the fields on the Payee Information detail window so you can enter information for a new Payee and takes you directly to the form to print immediately after setting up the new Payee for Form W-2G and 1042-S. Currently defaults to the official form on W-2G and 1042-S. The format can be changed by clicking New to set up a new Payee, Print Forms, select 3 Up and print. Then when you set up the next Payee, the format will be 3 Up. Import Button This takes you to the section to import your data. Print Forms Button Select this button to print Payee forms in laser created format, print to pre-printed forms, or save forms to PDF. E-File Button This button takes you to the E-File Information window to create a single Payer/Payee file for EFiling to the IRS or SSA. Backup Button Create a PDF or CSV format of the Payees for a single Payer file. Report This option will calculate totals of your payee file. All data in the Payee file must balance to your records before printing or E-Filing. Help Button This will take you to MAG-FILER’s Help window for assistance. 27 Working with Payee Information Note: All data entered or imported must be validated and balanced to your records. TIN # The Payee’s Tax Identification Number (EIN or SSN) is a required field. Enter the nine-digit number without the dashes. MAG-FILER will automatically display dashes. This field may be left blank if the number is being applied for or if it’s unobtainable. Alpha characters and symbols are not valid. To bypass a blank, unobtainable, TIN#, click OK at the error window and continue. Note: If filing W-2 information, this is the SSN# field for the Employee’s Social Security Number. SSN (else EIN) Check Box A checked box indicates the number in the TIN # field is a Social Security Number (SSN), ITIN, or ATIN, with two dashes (xxx-xx-xxxx). Unchecked box indicates an Employer Identification Number (EIN) in the TIN # field, with one-dash (xx-xxxxxxx). IRS refers to this as a TIN Type; SSN, ITIN, & ATIN (2) and EIN (1). If the same TIN # exists in the file during 1099 or SSA entry, you will be prompt, “Payee already in the system, copy Name and Address for? Yes/No”. Name and address information will copy and only detail needs to be added. TIN required not avail and Tin# QI-EIN Check one of these boxes if TIN is required and not available or if TIN# is a QI/WP/WT EIN. Corrected Return Check Box This check box appears at the top right of all Payee Information detail windows except for W-2. By default, this box is unchecked. Check this box if you have already submitted a return for this Payee, and are now submitting a corrected return. (See “Filing Corrected Returns to the IRS”) Checking this box also causes the CORRECTED check box on the form to be checked when you print the form. Form 1042-S has an Amended Return check box for corrections. Payee Name Payee is the person (individual) or organization (company) receiving payments from the Payer, or for whom an information return must be filed. Enter only the Payee that matches the SSN/EIN. The Payee includes a Borrower (1098-E and 1099-A), Student (1098-T), Recipient (1097-BTC, 1099B, DIV, G, INT, MISC, SA, OID, PATR, Q, R, and 1042-S), Debtor (1099-C), Policyholder (1099LTC), Transferor (1099-S), Participant (5498 and 5498-SA), Shareholder (1099-CAP), Beneficiary (5498-ESA), Winner (W-2G), Donor (1098-C), Payee (1099-K) and Employee (3921, 3922, W-2). The Payee name in the first line of the Name field must match the TIN # field; otherwise the IRS will consider it a mismatch. If there are multiple Payees, use the Payee name in the first line that belongs to the TIN #. Payee name for all form types (MISC, W2, etc.) with a SSN must display in MAG-FILER as last name suffix comma first MI. Names with a SSN can be manually entered or imported as Last name suffix comma first MI or as first MI last name suffix. MAG-FILER will automatically switch names upon saving if entered as first MI last name suffix. 28 Working with Payee Information Payee name with an EIN is entered and will display in MAG-FILER as is, i.e., SPOKANE COMPUTER INC. Form1042-S payee name is entered as is for all TIN types (SSN, EIN, etc.). If possible, leave out any punctuation except the comma following the last name on SSN’s. The IRS requests that extraneous words, titles, and special characters (i.e., Mr., Mrs., Dr., period [.], apostrophe [‘]) be removed from payee’s names. This information may be dropped during subsequent processing at the IRS/IRB. A dash [-] and an ampersand [&] are the only acceptable special characters in the payee First and Second name lines. Some examples of correct name entry are: SMITH, JOSEPH SMITH MD, JOSEPH SMITH JR, JOSEPH SMITH II, JOSEPH SMITH JONES & WILSON CPAS DE LOPEZ, JOSEPH SMITH CPA, JOSEPH SMITH, EST OF JOSEPH TORRES-LOPES, PEDRO Note: MAG-FILER will switch payee names with an SSN to first name last for forms printing. The second field of the Payee Name may be used for multiple Payee names, trusts, company names that do not entirely fit on the first line or DBA. There are not any format requirements for this field. Do not use this line to enter any part of the address. Some official pre-printed forms will not print a second payee name. Address The Payee’s mailing address. This is required information. Punctuation such as commas and periods are allowed. An additional supplemental address field is available on Forms 1097-BTC, 1098-C, 1099-B, 1099-DIV, 1099-INT, 1099-K,1099-MISC, 1099-OID, 1099-R, 5498, 1042-S, W-2 and W-2G. This field can be used for additional address information such as apartment, suite, and floor numbers and will print below the main address on forms printing. City The Payee’s city of residence. If the Payee has a foreign address, enter the city, province, and country in this field. For Form 1042-S, enter the city or town (or other locality name). Use the Recip country code (Live In) field for the foreign country. State Enter the two-character U.S. Postal Service abbreviation for the Payee’s state of residence. If the Payee has a foreign or Canadian address, leave this field blank. For Form 1042-S, select the Canadian province, U.S. state or leave blank for Foreign. Zip Enter the Payee’s 5 or 9-digit zip code without the dash. MAG-FILER automatically displays the dash. Foreign zip codes enter as is ignoring MAG-FILER’s dash. Form 1042-S zip codes enter “as is” including spaces and dashes. The E-File process will drop the dashes and spaces. 29 Working with Payee Information Note: Enter a foreign address by putting as much of the city, town or province or country in the City field and leave the State field blank. Email/Emailed/Confirmed/Opt-out of Email (MISC only) Enter the Payee’s email address for emailing recipient copies. Emailed check box will be checked when email has been sent. Check the Confirmed box when recipient has notified you that they have received their 1099-MISC copy. If the recipient wants to Opt-out of Email and wants his form sent, check the Opt-out of Email box. Type-Specific Fields The fields directly below the name and address fields on the Payee Information detail window are different for each filing type. Definitions for these fields are available in the MAG-FILER Help System by pressing the <F1> function key. Miscellaneous Field Definitions Date Fields - Forms that contain date fields must be entered and displayed in the following format, MM/DD/YYYY for printing and importing. However, during the E-File process dates are sent to the IRSTAX file in YYYYMMDD. Amount Fields – Amounts are entered in the following format 0.00 but display after saving i.e., $1.00. During the E-File process amounts are sent to the IRSTAX file without $ , or decimals. Some forms allow a negative amount to be entered. Enter a negative amount with a dash. The amount will display as i.e., ($1.00). Make selections from fields containing drop-down boxes. For Forms 1098-T, change the institutions method by checking 1098-T method change at the Payer. The method box will be checked on all payee forms reported to the IRS for that specific Payer. For Forms 1099-B, if required, use the special box to enter Corporation name and address. For Forms 1099-MISC, an Email address field is available for emailing recipient forms. For Forms 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-K, 1099-MISC, 1099-OID, 1099-R, and 5498 use only state/state1 wage/state income/tax w/h per form if filing under the IRS Combined Federal State program. (“See Combined Federal/State Filing (1099)”) W-2 Third-Party sick pay records must reside in a separate Payer file. Do not mix regular Payee records with 3rd party sick pay records in the same Payer file. W-2 must have a valid two-lettered state abbreviation in Box 15 for specific W-2 state filing. MAG-FILER’s entry window grid on the left may be moved for better viewing of the payee columns. Move columns in the Payee window and upon exiting the program the settings will be saved for that form type. To set back to the default, deleting the file MagGrid (form type).col in program files\magfiler\YYYY. 30 Working with Payee Information Note: Enter the state and state Payer number in the Payer window for forms printing to Forms 1042-S, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-K, 1099-MISC, 1099-OID, 1099-R, W-2, and W-2G. Also a valid two-lettered state abbreviation must be entered in the state field of the Payee detail section. Account The Payee’s account number is a required MAG-FILER field (alpha/numeric format) used on all IRS Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, and 1042-S. This is used as a Payer and IRS reference for further identification. IRS requires this field be unique on multiple entries of the same payee/TIN with the same form type. MAG-FILER will automatically enter a Payee account number if blank. It will also print to all forms with the exception of Form W-2. Special This field appears on the bottom of most Payee Information detail windows. This is available for you to include any possible miscellaneous notes that you would like to provide to the IRS. This information is included in the file created for IRS reporting. MAG-FILER also uses the Special field for: Printing zeroes in certain amount fields on Forms 1099-B, 1099-R, 1099-Q, and 1099-S. To do this, enter zeroes in the desired fields, and enter PRINTZERO in the Special field. Reporting information of work-in states different from the residence states for Forms 1099-PATR and 5498. (“See Combined Federal/State Filing (1099)”) 2nd TIN Notice This check box appears on the bottoms of some Payee Information detail windows. The Payer checks this box if the IRS has notified a payee twice within three calendar years of incorrect name and/or TIN information. Select Print This check box appears on the bottom of the Payee Information detail window allowing the selection of certain Payees for printing. (See “Printing Reports and Forms”) Editing an Existing Payee Record Existing Payee records can be edited by displaying the record, making the desired change, then clicking on the Save control button. You can display a specific Payee record by locating the desired record in the list on the Payee Information list screen on the left, then double-clicking on the desired line—this causes the record to be displayed on the Payee Information detail screen. 31 Working with Payee Information Note: Only one user can edit the same record in a multiuser environment. An error “Row cannot be located for updating” will display if that should happen. To exit the error, use Task Manager to exit the program. The Payee Information list - Right-Click Menu The Payee Information list - Right-Click menu provides additional options for data manipulation. These items may change depending on which form type you have open. To use these functions, place the mouse pointer on the list of Payees, and then press the right mouse button. The right-click menu displays additional menus. A check mark in the additional menus shows you how the list is currently sorted, its current search option in Find and current view options. Select any one of the sort, find, or view options by clicking on the desired line in the menu or pressing the specific short-cut keys to the right. Sort Sort will display additional menu options: Sort by Name, Sort by Account Number, Sort by TIN#, or Sort by Entry (Rec#) Number. W-2G and 1099-S forms have a sort option for closing dates and win dates. Sorting by one of the menu choices allows printing and reporting in that order. Export Payees to CSV file This option creates an ASCII comma delimited file, i.e., MagFiler CSV 1099MISC (.CSV) with field headers for importing into other software programs such as Excel or merging into other MAG-FILER files. Export Payer and Payees to CSV file This option creates an ASCII comma delimited file, i.e., MagFiler CSV 1099MISC (.CSV) with field headers for importing Payer and Payees into other software programs such as Excel. View All To view all records in the Payee Information list screen after using the range, corrected return or print options, click View All. 32 Working with Payee Information Set Range To specify a range of Payee records for reporting and printing purposes, first sort the Payee list in the order you want. Then, in the Payee Information list window, select the first Payee to start your range. Display the right-click menu, click Set Range, and select Start of range. In the Payee Information list window, select the Payee you want to end the range. Right-click to display the menu, click Set Range, and then select End of range. To see the range you have defined, right-click to display the menu, click Set Range, then select Only view range. This sets the Payee Information list window to include only records in the specified range. View Only Original/Corrected or Specific State To set the Payee Information list screen to list, print, and report only original returns (that is, those in which the Corrected Return box is not checked), display the right-click menu, click View Only Original or Corrected, and then select View Original. Likewise, to limit the list to include only corrected returns (those in which the Corrected Return box is checked), or only those Payees in a specified state, repeat the process, but select View Corrected or View Specified State. If you select View Specified State, the program prompts you to enter the state’s two-letter abbreviation. View Only Payees Checked to Print To view records in the Payee Information list that were selected for reporting or printing purposes, click View Only Payees Checked to Print. This option looks for a check in the Print check box of each Payee. Refresh If you are running MAG-FILER in a network environment, click Refresh to update data that will incorporate the latest changes made by all users on the network. Set All Payees as Corrected To flag all records in the Payee Information list as corrected (Yes) for printing Payee forms or filing corrected returns. This option looks for a check in the Corrected Return box of each Payee and displays a Yes in the Corrected column in the Payee Information list. Set All Payees as Not Corrected To flag all records in the Payee Information list as not corrected after printing Payee forms or filing all returns as original. This option looks for an unchecked box in the Corrected Return prompt of each Payee and displays a No in the Corrected column in the Payee Information list. Set All Payees as Not Batch Print To flag all records in the Payee Information list to not be included in batch printing (No) after printing Payee forms. This option looks for an unchecked box in the Select Print prompt of each Payee and displays a No in the Print column in the Payee Information list. Toggle Corrected To toggle records in the Payee Information list as corrected (Yes) or not corrected (No), click Toggle Corrected or use (F7) at each record in the Payee Information list. 33 Working with Payee Information Toggle Batch Print To toggle records in the Payee Information list to select Batch print (Yes) or not select Batch print (No), click Toggle Batch Print or use (F8) at each record in the Payee Information list. Clear all detail – leaving only name; addr; social This option allows you to delete the Payee’s detail on every record in the selected Payer file. The password, Clear, is required to finish this option. Deleting detail must be done per each Payer file. ReAssign Account Numbers to be Unique This option reassigns the account numbers using the Rec# (record entry numbers). Clear date on this record (Displays on 1042-S, 1099-B, 1099-CAP, & 5498) This option clears the date if program has it set up as a required field. Clear ALL date fields – Backup first (Displays on 1099-B, 1099-CAP, & 5498) This option clears the date on all records in this Payer file if program has it set up as a required field. View only Payees with amounts of over $600 (Displays on 1099-MISC) This option will display only Payees with amount fields over $600. The program will not view a record that may have one or more fields over $600. Delete all records with values under $600 (Displays on 1099-MISC) All Payees with amounts totaling under $600 in this file will be permanently deleted. Payees will not display before deletion. Make sure you have a current backup of your data. View only Email Payee’s (Displays on 1099-MISC) This will display additional view menu options for emailed payee recipient copies: View Only Payee’s with Email’s, View Only Payee’s that have NOT been emailed, View Only Payee’s that have already been emailed, View Only Payee’s that have NOT confirmed email, View Only Payee’s that have confirmed email. Create IRS TIN Matching File (Displays on 1099-B, DIV, INT, K, MISC, OID, & PATR) This option will create a file to submit to the IRS for TIN Matching. Review IRS TIN Matching Results (Displays on 1099-B, DIV, INT, K, MISC, OID, & PATR) This option will view the file results from the IRS TIN Matching. You can also review the results directly from the IRS TIN Matching web site. Email Payee Copies – 1099-MISC ONLY MAG-FILER has an option to email payee copies in PDF format for Form 1099-Misc containing Copy B, Instructions, and Copy 2. The recipient PDF copy has TIN masking and is password protected. IMPORTANT: IRS regulations state that Payers must have consent from each payee receiving an emailed statement. Refer to 2015 General Instructions for Certain Information Returns, under Electronic recipient statements, Consent, and Format, posting, and notification. 34 Working with Payee Information If you plan on emailing your payee copies, give yourself plenty of time to get your payee consents, email the recipients copy before January 31, and to confirm that the payee received his 1099-MISC copy. If you do not get a confirmation that the emailed 1099-MISC recipient copy was received, then you must mail the recipient a copy. Emails are sent from the Magfiler.com email server, and do not require you to have a specific email system in order to use this feature. The sender is copied on every email that is sent to a payee. Doing this provides you a log of exactly what was sent and to whom. You can either correct the email and send it again or mail it to the payee instead. Emailing 1099s to Payees is broken down into 3 steps: Send email to those who have email addresses and qualify Print and mail to those Payees who do not have an email address or prefer mail At a later date – print and mail to those Payees who did not confirm opening the email (since some recipients don’t check their email regularly and they need this form) Since sending batch emails from some corporate email servers can be a technical challenge, MagFiler provides a dedicated email server that will handle this for you. You are not required to connect Mag-Filer to your corporate email server unless you would prefer to do so (contact us for that process). The online Mag-Filer system does not store privacy sensitive Social Security Numbers – just manages the delivery of a 1099 with masked TINs. To email payee copies follow these steps: 1. Enter an email address in the Payer record. If the sender is different, edit the email address in the Email window – Email From: and the Payer/Sender email address in the Message. 2. At the Payee Information window, select PRINT FORMS. Choose Which Copy – Copy B, Mask TIN’s, and Send To – Email PDF. Then click PRINT. The Email window displays a template of the payer Email From:, the Subject:, and the Message:. Note: The template saves the defaults and edits to each payer in MAG-FILER. Email From: Required. This field will default from the Payer records email address. It can also be edited at this window if the sender is a representative for the payer, you will want to edit the email address in the Message. Subject: Required. This will be the default used on all emails. You can edit this field. Body of the message will default on all emails and can also be edited. The message must relay to the payee the browser location and what password to use. Note: The pass word will always be the last 4 digits (no dash) of the Payee’s EIN or SSN. Payer Information will default to the MAG-FILER Payer and can also be edited by the sender. There must always be a payer email address in the body of the message for the payee to confirm receiving the 1099-MISC. 35 Working with Payee Information 3. Click Email. The payee will receive an email that contains the email template information with a link to access www.MagFiler.com/Forms for 1099 retrieval. The email to the payee contains: From: Email of the payer Subject: Important Tax Return Document Body: Displays the template with a link and instructions to the Payee on how to access the form 1099. The program transmits all emails through www.Magfiler.com. The email sender will be copied on each email sent, whether individual or all payees were selected. Emails sent will be recorded with a date, time, and payee name in an incremented file called, i.e., EmailLog1.txt located in (My)Documents\Mag-Filer\YYYY\Emails. Once the email has been sent, MAG-FILER will check the Emailed box on the payee’s detail record. 4. MAG-FILER automatically checks the web site for confirmations and will check the CONFIRM check box on the payee(s). Each time you enter the Payees, the program will update from the web site payee’s who have confirmed. If an email is not confirmed by the payee, you must send that payee a printed 1099-MISC. Use the Payee r-click menu to View which payee’s have been emailed or not emailed and confirmed or not confirmed. Set all r-click payee Views back to View All before exiting the payees and E-File. MAG-FILER’s email server will check for payee confirmations of receiving their 1099’s each time that payer file is opened. A message will pop up Payees have been emailed but have not yet confirmed their receipt. Would you like to check for new confirmations? Y/N. If Yes, the server will check for confirmations and displays a checked confirmed box in the payee file. IRS TIN Matching MAG-FILER has added an option to create Bulk TIN Matching files for upload to the IRS e-Services TIN Matching program. IRS TIN matching can only be used on the following forms – 1099-B, DIV, INT, K, MISC, OID, & PATR. You must be a registered user. Log on to https://la1.www4.irs.gov/e-services/Registration/index.htm To create a file for upload, follow these steps: 1. Validate Payee names in MAG-FILER. Payee names can only contain a space, ampersand (&), comma (,) and hyphens (-). 2. Right-click at the Payee list and select Create IRS TIN Matching File. The file created uses the first part of the payer name and MAG-FILER’s assigned Rec#. 3. MAG-FILER will display the file location for upload and link you to the IRS e-Services site to upload your txt file. To login manually go to http://www.irs.gov/Tax-Professionals/e-services--Online-Tools-for-Tax-Professionals . 36 Working with Payee Information 4. You will receive an email from the IRS to check your e-Services Mailbox for your txt file containing matching responses. You can view your file at the IRS site or download it to your PC. Use a text editor like NotePad to view All Responses in the IRS txt file or you can use MAGFILER’s Payee list r-click menu, Review IRS TIN Matching Results that displays mismatch responses only. Copying a Payee Record To copy a Payee record, select the record you wish to copy. Right-click the New button and select Copy Payee. The program displays a duplicate of the selected record in the Payee Information detail screen. Edit the fields in the duplicate record as necessary on the new record and click on the Save (on the right of the Name field) button to save the information. A 1042-S copy will require the TIN type to be checked if the TIN = a Social Security number. Note: The account number assignment for the new record will be blank, until you save the new record, exit the Payee file, or click Refresh at the Payee list Right-Click Menu. Deleting a Payee Record To delete a Payee record, select the desired record from the Payee Information list, and click the Delete (on the right of the Name field) button. A popup window is displayed to confirm the deletion. Click OK to delete the record. You can only delete one Payee record at a time by this method. Records are assigned a Rec# at set up so when a Payee is deleted the Rec# goes along with it. To delete all Payees associated with a Payer record, select the Payer, and on the window’s menu bar, click Utilities and Delete All Payees Under This Payer. 37 Importing Data Into MAG-FILER IMPORTING DATA INTO MAG-FILER If you have Payee information stored in another program that has the capability of saving the information in ASCII format (i.e., .prn, .txt, .dat) that information can be imported into MAG-FILER. This eliminates the need to type your data into MAG-FILER, increasing the rate of accuracy. MAGFILER has options to import ASCII files from Excel, QuickBooks, and other accounting software. Contact Spokane Computer for assistance for other types of file formats. Check with your accounting software for a MAG-FILER import. MAG-FILER also has pre-set import formats for other accounting software programs, including QuickBooks (see “QuickBooks Import” that follows). No need to go through the following steps to create a new import setup. Types of Data Formats These are types of ASCII-file formats that can be imported. System Data Format (SDF) File—This file format contains a continuous string of data items, each one a specific number of characters in length. If using an Excel spreadsheet you would save as type Formatted Text (i.e., Space Delimited - .prn). Example follows: JONES, MARY 585846923 1255 RIVERVIEW RD In this type of format, you must have knowledge of the starting position (relative to the beginning of the file) and length of each data item in the file you are going to import. Delimited File—in this format, each data item in the file is separated (delimited) by a comma, and each Payee record is separated by a carriage return or line feed. If using an Excel spreadsheet for instance you would save as type (comma delimited - *.CSV). See the following example. MARY JONES,585846923,1255 RIVERVIEW RD In this type of format, each data item is numbered sequentially (position), starting with the first data item in the record, i.e., the name is in position 1; the TIN is position 2; and so on. Other file formats—Files for importing can be created when you print to a file using the generic text printer method in Windows. MAG-FILER has this option set up specifically for QuickBooks import, but could be adjusted by our support department to fit other software applications. Our support department will check other formats for possible importing and even convert the file for you. Formatting Requirements for SDF and Delimited Files You need to ensure that your accounting program, spreadsheet program, etc., can export to one of the above formats. (See “Working with Payee Information” for field definitions.) The following formatting requirements will assist in the importing of your data to MAG-FILER: Data files must contain rows or consecutive payee name, address, and detail information. Take out any blank rows in between records. Strip off any header, footer, margin, total, and paging information for SDF import. If using the Import CSV File method to import your Excel or CSV data file, assign headers (titles) to each field (column). 38 Payee names and address accepted length at import is 40 characters. Printing to standard IRS forms will cut off data at a length of 30. Other condensed formats will accept the full length. Importing Data Into MAG-FILER All name, address, descriptions, special descriptions, etc., must start in the left most position of each field. If importing a data file from Excel, isolate only data for import before saving to a .csv format. Do not include additional blank lines that may follow the last record in your file that may cause a message after import - “Importing found a blank payee”. Disregard this message if all records are accounted for and the totals match. Set up a separate field/column for the following in no particular order. You will assign positions at the time of the Import Configuration file set up. Note: If you would like to see an example of MAG-FILER’s data fields, enter a test New Payer in MAG-FILER and a new payee for the form type (MISC, W2, etc.) you will be using. R-click on the payee in the detail or list window and Export to CSV. This creates a file in .csv format for checking MAG-FILER’s data fields. Delete the test file by clicking the Delete button in the control box at the Payer Information window. Payee Account # (required) – This is an IRS 1099 and 1042-S (NOT for W-2) requirement in case there are duplicate records in a Payer file and must be a unique number (length of 20 positions). MAG-FILER will auto-assign if the account number is blank. SSN/EIN (required) - MAG-FILER refers to this as a TIN (Taxpayer ID Number). An SSN displays as xxx-xx-xxxx and EIN as xx-xxxxxxx and is always 9 digits. The formatting of the SSN/EIN numbers must be consistent in your data file, all with dashes or not (maximum length of 11 positions). W-2 import – Dashes may or may not be left in the Social Security Numbers. 1099/1042S import – If TIN Types are not assigned (see Tin Type below), leave dashes in the TIN to distinguish EIN and SSN. If dashes are not present in the TIN, set up an import function using the TIN Type. (See “Define Import File Format Method” option to import all TIN’s as EIN’s). 1042S will import payee names as is. Note: Leave dashes in all SSN/EIN’s if using the Import CSV File option for 1099/1042S & W-2. Tin Type (1099/1042S) - IRS requires a TIN Type to associate with the TIN. MAGFILER payee entry uses a labeled checkbox, SSN (else EIN) to determine the TIN Type. If the TIN = SSN, the box is checked, TIN# displays as a SSN, and payee name must display as last name suffix, first name MI . If the TIN = EIN, the box is unchecked, TIN# displays as EIN, and payee name displays as is. 1099 import – Set up a field with a 1 - EIN (company) or 2 – SSN (individual) per Payee. If your file contains TIN’s without dashes, use MAG-FILER’s Define Import File Format option. Add an import item for TIN Type; use the same position as the TIN in your data file, and a Func of 21 (looks at dashes in the TIN to determine SSN or EIN). Then edit the import item for TIN and add a Func 20 (which strips the dashes at import). Note: The Import CSV File option will import TIN’s with dashes and does not require the TIN Type assigned. Import functions are not used. W-2 import – Tin Type is not required. MAG-FILER always defaults TIN# as a SSN. 1042S – Follow the same field set up for 1099 import with exception of an additional field for QI-EIN and TIN Type not avail. 1042S will import payee names as is. 39 Importing Data Into MAG-FILER Payee (required) – This is the Legal Payee Name that matches the SSN or EIN. There should only be one name in this field (maximum length 40 characters). SSN names in your data file should be last name comma first name MI to correctly import last names; however first name MI last name will also import. Concatenate in Excel, if necessary, to merge columns of payee first and last name into one. Payee name must display after import as last name, comma first name, MI on a SSN or company name as is on an EIN on Forms 1099 and W2. A hyphen (-) and an ampersand (&) are the only acceptable special characters for First and Second Payee name lines. A comma (,) is acceptable for SSN payee names. Periods, extraneous words, titles, and special characters (i.e., Mr., Mrs., Dr., period, apostrophe) should be removed from the payee name lines. Form 1042S payee names should appear as is on all TIN types. Payee 2 – Use this field as a continuation of a company name or for extra names referring to Payee name1, ex; Mrs. John Smith or names in a trust or estate (maximum length 40 characters). Addr (required) – Main street address (maximum length 40 characters). Addr2 – Supplemental address used in forms 1099-B, DIV, MISC, R, 5498, 1042-S, W-2, and W-2G (maximum length 40 characters). City (required) – Enter U.S. city or if foreign enter the city, township, or country, and abbreviate if necessary (maximum length 20 characters). State (required) - Use the 2 letter state abbrev. 1042-S includes U.S. states and Canada provinces. State blank if a foreign 1099 or 1042-S. Zip (required) - Remove dashes and spaces from nine-digit zip codes or use function 20 to strip the dash at import. MAG-FILER automatically displays the dash after import on 1099’s. Form 1042-S, enter the date as is, i.e., spaces or dashes. MAG-FILER will display and print the zip as entered. E-File will remove spaces and dashes in the IRS file. Forms detail – Amount fields, dates, checkboxes, codes, and descriptions are entered per form type in separate fields. Amounts – This field is formatted as 0.00 - no commas, dollar signs, and no more than 2 digits after the decimal. The maximum length for amounts is 11 positions. Leave field blank if no amount. Dates - Remove all punctuation from date fields and show date in format: MM/DD/YYYY. Descriptions are required on certain form types (maximum length 39 characters). Check box information can be a Y for checked or N or blank for unchecked. TIN Type check box is a 1 = EIN and 2 = SSN for Tax ID. Form 1099-MISC has an additional email field for emailing recipient forms. Form 1099-Q uses P for private, S for state, and C for Coverdell. Form 1098-C uses a 1 or Y for Yes and a 2, N, or blank for NO. Form 1097-BTC in the Issuer field uses a 1 for Issuer of bond and a 2 for an Entity. Form 1099-K uses a 1 for PSE, 2 for EPF/TPP in the Filer Type and a 1 for Payment card and a 2 for Third party network in the Transaction Type. Form W2 state information –If W2 state filing is selected; a valid two-letter state abbreviation must be present in the employee record box 15. 40 Importing Data Into MAG-FILER Form 1042-S Payer (withholding agent) must be set up with Chapter 3 or 4 and status code. All payees following must use the status codes for whichever Chapter was selected in the payer. There cannot be a mix of chapter 3 and 4 payees in a single payer file Tin Type, TinNotAvail, and TinType, Q-EIN, are all treated as separate fields with a Y for checked and an N for unchecked or blank. State/Province or blank - Use the recipient's resident two-digit state or Canadian province abbreviation from MAG-FILER's drop-down or if recipient lives in a foreign country, blank this field. Income codes - enter a two digit code, ex; 01 Tax Rate - enter 5 digits, ex; 04.00, 30.00, 28.00 Exempt code - enter valid codes from IRS instructions. US tax withheld indicator a 1 digit code. This field is not required on import if all records were reported correctly. This is the MAG-FILER default. 0 - tax w/h correctly reported. 1 - tax overwithheld 2 - tax underwithheld Recipient status code - enter two digit code from IRS instructions. Tax year 2013 and earlier, the field was known as the Recipient code. The Recipient status code list changed after tax year 2013. Recip tax country code - enter two lettered country abbreviation from MAG-FILER's entry window drop-down or from the IRS 1042-S Instructions. Recip country code (residence/live in) - enter two lettered country abbreviation from MAGFILER's entry window drop-down or from the IRS 1042-S Instructions. This field will be blank if the recipient lives in the U.S. There are three items that will aid in a successful E-Filing: The recipient's residence is in the U.S. State/prov or blank field will contain a U.S. state abbreviation Recip tax country code Recip country code (residence) will always be blank The recipient's residence is in Canada. State/prov or blank field will contain a valid Province from MAG-FILER's drop-down Recip Tax country code will always = CA Recip country code (residence) will always = CA The recipient's residence is NOT in the U.S. or Canada. State/prov or blank field will always = BLANK Recip Tax country code will always contain a foreign two-digit code. Recip country code (residence) will contain a foreign two-digit abbreviation from MAG-FILER's drop-down. 41 Importing Data Into MAG-FILER Methods of Importing Data There are two main methods that MAG-FILER uses to import data from other software. Define Import File Format – This method uses a SDF or Delimited (comma separated) data file format. Import items are assigned according to position and length (SDF) or position (Delimited). This method also has various import functions, such as TIN Type assignments, that can be assigned. Pre-defined formats have been set up for other accounting software packages and for all of MAGFILER’s Export to CSV formats. Import CSV File – Use this method to import only Delimited formatted data files, such as a CSV file created from Excel. The program assigns import items to each field in your data file. Import functions cannot be assigned in this method. Define Import File Format Method Before data can be imported into MAG-FILER, a configuration file must be set up that tells MAG-FILER specifically how the data in your import file is configured. This method can be used on SDF and Delimited formats. When you import your data, it is transferred to the fields on the Payee Information detail window. And chances are, the information in your import data file is not in the same order that the fields are laid out on the Payee Information detail window. Therefore, the configuration file tells MAG-FILER what type of format it’s in (S = SDF or D = comma-delimited), and what order the data is in (i.e., what field to place the first data item in, what field to place the second data item in, and so on). To create an import configuration file, follow these steps: 1. Locate the Payer from the Payer Information list or create a New Payer and Filing Type (1099MISC, DIV, etc.) that you are using. 2. Select Define Import File Format from the Utilities menu. This window displays: 42 Importing Data Into MAG-FILER The Import Format section on the top of this window lists the import configuration formats that have been created per form type for MAG-FILER and other customer’s imports. MAG-FILER CSV formats have been set up for each form type that matches the MAG-FILER payee “Export to CSV” format. This is helpful for merging data into another MAG-FILER Payer file or testing an import. The Show Current Payer Form Only will be checked indicating the Form Type and Format (Fmt#) is for the current Payer selected. In this sample the Form Type is 1 for Form 1098. Unchecking the box will display all Form Types and their formats. The Import Items section on the bottom of this window lists the fields associated with the Filing Type. The import items pertain to the Import Format selected in the top section. In the Step 2 example shown above, the format set up for 1098 data specifies that the data is in a delimited file format (Type D); it specifies the Import Item TIN (SSN/EIN) = position 1 in the data file; continues with TIN Type in position 2; and so on. 3. To create a new configuration format, click on the Add button in the Import Format section. The section is cleared and the cursor is placed in the next available Form # field, as shown here: 4. Enter the appropriate information into fields of the Import Format section as described below: Form # (required) - Enter the number from the list below that identifies the type of tax information in your import file. (Note—this must match the filing type —as specified in the Filing Type field on the Payer Information detail window.) Form 1098 1099-A 1099-B 1099-DIV 1099-G 1099-INT 1099-MISC # 1 2 3 4 5 6 7 Form 1099-OID 1099-PATR 1099-R 5498 W-2G 1099-S W-2 # 8 9 10 11 12 13 14 Form 1099-C 1099-LTC 1099-SA 5498-SA 1098-E 1098-T 1042-S # 15 16 17 18 19 20 21 Form 1099-Q 1099-CAP 5498-ESA 1098-C 3921 3922 1097-BTC # 22 23 25 26 27 28 30 Form 1099-K 1098-Q # 31 32 Fmt # (required) – Enter a one to three-digit format number not currently used in the list. This is a unique number that identifies the import format you are creating. You will need to know this number later when you import your data file. Description (required) - Enter text that identifies your import format. 43 Importing Data Into MAG-FILER Type (required) – Enter S - System Data File (SDF) or D - Delimited File (Comma delimited) one to identify the format of your file. Length – This field is not used if the import file type is Delimited, <Tab> by to blank. Enter the total number of characters per record in the SDF import data file (each record consists of one set of data fields per Payee). If the SDF record length is unknown, <Tab> by this field and let MAG-FILER determine the end of the record. Specifying an incorrect length may cause duplicating records during import. Function (Optional) – This field is not normally used unless it has been previously set up by MAG-FILER for specific clients. Pressing <Tab> enters a blank in this field. Link (required) – Press <Tab> as the Link number is automatically assigned by MAG-FILER. 5. Click the Save button (upper right corner of window) in the Import Format section to save the import format you just created. 6. Next you will need to set up import items for each field in your import data file for your Import format. Click on the Add button in the Import Items section. The cursor moves to the first field in the Import Items section, as shown in the window below: You will be selecting each item (name, addr, etc.) to import on separate lines and identifying the position, length (if type S), and function if necessary. Note: The Import items sort by position after saving each record. 7. Place the mouse pointer anywhere in the Import Items section and right-click. Select Lookup F2 from the right-click menu. Pressing the <F2> function key also displays the Fields List. The Import Configuration File Definition window is expanded to the right, showing a list of field names (FldName) for selection in the Import Items section. Form # refers to the form types list provided earlier in Step 4. This number should correspond to the form type of your data, example, Form # 1 indicates your data is for Form 1098. 44 Importing Data Into MAG-FILER To select FldName from the Fields List, select the field by clicking on it with the mouse, and then press the Select button (or double-click on the desired field name in the list). The field name and field number will appear in the Import Items section on the left. The Fld # field in the Import Items section is program assigned to the field name and should not be edited. Fld# 0 is only a form type identifier in the Fields List and must never be included. 8. In the Position field, enter the data item’s position in your import data file. If the import file is a Delimited file, the data item’s positions are numbered sequentially, i.e., the first data item is in position one, the second item is in position two, and so on. If the import file is an SDF file, the position identifies the starting position of the data item from the beginning of the record. 9. In the Length field, used if importing an SDF file, enter the total number of characters of the data item being defined, from its starting position to its ending position. (The Length field is not used if the import file is a Delimited file). 10. In the Function (optional) field, enter the number of the special function that will execute upon import of the data. The special functions perform manipulation procedures on the data before it’s placed in the fields of the Payee Information detail window. Following is a list of the most common special functions and their function number. The right-click menu, Import Function List (F3), will open up the entire list of functions. 45 Importing Data Into MAG-FILER Function Description Number Combine name if first comma last name – last name 5 Combine name if first comma last name – first name 6 Remove dollar signs and commas from amounts 10 Insert decimals in amounts 11 Note: Functions 5 and 6 from the above list are for data files that have separate fields for first and last name. To use these functions, you would place the # 5 in the function field across from the last name and the # 6 in the function field across from the first name. The names with SSN’s should then import into MAG-FILER as last name comma first. Each line in the Import Items section contains two additional sets of Fld #, Position, Length, and Function fields. These additional fields can be used to consolidate information in your data file at the time of import. To display additional import functions right-click in the Import Items area, and select Import Function List. (The <F3> key will also take you to the Import Function List). If your data has been set up using MAG-FILER’s data layout, you normally will not use the Function or other sets of Fld #, Position, Length, and Function fields and will leave them blank. 11. Perform Steps 6 - 9 for each data item in your import file. Set up only data items required for your forms reporting. 12. Click on Save in the Import Items section to save the data item definitions. 13. Click on the ICF button in the Import Format section to update the import configuration file to the main program (this must be done anytime a change is made to the configuration). 14. Click on the Exit button to return to the Payer Information detail window. If you would like to see an example of MAG-FILER data fields for a particular form type, set up a test Payer and Payee on that Form type in MAG-FILER, right-click at the Payee window and select Export to CSV. 15. Once you have a configuration format set up for your import data file, you can import data. 16. From the Payer Information window, select or create the Payer for your data import. 17. Click on the Payees button. The Payee Information detail window for the specified Payer/Filing type is displayed. Note: If Payee information already exists for the current Payer/Filing type, the new information imported into MAG-FILER will append (NOT replace) into the existing Payee file. 18. Click on the Import button. Choose Pre-Defined Mag-Filer Import Format at the Import Options. 46 Importing Data Into MAG-FILER Form type 1099-MISC will display a 3rd choice 1099 QuickBooks Integration (Only Imports nonemployee comp. amts) for 1099 QuickBooks data. Change Definition allows you to go back to your import configuration for any adjustments. Remember to Save your edits before exiting. 19. The Import File window is displayed: In the File Name field, enter the full path/filename of the data file to be imported, and then click on Ok. (Clicking on the Browse button allows you to search for the data path and file.) Combine amounts for Payees with matching social sec # (only displays on specific form types) if checked, will combine records and amount fields based on like TIN numbers. TIN numbers must contain dashes in both files. The program will combine to the first record with the same TIN. Fields that will not combine are State and Local information on forms MISC, R, & W2, and Box 14 on form W2. Also use caution with this feature, as you may want records containing descriptions, account numbers, and any other non-amount fields to be separate. Overwrite existing Payees if checked, will replace all of the previous imported records from a bad import. 20. If the data file to be imported is found, this popup window appears for the selection of an import format: 47 Importing Data Into MAG-FILER At the Import Formats, click on the import configuration file you created for the particular type of data being imported highlighting it and then click on Select. Note: If your import file does not show in the Import Formats list at the time of import, you forgot to ICF at the Import Configuration set up, previous Step 13. 21. If the data import is successful, the window shown at the right is displayed. Click OK. The imported data can be viewed on the Payee Information detail window. Upon checking the Payee information window and no data displays, go back and verify fields assigned in your import file configuration against your data file. Check that Fld# 0 has not been assigned and that your import configuration is the same file type (ex; 1099MISC) as set up in the MAG-FILER Payer file. The Totals window will pop up to verify your imported data totals. Data imported must balance to your accounting system. IMPORT ERRORS If errors occurred during the import, an error log is displayed at the end of the import. The error log gives you a brief error statement and its record #. You can print the log at that time. You can also view the last error log that was created by right-clicking on the Import button on the Payee Information detail window, then selecting View last import error log. This log is overwritten each time there are errors during an import. To locate errors, right-click on the Payee Information window and sort by Entry (Rec #) number. Then expand the left side of the list to display the Rec# column. Another method to locate missing data is to click the Errors check box on the Payee Information window (located above the Search box). Only Payees containing errors will appear in the list for editing. Uncheck the Errors box to display All payees in the list. Therefore, you data should be checked and the errors corrected before continuing with importing Payees for another Payer. VALIDATE ALL DATA AFTER IMPORT Check for the following: The proper placement of dashes in the Tax Identification Numbers (TIN's). SSN’s will have two dashes and EIN’s one dash. Invalid TIN's— cannot be all 1’s, 2’s, etc., or “123456789” or start with letters, hyphens. Leave blank if invalid. Some 1099/1042-S TIN’s beginning 800 and 900 are valid according to the IRS but are not valid for SSA reporting. Check your employee or payee files for valid TIN’s. 48 Importing Data Into MAG-FILER TIN types – verify check boxes for SSN, EIN, or QI-EIN (1042-S). All text, i.e., name, address, city, state, zip, descriptions, etc., starting in left most position of each field. Zip plus four should display as xxxxx-xxxx, no spaces around the dash. Zip codes for 1042-S will display “as is” including spaces or dashes. Name problems – Payee Name belonging to the TIN must appear in the first name field on SSN’s as last name space suffix comma space first name space middle initial and EIN’s as shown, i.e., Smith & Company. The second name field that displays either to the right or next line below is used for continuations of company names, DBA, or additional payee names. Form 1042-S payee names should display as is on SSN’s and EIN’s. (See “Working with Payee Information”) Address problems – check for blank or incomplete address fields. (See “Working with Payee Information”) Form 1042-S payee city cannot contain numeric characters. All text with the exception of check boxes, drop-downs, and dates must start in the left most position of the field (left justified). The decimal is properly placed in dollar amount fields. Check for record duplication in your file caused by a Payee not in the Payee 1 field. Grayed check boxes are invalid. If checked, check boxes must be displayed as a checkmark on a white background. Dates display as MM/DD/YYYY on forms containing dates such as W-2G and 1099-S. Run a Totals Report or Print Forms on regular paper to help proof totals and payee count that was imported. MAG-FILER must match to your accounting systems totals. (See “Printing Reports and Forms”) SS Tax and Medicare Tax calculation comments may appear in your Import error log. These comments are based on a straight calculation of SS tax and Med tax and ask that you check your calculations. The program calculates the SS Tax and Medicare Tax at manual entry and therefore, checks at import. MAG-FILER’s report totals must balance with your accounting system reports. Import a previous year’s configuration file A MAG-FILER import configuration file format from the previous year can be brought over into the current year if your data file format has not changed. Be aware that any changes to IRS or W2 forms may require changes to your configuration file. To transfer an import file configuration from last year’s MAG-FILER: IRS or SSA Form detail or MAG-FILER may change from year to year. Be sure to check the IRS web site for the form types (MISC, DIV, etc.) you use or MAG-FILER’s Important Information on the Getting Started window. You may need to edit your configuration file after this import. 1. Select Utilities at the Payer Information window and click on Define Import File Format. 2. In the Import Configuration File Definition window, Import Format section, right click to display the prompt Import from ICF. 3. In the browse window, search and open the import format previously used. In most cases this file will be found in the previous MAG-FILER program folder and has an ICF extension. Earlier year’s programs were located in a folder Program Files\Mag-Filer\ YYYY. 49 Importing Data Into MAG-FILER To find the correct file, go back to the previous year’s MAG-FILER program, Utilities, Define Import File Format. If the format were Form # 1 (Form 1098) and Fmt# 1, you would look for 01001.icf in Program Files\Mag-Filer\ YYYY. 4. Select the ICF button to the left of EXIT to update the configuration. This updates the file to the main program for successful importing. Note: If your import file does not show in the Import Formats list at the time of import, you forgot this step. Import CSV File Method This import option will easily import an ASCII file in comma-separated format (CSV). If your data resides in, for example, Excel, it can be saved as type .CSV (comma delimited) and imported into MAG-FILER using this method. It’s best to leave column titles in your file. Import functions, such as inserting decimals or assigning TIN Types, are not available in this option. (See “Formatting Requirements for SDF and Delimited Files” under “Importing Data Into MAG-FILER” for a successful import.) To import your CSV data file format, follow these steps. 1. Set up your Payer information by filling out all fields related to your IRS or SSA filing. 2. Select Payees and then the Import button. 3. Choose CSV File Importing at the Import Options window. 4. Browse for and open your CSV file from the Select CSV window. 5. An Import CSV window displays columns #FldName, #Field, Titles, & Values. You will be matching up your data on the right under Values with the FldName items on the left. They will assign in the middle under #/Field. #/FldName – Import item fields associated with form type (MISC, INT, etc.) of your data. #/Field - Displays the assign Fields from #/FldName column to each Value. 50 Importing Data Into MAG-FILER Titles – This column displays headers from your data file such as Name, Street, City, etc. to help in identifying your values and should be grayed out. Titles must be present if the first record in the file has blanks in a selected field. First row in file is the field title box if checked, indicates that your data file has a header row with titles. Uncheck if Titles are not present to import the first record in your file. Values – Displays columns of the first 4 records in your file to aid in assigning import items. 6. You will be assigning an import item to each field in your data file. Start by selecting a row in the Values field (i.e., Account) on the right, the row will be highlighted on all records. Then from the #/FldName column (i.e., 3 ACCOUNT NUMBER) on the left, click to select the FldName associated with the Values row. The #/FldName (i.e., 3 ACCOUNT NUMBER) will appear in the #/Field column to the left of the Titles column. The highlight will automatically move to the next row for assigning. Continue the same procedure for each row. Only select import items needed for each type of form reported to the IRS or SSA. 7. When all Values have been assigned click Import. Check the Payee detail for a successful import. Note: Functions and combining like TINs are not available in this option. If you need to reassign a field, select the value, right-click on #Field and Undo. Buttons across the top can be used for the import set up: Set Field Definition to selected Datafile Row will allow for value assigning without selecting individual fields and values. Import will import your data after value assignment. Overwrite existing Payees will allow you to replace existing payees from a previously bad import. Save will save your value assignments upon exiting the Import CSV window. Load to bring in previous assigned items. Close exits the Import CSV window. The right-click menu on the Save/Load button has additional options to aid in your import: Read Last Custom Import format will bring in previous assigned items. Save ICF saves your value assignments. Clear Field Assignment clears all assigned import items. Save as Pre-Defined Format saves the file as a Pre-defined format for the repeated import of the same formatted data file. After making this selection, a Predefined window displays. Click Set to bring in your format from the csv import window. Note: Be sure to note the Form and format # before closing. For your repeated data imports, you will be selecting from the Payees window Import, Pre-Defined Mag-Filer Import Format and the import format you previously created. As in the Define Import File Format Method, if errors occurred during the import, an error log is displayed at the end of the import. You can print the log at that time. (See “Import Errors under Define Import Format Method”) 51 Importing Data Into MAG-FILER Options for re-importing your data after exiting the program are: 1. Delete the Payee records displayed in the Payee Information window. Select the Payer, go to Utilities and select Delete all Payee’s under this Payer. Then import the data again. 2. Start again with your import. Refer to the previous instructions to import your CSV data file format. At the Import CSV window, load your import items and click Overwrite existing Payees. Additional data can also be imported into the same Payee file and will append. Import Previous Year’s MagFiler Payer and Payee Data, Only Payer Data, or Name and Address Only MAG-FILER data can be transferred over from the previous year’s MAG-FILER program. This prevents importing or entering name and address data that remains the same year after year. Options available for importing are: Payers and Payees with amount detail, Payers and Payees with name and address only, and Payers only for the import of Payee data at a later time. Detail can also be cleared after import (Payee Information window, R-click menu, Clear All Detail). If MAG-FILER was installed with activate security (user name and password at login) in the previous year, than the same user names and passwords must be set in the current year’s program to import previous year’s MAG-FILER data. Use this procedure for transferring 2015 data that was entered using the MAG-FILER2014 program. NOTE: Data CANNOT be copied from a previous year MAG-FILER to a current year’s program. The IMPORT PREVIOUS YEAR’S DATA option must be used. Procedure to Import Previous Year’s MagFiler Data ALWAYS HAVE A CURRENT BACKUP OF YOUR MAG-FILER DATA 1. Locate your data file in the previous year’s program by selecting the HELP button to the right of the E-File button at the Payer Information window. The data file name is displayed in the Database line at the bottom. The default location is (My)Documents\Mag-Filer\2014\Magdata2014.mdb. Close this window and continue to Step 2. 2. Using MAG-FILER 2015, select Utilities (upper left) from the Payer Information window. Select one of the following: Import Previous Year’s Magfiler Payer and Payee Data or Import Previous Year’s Magfiler Payer and Payee Name and Address, or Import Previous Year’s Magfiler Payer Data. 52 Importing Data Into MAG-FILER 3. The Import Previous Year’s Data window displays (see below). Select the Payers to import by clicking in the Selected column until the word Selected displays to the left of each Payer. Click Import to start the transfer of data. Depending on which utility was selected Payers and Payees or only Payers will transfer over to the current year’s program. The number displayed in the Rec# column of each Payer is from the previous year’s Payer files in the list. This aids in identifying individual payer files for converting to the current year. Check for Payees in a file by selecting each Payer. If the Payer file contains Payees from the previous year, they will display below. If the Payer file hasn’t Payees, a message “Warning – No Payees associated with this Payer” displays. 53 Importing Data Into MAG-FILER 4. If MAG-FILER’s default directory was not located and the list is empty, select the Browse button to display the following window - Previous year’s file location. Use the Look in: drop down arrow to locate the file MagData2014.mdb. You want to locate and open the File. This file contains all MAG-FILER Payer and Payee data. To find the previous year’s data, open MAG-FILER 2014, click the Payer information HELP button (right side of the E-File button) and check the Database: path at the bottom left of this window. Proceed with Step 2 for selecting Payers to import. 54 Importing Data Into MAG-FILER Import Previous Year’s Data Right-Click Menu The Import Previous Year’s Data Right–Click Menu provides options to ease in the file transfer. Load Different Payer List Use this option when the drive location of your previous year’s MAG-FILER data was changed. Click Load Different Payer List, locate File name MagData2014.mdb, and click Open. Select All/De-Select All When all Payers in a list need to be transferred to the current year’s MAG-FILER program, click Select All. De-Select All when all Payers in a list do NOT need to be transferred to the current year’s MAG-FILER program. 55 Importing Data Into MAG-FILER QuickBooks Import Note: Your versions of QuickBooks must be able to print W-2’s in order for MAGFILER to successfully import your data. MAG-FILER has created an interface to import a QuickBooks W-2 or 1099-MISC files for filing to the IRS, SSA, and to specific states requiring W2 information. MAG-FILER supports QuickBooks versions 2013 – 2016. NOTE: MAG-FILER relies on the printing of W-2’s through QuickBooks. Current year W-2 print updates may not have been released by QuickBooks at this manuals printing. Check our web site for updates and refer to MAG-FILER’s Important Information addendum that is distributed with the Final program in December. MAG-FILER does NOT support QuickBooks Online version, more than 2 localities for one employee, QuickBooks service bureau users or any other Forms 1099 in QuickBooks besides MISC. QuickBooks versions earlier than 2013 may not import W-2 data into MAG-FILER correctly. Contact MAG-FILER support for assistance. MAG-FILER imports data by creating a file from the printing of Forms W2 or 1099-MISC in QuickBooks. Use this method for1099MISC import of one or more amount (ex; rents and nonemployee comp.) fields in the file. (See “Create a PRN file method”) The program has an alternative procedure for the import of 1099-MISC data by integrating with QuickBooks thus by-passing the creating of a file, mentioned above. If you have problems using this procedure, refer to create a .prn file method. Your file can only contain the amount category “nonemployee compensation” in all records for this method of importing. To aid in a successful MAG-FILER import, users should be consistent on the set up of employee or vendor data in QuickBooks, i.e., TIN, names and addresses without commas and first and second line addresses using same format without any quotes. Before you create a file that MAG-FILER can import, install the current year’s MAG-FILER. W-2 or 1099-MISC data can either be printed from QuickBooks or in MAG-FILER after import. Note: Be sure to check the Important Information that is distributed with the Final program for any updates. Create a PRN file method This method imports data from a QuickBooks W2 file containing federal and state information and from a QuickBooks 1099-MISC file containing all amount categories (i.e., rents, other, nonemployee). 1. Set up a Generic/Text Only print driver on your Windows system to import QuickBooks W-2’s and 1099-MISC. If you do not already have a Generic/Text Only printer set up in Windows, use the following steps to create one for use by QuickBooks in creating a data file that MAG-FILER can import: Note: The generic printer must be set up where the QuickBooks program was installed. Also may be installed at the server. Contact your IT department or consultant. 56 Importing Data Into MAG-FILER XP Add a Printer a. Close out all open Windows programs. b. Press the Start Button. c. Select Settings. d. From the menu that appears, select Printers and Faxes. e. Select Add a Printer. f. Select Local printer (don’t check auto detect plug and play printer), Port = File: Print to File, and Manufacturer = Generic with Printers = Generic / Text Only, Default printer = NO, Do not share printer = NO, Print test page = NO. Windows will set up the new printer. If the printer manufacturer is not found in the list, it may be necessary to locate the printer from the install Windows CD. Win 7 Add a Printer a. Close out all open Windows programs. b. Press the Start Button. c. Click Control Panel. d. Select Hardware and Sound. e. Click on Printers or Devices and Printers. f. Select Add a Printer g. Choose Add a local printer, Use an existing Port and select from drop-down File: Print to File, Install the printer driver page, select Manufacturer = Generic with Printer name = Generic / Text Only, uncheck Default printer. Do not share printer = NO, Print test page = NO. Windows will set up the new printer. If the printer manufacturer is not found in the list, it may be necessary to locate the printer from the install Windows CD. Win 8 Add a Printer a. Close out all open Windows programs. b. Press the Windows key and type Control Panel and select it . c. Select Hardware and Sound. d. Click on Printers or Devices and Printers. e. Select Advanced Printer Setup. f. Click Printer that I want isn’t listed. g. Choose Add a local printer or network printer with manual settings, Use an existing Port and select from drop-down File: Print to File, install the printer driver page, select Manufacturer = Generic with Printer name = Generic / Text Only, uncheck Default printer. Do not share printer = NO, Print test page = NO. Windows will set up the new printer. If the printer manufacturer is not found in the list, it may be necessary to locate the printer from the install Windows CD. 57 Importing Data Into MAG-FILER 2. Create a file in QuickBooks. Once you have set up a Generic/Text Only printer, and have its output directed to a File, you are ready to create a file that MAG-FILER can read and convert. In order to create the .prn file, do the following within your QuickBooks program. Follow the instructions below for the version of QuickBooks you are running. W2 QuickBooks versions 2013 - 2016 Instructions a. Open your QuickBooks Company. You must be in single user mode and have administrator rights. b. Click Employees, then select Payroll Tax Forms and W-2s, click Process Payroll Forms and select Form type – Federal form, and click OK. a. At the Select a Payroll Form or File Forms window, choose Annual Form W-2/W-3 Wage and Tax Statement/transmittal and Select Filing Period year, and click OK or File Form. c. Select Employees for Form W-2/W-3 (Review/Edit if necessary) and click Print/E-file. d. At the Print/E-File Form window, 1. Print, click Print. e. Make the following selections at the Print W-2 and W-3 forms window: f. Select paper – Blank/Perforated paper Select item to print: For government, W-2 – Copy A: for the Social Security Administration, 2 per page. Click Printer Setup and change the printer name to Generic / Text Only, Paper Size = Letter and Source = Automatically Select, and click OK. Click Print at the bottom of the Print W-2 and W-3 forms window. Save Print Output as: Enter a file name (leave out commas or special characters) that will be used for MAG-FILER import. Type, i.e., C:\Program Files\Mag-Filer\2015\ SCI.prn (replace the SCI with your employer’s company abbreviation) and click OK or SAVE. If a drive and folder are not entered in front of the file name, QuickBooks will put the .prn file into the directory used at the time of QuickBooks install, i.e., C:\Program Files\Intuit\QuickBooks Pro\SCI.prn. Note: You may need administrative rights in order to write the file to a different location or prn files may be sent to the desktop or flash drive. If your prn file is blank, make sure the printer is set up at the same location where QuickBooks was installed. g. The program should take you back to the Print W-2 and W-3 forms window after the file has been created. Exit (minimize if more prn files to create) QuickBooks and Open MAGFILER2015. 1099-MISC Instructions (PRN Method) Note: You must use this method for 1099MISC import if one or more amount categories (ex; rents and nonemployee comp.) are in your file. 58 Importing Data Into MAG-FILER a. Open your QuickBooks Company in single user mode. b. Select Vendors from the list across the top of the window. c. Click Print 1099s from the drop-down list. Note: If this does not display, you may need administrative rights. d. You will be running through the process of printing your 1099’s. Later versions of QuickBooks will take you through an updated 1099 wizard. Follow the wizard until you get to Print 1099s. Click Print 1099s, Specify Date range, Select 1099’s to print and click Print 1099. e. Select printer type Generic-Text Only on FILE: and the printer type - Continuous (Perforated Edge). Click Print. f. Output File Name: Enter a file name that will be used for MAG-FILER import. Type in for example, C:\Program Files\Mag-Filer\2015\ SCI.prn (SCI would be the employers abbreviations) and click OK. If you do not indicate a drive and folder in front of the file name, QuickBooks will put the .prn file into the directory used at the time of QuickBooks install, i.e., C:\Program Files\Intuit\QuickBooks Pro\SCI.prn. Note: You may need administrative rights in order to write the file to a different location. The program should take you back to the Select 1099s to the Print window after the file has been created. Exit (minimize for creating other prn files) QuickBooks and Open MAG-FILER 2015. 3. The QuickBooks .prn file has been created. You are now ready to run MAG-FILER2015 and import the QuickBooks data. Perform the following steps: a. Start the MAG-FILER program. b. Enter a New Payer and fill-in the company information. c. Click Payees. d. Select Import. Choose Pre-Defined Mag-Filer Import Format. e. Browse for the .prn file created in QuickBooks and click OK. f. A window of Import Formats containing a list of pre-set formats displays. Select the form and format from the following: 1099-MISC all versions – Select Form #7 Fmt #99 QuickBooks W2 versions 2013 - 2016– Select Form #14 Fmt # 100 g. Click the Select button located at the top of the Import Formats window. Data will import into the Payee Information window. h. Validate all payee data after import. Data with SSN’s should display as last name suffix comma first name middle initial. Data with EIN’s should display as is. Also check for long addresses information that may have been cutoff (…… displays at end of address line). Click Report for balancing. i. If all data is correct, you are ready to create the file for upload in E-File. (See “E-Filing”) 59 Importing Data Into MAG-FILER Integration method to import QuickBooks 1099-MISC data (all versions) MAG-FILER has created a 1099-MISC import option that integrates with QuickBooks. This method accesses the vendors in QuickBooks and imports them directly into MAG-FILER without having to create a .prn file. A QuickBooks user must have the PRO, Premier, or Enterprise versions. This method will import 1099-MISC data containing only a non-employee compensation amount in all records of the company file. Note: If this procedure does not work properly: Use the QuickBooks import procedure with the generic/text printer by referring to the above section, “1099-MISC (all QuickBooks versions)” or in QuickBooks export the 1099’s to an Excel file and use MAG-FILER’s “Import CSV File Method”. Forms 1099 printing can be accomplished through QuickBooks or MAG-FILER after import. 1. Start your QuickBooks application and open the Company containing vendors for 1099 reporting. You must be in single user mode with QuickBooks preferences and integrated application set to allow MAG-FILER access to your data. 2. Start up MAG-FILER a. Enter the 1099-MISC Payer information. b. Select Payees. c. Import and select 1099 QuickBooks Integration (Only Imports nonemployee comp. amts). d. Click OK at the prompt – QuickBooks and the Company must be open. e. Vendors (MAG-FILER Payees) to file will display in the QB 1099 Export window. Change the date range if necessary, select records, or only Select Items > ($600 or greater than) $600. f. After record selection, choose Import to bring in 1099 data into MAG-FILER. g. Check the payees and click Report for balancing. Be sure to verify all of the information that has been imported into MAG-FILER. Also check for long addresses information that may have been cutoff (…… displays at end of address line). h. If all data is correct you can print if necessary or continue by selecting E-File for creating the IRS/SSA file to upload to their respective sites. NOTE: If the any of the above QuickBooks import procedures are not correctly importing your data into MAG-FILER, first check the Important Information addendum that comes with the FINAL distribution for updates or contact MAG-FILER support. 60 Printing Reports and Forms PRINTING REPORTS AND FORMS Two types of information can be printed with MAG-FILER: Totals report is used to validate and balance the information that you’ve entered into MAG-FILER. Your data must balance with reports from your accounting system. Forms are laser-created or pre-printed for Payers, Payees, and states. MAG-FILER laser created 1099 forms CANNOT be sent to the IRS for paper filing. MAG-FILER mainly uses the Windows default printer with the desktop display set to Normal. You can however, select a different printer from MAG-FILER’s print to screen when viewing a report or the forms prior to printing. Exit the program to change default settings. Note: MAG-FILER printing requires that your printer’s desktop display be set to Normal (XP) and smaller 100% (Windows 7). Change settings through the Control Panel, appearance, and display. The two types of information that can be printed are described in the detail below. Totals Report The Totals report displays totals of all amount fields of the Payee file that has been entered for the current Payer and filing type. This allows you to double-check the information that’s been entered. To print the Totals reports, follow these steps: 1. Display the desired Payer/filing type on the Payer Information detail window and click the Payees button. The Payee Information list window is displayed. 2. Click on the Report button. The Totals window appears: This window lists each of the items on the Payee Information Detail window for which monetary amounts have been entered. The Amount column shows the total value for each of those items. The total number of Payees is shown in the upper left corner. 61 Printing Reports and Forms The Report column shows which items will appear on the Totals Report. You can specify that an item not appear on the printed report by clicking on the amount for that item changing it to No: You can include up to five amount fields in each Totals Report. To see more than five amount totals, you can print additional reports with the additional amount fields selected or select Landscape from the Report, Right-Click Menu. To include only corrected Payee records in the report (the Corrected Return box is checked), check the Corrected box near the top left corner of the Totals window. Choosing the Print button will print out the Total window information displayed. 3. Click on the Run Report button. A report similar to this appears: This report lists the individual Payees and up to five amount fields that were entered for each of them. It also shows the total number of Payees included on the report. Use the buttons on the top of the screen for review and printing. Note: If Run Report displays incomplete data all to the left in the window, check Control Panel|Display, change settings to normal (XP) or smaller (Win 7) , and Run report again. 4. Click the Close button to exit. The Totals Right-Click Menu The Totals Right-Click menu provides three options for customizing the information in the Totals Report. To use these options, place the mouse pointer anywhere in the Totals window, and then press the right mouse button. The right-click menu appears: 62 Printing Reports and Forms Set Report to No option sets the Report column setting of all amount fields to No. This is especially useful for reports that include a large number of amount fields because only four or five amounts will fit on a report page. After using this option to set all amount fields to No, you can individually select the fields you want to include by left-clicking each one (left-clicking toggles the Report setting from No to Yes). Include Account # and Address option lets you include an address line in the report for each Payee. Form types with a detail date will print on second line before the Account #. W2-G date of win will print out when Include Account# and Address is selected. Print Sub Totals option displays subtotals for every five records. Print TIN Totals option displays a total of Taxpayer Individual Numbers for verification. Landscape option will print seven amount fields and allow more room for Payee names in a condensed print mode. Print totals prints out to the printer field descriptions with totals. Include Legal Desc (1099S only) prints out the legal descriptions if Form type 1099-S is selected. 63 Printing Reports and Forms Printing Forms MAG-FILER lets you print your data on forms for IRS and SSA paper filing and copies to Payers, Payees, or the state. These include: 1042-S (laser created only) 1097-BTC 1098 (series) 1099 (series) 3921 3922 5498 (series) W-2 1096 W-2G W3 Note: MAG-FILER does NOT print to PRE-PRINTED on the following: W-2 4 Up, W-2 3Up, W-2 4 Down, 1099-R 4 Up, 1099-Misc 3 per page, 1099R – 3up, Universal forms,W-2G – 3up, and 1042-S. The program will print the forms in the laser created format only using blank or blank perforated paper. MAG-FILER prints forms in the following formats. Laser-created facsimiles of all official IRS and SSA forms. These are identical to the official forms and use HP LaserJet printers on blank perforated paper. MAG-FILER also has formatted 2, 3, and 4 copies for particular forms using blank perforated paper. Use these forms for sending the Payer, Payee, and state copies. These forms CANNOT be used for paper filing to the IRS and SSA with the exception of SSA black and white laser created Copy A of W-2’s and W3’s. Laser-created “Substitutes” Copy B’s for Forms 1097, 1098 series, 1098 series, 1099 series, 3921, 3922, and 5498 series. These are printed with the Payer and Payee address on the top third of the page, so they will appear in the correct position when the form is folded in thirds and inserted into a standard business single window envelope. The form itself appears in the middle third of the page, and form’s instructions appear in the bottom third. Use these forms for sending to Payees requiring only Copy B. These substitutes are designed to print on LaserJet, DeskJet, and Inkjet printers. Like MAG-FILER laser-printed facsimiles, laser-printed substitute forms are not acceptable for paper filing to the IRS. Official pre-printed IRS and SSA forms. An Official form can consist of Copies A, B, C, etc. where MAG-FILER places only data on a pre-printed form. Use these forms for IRS/SSA filing and Payer, Payee, and state copies. Preprinted forms are available from approved vendors, and are acceptable by the IRS and SSA for paper filing. Note: MAG-FILER uses your Windows default printer settings. Change printers by selecting Print to Screen and using the printer tool at the top or by exiting program to change printers in Windows. MAG-FILER’s payee search option cannot be used for printing. 64 Printing Reports and Forms To print forms, follow these steps: 1. Display the desired Payer/Filing type (Filing types = MISC, INT, etc.) on the Payer Information detail window, and then click on the Payees button. The Payee Information list window is displayed. 2. Click on the Print Forms button. The Print Format window appears: Which Copy Select the copy of the form to print laser created facsimiles. Copies not applicable to the current form are grayed out, i.e., 4 Down as shown above. To print to official pre-printed forms, such as Copy A, B, etc., click the Pre-Printed Forms (displays a checkmark). Ignore Copies B-E if checked. Data will print to the form regardless of which copy is selected. Note: A common question is ‘How do I print Copy A?’ Answer: If Pre-Printed Forms is checked, this tells the program to print only data to the form. Which Copy is used for laser printing to print the words Copy B, C, etc. Ignore the Which Copy selection that’s ticked. 1096 Printing 1096 pre-printed official form - select the form choice under Which Copy and check the pre-printed forms box. 1096 laser created for File Copies ONLY - select Which Copy and do not check the preprinted forms box. The laser created 1096 cannot be used to send to the IRS. 1096 pre-printed corrected form - r-click at payees, view only Corrected payees, and Print 1096. 65 Printing Reports and Forms W3 Printing - To print W3 pre-printed official forms select the form choice under Which Copy and check the pre-printed forms box. Printing a W3 without checking the pre-printed forms box will print a black and white laser created copy used with the W-2 Copy A B/W format that is acceptable for paper filing to the SSA. Form copies can be printed on blank perforated paper, regular blank laser printer paper, or official pre-printed IRS and SSA forms. Blank perforated paper (some with instructions on the back) and official forms can be ordered from a forms supplier. The specific types of copies that can be printed vary for the different form types. See copies summarized in the following: Copies B – E can either be printed to blank perforated paper for laser created printing or printed to pre-printed forms ordered from a supplier. The 4 Up, 4 Down, 3 Up, 2 Up-1099-MISC, & Universal forms print laser created, one Payee per page. Order forms and compatible envelopes from Nelco @ 800-266-4669. OTHER COPIES Copy A Prints IRS 1098’s, 1099’s, 5498’s, & W-2G to pre-printed forms. Print SSA W-2’s to pre-printed forms or MAG-FILER laser created black and white forms. IRS form 1042-S will not print to pre-printed forms. W-2– 2 Up Uses a pre-printed form and prints the same Employee to both forms on the page. W-2 - B&C Creates a laser created format with a Copy B & C and prints the same Employee on a page. W-2- Copy A B/W Creates a laser created format for paper filing to the SSA. MAG-FILER is an SSA approved vendor of this format. W-2 – Mailer Prints a laser created format to a 8 ½ x 14 Nelco #80640 PressureSeal sensitive blank form, 4 Up, copies B, C, 2, & 2, same Payee on a page. W-2 – Univ Prints a laser created format to 8 ½ x 11 blank paper, same Payee on a page, and copies B, 2, C, & 2 including instructions. Order blank perforated forms and compatible envelopes from Nelco. W-2 – Univ Mailer Prints a laser created format to a 8 ½ x 14 Nelco #80650 PressureSeal blank form, universal format, and copies B, C, 2, & 2. 66 Printing Reports and Forms MISC – Mailer Prints data to a 8 ½ x 11 PressureSeal pre-printed form, same Payee on a page. This is a special format that has been set up for a forms vendor other than Nelco. MISC – Mailer#2 Prints data to a 8 ½ x 11 Nelco #80487 PressureSeal pre-printed forms, same Payee on a page. Order this special form from Nelco using the order # above. MISC – 3 per page Prints laser created format, Copy B, different Payees per page. Order the same standard envelopes used for 1099-A, etc. MISC – Univ Prints a laser created format to 8 ½ x 11 paper, same Payee on a page, and copies 2, B, 1, & C including instructions. Order blank perforated forms and compatible envelopes from Nelco. MISC – Univ Mailer Prints a laser created format to a 8 ½ x 14 blank sheet of Nelco # 80650 PressureSeal paper, same Payee on a page, and copies 2, B, 1, & C including instructions. Order blank mailer forms from Nelco. MISC – Legal Prints a laser created format to 8 ½ x 14 paper, same Payee on a page, and copies 2 & B. This format is used with a pressure sensitive form printed by forms vendor Miami Systems. Substitute Print a laser created format with one Payee, to regular blank paper, Payer/Payee address information, facsimile Copy B form and instructions per page. Used on all forms with the exception of 1042-S and W-2. Uses your companies #10 single window envelope where the window starts 7/8-inch from left of envelope. 1099-R – 3 Up Prints a laser created format to 8 ½ x 11paper, same Payee on a page, and copies B, C, & 2. Order blank perforated forms and compatible envelopes from Nelco. Only the first local tax w/h, locality, and distribution prints. 1042-S – 3 Up Prints a laser created format to 8 ½ x 14 paper, copies B, C, and D same Payee on a page. Compatible with Nelco envelopes #42SSWENV05. W-2G – 3 Up Prints a laser created format, Copy B, 2, C same Payee per page. Order the same standard envelopes used for 1099-A, etc. Pre-printed not supported by MAG-FILER. 1096 Pre-printed official IRS total form used in paper filing of all 1097, 1098’s, 1099’s, 3921, 3922, 5498’s, W-2G’s. A laser created format is available for the Payer’s copy only. W-3 Pre-printed official SSA total form used in paper filing of pre-printed Forms W-2. Also prints a laser created black and white facsimile for paper filing laser created forms. 1042 (fill-in) Displays Form 1042 to fill-in and print. Send this form to the IRS for 1042-S reporting. Incl Instructions Prints Form 1042-S instructions for the 3 Up format to 8 ½ x 14 paper. Prints 1099-Misc and W-2 instructions for the 4 Up format to 8 ½ x 11 paper. Note: MAG-FILER does NOT print to PREPRINTED formats W-2 4 Up, W-2 3 Up, W-2 4 Down, 1099-R 4 Up, 1099-Misc 3 per page, 1099-R 3 Up, Universal, W-2G 3 Up, and 1042-S all formats. The program will print the forms in laser created format only. Order compatible envelopes from Nelco 800-266-4669. 67 Printing Reports and Forms Mask TIN’s This option when checked will mask all but the last 4 digits of the SSN and EIN’s on all payees in a payer file. Send To This option lets you specify whether you want the form sent to the Printer, Screen to preview and print, PDF to create a PDF file backup of your forms using MAG-FILER’s PDF printer or Email PDF to send an emailed Form 1099Misc. MAG-FILER prints to HP and compatible laser printers and dot-matrix printers. HP DeskJet and Inkjet printers can be used for printing laser-created ‘Substitutes”, but not for laser-created facsimiles or pre-printed forms. (See “Printing Reports and Forms”) To use a different printer, exit MAG-FILER, change your Windows default printer, and restart MAG-FILER. Tax Year – Year on Form Specify the year to print on laser created “facsimiles” and substitutes used for corrected returns. Forms that do not have specific dates in box labels and in instructions may be used. What to Print Specify whether to print forms for All Payees or Single Payee to print the Payee that was selected when you pressed the Print Forms button in the Payee window. To assist in the emailing of recipient forms, select payees Non-Emailed (including Opt-Out) or Emailed but Not Retrieved. Restart a print job by selecting the payee from the list and click Restart Print @. The record number of the beginning payee to start printing from will display grayed out and will print all records to the end of the file. Print Control The Pause every option is for use with laser printers with a small paper capacity. If you enter a number in this box, the program will pause during printing after that number of pages so you can refill the printer with paper. Check the Pre-Printed Forms (Copies A, B, W3 etc.) box when printing only data on an IRS official form. Forms selection is NOT required for pre-printed forms, with the exception of Forms 1096 and W-3. Test Print Before printing a large number of Payees, test-print a page or two to make sure the preprinted printed forms are aligned correctly. If laser forms are cutting off on the page, check that your Windows system Display Settings are set to Normal or Normal size 96 dpi. Vista Font Size DPI should = 96 DPI Large and Windows 7 = smaller. Use the Set Range option on the Payee Information list Right-Click menu to select a small selection of Payees for the test-print. The Printing version 1 check box. Check this box to print old formats of MAG-FILER forms. Leaving this box unchecked will default to new upgraded print formats for most of the major form types ex; MISC, DIV, INT, etc. 68 Printing Reports and Forms Margin Control This section lets you adjust the location at which MAG-FILER prints its data on pre-printed forms including Forms 1096 and W3. Type over the default settings with positive numbers to move the data down the page or negative numbers (for example, –10) to move the data up on the page. The settings are in micro spacing units—300 dots per inch—so increasing or decreasing a setting by 1 or 2 will have little or no noticeable effect. Note: Margin controls are not set up for laser created forms. Top Margin adjusts the data on all forms up and down on the page. 2nd Form Adv adjusts the data on the second and third forms up and down on the page. 3rd Form Adv adjusts the data on the third form up and down on the page. Left Margin adjusts all data toward the right (positive value) or left (negative value). 3. Choose the copy you want to print or view, and then click on the Print button. If you selected Printer in the Send To section, the specified copy for each of the Payees is printed. Selecting Screen in the Send To section displays the following screen. This screen allows viewing the forms prior to printing. Use the buttons on the top of the screen to page through the forms (if multiple pages), print the forms or change printers. Click on the Close button to exit the window. 69 Printing Reports and Forms Print Corrected Payees To print corrected Payee copies, check the Corrected box on the Payee record to print an “x” in the Corrected Box on the form. If an amount in a particular box was invalid, enter 0.00 so that it displays in the Payee entry window and check the corrected box. The printed form will “x” the Corrected Box and display 0 in the invalid amount field(s). Use Tax Year –Year on Form dropdown at the Print Format window for printing previous year’s corrections on laser created forms. You want to select a laser created format that does not contain current year’s dates in instructions or in box labels. Only the main date on a laser created form can be changed. Print corrected information only to a 1096 by selecting the Payee list; choose View only Original or Corrected and View Corrected. Only Payees marked corrected will display in the Payee list. Select Print Forms and at Which Copy choose 1096. The total number of corrected Payees and the proper amounts will print to Form 1096. Batch Print Payers This option will print a group of Payers with different form types, i.e., 1099-A, 1099-MISC etc. with the same copy, i.e., Copy B. Batch print will not work on the special forms, i.e., W-2 - 4 UP, MISC – Copy B, 2, etc. 1. To batch print a group of Payers, check the Batch Print box at each Payer’s detail window. 2. Go to the Payee in the first Payer file selected and choose PRINT FORMS. 3. Select copy to print from Which Copy. 4. Send to Printer, and right-click on the Print button. 5. Click on Batch Print Payers and click Print. 6. Clear batch printing by selecting Flag All Payers to Not Batch Print from the Payer RightClick menu. Select Print Payees This option allows you to specify randomly Payees in a Payer file for printing. 1. To select print Payees, at the Payee list; use F8 to toggle the Print column to Yes on individual Payees for printing. This checks the Select Print box at the Payee detail window. 2. At the Payee list, right-click and select View Opt-Out/Payees Checked to Print. (Note: Only the selected Payees will display in the list.) 3. Select copy to print from Which Copy. 4. Send to Printer. 5. Click Print. 6. Always set Payees back to View All (Payee Information list, right-click menu) before E-File to include all Payees in the filing. 70 E-filing E-FILING This section describes the process of transferring Payee information to a file for reporting information electronically (E-File) to the IRS, SSA, or for state filing of W-2’s. Note: Diskettes and CD’s are not accepted by the IRS and SSA. A separate file must be created for the IRS (1097, 1098, 1099, 3921, 3922, 5498, & W-2G information), IRS (1042-S), and SSA (W-2 information). If you are filing W-2 or 1099 information to more than one state, you will need to run E-File more than once to create a file for each state. MAG-FILER also has the capability of filing 1099’s and 1042-S corrected returns with the IRS. (See “Filing Corrected Returns to the IRS”) IRS state filing is supported by MAG-FILER through the IRS combined federal state program. MAG-FILER also supports individual IRS filings for certain form types (ex; MISC, INT, etc.) to the specific states of Kentucky, Maine, Mississippi, Oregon, and Pennsylvania. There are some states that will accept the same file sent to the IRS. Check with your states requirements. One or all Payers in the MAG-FILER may be processed for E-Filing. Payers may be E-Filed from the Payer Information window or the Payee Information window. One or multiple Payers can be EFiled from the Payer Information window or choose a single Payer to E-File from the Payee Information window. E-File Check List Prior to Filing To electronically (E-File) file W-2’s with the SSA a User ID/Password and registering required. Call the SSA or logon to their web site to register. To electronically (E-File) file with the IRS for 1099 and 1042-S, you must have a Transmitter Control Code (TCC). You can apply for a TCC online at the IRS FIRE site https://fire.irs.gov/ , Create New Account, then select Fill-In Form 4419, and submit. You also may send or fax a completed Form 4419 to the IRS. With your TCC, you will be able to e-file your data. The Payer list displays Yes in the E-File column on all Payers to be E-Filed. All Payees should be set back to View All if the filtering option was used for printing, corrections, or reporting purposes. All Payer and Payees information should be validated, balanced, and all editing completed. Valid Payer/Payees files, no Payers without Payees to report or 0 amounts in all fields. If filing W-2 state information to diskette, you will need blank formatted diskettes. A 3½-inch high-density diskette (usually on the A: drive) can hold approximately 1250 W-2/State records. If required, MAG-FILER causes the files to span multiple diskettes. To send a file on CD, you will need to create the file on your PC and then copy it to a CD. Check for any Payees with the Corrected box checked. Original filing should never contain corrected or void records. Run Report to check totals include all records in your file. IRS FILING – Forms 1099 IRS (Incl. 1097, 1098, 3921, 3922, 5498, W-2G) The IRS allows you to electronically file Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G returns (originals, corrections, replacement, and requests for extension of time), using the IRS/IRB, 71 E-filing Filing Information Returns Electronically (FIRE) System. Find out within two to three days if your file is good for release into the IRS mainline processing. All electronic filing of information returns are received at IRS/IRB via the FIRE (Filing Information Returns Electronically) System. Connect to the FIRE system at http://fire.irs.gov. The system is designed to support the electronic filing of information returns only. Filers are not required to submit a test file; however, the submission of a test file is encouraged for all new electronic filers to test hardware and software. Test files may be submitted between November 3 and February 20. Create your test file through MAG-FILER and connect to the FIRE system test at http://fire.test.irs.gov. See our section “Filing Test Files”. Registration You must have a Transmitter Control Code (TCC) to file electronically (for information about obtaining a TCC, see the “Transmitter Control Code” section earlier in this manual). The IRS/IRB login site will also ask for a user assigned login name, password and Personal Identification Number (PIN). Please make a note of this information for additional filings or checking on status of filings. IRS/IRB states that your password must be changed yearly. First time users will need to create an account that includes the setup of login names, passwords, and PIN. For more information or instructions for the IRS/IRB, Filing Information Returns Electronically (FIRE) System, contact the IRS/IRB at toll free 866-455-7438, Monday-Friday, 8:30 a.m. to 4:30 p.m., EST or email at [email protected]. Single Payer E-Filing This is the same procedure used in multiple filings with the exception that it only creates a file for a single Payer. Proceed with the same instructions under Procedure to File for IRS, 1042-S, or SSA (Multiple Payers), with the following exceptions: Select Payees from an IRS 1099, 1042-S, or W-2 and click E-File to report a single Payer/Payee data file to the Internal Revenue Service. A single Payer will display in the Payer (s) being filed column. Print out the MAG-FILER’s summary to verify data being transmitted and to use for the filer’s purpose as a file copy. Files must be transmitted before March 31. Be sure to print the IRS Upload Statistic page at the IRS web site. Check that the file created by MAG-FILER is the same File size as displayed on the IRS upload page. Procedure to File to the IRS Multiple Payers 1. Indicate which Payer/filing types you want to electronically file by checking the E-File check box on the appropriate Payer Information windows That is: 72 If you are electronically filing, a Yes should appear in the E-File column of the Payer list on Payers you wish to file. To check Payers that should have been Yes in your list, check the E-File check box at the Payer window (Payers Not included in the filing will be unchecked): E-filing E-File Flag When MAG-FILER runs the filing process, it only processes those Payer/filing types that you have checked to E-File, thereby creating a file that can be submitted to either the IRS or SSA. Click on the E-File button at the MAG-FILER Payer Information window. The E-Filing Information window appears: This window is used to set parameters for the creating the file and uploading to the IRS/SSA. The E-Filing window will change Filing Info depending on the item checked in What to File. Fill out the entire window (exceptions would be Foreign corp., Transmitter continued, and 1042-S country code) based on whichever item was selected in What to File. Some prompts in the Filing Information may needediting between filings, depending on the specific type of filing you are doing. 73 E-filing 2. Complete the E-Filing Information window according to the following field definitions. What to File 1099 IRS (Incl 1097, 1098, 3921, 3922, 5498, W2G) to report Forms 1099 (all), 1097, 1098(all), 3921, 3922, 5498(all), and W-2G, and Extension to file to the Internal Revenue Service. Tax Year to File: Select the tax year of this filing. The current Tax year is the default. There are also previous years in a drop-down for corrections and/or missed records to E-File. Note: If filing corrections or replacements always use the current year’s program. Select the previous year from this drop-down box. File to: This displays the location of the file that will be uploaded to the IRS. The default location is \Mag-Filer\2015\ToGov. Selecting What to File places a default output filename after \ToGov, in this field. 1099 IRS (Incl 1097, 1098, 3921, 3922, 5498, W2G) Filing – The file default name is IRSTAX-YYYY.TXT (YYYY = current tax year). Change button - It is advisable for multiple filings to name files differently for backup purposes and tracking what has been reported. Files may be directed to other drives by clicking this button. Another File to: window displays for changing location and file name. IRS file names can be self-assigned without extensions. Open button – Click this button to assist in locating the File to: filename. Payer(s) being filed This window displays Payer(s) that will be sent to the file for uploading to the IRS. Payers displayed in this window have the E-File box checked at the Payer Information window. Filing Type Click on the appropriate button to specify one of the following: Original – This is the first time this file has been submitted to the IRS. Corrected – Modifications have been made to these Payee records to correct the original filing. (See “Filing Corrected Returns to the IRS”) 2nd – This is the second pass of a 1099 corrected return. (See “Filing Corrected Returns to the IRS”) Test – This is a test filing for first time transmitters and to qualify for the Combined Federal/State Filing Program. (See “Combined Federal/State Filing (1099)”) Ext – This filing is for requesting an extension of time for reporting to the IRS or SSA. (See “Filing a Request for an Extension of Time”). This is for original filings. Replacement – This filing replaces a filing that the IRS rejected. To file a replacement, mark this box, one of the above filing types – 1099, enter Business and Transmitter information. Filing Type, Test will never have this box checked. 74 E-filing Filing Info TCC# – This is the Transmitter Control Code assigned by the IRS. This is required before sending files to the IRS. Note: Form 1042-S TCC# is different from the IRS 1099 filing and begins with a 22. Recipient Stmt Ext – Check this box if you are requesting an extension on distribution of recipient Payee copies. Last Filing Year – Check this box if you know that this will be the last year you will be filing with the IRS (for instance, your company has gone out of business). Include only 1099Misc payees over $600 (single 1099MISC payer only) – Check this box to include 1099-MISC payees over $600 in a single filing. This filing will only report payees with records over $600. Note: The program does not total each record but checks to see if a record has an amount field over $600. State Specific Combined Federal/State Filing – This box if reporting payers under the IRS combined federal/state filing program (IRS will forward information to the State(s) will be checked and grayed out if the box was checked at the Payer Information window. Specific State to File (state filing) – This field is used when reporting to individual states under What to File – 1099 IRS Individual State. Select the state to file from the drop-down box. Business Contact Information Business contact information can be the payer being transmitted or the same as the Transmitter contact information, for example, a transmitter submitting more than one payer. This information must be completely filled out. Same As Payer – The first time the E-Filing Information window is selected, this check box will default to the Payer information assuming that the Payer is also the business. To edit the following information, uncheck this box. If unchecked, information will stay in the window for additional filings. Contact – The name of the person to contact regarding the filing. Email – The contacts email address. Company – The name of the business to send filing information to. Address, City, State, Zip – The address of the business to send filing information to. Phone – The area code and phone number. Enter without parenthesis, dashes, or periods. Business Country Code (Blank if US) - Select Country from drop-down if your business is located outside of the U.S. Otherwise this field will be blank. Transmitter Contact Information Transmitter contact information can be the payer being transmitted or the same as the Transmitter contact information, for example, a transmitter submitting more than one payer. This information must be completely filled out with the exception of Transmitter Continued. 75 E-filing Same As Payer – The first time the E-Filing Information window is selected, this check box will default to the Payer information assuming that the Payer is also the transmitter. To edit the following information, uncheck this box. If unchecked, information will stay in the window for additional filings. Contact – The contact name of the company who is transmitting the filing. Email – The email address of the transmitter. Transmitter, Transmitter Continued – The name of the company belonging to the TCC# that is transmitting the filing. This could either be the name of the Payer or a transfer agent/service bureau. Use the Transmitter Continued for an extended company name. Address, City, State, Zip – The address, city, state, zip of the transmitter. Enter zip without dashes. Phone – The phone number of the transmitter. Enter phone number without parentheses, dashes or periods. Trans TIN – Enter the required transmitter’s tax identification number (EIN - employer identification number) without dashes. MAG-FILER automatically displays the dash. Foreign Corp – Check this box if the transmitter is a foreign corporation. 3. Check for a valid drive, directory, and file name with an extension in the File to: field. MAGFILER uses a default file location – (My)Documents\Mag-Filer\20xx\ToGov\IRSTAXYYYY.TXT (YYYY = current tax year). Note: The data processed in the files can be viewed after processing by using a text editor such as Notepad, which is provided with Windows. You can also view them by right-clicking E-File in the Payer Information window, then selecting View 1099 E-File. 4. Click on Ok to start the file creation. 5. When the data file has been created, the system displays a processing summary. Verify and print the summary information sent to the IRS file prior to upload. Take note of the file name and its file size. This file size must match the IRS file size after upload. The summary is a file copy and is not sent to the IRS. Note: You can view the file summaries after processing by right-clicking E-File in the Payer Information detail window, then selecting Print 1099 Summary. 6. Inspect the displayed summary to make sure it is correct. Then click the Printer Icon button to print the summary. Click the Close button. 7. After the summaries have been printed and verified, an Information window pops up. Total number Payers, Payees, File to upload, and File size will appear for verifying what is in the file for reporting. If information displayed is correct, continue by selecting Yes. Note: The MAG-FILER File Size should match the IRS File Upload Statistics total bytes received. If not, re-run E-File and change the File To: to a valid file. 8. The Online Filing window displays instructions to continue on to the IRS site. 9. Press Continue to be linked to the IRS site. To help remember the location of the file, the Online Filing window will pop up again with the IRS web site behind. Continue the IRS logon by clicking on its window displayed behind. 76 E-filing Files can be transmitted 24 hours a day, 7 days a week starting January 19, 2016 through December 9, 2016. Filing of information returns (IRS forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G) is on a calendar basis, except for Forms 5498 and 5498-ESA, which are used to report amounts contributed during or after the calendar year (but no later than April 15). Check the IRS publication 1220 specifications for the exact due dates and if they fall on a weekend or refer to the section “Filing Due Dates” in this manual. The IRS/IRB encourages you to compress large files (10,000+ records) prior to transmitting it. You can use any industry-standard compression program, i.e., WinZip. It is not necessary to contact the IRS/IRB that you are sending a zipped file. MAG-FILER does not automatically compress or zip the file for you. You would reply with a NO to submit file immediately, zip your file, connect to the IRS/IRB web site, and upload by connecting to the FIRE site. 10. Print the IRS File Upload Statistics sheet displaying the total bytes received and the IRS naming of your file. Total bytes on the IRS upload statistics must match MAG-FILER’s file size from its Summary and also the Information window. 11. View the E-Filing log to verify when and what payers were filed by MAG-FILER. To view the log, right-click on the E-File button from the Mag-Filer Payer Information window. 12. The IRS will normally notify you via email of your file status. If you do not receive notification, after a few days, log in to the IRS FIRE site, and select Check File Status. It is important that you check this step—if your file is “BAD”, and the IRS has not received a timely replacement, you could be subject to a late filing penalty. Files are accepted by a Good Released status. Call Spokane Computer – MAG-FILER department for assistance on a BAD status. More information about the IRS, Filing Information Returns Electronically (FIRE) System can be found in IRS Publication 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G. Note: Always save copies of all information processed to the IRS, SSA, or W-2 state. E-File can be re-run using the same data for backup copies. IRS 1042-S FILING Multiple Payers Perform the procedure to file your returns as described in the “E-Filing to the IRS”. Procedure to File Form 1042-S to the IRS Proceed with the same instructions under Procedure to File to the IRS, with the following exceptions: What to File – select 1042S to report Forms 1042-S to the Internal Revenue Service. File to: File that is created for transmitting to the IRS. MAG-FILER uses the default name of 1042TAX-YYYY.TXT (YYYY = current tax year). Every time E-File is run it outputs to the same filename, so on multiple filings, it is suggested to change the file name (click Change button) for example, to the company’s abbreviations with or without an extension (SCI1042STAX-2015.TXT). Save this file for IRS future reference and backup purposes. Filing Type - Select from Original, Amended (corrected), 2nd (corrected), and Test. 77 E-filing TCC# - This number is different from the one used for 1099 (all forms), 1097, 1098, 3921, 3922, 5498, W2G filing. To apply for a transmitter code for 1042-S, submit Form 4419 to the IRS. If filing for 1042S and 1099’s, you would submit different Form 4419’s. Business/Transmitter Country Code Filing Type - Select Country from drop-down if your business is located outside of the U.S. Otherwise this field will be blank. Note: The data processed in the files can be viewed after processing by using a text editor such as Notepad, which is provided with Windows. You can also view data in the file by right-clicking E-File in the Payer Information window, and selecting View 1042-S E-File . Print out the MAG-FILER’s summary to verify data being transmitted and to use for the filer’s purpose as a file copy. Files must be transmitted before March 15. Be sure to print the IRS Upload Statistic page at the IRS web site. Check that the file created by MAG-FILER is the same File size as displayed on the IRS upload page. Refer to the IRS instructions on 1042-S processing and Publication 1187 for more information. Note: Always save copies of all information processed to the IRS, SSA, or W-2 state. E-File can be re-run using the same data for backup copies. SSA FILING MAG-FILER does NOT support 2678 Agent, Common Paymaster, or 3504 Agent reporting. The SSA allows you to file Forms W-2, view submission information status, obtain technical help and download compression software using the SSA web site, Business Services Online (BSO). To access the SSA BSO by Internet enter the address: www.socialsecurity.gov/bso/bsowelcome.htm and under Business Services Online, click Log In. For more information or instructions for the SSA BSO, contact the SSA, 1-800-772-6270, Monday through Friday, 7:00 am to 7:00 pm Eastern Time. For problems using the BSO, call 1-888-7722970, Monday through Friday, 8:30 a.m. to 4:00 p.m., Eastern Time or send e-mail to [email protected]. Registration Each submitter using the SSA BSO will be required to obtain a User ID (PIN) and PASSWORD. The User ID (PIN) can be used indefinitely. The PASSWORD is changed at least once every 90 days with a reminder by the SSA. User ID (PIN) & passwords are dependent on the employee or agent filing your returns. A submitter that has worked at the company less than a year will need to call the SSA for employee verification. For information about registration, see the “SSA Registration Information” section earlier in this manual). To obtain a User ID (PIN)/PASSWORD: Access the Internet at www.socialsecurity.gov/bso/bsowelcome.htm, and select Register. Call 1-800-772-6270, Monday-Friday, 7 a.m. to 7 p.m. EST. 78 E-filing Procedure to File Form W-2 to the SSA Multiple Payers Perform the procedure to file your returns as described in the “Procedure to File to the IRS”, with the following exceptions: What to File – select W2 SSA. Tax year to File: - Tax year of this filing. File to: - File that is created for transmitting to the SSA defaults to W2REPORT-YYYY.TXT (YYYY = current tax year). The file name can be self-assigned as long as it has a valid extension. Every time E-File is run it outputs to the same file name, so on multiple filings, it is suggested to change the file name (click the Change button) to the company’s abbreviations with a txt extension, i.e., SCIW2-2015.txt. Do not use extensions .001, 002, etc. Filing Type – Click on the appropriate button to specify one of the following: Original – This is the first time this file has been submitted to the SSA. Resubmittal – Check only if this E-File replaces a filing that the SSA rejected. To file a resubmittal, mark the Filing Type - W-2 SSA, and enter Business and Transmitter information including the Resub WFID. The WFID number is found in the SSA rejection notice, ex; PED245. Filing Info – Click on the following appropriate buttons for the filing: User ID (PIN#) – Required. This is the User Identification Number assigned by the SSA for BSO filing. Resub WFID (Wage File Identifier) – If your original file was rejected and the SSA requires a Resubmission, enter the WFID and check Resubmittal. Preparer Code – Required. Enter from the drop-down who prepared your file. Specific State to File - (This is only applicable if filing W-2’s with a state.) If you are filing W-2’s with a state, fill out previous Business and Transmitter information and select the state from the drop-down list. This causes MAG-FILER to only create the file that is sent to the specified state. If filing W-2’s with more than one state, you will need to create a separate file for each state and change this field between filings. (See “W-2 State Filing” for more information.) Last Filing Year – Check this box if you know that this will be the last year you will be filing with the SSA (for instance, your company has gone out of business). Otherwise, leave blank. Business Contact Information - Required Business contact information can be the payer being transmitted or the same as the Transmitter contact information, for example, a transmitter submitting more than one payer. Same As Payer – By default, this box will be checked and the Business contact information grayed out indicating that it’s the same as the Payer (Employer). If there is missing information from the Payer record such as phone or email address, uncheck this box to enter data. 79 E-filing Transmitter Contact Information The information entered here is the same as for 1099 filing with the following exceptions or additions. This information must be complete. Transmitter is referred to as the Submitter for filing to the SSA. Same As Payer – By default, this box will be checked and the Transmitter contact information grayed out indicating that it’s the same as the Payer (Employer). If there is missing information from the Payer record such as phone or email address, uncheck this box to enter data. Submitter EIN – Required. Enter the submitter’s tax identification number (EIN - employer identification number) without dashes. MAG-FILER will automatically display dashes. Email and Phone - Required. Enter the submitter’s Email address and Phone. Ext – Optional. Enter submitter’s phone extension. Print out the MAG-FILER’s summary to verify data being transmitted and to use for the filer’s purpose as a file copy. After the summary has been printed and verified, an Information window will pop up. Total number Payers, Payees, File created location, and File Size will appear to verify what is in the file for reporting. Submit this file by answering Yes and then Continue to open your Internet browser to link to the SSA BSO site, http://www.socialsecurity.gov/bso/bsowelcome.htm. Follow their instructions for uploading your file. Note: The directory and file to upload is displayed in the FILE TO: prompt at the E-File window. Submitters may upload their files Monday – Friday: 5 AM – 1 AM EST, Saturday: 5 AM – 11 PM EST, Sunday: 8 AM – 11:30 PM EST, beginning December 7, 2015. Electronically (E-File) filed W-2 Forms must be filed no later than March 31. Check W-2 specifications for exact due dates if they fall on a weekend. Upload time will vary depending on the modem speed, the size of the file, and the type of data compression used. SSA urges you to compress your data (10,000+ records) to reduce the uploading time. Use the industry-standard compression program WinZip. MAG-FILER does not compress your file. Zip your file and transmit to the SSA outside of the MAG-FILER program. Always print out the File Receipt Acknowledgment for proof of filing your information. The SSA assigns a WFID# (Wage File Identifier) to the submitted file. The SSA File size and MAG-FILER’s file size should be the same. Check the SSA site after your file upload, by using your assigned SSA WFID#, for a “Complete” status (file was successfully received). For other errors such as mismatches of certain employee information, the SSA will notify you with correction instructions. Contact the SSA if you have any questions. Note: Always save copies of all information processed to the IRS, SSA, or W-2 state. E-File can be re-run using the same data for backup copies. 80 E-filing W-2 STATE FILING MAG-FILER can be used to magnetically (diskette or CD) or electronically (E-File) file with states that require W-2 reporting in SSA EFW2 format. MAG-FILER creates the RS records according to each states specifications. A separate filing must be created for each state reported. E-File may be used from the Payer or Payee window. MAG-FILER supports the following states: Alabama http://www.revenue.alabama.gov/Withholding/index.html Arizona http://www.azdor.gov/About/FAQs/Withholding.aspx Arkansas http://www.arkansas.gov/dfa/income_tax/tax_wh_forms.html Colorado http://www.colorado.gov/revenue Connecticut http://www.ct.gov/drs/site/default.asp Delaware http://revenue.delaware.gov/services/online_svcs.shtml Dist. of Columbia http://otr.cfo.dc.gov/node/398382 Georgia https://dor.georgia.gov/instructional-documents Idaho https://idahotap.gentax.com/WebFiles/TAPHelp.html Illinois http://www.revenue.state.il.us/ElectronicServices/ElectronicW2.htm Indiana http://www.in.gov/dor/4035.htm Kansas http://www.ksrevenue.org/business.html Kentucky http://revenue.ky.gov/ Louisiana http://revenue.louisiana.gov/default.aspx Maine http://www.state.me.us/revenue/ Maryland http://business.marylandtaxes.com/taxforms/ Massachusetts http://www.mass.gov/portal/business/ Michigan http://www.michigan.gov/taxes/0,1607,7-238-43531-155476--,00.html Minnesota http://www.taxes.state.mn.us/ Mississippi http://www.dor.ms.gov/business/pages/withholding-tax.aspx Missouri http://dor.mo.gov/ Montana http://revenue.mt.gov/home/businesses/wage_withholding Nebraska http://www.revenue.ne.gov/w21099qa.html New Jersey http://www.state.nj.us/treasury/taxation/pdf/current/nj_efw2.pdf New Mexico http://tax.newmexico.gov/ North Carolina http://www.dor.state.nc.us/ North Dakota http://www.nd.gov/tax/ Oregon http://www.oregon.gov/dor/bus/iwire-income-wage-information-return-eservices.shtml Ohio http://ohio.gov/ Pennsylvania http://www.revenue.state.pa.us/ Rhode Island http://www.tax.ri.gov/taxforms/withholding.php South Carolina http://www.sctax.org/default.htm Utah http://tax.utah.gov/withholding Vermont http://tax.vermont.gov/business-and-corp/withholding-tax/instructions Virginia http://www.tax.virginia.gov/content/withholding-tax2 West Virginia http://tax.wv.gov/Business/Withholding/Pages/WithholdingTaxForms.aspx Wisconsin https://www.revenue.wi.gov/businesses/index.html Note: You need to contact your state to obtain information about requirements, forms, magnetic/electronic filing deadlines, and registration. The following is state-specific information for filing: Note: You must have the states two lettered abbreviation in MAG-FILER’s state 1 or state 2. Alabama – State Employer Account numbers below 700,000 enter as is in MAG-FILER’s State Filing Numbers table. Account numbers 700,000 and above will be entered with an R followed by nine digits. 81 E-filing Arkansas – State Employer Account number is entered in MAG-FILER’s State Filing Numbers at the MAG-FILER Payer Information window. Connecticut – The File To: file name must be CTTAXYYYY.TXT (YYYY indicates the tax year). Georgia – Creates an additional GA1003 csv file that must be uploaded to the state separately. Only one employer at a time can be reported. Select EFW2 format from the Georgia Department of Revenue site. Idaho – State Employer (9 numeric digits and also known as permit #) is entered in MAGFILER’s State Filing Numbers at the MAG-FILER Payer Information window. Do not enter dashes. When selecting “ID–Idaho” in the Specific State to File list, the State Specific window displays. Fill in the fields to complete the RV record required by Idaho State. Click OK to create the W2REPORT-YYYY.TXT (YYYY = current tax year) file to upload to Idaho State. Only one employer at a time can be reported. Indiana – Employee county wage and tax information will be reported from the Local wages and taxes fields on Form W-2. Enter a two-digit County Code followed by a three-digit Employer TID Location in the first 5 positions of the Locality field, ex; 01432. MAG-FILER has created an option for converting the Locality field containing a county name or C49 (C = county and 49 = county code) to the acceptable Indiana E-File requirements. To Convert W-2’s for Indiana State filing. A backup of your MAG-FILER data is recommended in case of a bad conversion. 1. After the MAG-FILER import or entry of the W2 Indiana Employer file, right-click anywhere in theW-2 Payee information window and select Convert County (Indiana). 2. The Location window displays for entry of the Employers TID location. If the location is 1, enter as 001. 3. Click OK to continue. The program looks for the first few letters of a county name or a C with the county code. The locality will be overwritten with the two-digit County Code followed by a three-digit Employer TID Location in the first 5 positions of the Locality field, ex; 01432. Maine – Enter the withholding account number in the MAG-FILER’s State Filing Number area on the Payer detail window. The account number can be alpha numeric and 11 digits usually the EIN with a two digit suffix. Do not enter dashes. MAG-FILER does not support MEPERS. Maryland - Enter the Maryland Central Registration number in MAG-FILER’s State Filing Number area. When selecting “MD–Maryland” in the Specific State to File list, the State Specific window displays. Fill in the fields to complete the RV record required the State. When selecting “MD–Maryland” in the Specific State to File list, the State Specific window displays. Fill in the fields to complete the RV record (MW508) required by Maryland State. Click OK to create the file to upload to Maryland State. 82 E-filing Massachusetts - The File To: file name is W2xxxxMA (xxxx indicates the tax year). Nebraska – Leave off the 21- before the payer state number. New Jersey – MAG-FILER does not support disability reporting. The only Box 12 information imported is code D - 401K. New Mexico – Enter the CRS ID Number (Combined Reporting System) in the MAG-FILER’s State Filing Number area on the Payer detail window. The account number entered must be all numeric, no spaces, dashes or special characters. Drop the leading zero. Ohio - Use Locality income and tax fields to enter School District wages and taxes. Place the one digit School district type, E = School District Tax and F = Other Tax and the four digit School District number in the first five positions of the W-2 Locality field. OREGON - Enter the employer withholding account number in the MAG-FILER’s State Filing Number area on the Payer detail window. The account number entered must be all numeric, no spaces, dashes or special characters. SOUTH CAROLINA - The File To: file name is W2REPORT_XX.txt (xx represents tax year). VERMONT - Enter the employer withholding account number in the MAG-FILER’s State Filing Number area on the Payer detail window. The account number entered must not contain dashes. WISCONSIN - The File To: file name must be STATREPT. The state payers number must not contain spaces or dashes. State Filing Numbers Each Payer (employer) that applies with a state to file magnetically/electronically usually is issued a state filing number. This number must be included in the file to identify the Payer. MAG-FILER allows you to create a table containing all state and state filing numbers for the employer selected to file. You must enter the state filing number in this table before magnetically/electronically filing for a selected state. MAG-FILER looks at this table to obtain the appropriate number belonging to the state. Enter the two-lettered Filing State abbreviation and it’s State Number with no dashes or spaces in the table located on the Payer Information window. Click the Save (on the right of the Name field) button to save the information. NOTE: For each state you will be filing, enter the two-character state abbreviation in the Filing State field and the number issued by that state in the State Number field, then click on Save/Close. 83 E-filing Procedure to W-2 State File The procedure to file W-2 information with a state is the same as described earlier under “Procedure to File to the IRS,” with the following notable items: Check the E-File check box only on the Payer window that have a filing type of W-2 and contains the specific state to file. Enter State and State Numbers by clicking the State Filing table the Payer window. Employee W-2 records must contain the state selected to file in the State, State wages, and State taxes. Enter the E-Filing Information – W-2 window: What to file: W2 State; File to: the drive, directory, and file name for e-filing, i.e., \Mag-Filer\2015\W2REPORT-YYYY.TXT (YYYY = current tax year). MAG-FILER defaults to the state selected to file; Business Contact information; Transmitter Contact information; and enter the filing state’s two-character state abbreviation in the Specific State to File field. If you are filing to multiple states, you must perform the filing process separately for each state, changing the abbreviation in the Specific State to File field each time. State Specific tab - MAG-FILER pops up a State Specific window if additional information is required for a specific State’s filing. Fill out window and continue by selecting OK to create the state’s file. NOTE: MAG-FILER will default to the FILE TO file name acceptable by the specific state to file. The file name may also be self-assigned. Check with your state regarding acceptable filenames. When processing W-2 state information, MAG-FILER looks at each Payee, and includes only Employee records where the state indicated in the State field of the State Wages and Taxes is the same state specified in the Specific State to File field. It will create a file entitled W2REPORT-YYYY.TXT (filename exceptions can be found in State Specific area). When the file has been created, print out the summary by clicking OK at Verify totals and print summary before e-filing? OK. Verify from the summary the state information from state W2’s that MAG-FILER has found to magnetically/electronically file. This is for file purposes only. Use your summaries if required and supplied by each state. If the file was created to a CD, package and send the according to each state’s requirements. Any state required forms to be sent with the file on diskette must be filled out and supplied by the submitter. If the file was created to electronically submit to specific states, check with the states for their requirements regarding uploading files and any summaries. 1099 STATE FILING MAG-FILER can be used to electronically (E-File) file with states not in the IRS Combined Federal State program that require 1099 State Filing of 1099’s. A separate filing must be created for each state reported. MAG-FILER is set up to file the following states and specific form types: 84 E-filing Kentucky - FormW2G This is a file in IRS format including the KY state payer assigned tax account number, state income tax withholding and code 21. All records will be included in the file whether there is a state income tax amount or not. Maine - Form W2G This is a file in IRS format including the ME state income tax withholding and code 23. All records will be included in the file whether there is a state income tax amount or not. Mississippi - Form 1099-MISC, W2G, and 1042-S All records will be included in the filing in IRS format. Oregon – Form 1099-MISC and Form W2G This is a text file with an OR state assigned BIN entered in state filing table. The file format does not contain a carriage return/line feed at end of each record. All records will be included in the file whether there is a state income or withholding amount or not. Pennsylvania - Form 1099-MISC and 1099-R This is a comma delimited file with PA state payer assigned tax account number, name and address info, tax withholding, distribution code, gross distribution, and state distribution. Only records containing PA withholding will be in the file. State Filing Numbers Each Payer that applies with a state to file electronically (E-File) may be issued a state filing number. This number must be included in the file to identify the Payer for Pennsylvania - Form1099-R and Form 1099-MISC, Oregon Form - 1099-MISC and W2G (BIN), and Kentucky - Form W2G. MAG-FILER allows you to create a table containing all state and state filing numbers for the employer selected to file. You must enter the state filing number in this table before electronically filing for a selected state. MAG-FILER looks at this table to obtain the appropriate number belonging to the state. If required, enter the two-lettered Filing State abbreviation and it’s State Number in the table located in the Payer Information window. Click the Save (on the right of the Name field) button to save the information. NOTE: For each state you will be filing, enter the two-character state abbreviation in the Filing State field and the number issued by that state in the State Number field. 85 E-filing Procedure to 1099 State File The procedure to file 1099 information with a state is the same as described earlier under “Procedure to File to the IRS,” with the following notable items: Check the E-File check box on the Payer to be filed from the Payer Information detail window. Only one Payer with Payees can be filed with MAG-FILER for 1099 State filing. Enter State and State Numbers in the State Filing table on the Payer Information window. For states requiring state tax withholding, state income, or state distribution, Payee records must contain the State, State wages, and/or State taxes withheld. Click the E-File button. At the E-Filing Information window select: What to file: 1099 State; File to: the drive, directory, and file name for e-filing, i.e., (My)Documents\MagFiler\2015\ToGov\IRSTAX-YYYY.TXT (YYYY = current tax year); fill in the Business Contact information and Transmitter Contact information fields if not there from previous filings; and select from the drop-down the filing state in the Specific State to File field. If you are filing to multiple states, you must perform the filing process separately for each state, changing the state in the Specific State to File field each time. When processing 1099 state information, MAG-FILER will create the file format based on the Specific State to File field. It will create a file entitled IRSTAX-YYYY.TXT . When the file has been created, print out the summary by clicking OK at Verify totals and print summary before e-filing? OK. Verify from the summary that MAG-FILER has found the total number Payer and Payees in the file. This is for file purposes only. Files will need to be uploaded to your specific state separately from MAG-FILER. If the file was created for E-Filing to specific states, check with the states for their requirements regarding uploading files and any summaries. E-File Button Right-Click Menu To use these functions, place the mouse pointer on the E-File button, and then press the right mouse button. The right-click menu appears: Print IRS or SSA Summaries To print the summaries, click Print IRS Summary or Print SSA Summary. You can print the summaries if they were missed during the E-File process. Each time the program runs E-File, these are over-written. 86 E-filing View 1099, 1042-S, SSA, or Extension E-File To view the 1099, SSA, or Extension file after E-File, click View 1099 E-File, View SSA E-File, or View Extension E-File. Selecting one of the views will open up a browse window. The last filing location and file should display. Click on filename to display. If file does not display use the drop-down to locate drive and filename. The IRS, SSA, or Extension file will display. Recognizable characters including the year of filing, Payer and Payee information should appear on the screen. If this display is blank, then the E-File was unsuccessful and needs to be re-processed by selecting your Payers and re-running E-File. The IRS file (IRSTAX-YYYY.TXT) displays the following records with the current tax year: T = Transmitter A = Payer B = Payees C = Total record K = Total of Combined Federal State Payees F = Total number of Payers in the filing IRS 1042-S file (1042TAX-YYYY.TXT) contains the following records: T = Transmitter W = Withholding Agent Q = Recipients C = Total record F = Total number of Withholding Agents in the filing SSA (W2REPORT-YYYY.TXT) and State (State specific) file can contain the following records: RA = Transmitter RE = Employer RW = Employee information RO = Employee information (optional additional information) RS = State Specific filing RT = Totals of Employer RU = Totals of RO Employee information (optional) RV = State Specific filing (optional RV record) RF = Grand total of all Employers reported in the filing NOTE: W2 State filing may not have all the above records and also the file name W2REPORT could be different. Connecticut’s file name is CTTAXYYYY (YYYY = current tax year), Wisconsin’s file name is STATREPT, Massachusetts’s file name is W2xxxxMA (xxxx = current tax year), and South Carolina’s file name is W2REPORT_xx.TXT (xx = current tax year). 87 E-filing Extension file (IRSEOT-YYYY.TXT) contains the following items for each Payer in the IRS Extension filing. Transmitter Control Code Payer TIN Payer name and address Document Indicator (Form Type reported) View E-Filing Log Displays a log file of Payers, payee count, and the date that E-File was run for file creation. Save K Record Information to Notepad To have specific states totals print out after processing a file for IRS Combined Federal/State filing, click Save K Record Information to Notepad. (See “Combined Federal/State Filing (1099)”) Flag All Payers to E-File or to Not E-File To flag all Payers to E-File or not E-File, click on Flag All Payers to E-File or Not E-File. This option allows you to check that all Payers will be filed. Flagging all Payers to not E-File aids in the selection of certain Payer files for processing. A Yes is displayed in the E-File column of the Payer Information list for all Payers to E-File and a No will indicate not to E-File. Note: Always save a copy of the MAG-FILER files submitted to the IRS, SSA, and W-2 States. See the IRS, SSA, IRS 1042-S Publications for official due dates and timely delivery procedures. Combined Federal/State Filing (1099) The Combined Federal/State Filing Program is a service provided by the IRS where they forward filing information to participating states, eliminating the need for you to file separately with each state. You are responsible for checking with your state to see if they accept filing information from the IRS Combined Federal/State Filing Program. MAG-FILER supports the following individual states, Kentucky (W2G), Maine (W2G), Oregon (MISC and W2G), Pennsylvania (1099-R and MISC), and Mississippi (MISC, W2G, and 1042-S). There are some states that will accept the same format as sent to the IRS. Check with your states requirements. (See “1099 State Filing”) You can use the Combined Federal/State Filing Program to file information for the following forms: 1099-B 1099-DIV 1099-G 1099-INT 1099-K 1099-MISC 1099-OID 1099-PATR 1099-R 5498 88 E-filing States that are in the IRS Combined Federal/State Program are: Alabama - AL Colorado - CO Hawaii - HI Louisiana - LA Michigan – MI Montana - MT North Carolina - NC Vermont – VT Arizona - AZ Connecticut - CT Idaho - ID Maine – ME Minnesota – MN Nebraska – NE North Dakota – ND Virginia – VA Arkansas - AR Delaware - DE Indiana – IN Maryland - MD Mississippi - MS New Jersey - NJ Ohio – OH Wisconsin - WI California - CA Georgia - GA Kansas - KS Massachusetts - MA Missouri - MO New Mexico - NM South Carolina - SC Before you can participate in this program, you must first be approved. To gain approval, you must upload a test file to the IRS site https://fire.test.irs.gov/firev1r/ between November 2, 2015 and February 19, 2016 (the test file is encouraged for the first year). Contact MAG-FILER to obtain a copy of the test program. Procedure to create Test Files for Applying to the IRS Combined Federal/State Program Create a Payer for a form type (MISC, INT, etc.) that will be reported. It is not required to create a test for each form type being reported. Select the Combined Fed/State checkbox at the Payer detail window for this filing. Enter at least 11 valid payees with amounts per file. Select the E-File button, fill out the information window and check Filing Type TEST. MAGFILER will link you to the IRS test site. Upload files between Nov 2 and February 19 to the IRS site https://fire.test.irs.gov/firev1r/ using their option TEST File. The IRS normally emails a Good – Federal/State if file format is approved. If you do not get a response by email, Check File Status at the IRS test site. If you are approved for the program, the IRS will send you an approval letter. Some participating states require separate notification that you are filing in this manner. Procedure to File for Combined Federal/State to the IRS The procedure to file using the Combined Federal/State Filing Program is the same as described under “Procedure to File to the IRS,” as well as the following notable information: For each Payer that is participating in this program, check the Combined Fed/State check box on the Payer detail window. State Filing numbers are not required for combined Fed/State filing. The numbers are used mainly for forms printing. For Forms 1099-PATR and 5498, MAG-FILER uses the Payee’s residence State field on the Payee Information detail window to determine the work state of the payee. If the Payee’s residence state and work state are different, enter CFS xx in the Special field, where xx is the two-character abbreviation of the Payee’s work state as shown in the example here. 89 E-filing Forms 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-K, 1099-MISC, 1099-OID, and 1099-R, state tax withheld information will be picked up from the first State and tax withheld fields for combined federal state reporting. If there isn’t information in the tax withheld field, MAGFILER will create the file using the live in state. MAG-FILER will not report any information entered in the second state and tax fields. A new record must be created for each state with federal and state, wages, and tax field. Note: Paper filing to your state is not limited to one state, tax, and income entered per form. Approved Transmitters under their TCC# can E-File Combined Federal/State Filing for all payer files. Those individual payers being filed by approved transmitters do not have to go through the Combined Federal/State approval process. To get a list of states and their totals after filing, select the Payer checked for Combined Federal/State Filing, right-click to get menu and click, NotePad. The following window displays: 1099-B amount fields are equal to the official form boxes: Amount 2 = Box 1d, Amount 3 = Box 1e, Amount 4 = Box 4, Amount 5 = Box 1g, Amount 9 = Box 8, Amount 10 = Box 9, Amount 11 = Box 10, Amount 12 = Box 11, Amount 13 = Box 12 and Amount 17 = Box 16. 1099-DIV amount fields are equal to the official form boxes: Amount 1 = Box 1a, Amount 2 = Box 1b, Amount 3 = Box 2a, Amount 6 = Box 2b, Amount 7 = Box 2c, Amount 8 = Box 2d, Amount 9 = Box 3, Amount 10 = Box 4, Amount 11 = Box 5, Amount 12 = Box 6, Amount 13 = Box 8, Amount 14 = Box 9, Amount 15 = Box 10, Amount 16 = Box11, and Amount 17 = Box 14. 1099-G amount fields are equal to the official form amount boxes with the exception of Amount 17 = Box 11. 1099-INT amount fields are equal to the official form amount boxes with the exception of Amount 17 = Box 15. 90 E-filing 1099-K amount fields are equal to the official form boxes: Amount 1 = Box 1a, Amount 2 = Box 1b, Amount 4 = Box 4, Amount 5 = Box 5a, Amount 6 = Box 5b, Amount 7 = Box 5c, Amount 8 = Box 5d, Amount 9 = Box 5e, Amount 10 = Box 5f, Amount 11 = Box 5g, Amount 12 = Box 5h, Amount 13 = Box 5i, Amount 14 = Box 5j, Amount 15 = Box 5k, and Amount 16 = Box 5l, and Amount 17 = Box 8. 1099-MISC amount fields are equal to the official form amount boxes with the exception of Amount 11 = Box 13, Amount 12 = Box 14, Amount 13 = Box 15a, Amount 14 = Box 15b, Amount 17 = Box 16 and Amount 18 = Box 18. 1099OID amount fields are equal to the official form amount boxes with the exception of Amount 5 = Blank, Amount 6 = Box 8, Amount 7 = Box 9, Amount 8 = Blank, Amount 10 = Box 5, Amount 11 = Box 6 and Amount 17 = Box 12. 1099-PATR amount fields are equal to the official form amount boxes. 1099-R amount fields are equal to the official form boxes with the exception of Amount 7 = Blank, Amount 8 = Box 8, Amount 9 = 9b, Amount 10 = if IRA/SEP/SIMPLE box checked, Amount 11 = Box 10, Amount 17 = box 12, Amount 18 = Box 14. Amount 19 = Box 15, and Amount 20 = Box 17. 5498 amount fields are equal to the form amount boxes with the exception of Amount 11 = Box 12b, Amount 12 = Box13a, and Amount 13 = Box 14a. Output file IRSTAX-YYYY.TXT (YYYY = current tax year) is created for uploading to the IRS. Select Test at the IRS FIRE site. Corrected Returns There are two ways of correcting returns; before and after e-filing to the IRS for 1099’s & 1042-S. Before current year E-File If a record was entered in the current year MAG-FILER and needs to be corrected before it’s been e-filed for the current year, you would make whatever corrections necessary to the record, check the corrected box on the payee record, and print a corrected form to send to the recipient. Be sure to uncheck the corrected box on that recipient before the original e-file of your data to the IRS. NOTE: Records checked corrected will not be included in the original current year E-File. After original current year E-File Refer to “Filing Corrected Returns to the IRS” and “Filing Corrected Returns for 1042-S” sections below. 91 E-filing Filing Corrected Returns to the IRS MAG-FILER can be used to file corrected returns with the IRS—it can be used for this purpose even if MAG-FILER was not used. (MAG-FILER CANNOT be used to file corrected W-2 returns.) A correction is an information return submitted by the transmitter to correct a return that was previously e-filed and processed by the IRS, but contained erroneous information. Corrections could be name, address, TIN, detail amount changes, or deleting a record that should not have been e-filed. A record that was missed in the original e-file is NOT filed as a correction but as an original. The IRS encourages corrections to be electronically filed, but up to 249 corrections can be filed on paper even though you used electronic filing the first time. Paper filing corrections are sent to your IRS regional reporting area, not the same address as electronic filing returns. Corrections should be filed before August 1st to avoid penalties. Corrections for the 2015 or earlier tax years must be filed using MAG-FILER2015. The 2015 version of MAG-FILER is valid until December 1, 2016. Original or corrected returns after that date must be filed using MAG-FILER2016. Previous year’s corrections must be filed using the most current version of MAG-FILER. To print corrected Payee copies, refer to Print Corrected Payees, under the section, “Printing Reports and Forms”. A year drop-down box is available for printing previous year’s corrected forms. Payer name and/or TIN corrections do not require information e-filed to the IRS/IRB. Write a letter to the IRS/IRB containing the correct Payer and address, type of error (include incorrect payer information reported), tax year, Payer TIN, TCC, Type of return (MISC, INT, etc.), number of payees, and filing method, paper or electronic. Send file to the IRS/IRB. (See “Contacting the Internal Revenue Service – Forms 1097 1098 1099 3291 3292 5498 W-2G 1042-S”) Note: Always use the current year’s program for current and prior year corrections, replacement, or original filings. Select a previous year from the “TAX YEAR TO FILE DROP-DOWN BOX” at the e-filing information window. “Please call Spokane Computer Inc., MAG-FILER department if you have ANY questions on the following corrected returns process.” Procedure to File Corrected Returns to the IRS The specific procedure you use to file a corrected return depends on the type of correction that needs to be made. Each is described below. Note: The Payee Account number MUST be the same on the corrected record as the original record. IRS requires an account number if submitting more than one information return of the same type (MISC, INT, etc.) for the same payee. Use Procedure 1 for the following reasons: Incorrect Payment amount A payment amount was entered into the wrong field (i.e., it was entered into the Other Income field when it should have been entered in the Rents field on 1099-MISC) Incorrect Payee address A check box on a form was incorrectly checked (i.e., Direct Sales check box on 1099-MISC) 92 E-filing A code or date was incorrect on a form (i.e., Distribution code on 1099-R) To delete a record because a return was filed for an individual for whom it never should have been filed. Use Procedure 2 for the following reasons: Incorrect or missing Tax Identification Number (SSN or EIN) The original return was filed using the wrong form type - payer was set up with the wrong filing type (filing types are for example, MISC, INT, etc.) Incorrect payee name Use Procedure 3 for the following reason: A Payee record was missing in the original filing Procedure 1 1. If the original record to be corrected was filed using MAG-FILER, follow the steps below: a. Uncheck the corrected box on all previous filed payee corrections. Also uncheck the E-File check box at each Payer that is NOT involved in this filing. b. Select the record to correct. c. Correct the information. If you are deleting the record, blank all amount fields and leave in other data, such as dates and descriptions. The Payee account number must be the same as the original record reported. d. Check the Corrected Return check box at the payee detail window. e. Click the Save button. f. Click the Close button to return to the Payer Information detail window. 2. If you did not use MAG-FILER to file the original record to be corrected follow the steps below: a. Add a New Payer with detailed information including the Filing Type. b. Click the New button and complete the Payee Information detail window with all of the correct information. (See Working with Payee Information) The Payee account number must be the same as the original record reported. If you are deleting the record, blank all amount fields that contained amounts on the original return leaving in other data such as dates and descriptions. c. Check the Corrected Return check box at the payee detail window. d. Click the Save button. e. Click the Close button to return to the Payer Information detail window. 3. Uncheck the E-File box (located in bottom right of the Payer detail window) on all Payers with the exception of the ones with corrections to be filed. If multiple payers in MAG-FILER, r-click on the E-File button and Flag all Payers to Not E-File and then go back and check the E-File box on payers involved in the corrections. 93 E-filing 4. From the Payer Information detail window, click on the E-File button to display the E-Filing Information window and select What to file: 1099 (all forms). 5. Click on the Corrected Filing Type indicator and in File To: enter a different file name from the original or a previous corrected filing. 6. Complete the filing procedure as described in the “E-Filing” section. Select Correction File at the IRS FIRE site. Only the Payee records that are checked “Corrected” should be included in the file being uploaded. It is advisable to backup all files processed to the IRS. 7. After filing, uncheck the E-File box on all Payers and also uncheck the corrected box on all payees. To uncheck corrected on multiple payees, r-click in the Payee Information window to Flag all payees as Not Corrected. This avoids any duplicate filing of corrections later in the year. Procedure 2 This procedure requires you to run E-File two separate times, first filing to delete the incorrect record, and the second filing to correct the record as it should have been reported. Therefore, you will have two different files to upload. Be sure to name the files differently for record keeping purposes. First Filing- This filing will be deleting the records incorrectly filed. 1. If the original record to be corrected was filed using MAG-FILER, follow the steps below: a. Uncheck the corrected box on all previous filed payee corrections. Also uncheck the E-File checkbox at each Payer that is NOT involved in this filing. b. Select the record to correct. c. Blank out all amount fields that currently contain an amount. Do not change any other information on the screen. The Payee account number must be the same as the original record reported. d. Check the Corrected Return check box at the payee detail window. e. Click the Save button. f. Click the Close button to return to the Payer Information detail window. 2. If you did not use MAG-FILER to file the original record to be corrected, follow the steps below: a. Add a New Payer with detailed information including the Filing Type. b. Click on the New button and complete the Payee Information detail window with all of the correct information. (See Working with Payee Information) The Payee account number must be the same as the original record reported. If you are deleting the record, blank all amount fields that contained amounts on the original return leaving in other data such as dates and descriptions. c. Check the Corrected Return check box at the payee detail window. d. Click the Save button. e. Click the Close button to return to the Payer Information detail window. 3. Use the section in Procedure 1 for E-File using steps 3-7. 94 E-filing Second Filing- This filing will be editing the records as they should have been filed. 1. Find and display the Payee records corrected in the First Filing above (this is the record(s) that you blanked all of the amount fields). 2. Enter all of the correct amounts and change any other incorrect information. The Payee account number must be the same as the original record reported. 3. Check the Corrected Return check box at the payee detail window. 4. Click the Save button. 5. Click the Close button to return to the Payer Information detail window. 6. Use the section in Procedure 1 for E-File using steps 3-7 with the exception of clicking on the 2nd Filing Type indicator. Procedure 3 This procedure is used to file a Payee record that was missed in the original filing. 1. Create a New Payer with detailed information including the Filing Type (i.e., MISC, INT) for the missing Payee. 2. Click the New button to display a blank Payee Information detail window. 3. Enter the new Payee record information and click on the Save button to save the record. Leave the Corrected Return check box BLANK. 4. Repeat Steps 2 and 3 for each Payee that was missed in the payer file. 5. Uncheck the E-File box on all Payers with the exception of the new payers to be filed. If multiple payers in MAG-FILER, r-click on the E-File button and Flag all Payers to Not E-File and then go back and check the E-File box on payers involved in this filing. 6. Use the section in Procedure 1 for E-File using steps 4-7 with the exception of clicking on Original for the Filing Type. Note: Always save a copy of the all information processed to the IRS, SSA, or W-2 state. E-File may be re-run using the same data for backup copies. Procedure to File Previous Year Corrected Returns to the IRS Make corrections to previous year’s returns using the most current tax year version of MAG-FILER. Set up a new Payer, and enter the payee records to correct. Use the above procedures for correcting records to send to the IRS, changing the Tax Year at the E-Filing Information window. Filing Corrected Returns for 1042-S Procedure to File Corrected 1042-S Returns to the IRS The specific procedure you use to file a corrected return depends on the type of correction that needs to be made. Each is described below. 95 E-filing Note: ALWAYS USE THE CURRENT YEAR’S PROGRAM FOR CORRECTIONS OR REPLACEMENT FILINGS. SELECT A PREVIOUS YEAR FROM THE TAX YEAR TO FILE DROP-DOWN BOX. 1042-S Withholding Agent (payer) corrections Withholding Agent (payer) corrections to name, address, or EIN must be e-filed electronically to the IRS. Use Procedure 2 below by creating first filing with the incorrect Withholding Agent information and zeroing out the amounts, checking amended on ALL payees in that agent and E-File as Amended. Second filing will contain correct Withholding Agent information, all Payees with amounts, amended checked, and E-File as 2nd filing type. 1042-S Recipient (payee) corrections Use the following procedures for recipient (payee) corrections. Note: The Payee Account number MUST be the same on the corrected record as the original record. IRS requires an account number if submitting more than one information return of the same type (MISC, INT, etc.) for the same payee. Use Procedure 1 for the following reasons: Incorrect payment amount Incorrect codes and/or check boxes Incorrect address Form 1042-S submitted in error. Zero amounts in the record. Use Procedure 2 for the following reasons: No Recipient TIN (SSN, EIN, ITIN, Q-EIN) Incorrect Recipient TIN Incorrect Recipient name Incorrect Recipient name and address on the same record Use Procedure 3 for the following reason: A Payee record was missing in the original filing Procedure 1 1. If the original record that needs to be corrected was filed using MAG-FILER, follow the steps below: a. Display the original record for correcting. b. Correct the information. If you are deleting the record, blank all amount fields and leave in other data, such as codes and rates. The Payee account number must be the same as the original record reported. 96 E-filing c. Check the Amended Return check box at the payee detail window. d. Click the Save button. e. Click the Close button to return to the Payer Information detail window. 2. If you did not use MAG-FILER to file the original record that needs to be corrected, follow the steps below: a. Add a New Payer with detailed information including the Filing Type. b. Click the New button and complete the Payee Information detail window with all of the correct information. (See Working with Payee Information) The Payee account number must be the same as the original record reported. If you are deleting the record, blank all amount fields that contained amounts on the original return leaving in other data such as dates and descriptions. c. Check the Amended Return check box at the payee detail window. d. Click the Save button. e. Click the Close button to return to the Payer Information detail window. 3. Uncheck the E-File box (located in bottom right of the Payer detail window) on all Payers with the exception of the ones with corrections to be filed. If multiple payers in MAG-FILER, r-click on the E-File button and Flag all Payers to Not E-File and then go back and check the E-File box on payers involved in the corrections. 4. From the Payer Information detail window, click on the E-File button to display the E-Filing Information window and select What to file: 1042S. 5. Click on the Amended Filing Type indicator and in File To: enter a different file name from the original or a previous corrected filing. 6. Complete the filing procedure as described in the “E-Filing” section. Select Amended File at the IRS FIRE site. Use the assigned 1042-S TCC#. Only the Payee records that are checked “Amended” are included in the file being uploaded. It is advisable to backup all files processed to the IRS. 7. After filing, uncheck the E-File box on all Payers and also uncheck the Amended box on all payees. To uncheck amended on multiple payees, r-click in the Payee Information window to Flag all payees as Not Corrected. This avoids any duplicate filing of corrections later in the year. Procedure 2 This procedure requires you to run E-File two separate times, first filing to delete the incorrect record, and the second filing to correct the record as it should have been reported. Therefore, you will have two different files to upload. Be sure to name the files differently for record keeping purposes. First Filing 1. If the original record that needs to be corrected was filed using MAG-FILER, follow the steps below: a. Display the original record to correct. 97 E-filing b. Blank out all amount fields that currently contain an amount. Do not change any other information on the screen. The Payee account number must be the same as the original record reported. c. Check the Amended Return check box at the payee detail window. d. Click the Save button. e. Click the Close button to return to the Payer Information detail window. 2. If you did not use MAG-FILER to file the original record to be corrected, follow the steps below: a. Add a New Payer with detailed information including the Filing Type. b. Click on the New button and complete the Payee Information detail window with all of the correct information. (See Working with Payee Information) The Payee account number must be the same as the original record reported. If you are deleting the record, blank all amount fields that contained amounts on the original return leaving in other data such as dates and descriptions. c. Check the Amended Return check box at the payee detail window. d. Click the Save button. e. Click the Close button to return to the Payer Information detail window. 3. Use the section in Procedure 1 for E-File steps 3-7. Second Filing 1. Find and display the Payee record corrected in First Filing above (this is the record that you blanked all of the amount fields). 2. Enter all of the correct amounts and change any other incorrect information as it should have been reported. The Payee account number must be the same as the original record reported. 3. Check the Amended Return check box at the payee detail window. 4. Click the Save button. 5. Click the Close button to return to the Payer Information detail window. 6. Use the section in Procedure 1 for E-File steps 3-7 with the exception of clicking on the 2nd Filing Type indicator from the E-Filing Information window. Procedure 3 This procedure is used to file a Payee record that was missed. 1. Create a New Payer with detailed information including the Filing Type for missing Payees. 2. Click the New button to display a blank Payee Information detail window. 3. Enter the new Payee record information and click on the Save button to save the record. Leave the Amended Return check box BLANK. 4. Repeat Steps 2 and 3 for each Payee that was missed in the payer file. 98 E-filing 5. Uncheck the E-File box on all Payers with the exception of the new payers to be filed. If multiple payers in MAG-FILER, r-click on the E-File button and Flag all Payers to Not E-File and then go back and check the E-File box on payers involved in this filing. 6. Use the section in Procedure 1 for E-File steps 4-7 with the exception of clicking on Original for the Filing Type at the E-Filing Information window and at the IRS site. Note: Always save a copy of the all information processed to the IRS, SSA, or W-2 state. E-File can be re-run using the same data for backup copies. Filing Test Files MAG-FILER submits test files yearly to the IRS/IRB and SSA before the final program is distributed. However there are situations where a test file can be sent, first time 1099 and 1042-S transmitters, and for Combined Federal/State filing approval. IRS To submit a test file for first-time filing to the IRS/IRB, set up payers with at least 10 payees for each form type used and refer to the “E-Filing” section, selecting the Filing Type –TEST. MAGFILER will link you to the IRS test site: https://fire.test.irs.gov/ . The deadline dates for upload to the IRS/IRB Internet site are between November 2, 2015 and February 19, 2016. You will be uploading a Test File at the IRS menu site. To submit a test file for 1099 Combined Federal/State filing approval, refer to “Combined Federal/State Filing (1099)”. SSA The SSA no longer accepts test files. Review your files for correct formatting by downloading the current years SSA AccuWage program at www.socialsecurity.gov/employer/accuwage. 1042-S To submit a test file, refer to the IRS instructions for first time IRS filers above. Be sure to use What to File – 1042S and the TCC# for 1042-S filing that is different from 1099 filing. Replacement Filing Files are sometimes rejected by the IRS/IRB or SSA and require a replacement filing. Replacement filing is filed to the IRS/IRB or SSA. File a replacement if a filing status of BAD appears on an IRS/IRB filing. SSA - View Status information will indicate whether a file needs to be resubmitted. Always contact the IRS/IRB or SSA to verify that a total replacement of your filing is required. If additional assistance is needed, please feel free to notify MAG-FILER support. If any corrections have been filed to the IRS/IRB or SSA in between the time the original was sent, the transmitter needs to recreate the original transmission and file a replacement. Replacement files must be corrected and returned to the IRS/IRB within 45 days from the date of the IRS/IRB replacement letter. 99 E-filing The following are some errors from rejected IRS/IRB or SSA filings. Over 50% or more Employees/Payees TIN’s are missing, or invalid Date Format - 1099 required dates missing or invalid Federal ID number incorrect – Transmitter or Payer Transmitter Control Code error Correcting and Filing according to the above errors. Date Format – dates on some 1099 forms are required. A valid date in the MAG-FILER entry window is in this format MMDDYYYY. Correct records and file a replacement. Transmitter Federal ID number, Transmitter Control Code, or Payer Federal ID errors consist of invalid data in the E-Filed Information or Payer Information window. Federal ID numbers should be nine-digits all numeric and Transmitter Control Codes are 5 numeric/alpha digits. Edit information and file a replacement. % of TIN (tax Payer identification number, SSN or EIN) numbers incorrect – IRS discovered that a high % of the Payee records contain invalid numbers that is either to short, too long, or blank. Correct records and file a replacement. Call the IRS to explain why TIN’s were unobtainable. Replacement Procedure Replacements for IRS/IRB and SSA must ALWAYS be filed using the current tax year’s MAG-FILER program and selecting the correct year from the E-Filing Information window, Tax Year drop-down box. IRS Original Replacements 1. Check Payer and Payee files and correct according to IRS/IRB errors. If the file came back with a “BAD” status, it must be filed as a replacement. 2. All payer files must have E-File checked at the payer detail window. 3. Select E-File. 4. At the E-Filing Information window all information should display the same as original with the exception of the following: Tax Year to File – enter current or previous year What to File – 1099 IRS (Incl 1097, 1098, 3921, 3922, 5498, W2G) File to: - change the default file name Filing Type - Original Replacement - box checked 5. Select file destination in File to: for filing to the IRS/IRB. File name should be different from default name, i.e., SCIRepl.txt. 6. Continue by clicking OK to create upload file, print, and verify the summary. 100 E-filing 7. Upload your file to the IRS/IRB FIRE system as a Replacement. Select the file to replace at the IRS site, ex; ORIG.TCC#.0001(See “E-Filing”) 8. Verify that the File Size from MAG-FILER’s summary matches the IRS status report after file upload. IRS Corrected Replacements by (Fire) System If you transmitted corrected records via the IRS/IRB FIRE system, and the status were “BAD” they must be filed as a replacement. At the E-Filing Information window all information should display as the previous filing with the exception of the following: What to File – 1099 IRS (Incl 1097, 1098, 3921, 3922, 5498, W2G) File to: - change the default file name Filing Type - Corrected or 2nd Replacement – box checked You will select Replacement at the IRS FIRE site. Select the file to replace at the IRS site, ex; CORR.TCC#.0001. 1042-S Replacements To file replacements, follow IRS instructions above, with the following exceptions: What to File – mark 1042-S. File to: - Select a drive, folder, and name your file different from the original filing, i.e., SCI1042Srepl.txt. Filing Type – Original or Amended TCC# - required (5 alpha/numeric characters different from the 1099’s TCC#). You will select Replacement at the IRS FIRE site for Original and Amended returns. Select files to replace at the IRS site, ex; ORIG.TCC#.0001 or CORR.TCC#.0001. SSA Replacements File SSA replacements only if you received a Resubmission Notice from the Social Security Administration. To file replacements: 1. Check Payer and Payee files and correct according to SSA error. 2. Uncheck the E-File check box at the detail window on all Payers NOT included in this resubmission. 3. Select E-File. 101 E-filing 4. At the E-Filing Information window all information should display the same as original filing with the following exceptions in the W-2 SSA section: What to File - W-2 SSA File to: - change the default file name Filing Type – check Resubmittal Resub WFID – enter the SSA replacement assigned WFID#. 5. Check the Submitter Summary for correct information. Do NOT send the summary to the SSA. 6. Submit your replacement file as a Resubmission at the SSA BSO web site. (Refer to the E-Filing section for the SSA) 7. Verify that the File Size from MAG-FILER’s summary matches the IRS status report after file upload. Note: Always save all information processed to the IRS, SSA, or W-2 state. E-File can be re-run using the same data for backup copies. 102 Filing a Request for an Extension of Time FILING A REQUEST FOR AN EXTENSION OF TIME An extension of time to file may be requested for Forms 1097, 1098, 1099, 3921, 3922, 5498, W-2G, W-2, and 1042-S. To be considered, an extension request must be postmarked, electronically filed or completed online by the due date of the returns. The IRS has the following methods to request an extension of time. 1. Online filing (Fill-in) - Form 8809, Application for Extension of Time To File Information Returns, can be completed online at the IRS FIRE system for an unlimited amount of payers. At the IRS FIRE System Main Menu, click “Extension of Time Request”, click “Fill-in Extension Form”, fill out this window for each payer requesting an extension of time, and print out your IRS extension for your file. This option is only used to request your first 30-day extension. Extensions completed online via the FIRE system receive instant IRS APPROVAL results. This extension option does not give you additional time to give recipients their copies of the form and/or documents. Note: The Transmitter Control Code is optional. 2. Paper Filing - This method can be used to request an extension of time to file information returns submitted on paper to the IRS. A paper Form 8809 can be sent to the IRS/IRB for one payer only. A transmitter must use the Electronic Filing or Online Filing methods for more than 1 payer in a request. The IRS will reject an extension if more than one paper Form 8809 with different payers is in the same envelope. 3. Electronic Filing – Use this method to create a file of multiple Payers for e-filing to the IRS. Form 8809 must be sent to the IRS/IRB the same day of the file upload. ATCC# is required. (See “Procedure to File a Time Extension Request Electronically). Requests by paper or electronically may take up to 30 days for the IRS/IRB to respond to your extension request. IRS responds to requests for multiple Payers with a single approval letter, accompanied by a list of Payers covered by that letter. Do not wait for a response before filing your returns. File your returns as soon as they are ready. If you are requesting an additional extension of time of not more than 30 days, you must submit Form 8809, Application for Extension of Time to File Information Returns before the end of the first automatic extension period. These cannot be requested via the FIRE system. Requests for an additional extension of time to file information returns are not automatically granted. Generally, requests for additional time are granted only in cases of extreme hardship or catastrophic event. The IRS will send you a letter of explanation approving or denying your request of an additional extension only. If you do not have Form 8809, you can download the form from www.irs.gov. Caution: You cannot use this system to request an extension of time to (1) provide statements to recipients, (2) file Form 1042 (instead use Form 7004), or (3) file Form 1040 (instead use Form 4868). Procedure to File a Time Extension Request Electronically for Payers Follow these steps to file an extension request: Note: If a time extension request is for furnishing statements to the recipients of the information returns, a separate filing with only those payers is required. 1. Select the E-File check box on the Payer Information detail window for all Payers (includes all form types, i.e., MISC, INT, etc.) included in the extension. Forms 1042-S and W-2 will also go to this file. 103 Filing a Request for an Extension of Time 2. Click on the E-File button to display the E-Filing Information window. 3. Fill out the window’s fields as follows: Fill in the Tax Year to File and File to: The default will be (My)Documents\MagFiler\2xxx\IRSEOT.txt to upload to the IRS/IRB. File locations and file names may be changed. For record keeping, it’s advisable to name files differently on additional filings. Under What to File, select 1099 IRS (Incl 1097, 1098, 3921, 3922, 5498, W2G). You will be filling out information under the IRS. This will automatically pick up 1042-S and any W-2 files that were clicked E-File to be included in the extension. Under Filing Type, select Ext. Fill in the Business Contact and Transmitter Contact Information of the IRS 1099, Transmitter TIN and TCC# (always use IRS TCC#). Skip the Last Filing Year fields. 4. Click Ok to create the extension file. To view what is in the IRSEOT.txt file, r-click on the E-File button and select View Extension E-File. Total number of payers should equal those checked E-File in the Payer List. 5. Upload the file name in File to: at the IRS/IRB file name prompt. An information window appears after file has been created displaying Total Payers in the file and the location and name of file created. You will be linked to the IRS/IRB for file upload. Choose Extension of Time Request at the IRS/IRB menu and select from the Options list, Upload an Extension File. Enter a valid TCC # and EIN (required) and File Types Original Request. Continue filling out the following windows and entering the file name (ex; IRSEOT.TXT) at the Upload your file window. Uploads of Extension filings to the IRS/IRB can start after January 20, 2016. The transmitter must fax Form 8809 (IRS fax – 877-477-0572, outside the U.S. 1-304-579-4105) the same day the transmission is made. Due to security concerns, extension requests may NOT be emailed with the Form 8809 attached. Note: Transmitters submitting an extension of time should not submit a list of payer names and TINs with Form 8809 since this information is included in the file. However, Line 6 of Form 8809 must be completed with the total number of records included in the filing. Procedure to File a Time Extension Request Electronically for Recipient Statements Requests to file a time extension request for Payee recipient statements may be electronically filed through MAG-FILER. This must be a separate filing and cannot be included with the extension for Payers. Follow steps above “Procedure to File a Time Extension Request Electronically for Payers” with these exceptions : 104 Change the file name in the File to: prompt to avoid writing over any previous filing with the same name. Check Recipient Stmt Ext if filing this request for an extension of time for mailing Payee recipient copies. A separate filing is required for this type of extension request. Utilities Menu UTILITIES MENU To display the MAG-FILER Utilities menu, click Utilities on the Payer Information window’s menu bar: A summary of the functions available from this menu are listed below: Calculate Totals – Takes you directly to the Totals window from which you can print a Totals report on all Payee records associated with the selected Payer. Print IRS Transmittals (Summary) – Displays a summary for Payer files selected for filing. While viewing them on your screen, you have the option to print them. Do NOT send summaries to the IRS. Note: If you are printing these forms for you file, you must print them immediately after creating the files to upload to the IRS. (See the “E-Filing” section for details.) Print SSA Transmittals (Summary) – Displays a Submitter Summary of Payer files selected for filing. While viewing them on your screen, you have the option to print them. Do NOT send these summaries to the SSA. Note: If you are printing summaries to check the SSA files, you must print them immediately after creating the files. (See “E-Filing”) Import Previous Year’s Magfiler Payer and Payee Data – Transfers your previous year’s Payer and Payee data to the current year’s version of MAG-FILER. Import Previous Year’s Magfiler Payer Data – Transfers your previous year’s Payer data to the current year’s version of MAG-FILER. Define Import File Format – Before importing data from other software, an import file configuration must be set up defining the type of data format and what order the imported data is in. (See “Importing with the Define Import File Format method” under “Importing Data into MAG-FILER” for details.) 105 Data Backup Delete Current Payer and All Payees Filed Under This Payer – Deletes the selected Payer and all Payees associated with that Payer. This is especially useful if you must re-import data after errors occurred in the Payer’s data when you imported the data from another program. (See “Re-Importing Data” under “Importing Data into MAG-FILER”) Delete All Payees Under This Payer – Deletes all Payees associated with the selected Payer, useful when testing an import file. Program File Folder – Lets you view where MAG-FILER’s main folder, Program Files\MagFiler\xxxx resides. Data File Folder – Lets you view where MAG-FILER’s DATA folder, (My)Documents\MagFiler\xxxx resides. Manage Users – If Activate Mag-Filer Security was checked at the time of install, the administrator could use this option to edit users. (See “Installation”) NotePad – Lets you view state totals for Payee residence states that are set up for e-filing through the Combined Federal/State Filing Program. (See “The Payer Information list Right-Click Menu”) DATA BACKUP Note: Always save a copy of the file, all reports, and payee hard copies sent to the IRS, SSA, or W-2 state. E-File can be re-run using the same data for backup copies. You are strongly encouraged to periodically create backup copies of your data files. MAG-FILER stores all data files by default in a directory (My)Documents\Mag-Filer\2xxx\ (where xxx represents the current tax year, YYY). Clicking on the HELP button from the Payer Information window will display, at the bottom of the window, where the Database is currently accessed. Although MAG-FILER does not include a backup utility of the entire data files, you can use methods such as compressing the data (with a utility such as WinZip), and copying it area a network. Individual Payee files can be saved to a PDF format by selecting PDF print file of all Payees at Backup on the Payee Information window. Also using Backup, save individual payee files using the CSV Export. The CSV file can be opened with Excel for additional reporting. 106