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On Client Ledger System™ Software Focus on Client Ledger System™ Software A Financial MicroSystems, Inc. Publication • Volume 18, Issue 1 • 4th Quarter of 2012 CLS II (1.61) and CLS-DOS (6.3) Updates are Scheduled for Release December 4th Year-end CLS updates for both CLS II and CLS-DOS are currently scheduled for release December 4th. We originally planned to discontinue CLS-DOS at the end of this year, because it has become increasingly difficult for us to make the required programming changes. However, we have decided to release one final year-end update for CLS-DOS and will continue to support it through September 2013. All future development will focus on CLS II. CLS updates include the new 2012 W-2 and 1099/1098 formats for both laser-printed plain-paper and preprinted forms. Dot-matrix preprinted W-2 and 1099 forms are available only in CLS-DOS. Formats for the standard, two-up, preprinted W-2 and W-3 forms are basically unchanged for 2012. However, the 1099- MISC form has alignment changes and formats for the 1099-INT, 1099-DIV, 1099-B, 1099-C, 1098 and 1096 forms are new. All W-2 and W-3 forms (including Copy A) may be printed on plain paper. Submittable 940, 941, 943 and 944 forms may also be printed on plain paper. For 1099, 1098 and 1096 forms, all copies except Copy A may be printed on plain-paper. Copy A must be filed using “official” scannable forms (the IRS may impose a penalty for using non-scannable forms). The CLS updates also include required changes to the federal 940, 941, 943 and 944 forms for the 2012 year-end. The 941 form for 2013 will be included in the March 2013 updates. State unemployment wage reports (continuation sheets) will be updated as needed. Remember, you must update CLS if you plan to print submittable federal payroll tax forms on plain paper. Your CLS update also entitles you to receive updates for payroll tax form changes during the first three quarters of 2013. Health Care Coverage Reporting is required for 2012 Reporting the cost of an employee’s coverage under an employee-sponsored group health plan on W-2 forms is required for 2012 for those employers who filed more than 250 W-2s in 2011. Federal Unemployment Tax Rates (FUTA) for 2012 CLS will automatically use the correct rate (6.0%) when calculating FUTA taxes for the 2012 Form 940. Social Security Wage Base to increase in 2013 For 2013, the social security wage base will increase to $113,700, and increase of $3,600. For 2012, the wage base is $110,100. For both 2011 and 2012, the employee’s Social Security withholding rate was reduced to 4.2%, while the employer’s contribution remained at 6.2%; for 2013, the employee rate will return to 6.2%. The Medicare tax rate of 1.45% still applies to both employees and employers; however an additional employee rate of 0.9% will be applied to earnings over $200,000. CLS~CheckWriter Payroll Tax Updates CW 3.11 includes new federal and state payroll tax tables for 2013. The new version will be released just before Christmas. What is the difference between CLS-DOS and CLS II? CLS-DOS runs under Windows XP and under Windows XP Mode in Windows 7. It can also be installed on computers running 32-bit versions of Vista or Windows 7 (and possibly Windows 8), but third-party software (Printfil) is required if you want to print to a local USB-port printer. The selection of compatible printers for CLS-DOS is very limited. CLS II is similar to the DOS version of CLS. Like CLS-DOS, CLS II is keystroke-driven. It works with all current versions of Windows (XP, Vista, Windows 7 and Windows 8), and can use any Windows printer. It also includes a built-in PDF-writer and a text editor for transmittal letters. Your existing CLS-DOS ledgers and transmittal letters can be converted to CLS II using the built-in import routines. However, the first step, extracting ledger information from the DOS version of CLS, must be performed in a 32-bit environment (e.g., Windows XP). What if I’ve already converted to CLS II, but also need the CLS 6.31 update? Just complete the enclosed CLS update order form. You will receive new product keys for both CLS II and CLS-DOS. What if I want to order CLS II now? On the enclosed CLS update order form, add the one-time “conversion” fee to your normal update price. There is no extra charge to convert your existing CLS add-on products. What should I do if I just want to evaluate CLS II? When you update CLS-DOS, your CD will contain a current copy of CLS II, and you will receive a demo product key that lets you install and use it for up to 90 days. The demo version of CLS II does not include the PDF Writer, but is otherwise complete. Displaying reports with the CLS Report Viewer in CLS II In CLS-DOS, all reports are “displayed” using the traditional CLS Report Viewer. By default, CLS II uses the built-in CLS PDF Printer. However, the traditional viewer is still available if you wish to use it. In SI 1,1, change the answer to Display Reports Using to 2 and then select your report color: 1, White on Blue, is the color used by CLS-DOS, while 2, Dark Blue on White, provides a nice contrast. If you decide to use the CLS Report Viewer, you may also want to run CLS II maximized (click the box in the upper right-hand corner of the CLS II screen). CLS II will then use your entire screen for displayed reports. While the CLS PDF Printer offers a lot of flexibility, the CLS Report Viewer displays reports much faster and the reports are more readable. And you can still print reports using the PDF printer if needed. Batch Processing (BP) and the Transmittal Letter (TL) programs will continue to use the CLS PDF Printer for displayed reports. CLS II and Windows 8 CLS II is compatible with Windows 8. It can be accessed either from a tile on the Start screen or from an icon on the Desktop. Windows 8 appears to have a lot of promise, but it can be very confusing to a new user - especially since the Start Button has disappeared. There are several third-party solutions that attempt to restore the more familiar interface. Two are free: Classic Shell (www.classicshell.sourceforge.net) and Pokki Menu (www.pokki.com), while Start8 (www.stardock.com) costs $4.95. ClassicShell is pretty basic, but works well. Start8 is nice looking, with a great deal of functionality, but currently lacks drag-and-drop capability. We haven’t yet tested Pokki Menu. CLS-DOS compatible printers Two excellent, inexpensive laser printers are fully compatible with CLS-DOS and CheckWriter: Brother HL-2270DW and Lexmark E260d. Both are readily available, and MICR cartridges are available for the Lexmark printer (but not for the Brother). CLS Focus • Page 2 Updates for CLS Add-on Packages If you are using any of these add-on packages, they must be kept “current”. Add-on packages for CLS include: • SUTA Magnetic Media (SM) • W-2/1099 Magnetic Media (TM) • Tax Package Interface (TX) • Unemployment Plus (UP) • XML Filing of 940, 941 and 944 Forms (XM) The SUTA Magnetic Media (SM) program, for filing state unemployment tax wage information on magnetic media, has been updated to reflect current file formats. With the SM program, you can submit wage continuation sheet information electronically. A few states also require a separately printed tax return or transmittal form. Except for Kansas, South Carolina, Tennessee and Texas, filing requirements are per employer. Unless otherwise indicated, states will only accept files submitted via the internet. State e-Filing Requirement Accepted Media UP Form Required Alabama All employers Arizona Not required CD Yes Arkansas 250+ employees California * 250+ employees Connecticut All new employers, 250+ employees (all other filers) Florida All agents, 10+ employees Georgia 100+ employees CD, DVD, Diskette, Zip Disk Yes Illinois * 250+ employees Kansas 50+ employees (all employers) Kentucky 10+ employees Louisiana 100+ employees Internet, Diskette Maryland 100+ employees Internet, Email, CD, Diskette Yes, unless filing online Massachusetts All employers Michigan Not required Yes Minnesota All employers Mississippi 250+ employees Diskette Yes Nebraska Payroll of $100,000 or more New Jersey All employers New Mexico * 15+ employees North Carolina 100+ employees Internet, CD, Diskette Ohio Not required Internet, CD, Diskette Yes Oklahoma All employers Pennsylvania * 250+ employees South Carolina 100+ employees (all employers or agents) Tennessee 250+ employees (all employers or agents) Internet, CD, Diskette Yes Texas 10+ employees (all employers or agents) Internet, CD, Diskette Virginia 100+ employees Wisconsin 25+ employees (all agents) Yes Wyoming Not required Internet, CD * e-Filing for New Mexico and Pennsylvania are available only in CLS II. In addition, California and Illinois will now be supported only in CLS II; due to the extensive file format changes that are required, they will not be available in SM for CLS-DOS 6.3. The W-2/1099 Magnetic Media (TM) program has been updated to reflect file format changes for 2012. The Unemployment Plus (UP) program, which provides the ability to print submittable unemployment tax cover pages for certain states, has been updated. With the UP program, you can print unemployment tax returns for: Alabama UC-CR4 (file copy only)* Arizona UC-018 Arkansas DWS-ARK209B California DE-9 Connecticut UC-2/5A Florida UCT-6/6W Georgia DOL-4 Illinois UI 3/40 Kansas K-CNS-100 Kentucky UI-3 Louisiana ES4-B/C Maryland DLLR/OU-15 Michigan UIA-1020 Minnesota DEED-1 (file copy only)* Mississippi UI-2/3 Nebraska UI-11T New York NYS-45-MN North Carolina UI-101 Ohio JFS-66111 South Carolina UCE-120/101 Tennessee LB-0456/0851 Texas C-3 Utah 33H Virginia VEC-FC-20 Wisconsin UCT-101 * Alabama and Minnesota require electronic filing for all employers.
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