Payroll Guide

Payroll Processing Guide Version 6.3

Financial MicroSystems, Inc.

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Table of Contents

Chapter 1 – CLS Passive Payroll Concepts ...... 1-1 CLS Passive Payroll Concepts ...... 1-2

Chapter 2 – CLS Payroll Maintenance Programs ...... 2-1 Computed Transactions (CT) ...... 2-2 Employee File Maintenance (EF)...... 2-5 Employee File List (EL) ...... 2-17 Payroll File Maintenance (PF) ...... 2-19 Set CLS Payroll Options (SI) ...... 2-35

Chapter 3 – CLS Payroll Reports ...... 3-1 Payroll Journal (PJ) ...... 3-2 Query Employee Detail (QE) ...... 3-5

Chapter 4 – CLS Payroll Tax Programs ...... 4-1 Payroll Tax Forms (TF) ...... 4-2 Employee W-2 Forms ...... 4-3 W-3 Transmittal Forms ...... 4-10 Vendor 1099/1098 Forms ...... 4-17 1096 Transmittal Forms ...... 4-27 W-2c and W-3c Forms ...... 4-34 W-2/1099 Form Requirements ...... 4-39 Download Soft Tax Fonts ...... 4-40

Payroll Tax Worksheets (TW) ...... 4-41 Federal 941, 943 and 944 Forms ...... 4-42 Federal 941-X, 943-X and 944-X Forms ...... 4-47 Federal Unemployment (940) Forms ...... 4-51 State Unemployment Reports ...... 4-57 Align State Unemployment Continuation Sheet ...... 4-60 Year-to-Date Employee/Vendor Activity ...... 4-61 Download Soft Tax Fonts ...... 4-61

Appendixes A: Warning Messages ...... A-1 B: Glossary ...... B-1 C: CLS Ledger Limits (Payroll) ...... C-1

This page is left blank intentionally.

Chapter 1 One

CLS Passive Payroll Concepts

CLS Passive Payroll Concepts ...... 1-2

CLS Passive Payroll Concepts

1.1 CLS Passive Payroll Concepts

The CLS passive (after-the-fact) payroll does not actually calculate payroll or print checks. It is designed to keep track of wages and deductions and prepare payroll reports (W-2 and W-3 forms, 940/941/943 forms, quarterly state unemployment continuation sheets, etc.) for your clients' employees. CLS will also track vendor-related expenses and prepare 1099/1098 and 1096 forms.

Defining a Payroll Series Creating the Payroll Series You begin setting up the passive payroll by creating one or more payroll series (groups of employees) using the Payroll File Maintenance (PF) program, Menu Selection 1. Payroll series may be type E (employee series - W-2 forms), type 1-9 (vendor series - 1099), type A (vendor series - 1098), or type M (miscellaneous series - no tax forms). For example, you might set up a series beginning with 100 to record wages paid to employees in one state, a series beginning with 200 for employees in another state, and a series beginning with vendor number 1000 to record payments to sub-contractors.

When defining a payroll series in program PF, Menu Selection 1, you will be prompted to enter information specific to that series, such as:

Journal Format (1,2) Select an 8 or 16-column payroll journal.

Options for an employee series Select from the following list of options:

Employer Type Select an employer type. The default employer type is B. B Employer name is a business name I Employer name is an individual’s name

Employee Type Select an employee type. The default employee type is R. A Agriculture M Military X Railroad G Annual 944 Q Medicare Qual Gov't Empl H Household R Regular

FUTA/SUTA Print Options Select an option for FUTA and SUTA employees. This selection will be used by the Payroll Tax Worksheets (TW) program when printing federal or state unemployment continuation sheets.

1-2 CLS Passive Payroll Concepts CLS Passive Payroll Concepts

C Print FUTA-exempt employees on FUTA wages lists D Print SUTA-exempt employees on SUTA wage lists O Include SUTA tax component 2 in SUTA tax reported on 940 form P Print a SUTA continuation sheet even if there is no activity

Name Convention Select a convention for entering employee names. The Payroll Tax Worksheets (TW) program uses this information when rearranging employee names to meet each state's requirements for the unemployment continuation sheet. The default name convention is F.

F First name entered first L Last name entered first

Other Enter an E option to force printing of state wages on the W-2 form. Enter an S option if the employer is a semi-weekly 941 depositor. Enter a U option if all employees are subject to 6.2% SUTA (Minnesota only)

California Unemployment Series Type In California, select the appropriate unemployment series type. The default type is 1.

California Unemployment Series Types 1 UI and DI Wages (S) 6 DI Wages Only - Voluntary Plan (L) 2 UI Wages Only (A) 7 UI Wages Only – DI Religious Exemption (R) 3 DI Wages Only (J) 8 UI Wages Only - Sole Stockholder DI Exemption (R) 4 UI and Voluntary Plan DI Wages (U) 9 UI Wages Only - Third Party Sick Pay DI Exemption (R) 5 Personal Income Tax W/H Only (P)

Use types 1-5, 8 and 9 for paper DE-6 reporting. Use types 1-7 for reporting DE-6 information using magnetic media.

Defining the Payroll or Vendor Journal Use program PF, Menu Selection 3, to define payroll or vendor journal columns for each series. For each column, enter a column heading, the appropriate column type, column sign (+ or -), and the corresponding general ledger account number. The column types, headings and accounts will appear on the payroll journal. The column signs will be applied to payroll transactions entered in the Enter Transactions (ET) program when using Entry Mode 6.

Column types tell CLS what is in a particular column. You should not specify a column type for columns that will not be used for tax reporting on W-2 or 1099/1098 forms (e.g., uniforms, union dues). The default column types may be changed to suit your needs.

Depending on your response to the Medicare Column in PF prompt in SI, Menu Selection 1 (3,2), CLS assigns column type A to Social Security and column type M to Medicare. CLS will detect the presence of the M column type and calculate separate deductions on tax forms and worksheets. You may also combine Social Security and Medicare into one FICA column by using column type A for FICA and deleting column type M.

For column 1, you may define a range of gross pay accounts. You may also press F1 at the Add’l prompt and enter up to 12 additional gross pay accounts outside of the existing range. Payroll or vendor transactions entered in ET with an account inside the range or matching one of the additional accounts accumulate into column 1 on the payroll or vendor journal.

CLS Passive Payroll Concepts 1-3 CLS Passive Payroll Concepts

Except for column 1, CLS normally allows only one account to be associated with each payroll or vendor journal column. If you want to associate a limited range of accounts (e.g., 14001 to 14099), press Y at the Range prompt for the appropriate column. Only the departmental digits will be allowed to vary. Financial statements do not need to be departmentalized to use this feature.

For vendor series, you may define a default column for each individual vendor in program EF, Menu Selection 1. If the default column is column 1, you may also assign a default column 1 account. For columns 2-16, CLS will display the account entered in program PF, Menu Selection 3. Vendor transactions entered in ET will accumulate into the default column selected in EF.

401k Plans, SEPs, and Cafeteria Plans To handle 401k plans, SEPs, etc., create the payroll journal column(s) use a K1, K2 … K9, KA or KB column type. For Cafeteria Plans, use Q1, Q2, Q3, Q4, Q5 or Q9 column types. Assign a minus (-) sign to the columns you define, since you want to accumulate credit balances into them. Use the pension plan liability account as the column account. Transactions will be entered into these columns as deductions from gross pay using the ET program.

 Note: Use program PF, Menu Selection 5, to make sure that the taxability options for the related column types (K1, K2 … K9, etc.) are set correctly.

Fringe Benefits Fringe benefits such as an automobile allowance may be accumulated into a payroll journal column which has been assigned column type F and is set up to accumulate debit (+) balances. Because the entries in this column do not represent an expense to the employer, you may set up a contra column to hold the credit side of the journal entry (assigned to the same ledger account), or you may enter a single offsetting entry to the general ledger account without an employee number.

 Notes: • If fringe benefit entries will not occur often, consider making these entries as journal entries using entry mode 1, not entry mode 6. Also, be sure to enter the payroll column number in the account field, not the account number; otherwise both entries may wind up in the same column and cancel each other. • If you prefer, you may also enter fringe benefits behind the scenes using program EF, Menu Selection 2. However, these entries will be lost if you reclose the prior period.

Tip Processing If you need to track employee tips for a client, you will have to create a specific tip-related column on the payroll journal (column-type T) using program PF, Menu Selection 3. Tips will be entered into this column as debits (+). Since tips are reported by employees, and not paid by the employer, you may also create a tip-contra column on the payroll journal (no column type) to hold the tip offset. This column is set up for a credit (-) entry and is assigned the same ledger account (the tip clearing account) as the tip column. Tips will be entered directly from the payroll check stubs, in one column and out the next.

 Note: If you have numerous tipped employees or do not have a free column on the payroll journal after setting up the tip column, you may simply enter a single offset for all tips to the tip clearing account (without an employee number).

CLS provides several column types to handle tips. Press F1 at the Type prompt to list column types.

1-4 CLS Passive Payroll Concepts CLS Passive Payroll Concepts

J Allocated tips from which the employer need not withhold taxes. T,T1 Tips subject to employer and employee FICA, FUTA and SUTA. This column type may be used for all tips or for straight tips (over and above the minimum wage). T2 Tips subject to employer and employee FICA and FUTA, but not SUTA. This column type may be used for tips deemed wages, where these wages may not be subject to state unemployment taxes.

 Note: The T2 column type is no longer needed, since all tips are now subject to SUTA in all states. The T2 type has been preserved for historical reasons.

Example of a payroll series set up to handle reported tips

CLS JCC.013 JAMERSON COLLISION CENTER Page: 1 Run Date: 11/08/07 Employee Master File List P.E. Date: 2/29/08

Series: 100 Jamerson Collision Center FEI No.: 58-1234567SUTA/SDI State: GA 999 9999 9 Employee Series 789 Hale Place Road W/H State #1: GA 3001295 Locality #1 Monroe, GA 30655 W/H State #2: Locality #2

Pens Plan? N Show Weeks? Y Show Addr? Y Adj FICA? Y Adj SDI? N Empl Loc: 1 Jrnl Fmt: 1 Options:

----- Column 1: [* +] Gross Pay ------Other Columns ------Range ---- Other Col 1 Accounts Col Heading Type Sign Account Dept-Range Taxability From: 801 0 0 2 FICA A - 411 N ------To: 806 0 0 3 Fed W/H B - 412 N ------0 0 4 St W/H C - 413 N ------0 0 5 Tips T + 916 N Y-Y-YYYY-YYY- 0 0 6 Tip Contra - 916 N ------0 0 7 - N ------8 - N ------

Col 1 Taxability: YYYY-YY-Y-Y-Y-Y-

Handling Two Withholding States within One Payroll Series You may set up two gross pay columns in program PF, Menu Selection 3, to accommodate a payroll series with two withholding states. Each gross pay column should be assigned an asterisk (*) as the column type. You must also create a column for each state's income tax withheld, using column types C1 and C2.

Use program PF, Menu Selection 5, to set the taxability for each gross pay column: the gross pay column associated with state #1 should have the taxability flag for State wages #1 set to Y and the taxability flag for State wages #2 set to N; the gross pay column associated with state #2 should have the taxability flag for State wages #1 set to N and the taxability flag for State wages #2 set to Y. Gross pay and state withholding must then be entered by state in program ET.

Employee Column Types * Gross Pay N, N1 Uncollected FICA on tips A FICA Withheld N2 Uncollected Medicare on tips B Federal Income Tax Withheld N3 Uncollected FICA on Group Insurance C, C1 State 1 income tax withheld N4 Uncollected Medicare on Group Insurance C2 State 2 income tax withheld O Other compensation (also O1-O4) D, D1 Local 1 income tax withheld O5 Distrib from unqual section 409(a) plan D2 Local 2 income tax withheld O6 Military basic quarters and subsistence Continued on the next page

CLS Passive Payroll Concepts 1-5 CLS Passive Payroll Concepts

E Earned income tax credit O7 Excludable reimbursed moving expenses to be printed in W-2 Box 13 F Fringe benefits auto (also F1-F9) O8 Distribution from unqualified section 457 plan G Excess group life insurance O9 Distribution from unqualified non-section 457 plan H1 Hours worked (in) P, P1 Excess golden parachute payments H2 Hours worked (out) P2 Nontaxable combat pay I Information to be printed in Box 14 Q, Q1 Dependent care benefits I1 S-Corp officer’s medical insurance Q2 Health insurance J Allocated tips Q3 Medical reimbursements K, K1 Section 401 (k) contributions Q4 Archer medical savings account contributions K2 Section 403 (b) contributions Q5 Adoption benefits K3 Section 408(k) (6) contributions Q9 Employer contrib. to health savings account K4 Section 457 contributions R Per diem for business expenses K5 Section 501 (c) (18) (D) contributions S Sick pay not included in income K6 Section 408 (p) contributions - Simple IRA T, T1 Straight tips K7 Section 409 (a) contributions T2 Tips deemed wages K8 Kansas Public Employees Retirement U SUTA withheld K9 Cafeteria Plan V SDI withheld KA Roth contributions to 401(k) W Income from non-statutory stock options KB Roth contributions to 403(b) X Don't clear column at year-end L Gross earned under a prior entity Y FICA portion of Gross (household/ agriculture) M Medicare withheld

 Payroll Tax Rates and Limits In program PF, Menu Selection 4 (1), you will enter current-year and next-year rates and limits for federal and state unemployment tax calculations, and expense and liability accounts for FICA, FUTA and SUTA. These rates, limits and accounts are used for the employer's share of taxes calculations which appear at the end of the payroll journal, and when creating transactions for these amounts using the Computed Transactions (CT) program, Menu Selection 4. These rates and limits are also used to adjust incorrectly withheld FICA and SDI in program CT, and to accumulate payroll tax liabilities for the 941.

 Note: It is very important to set these rates and limits correctly or the calculations will be wrong. Since current-year rates and limits can be replaced by next-year rates and limits at the end of the calendar year, make sure you verify them at the beginning of each year and correct them if necessary.

Setting up Employees and Vendors After defining the payroll journal, use the Employee File Maintenance (EF) program to add employees or vendors. You will enter each employee's name and address, social security number, options (if any), local jurisdictions (for local income tax purposes), and Column 1 Account (to be used by the ET program).

When entering employees or vendors in program EF, pay attention to the following: • If you enter the last name first, you must insert a comma after the last name. • If there is a title following the last name, such as Jr. or III, separate it from the last name with a comma (e.g., George P. Martin, III or Martin, George P., III).

1-6 CLS Passive Payroll Concepts CLS Passive Payroll Concepts

• If you select the first name convention and the last name consists of more than one word, enter a caret (^) before the last name: George ^Van Buren.

You may assign up to six options per employee. Your choice of options determines what appears on the W-2 forms at the end of the year, and on federal 940s, 941s and the state wage reports your client must file. Available employee options are listed as follows:

Employee Options A Do not adjust FICA/Medicare W/H for this N Employee is not covered by a retirement plan. employee using CT #1. B Bi-weekly pay (multiplies the number of payroll O Marks an employee as a corporate officer for FL, checks entered by 2 to report weeks worked). ME, MN, or SC or a seasonal employee for NC. C Gross wages are not subject to federal P Check Sick Pay box on W-2. unemployment taxes. D Gross wages are not subject to state Q Quarterly pay (multiplies the number of payroll unemployment taxes. checks entered by 13 to report weeks worked). E Gross wages are not subject to employee SDI. S Semi-monthly pay (multiplies the number of payroll checks entered by 2.16 to report weeks worked). F Gross wages are not subject to employee V Permanent Employee. FICA/Medicare. G Statutory employee. W Weekly pay (multiplies the number of payroll checks entered by 1 to report weeks worked). H Hold, do not print W-2. X Inactive employees; transactions will not be accepted. L Payment made to a legal representative. Y Employee is covered by a retirement plan. M Monthly pay (multiplies the number of payroll Z Marks employee as deceased. checks entered by 4.33 to report weeks worked).

Entering Beginning Employee (Vendor) Balances Beginning employee balances are entered using program EF, Menu Selection 2. To access this routine, answer Y to the Access Beginning Balances prompt in program LI, Menu Selection 3 (1). To enter employee balances, enter gross pay and deductions for each quarter of the current calendar year. Be careful to enter the amounts in deduction columns as credit balances.

 Note: CLS can accommodate a situation where payroll transactions are entered for a ledger on a fiscal quarter basis, but the fiscal quarter-end date does not coincide with the calendar quarter. Be sure to set the payroll quarter-end date so that it falls within the fiscal quarter you are processing. When you enter transactions falling into the current calendar quarter, they will accumulate in the current-quarter fields. Transactions falling into the following calendar quarter will accumulate in the next quarter fields.

The fields marked Begin Year display balances brought forward from the end of the previous year; you may edit these balances as needed or enter new beginning balances.

The fields marked Quarter 5 can generally be ignored; access to these fields is provided to allow correction of errors. These fields are used to capture next-quarter payroll balances at year-end when processing a quarterly ledger and the fiscal quarter does not coincide with the calendar quarter at year end.

The fields marked Current Period display the sum of the current period transactions, regardless of quarter. You may not change these figures.

CLS Passive Payroll Concepts 1-7 CLS Passive Payroll Concepts

Entering Payroll Transactions Payroll or vendor transactions are entered using the Enter Transactions (ET) program. You may use any entry mode to enter payroll transactions, but in entry mode 6 you will be prompted for an entry for each payroll journal column you have defined. You may enter 6 as the default entry mode in program SI, Menu Selection 1 (1), or you may select entry mode 6 when you choose the source code, batch number, etc. You may also enter 6 in the Y/N field before you begin to enter a payroll check.

Enter the employee or vendor number in the description field. The employee/vendor name is displayed for confirmation. In the account field, you may enter a valid payroll account or column number. To be considered valid, the account must do one of the following:

• Match the employee's or vendor's column 1 account • Match one of the column accounts defined when you set up the payroll journal • Meet the range test for column 1 (the gross pay column) • If you enter payroll journal column 1, the employee's default column 1 account or vendor's default column will be used. If you enter a column number between 2 and 16, the account associated with that column in the payroll or vendor journal will be assigned to the transaction.

 Notes: • If you are using entry mode 6 and want to distribute gross pay to more than one salary account, simply back into the account field when prompted for FICA (using Shift-Tab, F6 or @), then enter the next account number and amount. You may use as many gross pay accounts as needed. • If you are using entry mode 6, payroll amounts should normally be entered without a sign. The sign (+ or -) associated with a column in the payroll journal will be automatically assigned to the transaction amount. If you need to override this feature, enter a plus or minus sign with the amount.

Special Considerations

Employer's Payroll Tax Calculations The employer's share of payroll taxes is calculated by CLS and appears at the end of each payroll journal. These calculations include FICA and federal and state unemployment taxes. The rates and limits are set using program PF, Menu Selection 4.

Use the Computed Transactions (CT) program, Menu Selection 4, to create transactions for the employer's share of FICA and federal and state unemployment taxes. The payroll tax transactions will not be created unless you entered an F option (Adjust FICA against Federal Withholding) at the CT Options prompt in program PF, Menu Selection 1. Also, it is extremely important that rates and limits be correct before running Computed Transactions (CT).

Making sure FICA is correct If FICA is withheld incorrectly for a particular employee, a pound-sign (#) will appear next to that employee's name on the payroll journal, and the calculated employer's share of FICA at the end of the payroll journal will disagree with the total FICA withheld. If this situation occurs, you may adjust FICA into (or out of) federal withholding using program CT, Menu Selection 1.

1-8 CLS Passive Payroll Concepts CLS Passive Payroll Concepts

Incorrectly withheld SDI will be indicated with an asterisk (*) beside the employee's name on the payroll journal.

 Note: You may also print a payroll journal that shows only those employees with incorrect FICA or SDI.

Payroll Reports

Payroll Journal You may print a payroll journal for a single payroll series or series type, or for all series you have defined. In the partial report shown on the next page, notice the column headings. The beginning period balances for each employee are shown on the line marked Bal Fwd. All relevant payroll transactions, including computed FICA adjustments (CT, Menu Selection 1), are shown, along with current period, current quarter and current year-to-date balances.

CLS Passive Payroll Concepts 1-9 CLS Passive Payroll Concepts

JCC Payroll Journal (partial)

1-10 CLS Passive Payroll Concepts

CLS Passive Payroll Concepts

Employee List You may use the Employee File List (EL) program to prepare a list of employees sorted by employee number (see the example below), last name, social security number, or optional sort field. The employee name and address list may also include year-to-date net balances. The new employee report shows employees hired within a specific date range. The employee missing- information report lists employees with a missing social security number or incomplete address and, optionally, a missing hire date; the corresponding worksheet allows you to fill in the missing information.

JCC Employee List, sorted by employee number

Tax Forms and Worksheets The Tax Forms (TF) program prints employee W-2 and W-3 forms and vendor 1099/1098 and 1096 forms in a variety of formats. The Tax Worksheets (TW) program prints 940/941/943/944 submittable forms and worksheets, federal unemployment wage lists, state unemployment continuation sheets and state unemployment tax worksheets.

W-2 Forms You may print W-2s for the current ledger or batch process W-2s for multiple ledgers. You can print W-2s on preprinted forms using a laser or dot-matrix printer. CLS can also create all forms, including Copy A, on blank paper using a laser printer.

You can also laser-print blank W-2s and form instructions, and print alignment masks.

W-3 Transmittal Forms You may print W-3s for the current ledger or batch process W-3s for multiple ledgers. You can print W-3s on preprinted forms using a laser printer. CLS can also create Copy A and the employer's copy on blank paper using a laser printer.

You can also laser-print blank W-3s and print alignment masks.

1099/1098 Forms You may print 1099s/1098s for the current ledger or batch process 1099s/1098s for multiple

CLS Passive Payroll Concepts 1-11 CLS Passive Payroll Concepts ledgers. You may print 1099s/1098s on preprinted forms using a laser or dot-matrix printer. CLS can create all forms except Copy A on blank paper using a laser printer; you will need preprinted forms for Copy A.

You can also laser-print blank 1099s/1098s and form instructions, and print alignment masks.

1096 Transmittal Forms You may print 1096s for the current ledger or batch process 1096s for multiple ledgers. You may print 1096s on preprinted forms using a laser printer. CLS can create the employer's copy on blank paper using a laser printer, but you will need preprinted forms for Copy A.

You can also laser-print blank 1096s and print alignment masks.

Federal 940/941/943/944 Forms and Preliminary Reports You must first display or print a preliminary report for any payroll series for which you want to print a submittable 940, 941, 943 or 944 form. If you choose all series, decide whether to print separate reports or a consolidated report. Edit the information on the forms as needed. You may laser-print the 940, 941, 943 and 944 on preprinted forms or plain paper. You may also laser-print blank 940s/941s/943s/944s and print alignment masks.

Federal Unemployment (940) Wage List Select one payroll series or all. If you choose all series, decide whether to print separate wage lists or a consolidated wage list.

State Unemployment Reports

 State Unemployment, SDI and Other Tax Worksheet Select one payroll series or all. If you choose all series, decide whether to print separate worksheets or a consolidated worksheet.

 State Unemployment Continuation Sheets Select one payroll series or all. If you choose all series, decide whether to print separate continuation sheets or a single continuation sheet. Print approved OCR-scannable reports for AL, AZ, CA, CO, FL, GA, HI, IA, MD, MI, NC, NJ, OH, OR, SC, TN, TX, UT, WA, WI and other states which use OCR scanning techniques to read continuation sheets. Print customized non-OCR reports for the remaining states.

 State Unemployment Wage List – Tax 2 Select one payroll series or all. If you choose all series, decide whether to print separate wage lists or a consolidated wage list.

 Note: This is a wage listing for SUTA tax 2, not tax 1. If you want to print a tax 1 report in this format, select the Continuation Sheet Audit Trail.

 SUTA Rates and Limits by Ledger Select a ledger for which to print SUTA rates and limits, or print the rates and limits for all ledgers.

 SDI and Other Rates and Limits by Ledger Select a ledger for which to print SDI rates and limits, or print the rates and limits for all ledgers.

1-12 CLS Passive Payroll Concepts Chapter Two 2

CLS Payroll Maintenance Programs

Computed Transactions (CT) ...... 2-2

Employee File Maintenance (EF) ...... 2-5

Employee File List (EL) ...... 2-17

Payroll File Maintenance (PF) ...... 2-19

Setting CLS Payroll Options (SI) ...... 2-35 CLS Payroll Maintenance Programs

2.1 Computed Transactions

Use this program to adjust incorrectly withheld employee FICA or SDI, or to create transactions for the employer's share of FICA and federal and state unemployment taxes. The transactions created are based on rates and limits set in the Payroll File Maintenance (PF) program.

The Computed Transactions (CT) program processes employee series based on the response to the CT Options prompt for each payroll series in program PF, Menu Selection 1.

Enter CT from the CLS Main Menu and the following menu appears:

Employee FICA Adjustments This routine will adjust incorrectly withheld FICA (Social Security and Medicare) against federal withholding.

Choose 1 from the CT menu and respond to the following prompt:

 Note: Only employee series that have been assigned an F option (Adjust FICA against Federal Withholding) at the CT Options prompt in PF will be processed.

Would you like to continue? (Y,N) Press Y to perform FICA adjustments.

While adjusting FICA, each payroll series and each employee name and number within that series is displayed; vendor series will be skipped. If an adjustment is made, Adjusted appears next to the employee name. Otherwise, In Balance appears.

*** Complete *** *** Press ENTER to continue: When FICA adjustments are complete, use the Post Transactions program (PT) to post the transactions that have been created.

2-2 Computed Transactions (CT) CLS Payroll Maintenance Programs

FICA Adjustments for Cash Wages Choose 2 from the CT menu to adjust FICA for cash wage employees. CLS will process the employees and create the transactions needed to adjust Social Security and Medicare against gross wages.

 Household/Agricultural Employees (1) Use this routine to adjust FICA cash wages for household and agricultural employees. It will calculate employee FICA (Social Security and Medicare) on cash wages and place the offset in a separate gross column (Y), subject to federal and state withholding.

 Note: Only payroll series with a payroll column type Y (FICA portion of Gross – household/ agriculture) will be processed.

Would you like to continue? (Y,N) Press Y to perform FICA adjustments.

*** Complete *** *** Press ENTER to continue: When FICA adjustments are complete, use the Post Transactions program (PT) to post the transactions that have been created.

 Cash Wages for Other Employees (2) Use this routine to adjust cash wages for other employees. It will calculate employee FICA (Social Security and Medicare) on gross wages and will adjust gross wages so that cash wages equal the adjusted gross wages less any other deductions.

 Note: Only series that have been assigned a C option (Adjust FICA for Other Cash Wages – not Household/Ag) at the CT Options prompt in program PF, Menu Selection 1, will be processed.

Would you like to continue? (Y,N) Press Y to perform FICA adjustments. While adjusting FICA, each payroll series and each employee name and number within that series is displayed; vendor series will be skipped. If an adjustment is made, Adjusted appears next to the employee name. Otherwise, In Balance appears.

*** Complete *** *** Press ENTER to continue: When FICA adjustments are complete, use the Post Transactions program (PT) to post the transactions which have been created.

Computed Transactions (CT) 2-3 CLS Payroll Maintenance Programs

Employee SDI Adjustments This routine will adjust incorrectly withheld SDI against state withholding.

Choose 3 from the CT menu and respond to the following prompt:

 Note: Only series assigned an S option (Adjust SDI against State Withholding) at the CT Options prompt in program PF, Menu Selection 1, will be processed.

Would you like to continue? (Y,N) Press Y to perform SDI adjustments. While adjusting SDI, each payroll series and each employee name and number within that series is displayed. Vendor series and employee series without SDI will be skipped. If an adjustment is made, Adjusted appears next to the employee name. Otherwise, In Balance appears.

*** Complete *** *** Press ENTER to continue: When SDI adjustments are complete, use the Post Transactions program (PT) to post the transactions which have been created.

Employer's Payroll Taxes This routine will create journal entries for the employer’s portion of payroll taxes. Depending on your response to the CT Zero Transactions prompt in SI, Menu Selection 1 (3,2), CLS can also create zero amount transactions for FICA, FUTA and SUTA if no tax is due.

Choose 4 from the CT menu and respond to the following prompt:

Would you like to continue? (Y,N) Press Y to calculate employer's payroll taxes.

During calculation of employer payroll taxes, each payroll series and each employee name and number within that series appears.

*** Complete *** *** Press ENTER to continue: When the payroll tax calculations are complete, use the Post Transactions program (PT) to post the transactions that have been created.

2-4 Computed Transactions (CT) CLS Payroll Maintenance Programs

2.2 Employee File Maintenance

Use the Employee File Maintenance (EF) program to add, revise, delete or query employee or vendor information, including name, address, social security number and current balances. You may also revise employee or vendor quarterly balances and check counts.

Enter EF from the File Maintenance Menu and the following menu appears:

Add/Revise an Employee or Vendor Choose 1 from the EF menu to add or revise employee/vendor information.

Employee/Vendor Enter the number of the employee or vendor to add or revise; press F1 to select the employee or vendor from a pop-up list. CLS automatically displays the current payroll or vendor series and basic information.

 Note: The employee or vendor number must be within a valid payroll or vendor series. Valid numbers begin with the series number and end with the number before the next series

Employee File Maintenance (EF) 2-5 CLS Payroll Maintenance Programs

number or 9999, whichever comes first. For example, if you have defined series 100 for employees and series 5000 for vendors, valid employee numbers may range from 100 to 4999 and valid vendor numbers from 5000 to 9999.

Name Enter the employee or vendor name, up to 28 characters.

 Note: When you enter employee or vendor names in program EF, please observe the following rules: • Enter names according to the name convention (First-name-first or Last-name-first) selected in PF. • If you enter names with the last name first, you must enter a comma after the last name. • If there is a title following the last name, such as III or Jr., enter it last and separate it from the name with a comma: William E. Jones, Jr. or Jones, William E., Jr. • If you have selected the first-name-first option, and the last name consists of more than one word, enter a caret (^) before the last name: George ^Van Buren.

Address Line 1 Address Line 2 City State Zip Code Enter the employee or vendor address.

Soc Sec/FEI No. Enter the employee social security number or vendor FEI number, separated by dashes if you wish.

 Employee Series Prompts The following prompts appear if you are creating or revising an employee series. See the following pages for vendor series prompts and miscellaneous series prompts.

Column 1 Account Enter the column 1 account to be associated with this employee. Press F1 to select from a pop- up Chart of Accounts for this ledger. You must enter an account number within the gross pay account range or matching one of the additional gross pay accounts defined in program PF, Menu Selection 3. You may use this account when entering transactions (ET) for this employee by simply entering a 1 in the account field.

Empl Options You may assign up to six options per employee. Enter multiple options without spaces. To remove all options, press the space bar once. Press F1 to select from a pop-up list of employee options.

2-6 Employee File Maintenance (EF) CLS Payroll Maintenance Programs

Employee Options Do not adjust FICA/Medicare W/H for this A N Employee is not covered by a retirement plan. employee using CT #1. Bi-weekly pay (multiplies the number of payroll O Marks an employee as a corporate officer for FL, B checks entered by 2 to report weeks worked). ME, MN, or SC or as a seasonal employee for NC. Gross wages are not subject to federal C P Check the Sick Pay box on the W-2 form. unemployment taxes. Gross wages are not subject to state Quarterly pay (multiplies the number of payroll D Q unemployment taxes. checks entered by 13 to report weeks worked). Semi-monthly pay (multiplies the number of payroll E Gross wages are not subject to employee SDI. S checks entered by 2.16 to report weeks worked). Gross wages are not subject to employee F V Permanent employee. FICA/Medicare. Weekly pay (multiplies the number of payroll G Statutory employee. W checks entered by 1 to report weeks worked). Inactive employees; transactions will not be H Hold, do not print W-2. X accepted. L Payment made to a legal representative. Y Employee is covered by a retirement plan. Monthly pay (multiplies the number of payroll M Z Marks employee as deceased. checks entered by 4.33 to report weeks worked).

Locality 1 Locality 2 If this employee is subject to local taxes, you may enter the name or abbreviation of the local jurisdiction(s).

 Note: Local jurisdictions entered here will override local jurisdiction 1 or 2 defined in program PF, Menu Selection 1.

Opt. Sort Key You may tag this employee with an alphanumeric sort key and then prepare an Employee List sorted by this code in program EL.

Hire Date Term. Date Enter the employee hire date and, if necessary, the termination date. CLS uses the hire and termination dates to prepare new employee/hire reports (EL). Employees who have been terminated (or who do not have transactions) may be deleted at the end of the year (EP).

 Note: If an employee count is shown on the unemployment wage continuation sheet: • If no dates are entered for an employee, CLS assumes the employee was working in all three months of the current quarter. • If hire and/or termination dates have been entered for the employee, the employee will be counted only in the months in which the employee was present on the 12th day of the month.

Male/Female (M,F) Indicate whether the employee is male or female.

Hourly/Salaried (H,S) Indicate whether the employee is hourly or salaried.

Employee File Maintenance (EF) 2-7 CLS Payroll Maintenance Programs

Hourly Rate If hourly, enter the employee’s hourly rate.

Job Title Enter the employee’s job title.

Hours per Check Minnesota, Oregon and Wyoming: Enter the standard number of hours per paycheck. You must set up columns (H1 and H2) in PF, Menu Selection 3, to handle hours in and out. The number of hours entered here will be used as the default for these columns in ET.

Date of Birth Enter the employee’s date of birth.

 Vendor Series Prompts The following prompts appear if you are creating or revising a vendor series.

Default Column Default Account Enter the default column and account to be associated with this vendor. For column 1, you may enter a new default account. Press F1 to select from a pop-up Chart of Accounts for this ledger. You may select columns 2-16, but you may not enter a default account. CLS displays the account entered in program PF, Menu Selection 3. You may use the default column and account when entering transactions (ET) for this vendor by simply entering a 1 in the account field.

Vendor Options Enter multiple options without spaces. To remove all options, press the space bar once. Press F1 to select from a pop-up list of vendor options.

Vendor Options (1099-MISC) C Print corrected 1099 T Second TIN notification H Hold, do not print vendor’s 1099 V Permanent vendor N Name line 2 is continuation of line 1 X Inactive vendor P Check box 9 (sales of $5000) 1,2 Use name line 1 or 2 in ET

Hire Date Term. Date Enter the vendor hire date and, if necessary, the termination date. CLS uses the hire and termination dates to prepare new vendor lists (EL). Vendors who have been terminated (or who do not have transactions) may be deleted at the end of the year (EP).

Name Type (I,B) Press I if the vendor is an individual, or press B if the vendor is a business. Press F1 to select the name type from a pop-up list.

Name Control If you are using CLS ~ Magnetic Media™, enter the first four characters of the vendor's last name (e.g., Jim Jordan, Tom Lee, Mary Smith-Jones). A dash (-) and an ampersand (&) are the only acceptable special characters. Other special characters and spaces must be removed. If the vendor name is a business name (excluding sole proprietorships), enter the first four characters of the business name (e.g., ABC Cafe). Do not enter the word the when it is the first word of the name, unless there are only two words in the name (e.g., The Southern Bank, The Cellar).

2-8 Employee File Maintenance (EF) CLS Payroll Maintenance Programs

Account You may enter a unique number to be used as a reference for each vendor. If you select the A option at Vendor Options prompt in PF, Menu Selection 1, this number will be printed in the Account number field of a 1099 or 1098; otherwise, the vendor number will be printed.

Optional Sort Key You may tag this vendor with an alphanumeric sort key and then prepare a Vendor List sorted by this code in program EL.

For a 1099-INT or 1099-DIV series: Country/Poss. Enter the appropriate country or possession for this vendor.

For a 1099-A series: Acquisition Date Enter the acquisition date of the secured property or the date when the vendor first knew the property was abandoned. Enter the date in mm/dd/yy format.

Description of Property Enter a description of the property. For real property, enter the address, or if the address does not identify the property, enter the section, lot and block. For personal property, enter the type, make and model.

For a 1099-B series: Sale Date For broker transactions, enter the trade date of the transactions. For barter exchanges, enter the date cash, property, a credit or scrip is actually or constructively received. Enter the date in mm/dd/yy format.

CUSIP No. For broker transactions, enter the Committee on Uniform Security Identification Procedures (CUSIP) number of the item reported for stocks, bonds, etc.

Description Enter a description of the item or services for which the proceeds or bartering is being reported.

No. of Shares For stocks, enter the number of shares exchanged.

Stock Classes Enter the classes of stock exchanged.

Corp Name and Address If needed, enter the corporation’s name and address.

For a 1099-C series: Date Canceled Enter the date the debt was canceled in mm/dd/yy format.

Debt Description Enter a description of the debt.

Employee File Maintenance (EF) 2-9 CLS Payroll Maintenance Programs

For a 1099-R series: Locality If this vendor is subject to local taxes, you may enter the name or abbreviation of the local jurisdiction.

 Note: A local jurisdiction entered here will override local jurisdiction 1 as defined in program PF, Menu Selection 1.

Distribution Code Enter the appropriate distribution code.

Box 8 Percent Enter the percent to be printed in Box 8 of the 1099 form.

Total Dist Percent If you are reporting a total distribution to more than one person, enter the percentage received by this vendor. If the percentage is 100, you should leave this field blank. If the percentage is a fraction, round it off to the nearest whole number (e.g., 10.4 % = 10%, 11.7% = 12%).

For a 1099-S series: Closing Date Enter the closing date in mm/dd/yy format.

Address or Description Enter a description of the property, such as address, section, lot and block.

For a 1098 series: Text for 1098 Box 4 Enter the text to be printed in Box 4 of the 1098 form.

 Miscellaneous Series Prompts The following prompts appear if you are working with a miscellaneous (type M) series. This series type is not used for 1099s, but for vendor reports (such as a sales journal) where no W-2s or 1099s will be prepared. Miscellaneous series balances will be cleared at the end of the fiscal year.

Options You may assign up to six options per vendor. Enter multiple options without spaces. To remove all options, press the space bar once. Press F1 to select from a pop-up list of options.

Opt. Sort Key You may tag this vendor with an alphanumeric sort key and then prepare a Vendor List sorted by this code in program EL.

2-10 Employee File Maintenance (EF) CLS Payroll Maintenance Programs

Accept or Escape? (A,Esc) Press A to save the employee or vendor. Press Esc to return to the Employee/Vendor prompt without saving any changes.

Employee ‘115’ has been updated. Vendor '1001' has been added. CLS adds or updates the selected employee or vendor and returns to the Employee/ Vendor prompt. You may select another employee or vendor, or press Esc to return to the EF menu.

Revise Employee/Vendor Balances Choose 2 from the EF menu to revise employee or vendor balances.

Employee/Vendor Enter the number of the employee/vendor whose balances need to be revised. Press F1 to select from a pop-up list of employees or vendors for this ledger.

Continue? (Y,N) Press Y to continue, and the following screen appears:

 Note: When entering beginning balances, make sure deductions are entered with a minus sign.

Select quarter to edit (0-5) Select the quarter for which you want to enter employee balances (0 = beginning of the current year, 5 = first quarter of the next year). Enter gross pay and deductions for each quarter of the current calendar year.

 Notes: • Descriptions for columns 1-16 will appear as you defined them in the PF program. Column signs (+,-) assigned in the PF program are applied to amounts entered here. • Press the arrow keys (←,→) to display Begin Year, Quarter 5 and Current Period balances. The fields marked Begin Year display balances brought forward from the end of the previous year; you may edit these balances as needed, or enter new beginning balances.

The fields marked Quarter 5 can generally be ignored; they represent the first quarter of the next calendar year. Access to these fields is provided only to allow the correction of errors. These fields

Employee File Maintenance (EF) 2-11 CLS Payroll Maintenance Programs

are used to capture next-quarter payroll balances when processing a fiscal quarter ledger at the end of the year and the fiscal quarter does not coincide with a calendar quarter.

The fields marked Current Period display the sum of the current period transactions, regardless of quarter. You may not change these figures.

Employee '115' has been updated. CLS updates the selected quarter once you return to the Select quarter to edit (0-5) prompt.

Revise Employee/Vendor Check Counts Choose 3 from the EF menu to revise employee or vendor quarterly check counts.

Employee/Vendor Enter the number of the employee or vendor whose check count you want to edit. Press F1 to select the employee or vendor from a pop-up list.

Checks - Qtr 1-5 Paychecks are counted when transactions are entered in the ET program. These figures are used, along with the employee pay period (options B, M, Q, S and W), to compute weeks worked for the state unemployment continuation sheet. You may revise these check counts here.

Accept or Escape (A,Esc) Press A to save the revisions. Press Esc to return to the Employee/Vendor prompt without modifying the check count.

Employee '115' has been updated. CLS updates the selected employee or vendor and returns to the Employee/Vendor prompt. You may select another employee or vendor, or press Esc to return to the EF menu.

Delete an Employee or Vendor Choose 4 from the EF menu to delete an employee or vendor. The following screen appears:

2-12 Employee File Maintenance (EF) CLS Payroll Maintenance Programs

Choose 1 to delete a specific employee or vendors, 2 to select from a list of inactive employees and vendors, or 3 to delete all inactive employees and vendors.

 Delete a Single Employee or Vendor (1)

Employee/Vendor Enter the number of the employee or vendor to be deleted. Press F1 to select the employee or vendor from a pop-up list. CLS displays basic information about the employee or vendor.

 Note: Employees or vendors with transactions or balances on file, or those with a V option, cannot be deleted.

Would you like to delete this employee? (Y,N) Press Y to delete the employee or vendor, or press N to return to the Employee/Vendor prompt.

Employee '106' has been deleted. Vendor '1001' has been deleted. CLS deletes the selected employee or vendor and returns to the Employee/Vendor prompt. You may delete another employee or vendor, or press Esc to return to the EF menu.

 Delete Selected Inactive Employees/Vendors (2)

Asterisks beside menu selections 2 and 3 indicate routines which will be unavailable until employees or vendors have been selected.

Employee File Maintenance (EF) 2-13

CLS Payroll Maintenance Programs

Select Inactive Employees/Vendors to Delete (1) Choose 1 to select employees or vendors to delete, and the following screen appears:

CLS displays all inactive employees and vendors. Use the arrow keys (↑,↓) to scroll through these employees and vendors, and enter D beside those to be deleted.

 Note: Employees or vendors with transactions or balances on file, or those with a V option, will not be listed.

View/Print Audit Trail (2) Choose 2 from the Delete Selected Inactive Employees/Vendors menu to view or print the list of the employees and vendors to be deleted. Respond to the following prompts:

Include inactive employees/vendors with no change? (Y,N) Press Y to include the inactive employees and vendors that will not be deleted, or press N to suppress them.

(D)isplay, or number of copies to print (D,1-9) Press D to display the audit trail, or enter the number of copies to print. Press 1 to print a single copy. CLS will prompt you to select a printer.

CLS returns to the Delete Selected Inactive Employees/Vendors menu when the report is complete.

Delete Selected Inactive Employees/Vendors (3) Choose 3 from the Delete Selected Inactive Employees/Vendors menu to delete the inactive employees/vendors.

Continue or Escape (C,Esc) Press C to delete the selected employees/vendors, or Esc to return to the Delete Selected Inactive Employees/Vendors menu.

Complete CLS deletes the employees/vendors and returns to the EF menu.

2-14 Employee File Maintenance (EF) CLS Payroll Maintenance Programs

 Delete All Inactive Employees/Vendors (3) Choose 3 from the Delete an Employee or Vendor menu to delete all inactive employees and vendors for the current ledger, and respond to the following prompt:

***Warning*** This routine will delete ALL INACTIVE EMPLOYEES and VENDORS in this ledger! Use it with caution.

Continue? (Y,N) Press Y to delete all of the inactive employees and vendors in the current ledger.

All inactive employees/vendors have been deleted. CLS deletes the inactive employees/vendors and returns to the EF menu.

Query an Employee or Vendor Choose 5 from the EF menu to query an employee or vendor, and the following screen appears:

Employee/Vendor Enter the number of the employee or vendor to query. Press F1 to select the employee or vendor from a pop-up list. CLS displays basic information about the employee or vendor.

Press ENTER to continue: Press Enter to view the employee or vendor balances.

Employee File Maintenance (EF) 2-15

CLS Payroll Maintenance Programs

Press ENTER to continue: Press Enter to view the employee or vendor check counts.

Press ENTER when finished: Press Enter to return to the Employee/Vendor prompt. You may select another employee or vendor to query, or press Esc to return to the EF menu.

Renumber an Employee or Vendor Choose 6 from the EF menu to renumber an employee or vendor, and the following screen appears:

 Note: Employees and vendors may be moved between series as long as the series type and column setup for both are identical. CLS cannot merge employee or vendor records.

Employee/Vendor Select the employee/vendor to be renumbered. Press F1 to select the employee/vendor from a pop-up list.

New Number Enter a new number for the selected employee/vendor.

Employee ‘115’ has been renumbered as ‘116’. CLS renumbers the employee/vendor and returns to the Employee/Vendor prompt.

2-16 Employee File Maintenance (EF) CLS Payroll Maintenance Programs

2.3 Employee File List

Enter EL from the File Maintenance Menu and the following menu appears:

Select the report to print, and respond to the following prompts:

Payroll Series (ENTER for all) Enter a payroll series, or press Enter to list information for all series. Press F1 to select the payroll series from a pop-up list.

Employee, Vendor, Misc (E,V,M - ENTER for all) If you did not enter a payroll series: Select the series type to appear on the report, or press Enter to include all series types.

Series Type (ENTER for all) If you entered V above: Select the vendor type to appear on the report, or press Enter for all vendor types. Press F1 to select the vendor type from a pop-up list.

Menu Selection 1 only: Include detail? Press Y if you would like employee (and/or vendor) detail printed on the report. Press N if you want to include only the employer information.

Menu Selection 2 only: Show Locality? Press Y if you would like employee (and/or vendor) locality printed on the report.

Menu Selection 3 only: Beginning Date Ending date Enter the range of dates for which you would like a new employee list printed.

Employee File List (EL) 2-17 CLS Payroll Maintenance Programs

Menu Selections 2, 4 and 5 only: Show YTD Balances? Press Y if you would like year-to-date net balances printed on the report. Press Enter to accept the N default to suppress the year-to-date balances.

Employees/Vendors should be sorted by: 1 Employee Number 2 Last Name 3 Social Security No. 4 Optional Sort Key Select an employee or vendor sort pattern (not available for batch reports).

Menu Selections 4 and 5 only: Calendar Year When creating a missing information report for all ledgers, CLS will analyze the current generation of each ledger in the data path, looking for missing payroll information. To restrict the search to a specific calendar year, enter the year here. CLS does not include prior generations in the report.

Include Start Dates? Enter Y if you want start dates to be considered when searching for missing payroll information.

Minimum Payment If you answered Y to Show YTD Balances, you may enter a minimum payment. Employees or vendors falling below the minimum amount will not be included in the report.

(D)isplay, or number of copies to print (D,1-9) Press D to display the report, or enter the number of copies to print. Press 1 to print a single copy. CLS will prompt you to select a printer.

2-18 Employee File List (EL) CLS Payroll Maintenance Programs

2.4 Payroll File Maintenance

Use the Payroll File Maintenance (PF) program to define groups of employees or vendors, called payroll series. For each series, enter the employer's name, address, and federal and state identification numbers. There is no limit to the number of payroll series you can create. You can also use this program to enter payroll or vendor journal column definitions and account ranges, set payroll tax rates and limits, or define payroll column taxability.

Enter PF from the File Maintenance Menu and the PF menu appears:

Add/Revise a Payroll Series A payroll series defines a group of employees or vendors. CLS prepares a separate payroll or vendor journal for the employees or vendors in each series. In addition, CLS prepares all payroll tax forms (W-2, 1099/1098, 940/ 941/943/944 forms, etc.) by series.

Series numbers cannot be less than 100. Each series defines a group of employees or vendors starting with the series number and ending with 9999 or one digit less than the number beginning the next series. Employees or vendors in a series must share taxability characteristics, since you make those decisions for the entire payroll series. If they do not, define more than one series. In the case of a multi-state payroll, we recommend using one payroll series per state.

You may enter the employer name and address, and the employer's federal and state payroll tax I.D.s in program LI, Menu Selection 3 (2). This information will be used as the default when a payroll series is created in PF.

Choose 1 from the PF menu to add or revise a payroll series, and the following screen appears:

Payroll File Maintenance (PF) 2-19 CLS Payroll Maintenance Programs

Payroll Series Enter a series number to add or revise. Press F1 to select the series from a pop-up list.

Series Type Enter the type of series (E is the default); press F1 to select the series type from a pop-up list. CLS clears type E, 1-9 and A series at the end of a calendar year. An M type series is not related to W- 2 or 1099/1098 forms and will be cleared at the end of the fiscal year.

CLS Payroll Series Types E Employee Series (W-2) 6 Vendor (1099-B) 1 Vendor (1099-MISC) 7 Vendor (1099-S) 2 Vendor (1099-INT) 8 Vendor (1099-R) 3 Vendor (1099-DIV) 9 Vendor (1099-C)) 4 Vendor (1099-PATR) A Vendor (1098) 5 Vendor (1099-A) M Miscellaneous Series (no taxes)

Employer Name 1 Employer Name 2 Address Line 1 Address Line 2 City, State, Zip For series type E, 1-9 or A: Enter the employer name and address as they should appear on the tax forms.

Federal I.D. No. For series type E, 1-9 or A: Enter the employer's federal withholding I.D. (FEI) number for this series, up to 12 characters. Enter hyphens (-) as needed.

W/H State #1 For series type E, 1-9 or A: Enter the standard two-character postal abbreviation of the withholding state for this series.

I.D. For series type E, 1-9 or A: Enter the employer's state withholding I.D. for this series, up to 12 characters.

 Employee Series Prompts The following prompts appear if you are creating or revising an employee series.

2-20 Payroll File Maintenance (PF) CLS Payroll Maintenance Programs

W/H State #2 You may designate a second withholding state, but due to the added complexity of tracking gross wages and withholding by state, we do not recommend it.

I.D. If you entered a second withholding state, enter the second state withholding I.D., up to 12 characters.

SUTA/SDI State Enter the abbreviation of the state to be used for unemployment tax reporting. This state may be different from the withholding states above.

State Unemp. I.D. Enter the employer's State Unemployment Tax I.D. for this series, up to 25 characters. Some codes are used only by the CLS ~ SUTA Magnetic Media add-on program (SM). • Arizona: Enter a caret (^) in front of the check digit and branch code, if any (used by SM). If 9 is the check digit, and 123 the branch code, enter 1234567^9^123. • California: Enter a caret (^) in front of the branch code, if any (used by SM). If 123 is the branch code, enter 1234567^123. • Florida: Enter a caret (^) in front of the location code. If 000 is the location code, enter 12345678^000. • Pennsylvania: Enter a caret (^) in front of the check digit and plant number. If 9 is the check digit and 123 the plant number, enter 12-12345^9^123. • Texas: Enter a caret (^) in front of the unit number, if required. If 0089 is the unit number, enter 12-3456-7^0089. • Wyoming: Enter a caret (^) in front of the location code (used by SM). If 12 is the location code, enter 123456789^12.

Name Control CLS defaults to the first four digits of the company name or the first four digits of an individual’s last name, depending on the option selected at the Empl Options prompt. You may change the name control when editing the 940 form in TW.

N.J. Private Plan Enter the disability insurance private plan number for New Jersey. This number will be printed in Box 14 of the W-2 form.

Journal Format (1,2) Press Enter to accept the default 1 response if you would like an eight-column payroll journal, or press 2 to select a 16-column payroll journal. Press F1 to select the journal format from a pop-up list.

FICA/FUTA Source (1,2) Press 1 if you would like the system level FICA and FUTA rates entered in program PF, Menu Selection 4 (2) applied to this payroll series. Press 2 if you want to enter FICA and FUTA rates for this series using program PF, Menu Selection 4 (1). Press F1 to select the source from a pop-up list.

Payroll File Maintenance (PF) 2-21 CLS Payroll Maintenance Programs

Empl Options Press F1 to select name convention, employee type, FUTA/SUTA print options, California unemployment series type. Valid employee series options are listed below.

Employee Series Options A Agricultural employee (943) R Regular (All Others) B Employer Name 1 is a business S Semi-weekly 941 depositor C Print FUTA exempt employees U For Minnesota, employees subject to 6.2% FUTA D Print SUTA exempt employees X Railroad employee E Print state wages on W-2 1 UI and DI Wages (S) F First name entered first 2 UI Wages Only – Public Entity Employees (A) G Annual 944 employer 3 DI Wages Only (J) H Household 4 UI and Voluntary Plan DI Wages (U) I Employee Name 1 is an individual 5 Personal Income Tax W/H Only (P) L Last name entered first 6 DI Wages Only - Voluntary Plan (L) M Military 7 UI Wages Only - Religious DI Exemption (R) O Include SUTA tax 2 in the 940 SUTA tax 8 UI Wages Only - Sole Stockholder DI Exemption (R) P Print SUTA continuation sheet even if no activity 9 UI Wages Only - Third Party Sick Pay DI Exemption (R) Q Medicare Qual. Gov't Employee

 Notes: • For railroad employees, use option X if the employees are covered by the Railroad Retirement Tax Act (RRTA), and use option R if the employees are covered by the Railroad Retirement Board (RRB). • California Unemployment Tax Reporting - Use types 1-5, 8 and 9 for paper DE-6 reporting. - Use types 1-7 for reporting DE-6 information using magnetic media.

Retirement Plan Press Y if all (or most) employees in the series are covered by a retirement plan.

 Note: If you press Y here, the square for Retirement Plan in Box 13 of the W-2 will be checked for all employees without an employee option N. If only a few employees in the series are covered by a retirement plan, press N here and use employee option Y to indicate covered employees.

Show Weeks Worked Press Enter to accept the default Y response if you want to show the number of weeks worked by each employee on the quarterly state unemployment continuation sheet. Press N if you do not.

Show Employee Addr Press Enter to accept the default Y response if you want each employee's address printed on the payroll journal. Press N to suppress the employee address.

CT Options Select C if you would like the Computed Transactions (CT) program to adjust FICA for other cash wages (not household/agricultural employees) using CT, Menu Selection 3. Select F to adjust FICA against federal withholding using CT, Menu Selection 1. Select S to adjust SDI against state withholding using CT, Menu Selection 2. Press F1 to select the CT options from a pop-up list.

2-22 Payroll File Maintenance (PF) CLS Payroll Maintenance Programs

Locality #1 Locality #2 If local taxes will be reported on W-2 forms for this series, enter the name of the localities (city, county, school district, etc.) for which you will withhold local taxes. Locality #1 will be used on the W-2 form when reporting amounts in payroll journal columns assigned a D or D1 column type. Locality #2 will be used on the W-2 form when reporting amounts in payroll journal columns assigned a D2 column type.

 Vendor Series Prompts The following prompts appear if you are creating or revising a vendor series.

Country/Possession For series type 2 or 3: Enter the appropriate country or possession for this series.

Locality For series type 8: If local taxes will be reported on a 1099 for this series, enter the name of the locality (city, county, school district, etc.) for which you will withhold local taxes.

Jrnl Format (1,2) Press Enter to accept the default 1 response if you would like an eight-column payroll journal, or press 2 to select a 16-column payroll journal. Press F1 to select the journal format from a pop-up list.

Show Vendor Addr Press Enter to accept the default Y response if you want each vendor's address printed on the vendor journal. Press N to suppress vendor addresses.

Vendor Options Press F1 to select vendor options such as name convention. Valid vendor series options are listed below.

Vendor Series Options A Show vendor account on 1099/1098 in the account number box in place of the vendor number B Payer is a business F First name entered first I Payer is an individual L Last name entered last

Payer’s RTN For series type 2: Enter the payer’s RTN.

Name Control If you will use the CLS ~ Magnetic Media™ add-on program, enter the Name Control assigned by the IRS; otherwise leave this field blank.

 Miscellaneous Series Prompts The following prompts appear only if you are creating or revising a miscellaneous series.

Report Title Enter the title you would like to print on a Miscellaneous Distribution Journal.

Payroll File Maintenance (PF) 2-23 CLS Payroll Maintenance Programs

Jrnl Format (1,2) Press Enter to accept the default 1 response if you would like an eight-column journal, or press 2 to select a 16-column journal. Press F1 to select the journal format from a pop-up list.

Accept or Escape (A,Esc) Press A to save the information you have entered, or press Esc to return to the Payroll Series prompt without modifying the series.

Series '100' has been updated. Series '2000' has been added. CLS updates or adds the series and returns to the Payroll Series prompt. You may add or revise another series, or press Esc to return to the PF menu.

Enter Contact Information Use this routine to enter payroll series contact information. This information will be printed on W-3 and 1096 forms. It may also be printed on forms produced by the CLS ~ Unemployment Plus™ add-on program.

Choose 2 from the PF menu and respond to the following prompts: Payroll Series Enter a payroll series number, or press F1 to select the series from a pop-up list.

Continue? (Y,N) Press Y to continue, and the following screen appears:

Tax Forms (W-3, 941, 941) Contact Name Job Title Telephone: Work Telephone: Fax E-mail Address XML Pin Number Enter the appropriate contact information and (optionally) an e-mail address. If you will be using XML Filing, you may also enter an XML Pin Number for this payroll series.

2-24 Payroll File Maintenance (PF) CLS Payroll Maintenance Programs

Use Contact Above on W-3 (Y,N) Enter Y if you want the contact information entered here printed on the W-3 for this payroll series. Enter N to use the information entered in SI 1 (3,1).

Use Contact Above on 940, 941 (0-2) Enter 0 if you do not want the contact information entered here printed in the signature block of the 940 or 941 for this payroll series. Enter 1 to use the information entered in SI 1 (3,1). Enter 2 to use the contact entered above.

Print Preparer on 941 (Y,N) Enter Y to print the preparer’s name on the 941. Enter N to not include the preparer’s name.

Tax Worksheets (940, 941, 943, SUTA) Set Third Party Designee (Y,N) Designee’s Name PIN Phone If a third party designee must be printed on certain payroll tax forms, you may enter the information to be printed here. Otherwise, the information entered in SI 1 (3,1) will be used.

Use SI Alternate Address Setting (Y,N) Enter Y if you want to use your own return address on 940, 941, 943 or SUTA forms for this payroll series, and have entered the address in SI 1 (3,1). Enter N if you want to use the employer’s address entered in PF 1. The default answer to this prompt is set in SI 1 (3,1).

Accept or Escape? (A,Esc) Press A to accept the contact information. Press Esc to return to the Payroll Series prompt

Series ‘100’ contact information has been updated. CLS updates the contact information and returns to the Payroll Series prompt. You may enter information for another series, or press Esc to return to the PF menu.

Enter Account/Column Definitions Use this routine to define types of wages and deductions for existing payroll series. The column types you define will appear on the payroll/vendor journal.

Depending on your response to the Medicare Column in PF prompt in program SI, Menu Selection 1 (3,2), CLS will automatically create a Medicare column when a new employee series is added. Choose 3 from the PF menu and respond to the following prompts:

Payroll Series Enter a payroll series number, or press F1 to select the series from a pop-up list.

Continue? (Y,N) Press Y to continue, and the following screen appears:

Payroll File Maintenance (PF) 2-25

CLS Payroll Maintenance Programs

 Note: The above screen displays account and column definitions for an employee series in the JCC sample ledger, which is set up for an eight-column payroll journal. Your screen will be slightly different if you selected a 16-column payroll journal.

Use this screen to define payroll journal columns 2 through 8. Although several general ledger accounts may be associated with column 1, only one account may be associated with each of the other columns. For an exception to this rule, see the following Range prompt.

 Note: Taxability flags are shown for columns affecting gross pay. These flags indicate that a column is included in various gross wage categories. You can more easily determine the flags that are set (and can change them if needed) by referring to Menu Selection 5, Revise Payroll Column Taxability.

Select column to edit: (1-8) Enter the number of the payroll or vendor journal column to be revised. You must define the columns you want to appear on the payroll or vendor journal. You may skip prompts for columns that will not appear on the payroll or vendor journal.

Col Heading Enter a 10-character description to be used as the heading for this column on the payroll or vendor journal.

Column Types for Employees For an E (employee) series, select a column type from the choices below, or leave the column type field blank if the column is not to be reported on payroll reports such as a W-2, 941 or state unemployment continuation sheet. Press F1 to select from a pop-up list of employee column types.

Employee Column Types * Gross pay N, N1 Uncollected FICA on tips A FICA Withheld N2 Uncollected Medicare on tips B Federal Income Tax Withheld N3 Uncollected FICA on Group Insurance C, C1 State 1 income tax withheld N4 Uncollected Medicare on Group Insurance C2 State 2 income tax withheld O Other compensation (also O1-O4) D, D1 Local 1 income tax withheld O5 Distrib from unqual section 409(a) plan D2 Local 2 income tax withheld O6 Military basic quarters and subsistence E Earned income tax credit O7 Excludable reimbursed moving expenses F Fringe benefits auto (also F1-F9) O8 Distribution from unqualified section 457 plan G Excess group life insurance O9 Distribution from unqualified non-section 457 plan H1 Hours worked (in) P, P1 Excess golden parachute payments H2 Hours worked (out) P2 Nontaxable combat pay I Information to be printed in Box 14 Q, Q1 Dependent care benefits I1 S-Corp officer’s medical insurance Q2 Health insurance J Allocated Tips Q3 Medical reimbursements K, K1 Section 401 (k) contributions Q4 Archer medical savings account contributions K2 Section 403 (b) contributions Q5 Adoption benefits K3 Section 408(k) (6) contributions Q9 Employer contrib. to health savings account K4 Section 457 contributions R Per diem for business expenses K5 Section 501 (c) (18) (D) contributions S Sick pay not included in income K6 Section 408 (p) contributions - SIMPLE IRA T, T1 Straight tips K7 Section 409 (a) contributions T2 Tips deemed wages

Continued on the next page

2-26 Payroll File Maintenance (PF) CLS Payroll Maintenance Programs

Employee Column Types K8 Kansas Public Employees Retirement U SUTA withheld K9 Cafeteria Plan V SDI withheld KA Roth contribution to Section 401(k) W Income from non-statutory stock options KB Roth contribution to Section 403(b) X Don't clear column at year-end L Gross earned under prior entity Y FICA portion of Gross (household/ agriculture) M Medicare withheld

Column Types for Vendors The column type determines where the column balance will print on the 1099 or 1098 form. Enter a valid column type, or leave the column type field blank if the column type does not affect 1099s/1098s. Press F1 to select from a pop-up list of vendor column types. Column types for a 1099-MISC series are listed below.

 Note: For 1099 and 1098 forms, CLS uses the box numbers on each form as column types.

1099-MISC Column Types 1 Rents 10 Crop insurance proceeds 2 Royalties 13 Excess Golden Parachute payments 3 Other Income 14 Proceeds paid to an attorney 4 Federal income tax withheld 15 Section 409 (a) deferral (15a) 5 Fishing boat proceeds 16 State income tax withheld 6 Medical/health care payments 18 State income 7 Non-employee compensation 19 Section 409 (a) income (15b) 8 Substitute payments in lieu of dividends and interest X Don't clear column at year-end

+/- Enter the normal sign associated with each column on the payroll or vendor journal: debit (+) or credit (-). These signs are used in program ET during payroll entry (entry mode 6) and in program EF, Menu Selection 2, to provide the proper sign for an amount entered without a sign.

Account...Account Column 1 Accounts: Enter a range of gross pay accounts. Payroll or vendor transactions entered in ET with an account within the range, or matching one of the additional accounts, accumulate into column 1 on the payroll journal.

Column 2-8 Accounts: Enter the account associated with this column on the payroll or vendor journal. CLS assigns payroll or vendor transactions with a valid column number or account to the proper column on the payroll journal and to the correct account in the ledger.

Range Except for column 1, you may normally assign only one account to each payroll or vendor journal column. If you want to associate a limited range of accounts (e.g., 14001 to 14099) with this column, press Y. Only the departmental digits will be allowed to vary.

Add'l For a column 1 account, you may define up to 12 separate gross pay accounts in addition to, or instead of, setting up a range of accounts. Press F1 to enter additional accounts.

Series '100' has been updated. CLS updates a column once you return to the Select column to edit: (1-8) prompt. Select another

Payroll File Maintenance (PF) 2-27 CLS Payroll Maintenance Programs

column to edit, or press Esc to return to the Payroll Series prompt. You may select another series, or press Esc again to return to the PF menu.

Revise Payroll Tax Rates and Limits Use this routine to revise federal and state unemployment tax rates and state disability tax rates by series. You may also revise social security and Medicare rates and limits for all ledgers; global rates and limits only need to be set once.

 Note: Depending on your response to the FICA/FUTA Source (1,2) prompt in program PF, Menu Selection 1, you may enter FICA and FUTA rates and limits for a specific series in PF, Menu Selection 4 (1), or you may enter global FICA and FUTA rates and limits in PF, Menu Selection 4 (2).

Choose 4 from the PF menu to revise tax rates and limits and the following menu appears:

 Series Level FICA/FUTA/SUTA/SDI Accounts, Rates & Limits (1) Choose 1 to enter FICA, FUTA, SUTA and SDI expense and liability accounts and update the FUTA and SDI rates and limits for a single payroll series. Respond to the following prompts:

Payroll Series Enter a payroll series number, or press F1 to select the series from a pop-up list.

Continue? (Y,N) Press Y to continue, and the following screen appears:

Select column to edit: (1-4) Select the column with the accounts or rates and limits to be changed.

2-28 Payroll File Maintenance (PF) CLS Payroll Maintenance Programs

CY Employer Rate CY Employee Rate CY Wage Limit NY Employer Rate NY Employee Rate NY Wage Limit Enter current year (CY) and/or next year (NY) SUTA and SDI rates and limits. Next year's rates are used when you process a ledger for an accounting period which straddles the calendar year-end.

Next year's (NY) rates will replace the current year (CY) rates at the end of the calendar year. It is important that you enter current year (CY) rates for each payroll series. Be sure to set the wage limits correctly.

 Notes: • Your response to the FICA/FUTA Source (1,2) prompt in program PF, Menu Selection 1, will determine access to the FICA and FUTA rate and limit fields. If you chose to enter FICA and FUTA rates for a specific series, you may enter current year (CY) and/or next year (NY) rates and limits. • Use program PF, Menu Selection 4 (2), to enter global social security, Medicare and FUTA rates and limits.

Expense Acct (+) Liab Acct (-) Enter the appropriate Expense and Liability accounts if you plan to use the Computed Transactions (CT) program to create transactions for the employer's share of payroll taxes.

Series '100' has been updated. CLS updates the column once you return to the Select column to edit: (1-4) prompt. Select another column to edit, or press Esc to return to the Payroll Series prompt. You may select another series, or press Esc again to return to the Revise Payroll Tax Rates and Limits menu.

 System Level FICA/FUTA Rates and Limits (2) Choose 2 to revise Social Security, Medicare and FUTA rates and limits for all payroll series in the CLS program path. The following screen appears:

 Note: You only need to set these rates and limits once a year.

Year CLS automatically displays the current year. Press F1 to select the correct year (and rate and limit set) from a pop-up list.

Payroll File Maintenance (PF) 2-29 CLS Payroll Maintenance Programs

Employer Rate Employee Rate Wage Limit Enter the correct Social Security, Medicare, and federal unemployment tax rates. Currently, the social security rate is 6.20%, the Medicare rate is 1.45% and the unemployment rate is .8%. The 2011 social security wage limit is $106,800; the limit for 2010 is also $106,800.00. The federal unemployment wage limit is $7,000. There is no Medicare wage limit; CLS defaults to $999,999,999.00, the largest amount possible. CLS will calculate social security, Medicare and FUTA until the wage limits are reached.

Accept or Escape? (A,Esc) Press A to accept the rates and limits, or press Esc to return to the Year prompt.

FICA/FUTA rates for '2010' have been updated. FICA/FUTA rates for '2010' have been added. CLS updates or adds the rates and limits and returns to the Year prompt. You may enter next year's rates and limits, or press Esc to return to the Revise Payroll Tax Rates and Limits menu.

 System Level FUTA Credit Reduction Rates (3) Choose 3 to enter FUTA credit reduction rates for states such as New York. Respond to the following prompts:

SUTA State Press F1 to select an existing SUTA state and year.

Payroll Year Enter the year that this credit reduction rate applies to.

Credit Reduction Rate Enter the reduction rate for this state and year.

Accept or Escape? (A,Esc) Press A to accept the rate, or press Esc to return to the SUTA State prompt.

Credit Reduction rate for NY (2008) has been added. CLS updates or adds the rate and returns to the Year prompt. You may enter another state’s rates, or press Esc to return to the Revise Payroll Tax Rates and Limits menu.

Revise Payroll Column Taxability Use this routine to indicate if an amount in a payroll journal column is to be included when calculating wages for W-2 and 941 forms or for state and federal unemployment tax reporting.

2-30 Payroll File Maintenance (PF) CLS Payroll Maintenance Programs

Choose 5 from the PF menu and respond to the prompts below:

Payroll Series Enter a payroll series number, or press F1 to select the series from a pop-up list.

Continue? (Y,N) Press Y to continue, and the following screen appears:

Use this screen to select the wage categories in which gross wages (column 1) are to be included. Also indicate if other income-related payroll journal columns are to be added to or subtracted from gross wages in each category. Payroll deductions such as FICA, Federal W/H and State W/H are not income-related, and the taxability questions do not apply to them.

Select column to edit: (1-8) Enter the number of the column to be changed.

Column 1 (gross wages): Federal wages (W-2) Soc sec wages (W-2) Federal wages (941) Press Y to include gross wages in a particular wage category; press N to exclude gross wages.

Columns 2-8: Federal wages (W-2) Soc sec wages (W-2) Federal wages (941) ………… If you are working with an Other Income column where amounts are entered as debits, press Y to add the amounts in the column to gross wages in a particular wage category. Press N if you do not want them added to gross wages.

If you are working with a deduction column such as a 401(k) plan where amounts are entered as credits, press Y to subtract the amounts in the column from gross wages in a particular wage category. Press N if you do not want them subtracted from gross wages.

Series '100' has been updated. CLS updates a column once you return to the Select column to edit: (1-8) prompt. Select another column to change, or press Esc to return to the Payroll Series prompt. You may select another series, or press Esc again to return to the PF menu.

Payroll File Maintenance (PF) 2-31 CLS Payroll Maintenance Programs

Revise Payroll Tax Liability Choose 6 from the PF menu to revise payroll tax liabilities. CLS accumulates prior-period federal tax liabilities for schedule B of the federal 941 form. These balances are updated by the End of Period Processing (EP) program; the balances brought forward may be edited here.

The liabilities for the current period shown on schedule B are always obtained from current period transactions and will not appear here.

Payroll Series Enter a payroll series number, or press F1 to select the series from a pop-up list.

Quarter (1-5) Select the calendar quarter to edit, or press F1 to select from a pop-up list of quarters and quarter- end dates. Quarter 5 is the first quarter of the next calendar year.

Continue? (Y,N) Press Y to continue, and the following screen appears:

Select month to edit: (1-3) Choose the month to edit within the selected quarter. You may use the arrow keys (←,→) to display each month within the selected quarter. Month/Day Enter or edit each period's payroll tax liability. Remember, the liabilities for the current period are calculated from the transactions on file and will not be present in this table.

Series '100' has been updated. CLS updates a month once you return to the Select month to edit: (1-3) prompt. You may select another month or press Esc to return to the Payroll Series prompt. You may then select another series, or press Esc again to return to the PF menu.

2-32 Payroll File Maintenance (PF) CLS Payroll Maintenance Programs

Delete a Payroll Series Choose 7 from the PF menu to delete a payroll series, and the following screen appears:

Payroll Series Enter the number of the payroll or vendor series to be deleted, or press F1 to select the series from a pop-up list. CLS displays basic information about the series.

*** Warning - Active Series *** *** Warning - Primary Series *** If any employees or vendors are defined in the series you are trying to delete, a warning message appears. You should not delete the primary series except to repair a damaged payroll file. If you delete the primary series, you should set it up again before leaving the PF program. (At least one payroll series must be set up if any employees or vendors are on file – this is the primary series).

Would you like to delete this series? (Y,N) Press Y to delete the series. Press N to return to the Payroll Series prompt.

Series '1000' has been deleted. CLS deletes the series and returns to the Payroll Series prompt. Select another series to delete, or press Esc to return to the PF menu.

Query a Payroll Series Choose 8 from the PF menu to query a payroll series (you may not make any changes). The following screen appears:

Payroll Series Enter the number of the payroll or vendor series to be queried, or press F1 to select the series from

Payroll File Maintenance (PF) 2-33 CLS Payroll Maintenance Programs a pop-up list. CLS displays basic series information.

Press ENTER to continue: CLS prompts you to press Enter until you have seen all data entered using Menu Selections 1 through 5.

Press ENTER when finished: Press Enter to return to the Payroll Series prompt. You may enter another payroll series to query, or press Esc to return to the PF menu.

2-34 Payroll File Maintenance (PF) CLS Payroll Maintenance Programs

2.5 Setting CLS Payroll Options

From the CLS Main Menu, enter SI to access the System Initialization menu. Select 1, Set System Parameters; choose 3 to define CLS payroll options, and the following menu appears:

From the Set Payroll Options menu, choose 1 to enter payroll contact information:

The current value of each field is displayed. You may enter a new value for the field or press Enter to accept the current, or default, value.

Accounting Firm Address Line 1 Address Line 2 City, State, Zip Telephone: Work Telephone: Fax Federal ID Contact Name Job Title E-mail Address Self-Employed SSN or PIN Enter basic information for the firm and the contact. Depending on your selection in the PF

Setting CLS Payroll Options 2-35 CLS Payroll Maintenance Programs program, menu selection 2, this information may be used when printing W-3s and 1096s. It will also be used for the preparer name and/or telephone number on forms produced by the CLS ~ Unemployment Plus add-on.

Alternate Address for 940, 941, 943, SUTA (Y,N) Address Line 1 Address Line 2 City, State, Zip If you would like to use your own address in place of the employer’s address on 940, 941, 943 and unemployment tax returns, enter Y and enter your address here (this information may be overridden in PF 2).

Set Third Party Designee (Y,N) Designee’s Name PIN Phone Enter Y if you want to use a common third party designee on 940, 941 and 943 forms, then enter the designee’s name, PIN and phone number here (this information may be overridden in PF 2).

Accept or Escape? (A,Esc) Press A to accept your payroll options. Press Esc to return to the Set Payroll Options menu without saving any changes.

From the Set Payroll Options menu, choose 2 to set the payroll options:

The current value of each field is displayed. You may enter a new value for the field or press Enter to accept the current, or default, value.

Print Zero Balances in PJ (Y,N) Press Y if you would like employees with zero balances included on the Payroll Journal.

Medicare Column in PF (Y,N) Press Y if you would like social security and Medicare columns to be automatically created when new payroll series are added (PF). Press N if you prefer a single FICA column.

CT Tolerance, in cents (0-99) The Computed Transactions (CT) program uses a default .05 tolerance to determine if FICA and/or SDI should be adjusted. You may increase or decrease the tolerance here.

CT Zero Transactions (Y,N) Press Y to force FICA, FUTA and SUTA transactions to be created when computing the employer’s payroll taxes in CT, Menu Selection 4, even if no tax is due.

2-36 Setting CLS Payroll Options CLS Payroll Maintenance Programs

Print Liability on 941 (Y,N) The IRS does not want monthly tax liabilities printed on the 941 form if the payroll tax liability for the quarter being reported is less than $2,500. If you want to print the monthly tax liabilities anyway, enter Y; otherwise, enter N.

Print signature info on 941 (Y,N) If you would like to suppress printing of the signature block on the 941 for all ledgers, enter N. If you answer Y, you can control the signature block for individual ledgers in PF 2.

Print preparer info on 941 (Y,N) If you would like to suppress printing of preparer information on the 941 for all ledgers, enter N. If you answer Y, you can control the preparer information for individual ledgers in PF 2.

Print Liability on 940 (Y,N) The IRS does not want monthly tax liabilities printed on the 940 form if the payroll tax liability for the quarter being reported is less than $500. If you want to print the monthly tax liabilities anyway, enter Y; otherwise, enter N.

Print signature info on 940 (Y,N) If you would like to suppress printing of the signature block on the 940 for all ledgers, enter N. If you answer Y, you can control the signature block for individual ledgers in PF 2.

Print preparer info on 940 (Y,N) If you would like to suppress printing of preparer information on the 940 for all ledgers, enter N. If you answer Y, you can control the preparer information for individual ledgers in PF 2.

Employee/Vendor List Format (1,2) Select the format of the vendor name in the employee list popup window. Press 1 to display only vendor name 1. Press 2 to display both vendor names 1 and 2.

TF Soc Sec Option (1-3) Select the default to be used for employees and vendors when printing forms in TF. Press 1 to print employees with social security numbers. Press 2 to print employees without social security numbers. Press 3 to print all employees. Press F1 to select from a pop-up list.

Totals on W-2s (Y,N) Press Y if you want totals printed after the last W-2; press N if you want them left blank.

Print signature info on W-3 (Y,N) If you would like to suppress printing of the signature block on the W-3 for all ledgers, enter N. If you answer Y, you can control the signature block for individual ledgers in PF 2.

Print Zeros on W-2s/W-3s (Y,N) Press Y if you want zeros printed in required boxes on W-2 and W-3 forms when the balance is zero (e.g., Gross Wages, Fed W/H, Soc. Sec. Wages/WH, Medicare Wages/WH and State Wages/WH). Press N if you do not.

Totals on 1099s (Y,N) Press Y if you want totals printed after the last 1099; press N if you do not.

Setting CLS Payroll Options 2-37 CLS Payroll Maintenance Programs

Print signature info on 1096 (Y,N) If you would like to suppress printing of the signature block on the 1096 for all ledgers, enter N. If you answer Y, you can control the signature block for individual ledgers in PF 2.

System Time Zone (1-6) Enter your system time zone. Press F1 to select from a popup list. Note: this information is required only if you will be using XML filing of 941s.

Download Soft Tax Fonts (0-2) CLS uses soft tax fonts to draw payroll tax form images on blank paper. If you want to print W-2s, 1099s, 941s, etc. on blank paper, choose the method for downloading the CLS fonts to your printer:

Press 0 if you do not want CLS to download fonts. Press 1 to download fonts once per session. Press 2 to download fonts with each set of forms printed. Press F1 to select from a pop-up list of options.

 Note: The TF and TW programs contain routines to download fonts. If the soft tax fonts are not available after printing from another application, you may use these routines to reload them.

Accept or Escape? (A,Esc) Press A to accept your payroll options. Press Esc to return to the Set Payroll Options menu without saving any changes.

Payroll options have been updated. CLS updates your payroll options and returns to the Set Payroll Options menu.

2-38 Setting CLS Payroll Options Chapter 3 Three

CLS Payroll Reports Payroll Journal (PJ) ...... 3-2

Query Employee Detail (QE)...... 3-5

CLS Payroll Reports

3.1 Payroll Journal

Use this program to print a journal listing all employees or vendors entered in EF, along with appropriate payroll transactions or balances. The Payroll/Vendor Journal shows beginning, current period, current quarter, and year-to-date balances, along with supporting detail. The annual payroll tax summary displays employee balances by quarter.

 Notes: • You cannot print a Payroll Journal or payroll tax summary if there are unposted transactions or pending trial balance entries on file, or if the ledger is out of balance. • The Year-to-Date Payroll Journal will list only the transactions currently in the data file. You must keep annual detail and have a calendar year client in order for the YTD Payroll Journal to be complete, since CLS keeps YTD transactions only for the current fiscal year. For fiscal- year clients, run the Year-to-Date Payroll Journal at the end of both the fiscal year and the calendar year.

 Tip: Use the Query Employee Detail (QE) program to print a report similar to the Payroll/Vendor Journal for a single employee/vendor or to print a Verification of Employee Earnings.

Enter PJ from the Report Processing menu and the following menu appears:

Payroll Journal Year-to-Date Payroll Journal Quarterly Payroll Journal

3-2 Payroll Journal (PJ)

CLS Payroll Reports

Payroll Series (ENTER for all) Enter the payroll series, or press Enter to list all series. Press F1 to select the series from a pop-up list.

Employee, Vendor, Misc (E,V,M - ENTER for all) If you did not enter a payroll series: Select the series type to appear on the Payroll Journal, or press Enter to include all series types.

Series Type (ENTER for all) If you entered V above: Select the vendor type to appear on the Vendor Journal, or press Enter for all vendor types. Press F1 to select the vendor type from a pop-up list.

Show ONLY Those With Incorrect FICA/SDI Answer Y to list only employees whose withheld FICA or SDI is incorrect.

Print Zero Balance Employees/Vendors Press Y to include employees/vendors with zero balances. The default response to this prompt is set in program SI, Menu Selection 1 (3,2).

Include Payroll Tax Liabilities Press N if you do not want to print the employer payroll tax calculations and payroll tax liabilities on the report.

Beginning Date 1/01/08 Ending Date 2/29/08 If you wish to print a YTD Payroll Journal for a range of dates, enter the date range here. CLS defaults to the first day of the calendar year for the beginning date and to the current period-end date for the ending date.

Continue? Press Y to continue.

(D)isplay, (F)ile, or number of copies to print (D,F,1-9) Press D to display the report, F to save it to a file, or enter the number of copies to print. Press 1 to print a single copy. CLS will prompt you to select a printer or enter an output file name if you elected to send the report to a file.

After printing the report or creating an output file, CLS returns to the selection screen.

 Notes: • A pound-sign (#) next to the employee name indicates an error in FICA withheld.

• An asterisk (*) next to the employee name indicates an error in SDI withheld.

• A less-than sign (<) next to the date indicates a prior quarter transaction.

• A greater-than sign (>) next to the date indicates a transaction for a subsequent quarter.

• The standard and year-to-date Payroll Journals require wide computer paper or compressed print on standard-sized paper.

Payroll Journal (PJ) 3-3 CLS Payroll Reports

Annual Payroll Summary

Payroll Series (ENTER for all) Enter the payroll series, or press Enter to list all series. Press F1 to select the series from a pop- up list.

Employee, Vendor, Misc (E,V,M - ENTER for all) If you did not enter a payroll series: Select the series type to appear on the annual payroll tax summary, or press Enter to list all series types.

Series Type (ENTER for all) If you entered V above: Select the vendor type to appear on the Annual Payroll Summary, or press Enter for all vendor types. Press F1 to select the vendor type from a pop-up list.

Show ONLY Those With Incorrect FICA/SDI Answer Y to list only employees whose withheld FICA or SDI is incorrect.

Print Series Totals ONLY Press Y if you do not want to print employee balances, but only want to see series totals.

Print Zero Balance Employees/Vendors Press Y to include employees/vendors with zero balances. The default response to this prompt is set in program SI, Menu Selection 1 (3,2).

Include Payroll Tax Calculations Press Y to include payroll tax calculations.

Continue? Press Y to continue.

After printing the report or creating an output file, CLS returns to the selection screen.

 Notes: • A pound-sign (#) next to the employee name indicates an error in FICA withheld. • An asterisk (*) next to the employee name indicates an error in SDI withheld.

3-4 Payroll Journal (PJ) CLS Payroll Reports

3.2 Query Employee Detail

Use the Query Employee Detail (QE) program to examine current or year-to-date payroll transactions or print a quarterly payroll summary for a specific employee or vendor. The year-to- date query allows you to enter a range of dates for which you want to list employee/vendor transactions.

 Note: Year-to-date payroll transactions are available only for the current fiscal year.

Enter QE from the CLS Main Menu and the following menu appears:

Query Current Detail Choose 1 from the QE menu to query current period employee/vendor detail, and the following screen appears:

 Note: The cursor appears at the Employee/Vendor prompt. Press the up-arrow (↑) to move the cursor to other prompts.

Print “Verification of Employee Earnings”? (Y,N) Press Y to include the accountant name and address entered in SI, Menu Selection 1 (3,1), and a signature line.

Show only Gross Pay (Y,N) If you requested a Verification of Employee Earnings: enter Y to create a report that includes only the gross pay column (no deductions).

Query Employee Detail (QE) 3-5

CLS Payroll Reports

Signed By If you requested a Verification of Employee Earnings: enter the appropriate signature line.

Employee/Vendor Enter the number of the employee/vendor to be queried. Press F1 to select from a list of employees/vendors for this ledger. Press F2 to enter up to 10 employees/vendors to be queried. Press F3 to enter a range of accounts/employees.

(D)isplay, or number of copies to print (D,1-9) Press D to display the information, or enter the number of copies to print. Press 1 to print a single copy. CLS will prompt you to select a printer.

When the report is complete, CLS returns to the Employee/Vendor prompt. You may select another employee or vendor, or press Esc to return to the QE menu.

Query Year-to-Date Detail Choose 2 from the QE menu to query year-to-date employee/vendor detail, and the following screen appears:

 Note: The cursor appears at the Employee/Vendor prompt. Press the up-arrow (↑) to move the

cursor to other prompts.

Beginning Date 1/01/08 Ending Date 2/29/08 Enter the range of dates (in mmddyy format) for which you want to query this employee or vendor's payroll detail. CLS automatically defaults to the first day of the current calendar year and the current period-end date.

Print “Verification of Employee Earnings”? (Y,N) Press Y to include the accountant name and address entered in SI, Menu Selection 1 (3,1), and a signature line.

Show only Gross Pay (Y,N) If you requested a Verification of Employee Earnings: enter Y to create a report that includes only the gross pay column (no deductions).

Signed By If you requested a Verification of Employee Earnings: enter the appropriate signature line.

Employee/Vendor Enter the number of the employee/vendor to be queried. Press F1 to select from a list of

3-6 Query Employee Detail (QE) CLS Payroll Reports employees/vendors for this ledger. Press F2 to enter up to 10 employees/vendors to be queried. Press F3 to enter a range of accounts/employees.

(D)isplay, or number of copies to print (D,1-9) Press D to display the information, or enter the number of copies to print. Press 1 to print a single copy. CLS will prompt you to select a printer.

When the report is complete, CLS returns to the Employee/Vendor prompt. You may select another employee or vendor, or press Esc to return to the QE menu.

Query Annual Payroll Summary Choose 3 from the QE menu to print an annual payroll summary, and the following screen appears:

 Note: The cursor appears at the Employee/Vendor prompt. Press the up-arrow (↑) to move the cursor to other prompts.

Print “Verification of Employee Earnings”? (Y,N) Press Y to include the accountant name and address entered in SI, Menu Selection 1 (3,2), and a signature line.

Show only Gross Pay (Y,N) If you requested a Verification of Employee Earnings: enter Y to create a report that includes only the gross pay column (no deductions).

Signed By If you requested a Verification of Employee Earnings: enter the appropriate signature line.

(D)isplay, or number of copies to print (D,1-9) Press D to display the information, or enter the number of copies to print. Press 1 to print a single copy. CLS will prompt you to select a printer.

When the report is complete, CLS returns to the Employee/Vendor prompt. You may select another employee or vendor, or press Esc to return to the QE menu.

Query Employee Detail (QE) 3-7 CLS Payroll Reports

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3-8 Query Employee Detail (QE) Chapter

Four 4

CLS Payroll Programs

Payroll Tax Forms (TF) ...... 4-2

Employee W-2 Forms ...... 4-3

W-3 Transmittal Forms ...... 4-10

Vendor 1099/1098 Forms ...... 4-17

1096 Transmittal Forms ...... 4-27

W-2c and W-3c Forms ...... 4-34

W-2/1099 Form Requirements ...... 4-39

Download Soft Tax Fonts...... 4-40

Payroll Tax Worksheets (TW) ...... 4-41

Federal 941, 943 and 944 Forms ...... 4-42

Federal 941-X, 943-X and 944-X Forms ...... 4-47

Federal Unemployment (940) Forms ...... 4-51

State Unemployment Reports ...... 4-57

Year-to-Date Employee/Vendor Activity ...... 4-61

Download Soft Tax Fonts...... 4-61

CLS Payroll Tax Programs

4.1 Payroll Tax Forms

The Payroll Tax Forms (TF) program allows you to process employee W-2 and W-3 forms and vendor 1099/1098 and 1096 forms.

You may print W-2s and 1099s/1098s on preprinted forms using a dot-matrix or laser printer, or you may laser-print the entire form on plain paper. W-3 and 1096 transmittal forms may be laser-printed on preprinted forms or plain paper. Blank W-2s/W-3s, 1099s/1098s and 1096s and form instructions for W-2s and 1099s/1098s may also be laser-printed. Print masks are available for all forms to make sure alignment is correct.

 Note: Copy A of W-2 and W-3 forms may be printed on plain paper. However, you must use preprinted forms for Copy A of 1099s/1098s and 1096s.

Payroll Tax Form Vendors CLS supports preprinted forms from the following vendors:

• Moore Wallace, Inc., (800) 828-7946 • Nelco, Inc., (800) 266-4669 (Recommended supplier) • Safeguard Business Systems, (800) 523-2422 • TFP Data Systems, (800) 482-9367 • Visible Computer Supply (see Moore Wallace, Inc.)

Downloading Soft Tax Fonts CLS uses tax fonts to create various form outlines on plain paper (e.g., W-2/W-3 and 1099/1096 forms) using an HP-compatible laser printer. Depending on your response to the Download Soft Tax Fonts (0-2) prompt in SI, Menu Selection 1 (3,2), you may download the fonts once per session (recommended) or before printing each set of forms. The Payroll Tax Forms (TF) program also contains a menu selection that lets you download the fonts. Use this routine if printing from another application has interfered with the downloaded fonts and they are no longer available to your printer.

Form Alignment Adjustments CLS provides vertical and horizontal offsets and stretch adjustments so you may align plain paper and preprinted laser forms. CLS stores alignment adjustments separately for each printer used to print forms.

Vertical Offset: Moves all fields up (-) or down (+) on the page. Horizontal Offset: Moves all fields left (-) or right (+) on the page.

4-2 Payroll Tax Forms (TF) CLS Payroll Tax Programs

Vertical Stretch: Stretches (+) or contracts (-) spacing to change the vertical spacing between lines on the page.

Horizontal Stretch: Stretches (+) or contracts (-) spacing to change the horizontal spacing between fields on the page.

 Tip: Print one copy of each type of form to check the alignment before running the entire batch of forms.

Enter TF from the Report Processing menu and the following menu appears:

Employee W-2 Forms You may use this routine to print W-2 forms, laser-print blank W-2s and form instructions, and print alignment masks.

 Note: Make sure you align the payroll tax forms properly before printing.

Choose 1 from the TF menu and the following menu appears:

 Process Current Ledger (1) Use this routine to print laser-printed or dot-matrix W-2s on preprinted forms. You may also laser- print W-2 forms on plain paper.

Payroll Tax Forms (TF) 4-3

CLS Payroll Tax Programs

Vendor Selection Select the appropriate W-2 form vendor. Press F1 to select the vendor from a pop-up list.

Set Selection Select the appropriate set of forms to be printed. You may also laser-print an individual form. Press F1 to select the set from a pop-up list.

Continue? (Y,N) Press Y to accept the W-2 selections. For laser-printed forms, CLS displays the available forms for the selected set. The following screen displays the available forms for the W-2 Traditional set.

Press N to return to the Vendor Selection prompt.

Use the arrow keys (↑,↓) to scroll through the list of forms. Select the number of copies to print for each form. Press F1 to select the paper type for each form from a pop-up list (e.g., blank paper, perforated paper or preprinted forms).

Continue? (Y,N) Press Y to accept the copy selections, and the following screen appears. Press N to return to the Copies prompt for the first form.

Payroll Series (ENTER for all) Enter a payroll series, or press Enter to print forms for all series. Press F1 to select from a pop-up list of available series.

Payroll Consolidation (0-2) If forms will be printed for more than one payroll series, press 0 to print separate W-2s for each series. Press 1 to consolidate the series by federal I.D. Press 2 to consolidate the series totals by state I.D. The default response is set in program LI, Menu Selection 3 (1).

4-4 Payroll Tax Forms (TF) CLS Payroll Tax Programs

Select a Range of Employees (Y,N) Press Y to print forms for a range of employees. You will be prompted later to enter the beginning and ending employee numbers. Press N to print forms for all employees in the selected series.

Soc Sec No. Selection (1-3) Press 1 to print W-2s for employees with social security numbers, or press 2 to print forms for those without social security numbers. Press 3 to print W-2 forms for all employees. Press F1 to choose the social security number selection from a pop-up list.

Print Totals (Y,N) Press Y to print totals for the W-2 forms. The default response is set in program SI, Menu Selection 1 (3,2).

Override Box 14 Selections: (1) Payroll Column Description

(2) Payroll Column Description Enter a number between 2 and 8 (or 16) corresponding to the payroll column you want printed in Box 14. If you selected a series at the Payroll Series (ENTER for all) prompt, you may press F1 to select from a pop-up list of payroll journal columns for the current ledger. Enter the description of the amount (if any) to be printed in Box 14. Descriptions for column types U (SUTA Withheld) or V (SDI Withheld) for New Jersey are supplied automatically by CLS.

Continue? (Y,N) Press Y to accept the payroll series selections. Select the correct printer, and respond to the following prompts. Press N to return to the Payroll Series (ENTER for all) prompt.

Enter Beginning employee: Enter Ending employee: If you chose to print forms for a range of employees: Enter the range of employees for whom you want W-2 forms printed, or select a single employee. Press F1 to select from a pop-up list of employees for this ledger.

When printer is ready, load... Press ENTER to continue, or ESC to abort For laser W-2 forms: CLS prompts you to insert the appropriate form copy or load the printer with the appropriate paper type. Press Enter to continue, or press Esc to abort W-2 processing and return to the Employee W-2 Forms menu.

When all W-2s have been printed, CLS returns to the Employee W-2 Forms menu. Press Esc to return to the TF menu.

 Notes: • California: the SDI amount and CASDI appear in Box 14. Use column type V for SDI. • New Jersey: the SDI amount and WDP/HCS appear in Box 14. Use column type U (SUTA Withheld) for WDP/HCS and column type V (SDI Withheld) for SDI. • To check the retirement plan box in Box 13 of the W-2 for all employees, answer Y to the Retirement Plan prompt in PF, Menu Selection 1.

Payroll Tax Forms (TF) 4-5 CLS Payroll Tax Programs

 Batch Process Ledgers (2) Use this routine to print W-2 forms for multiple ledgers. CLS provides several pre-defined sets of W-2 forms to choose from, or you may create your own set. In each case, you may select the number of copies to print and choose the paper type to be used for each form (e.g., blank paper, perforated paper or preprinted forms).

Vendor Selection Select the appropriate W-2 form vendor. Press F1 to select the vendor from a pop-up list.

Set Selection Select the appropriate set of forms to be printed. You may also laser-print an individual form. Press F1 to select the set from a pop-up list.

Copy Selection If you chose to laser-print an individual form, select the appropriate copy. Press F1 to select the copy from a pop-up list.

Continue? (Y,N) Press Y to accept the copy selections, and the following screen appears. Press N to return to the Copies prompt for the first form.

4-6 Payroll Tax Forms (TF)

CLS Payroll Tax Programs

CLS displays the ledgers found in the current data path. Use the arrow keys (↑,↓) to scroll through the list of ledgers. Tag or un-tag ledgers by pressing the space bar or T. Press Enter to accept the tagged ledgers, or press Esc to exit the ledger selection window.

Do you wish to CLEAR ALL selected ledger tags? This prompt appears only if you press Esc to exit. Press Y to clear the tags, or press Esc to return to the selection window without removing the tags.

Continue? (Y,N) Press Y to accept the tagged ledgers, and the following screen appears. Press N to return to the selection window.

Sort by Ledger or Form Type (L,F) For laser-printed forms, press L to sort W-2s by ledger as they are printed. Press F to sort W-2s by form type.

Print Totals (Y,N) Press Y to print totals for the W-2 forms. The default response is set in program SI, Menu Selection 1 (3,2).

Payroll Tax Forms (TF) 4-7 CLS Payroll Tax Programs

Override Box 14 Selections: (1) Payroll Column Description (2) Payroll Column Description Enter the number which corresponds to the payroll column you want printed in Box 14. Enter the description of the amount (if any) you want to print in Box 14. Descriptions for column types U (SUTA Withheld) or V (SDI Withheld) for New Jersey are supplied automatically by CLS.

Continue? (Y,N) Press Y to accept the batch processing selections. Select the correct printer, and respond to the following prompts. Press N to return to the Sort by Ledger or Form Type (L,F) prompt.

*** End of Batch Processing of W-2's *** When all W-2 forms have been printed, CLS returns to the Employee W-2 Forms menu. Press Esc to return to the TF menu.

 Notes: • California: the SDI amount and CASDI appear in Box 14. Use column type V for SDI. • New Jersey: SDI, WDP/HCS and FLI appear in Box 14. Use column type “U” (SUTA Withheld) for WDP/HCS, “V” (SDI Withheld) for SDI and “U6” for FLI. • To check the retirement plan box in Box 13 of the W-2 for all employees, answer Y to the Retirement Plan prompt in PF, Menu Selection 1.

 Print Form Instructions (3) Use this routine to laser-print W-2 form instructions.

Number of Pages Enter the number of pages of W-2 form instructions to print.

Continue? (Y,N) Press Y to print the W-2 form instructions. You will be prompted to select the correct printer. Press N to return to the Number of Pages prompt.

When all forms have been printed, CLS returns to the Number of Pages prompt. You may print more form instructions, or continue to press Esc to return to the TF menu.

 Print Blank Forms (4) Use this routine to laser-print blank W-2 forms on plain paper.

Copy Selection Select the type of W-2 for which you want to print blank forms. Press F1 to select the W-2 copy from a pop-up list.

4-8 Payroll Tax Forms (TF) CLS Payroll Tax Programs

Payroll Year Enter the calendar year for the blank W-2 forms; current choices are 2005-2010.

Number of Pages Enter the number of pages of blank W-2 forms to print, or press Enter to print a single page of blank W-2 forms.

Continue? (Y,N) Press Y to print the blank W-2 form(s). You will be prompted to select the correct printer. Press N to return to the Copy Selection prompt.

When all forms have been printed, CLS returns to the Employee W-2 Forms menu. Press Esc to return to the TF menu.

 Form Alignment (5) Use this routine to print an alignment mask to make sure the W-2 forms line up properly. These adjustments will move the data relative to the form image or preprinted form.

Vendor Selection Select the appropriate W-2 form vendor. Press F1 to select the form vendor from a pop-up list.

Copy Selection Select the W-2 copy for which to print an alignment mask. Press F1 to select the form from a pop- up list.

Continue? (Y,N) Press Y to continue. Select the correct printer, and respond to the prompts below. Press N to return to the Vendor Selection prompt.

The following prompts appear only if you are printing W-2s on a dot-matrix printer:

Left Margin Adjustment (-5 to +5) You may change the left margin of single and double-wide forms to allow for differences in printer alignment.

Gutter Margin Adjustment (-5 to +5) You may adjust the left margin of the right form in a double-wide form to compensate for different form spacing.

Payroll Tax Forms (TF) 4-9 CLS Payroll Tax Programs

The following prompts appear only if you are printing W-2s on a laser printer. These adjustments move the data relative to the form image or preprinted form.

Vertical Offset (-0.5000 to +0.5000) You may adjust the vertical position of fields on the page. This adjustment moves all fields up (-) or down (+) on the page.

Horizontal Offset (-0.5000 to +0.5000) You may adjust the horizontal position of fields on the page. This adjustment moves all fields left (-) or right (+) on the page.

Vertical Stretch (-0.5000 to +0.5000) You may change the vertical spacing between lines on the page. This adjustment vertically stretches (+) or contracts (-) spacing between lines.

Horizontal Stretch (-0.5000 to +0.5000) You may change the spacing between fields on the page. This adjustment horizontally stretches (+) or contracts (-) spacing between fields.

When the alignment mask has been printed, CLS returns to the Left Margin Adjustment prompt for dot-matrix forms or the Vertical Offset prompt for laser forms. You may enter additional adjustments until you are satisfied with the alignment, or continue to press Esc to return to the TF menu.

W-3 Transmittal Forms You may laser-print W-3 transmittal forms on preprinted forms or plain paper, and laser-print blank W-3 forms and alignment masks.

You cannot print W-3 forms using a dot-matrix printer, but the totals needed to prepare the W-3 forms will be printed if you responded Y to the Totals on W-2s prompt in program SI, Menu Selection 1 (3,2).

Choose 2 from the TF menu and the following menu appears:

 Process Current Ledger (1) Use this routine to laser-print W-3 transmittal forms on preprinted forms or plain paper.

Set Selection Select the appropriate set of forms to be printed. You may also print an individual form. Press F1 to select the set from a pop-up list.

Copy Selection If you chose to print an individual form, select the appropriate copy. Press F1 to select the copy

4-10 Payroll Tax Forms (TF) CLS Payroll Tax Programs

from a pop-up list.

Continue? (Y,N) Press Y to accept the W-3 selections; CLS displays the available forms for the selected set. The following screen displays the available forms for the W-3 Traditional set. Press N to return to the Set Selection prompt. Use the arrow keys (↑,↓) to scroll through the list of forms. Select the number of copies to be printed for each form. Press F1 to select the paper type for each form from a pop-up list (e.g., blank paper, perforated paper or preprinted forms).

Continue? (Y,N) Press Y to accept the copy selections, and the following screen appears. Press N to return to the Copies prompt for the first form.

Payroll Series (ENTER for all) Enter a payroll series, or press Enter to print forms for all series. Press F1 to select from a pop-up list of available series.

Payroll Consolidation (0-2) If forms will be printed for more than one payroll series, press 0 to print separate W-3s for each series. Press 1 to consolidate the series by federal I.D. Press 2 to consolidate the series totals by state I.D. The default response is set in program LI, Menu Selection 3 (1).

Select a Range of Employees (Y,N) If you want to select a range of employees enter Y and you can enter the range on the next screen. If you only want one employee, enter N.

Soc Sec No. Selection (1-3) Press 1 to print W-3s for employees with social security numbers, or press 2 to print forms for those without social security numbers. Press 3 to print W-3 forms for all employees. Press F1 to choose the social security number selection from a pop-up list.

Payroll Tax Forms (TF) 4-11 CLS Payroll Tax Programs

Preprinted Employer Info (Y,N) If you are using preprinted laser forms, press Enter to accept the default N response if you want CLS to print the address on the submittable copy. Press Y if the address is already printed on the form.

Contact Type (1-3) Press 1 to use the contact information entered in SI, Menu Selection 1 (3,1). If you selected a single series above, press 2 to use the employer information entered in PF, Menu Selection 2; if you selected all series, press 2 to obtain the contact information from the source indicated in PF, Menu Selection 2. Press 3 to enter the information below. Press F1 to select the contact type from a pop-up list.

Contact Person Contact Telephone Contact Fax Number Contact E-mail Address Signature Title Depending on your selection at the Contact Type (1-3) prompt, CLS will autofill the appropriate information. You may also enter the contact information.

Continue? (Y,N) Press Y to accept the payroll series selections. If a single W-3 will be printed, CLS displays the W- 3 form and you may edit the fields as needed. Press N to return to the Payroll Series (ENTER for all) prompt.

Establishment Number (Box D) If you selected a series at the Payroll Series (ENTER for all) prompt, enter the establishment number (if any) to be printed in Box D of the W-3 form.

Other EIN Used This Year (Box H) If you selected a series at the Payroll Series (ENTER for all) prompt, and another Employer Identification Number was used this year, enter the number to be printed in Box H of the W-3 form.

4-12 Payroll Tax Forms (TF) CLS Payroll Tax Programs

Accept? (Y,N) Press Y to accept this information and continue to the next screen. Press N or the up-arrow (↑) to edit fields on the W-3 form.

Third Party Inc. Tax (Box 14) If you selected a series at the Payroll Series (ENTER for all) prompt, enter the federal income tax withheld by a third party to be printed in Box 14 of the W-3 form.

Accept? (Y,N) Press Y to accept the W-3 form. You will be prompted to select a printer. Press N or the up-arrow (↑) to edit fields on the W-3 form. Press Esc to return to the previous screen.

When printer is ready, load... Press ENTER to continue, or ESC to abort: CLS prompts you to insert the appropriate form copy or load the printer with plain paper. Press Enter to continue, or press Esc to abort W-3 processing. When all forms have been printed, CLS returns to the Employee W-3 Forms menu.

 Note: To check the Kind of Payer box on the W-3 form, enter the appropriate Empl Option in PF, Menu Selection 1: • 941/941E – Option R (or no option) • 943 - Option A • 944 – Option G • CT-1 - Option X • Household employee – Option H • Medicare/gov't employee - Option Q • Military - Option M

 Batch Process Ledgers (2) Use this routine to process W-3 forms for multiple ledgers. You may select the number of copies to print and choose the paper type to be used for each form (e.g., blank paper or preprinted forms).

Payroll Tax Forms (TF) 4-13 CLS Payroll Tax Programs

Set Selection Select the appropriate set of forms to be printed. You may also print an individual form. Press F1 to select the set from a pop-up list.

Copy Selection If you chose to print an individual form, select the appropriate copy to print. Press F1 to select the copy from a pop-up list.

Continue? (Y,N) Press Y to accept the copy selections, and the following screen appears. Press N to return to the Copies prompt for the first form.

CLS displays the ledgers found in the current data path. Use the arrow keys (↑,↓) to scroll through the list of ledgers. Tag or un-tag the ledgers to be processed by pressing the space bar or T. Press Enter to accept the tagged ledgers, or press Esc to exit the ledger selection window.

Do you wish to CLEAR ALL selected ledger tags? This prompt appears only if you press Esc to exit. Press Y to clear the tags, or press Esc to return to the selection window without removing the tags.

4-14 Payroll Tax Forms (TF) CLS Payroll Tax Programs

Continue? (Y,N) Press Y to accept the tagged ledgers and continue to the next screen of prompts. Press N to return to the selection window.

Sort by Ledger or Form Type (L,F) For laser-printed forms, press L to sort W-3s by ledger as they are printed, or press F to sort W-3s by form type.

Payroll Consolidation (0-2) If forms will be printed for more than one payroll series, press 0 to print separate totals for each series. Press 1 to consolidate the series by federal I.D. Press 2 to consolidate the series totals by state I.D. The default response is set in program LI, Menu Selection 3 (1).

Continue? (Y,N) Press Y to accept the set selections. Select the correct printer, and respond to the following prompts. Press N to return to the Sort by Ledger or Form Type (L,F) prompt.

Payroll Tax Forms (TF) 4-15 CLS Payroll Tax Programs

*** End of Batch Processing of W-3's *** When all forms have been printed, CLS returns to the Employee W-3 Forms menu.

 Print Blank Forms (3) Use this routine to laser-print blank W-3 transmittal forms on plain paper.

Copy Selection Select the type of W-3 for which you want to print blank forms. Press F1 to select the W-3 copy from a pop-up list.

Payroll Year Enter the calendar year for the blank W-3 forms; current choices are 2005-2010.

Number of Pages Enter the number of pages of blank W-3 forms to print, or press Enter to print a single form.

Continue? (Y,N) Press Y to print the blank W-3 form(s). You will be prompted to select the correct printer. Press N to return to the Copy Selection prompt.

When all forms have been printed, CLS returns to the Employee W-3 Forms menu. Press Esc to return to the TF menu.

 Form Alignment (4) Use this routine to print an alignment mask to make sure the W-3 forms line up properly. These adjustments will move the data relative to the form image or preprinted form.

Vendor Selection Select the appropriate W-3 form vendor. Press F1 to select the form vendor from a pop-up list.

Copy Selection Select the W-3 copy for which to print an alignment mask. Press F1 to select the form from a pop- up list.

4-16 Payroll Tax Forms (TF) CLS Payroll Tax Programs

Continue? (Y,N) Press Y to continue. Select the correct printer, and respond to the following prompts. Press N to return to the Copy Selection prompt.

Vertical Offset (-0.5000 to +0.5000) You may adjust the vertical position of fields on the page. This adjustment moves all fields up (-) or down (+) on the page.

Horizontal Offset (-0.5000 to +0.5000) You may adjust the horizontal position of fields on the page. This adjustment moves all fields left (-) or right (+) on the page.

Vertical Stretch (-0.5000 to +0.5000) You may change the vertical spacing between lines on the page. This adjustment vertically stretches (+) or contracts (-) spacing between lines.

Horizontal Stretch (-0.5000 to +0.5000) You may change the spacing between fields on the page. This adjustment horizontally stretches (+) or contracts (-) spacing between fields.

When the alignment mask has been printed, CLS returns to the Vertical Offset prompt. You may enter additional adjustments until you are satisfied with the alignment, or press Esc to return to the Vendor Selection prompt. Continue to press Esc to return to the TF menu.

Vendor 1099/1098 Forms You may process 1099/1098 forms for the current ledger, laser-print blank 1099/1098 forms, and print form instructions and alignment masks.

 Note: Make sure you align payroll tax forms properly before printing.

Choose 3 from the TF menu and the following menu appears:

 Process Current Ledger (1) Use this routine to process dot-matrix and laser-printed 1099s/1098s on preprinted forms. You may also laser-print 1099/1098 forms on plain paper.

Payroll Tax Forms (TF) 4-17 CLS Payroll Tax Programs

1099/1098 Type Select the appropriate 1099/1098 type. Press F1 to select the form type from a pop-up list.

Vendor Selection Select the appropriate 1099/1098 form vendor. Press F1 to select the vendor from a pop-up list.

Set Selection For laser 1099/1098 forms: Select the set of forms to print. You may also print an individual form. Press F1 to select the set from a pop-up list.

Copy Selection For laser 1099/1098 forms: If you chose to print an individual form, select the appropriate copy to print. Press F1 to select the copy from a pop-up list.

Continue? (Y,N) Press Y to accept the 1099/1098 selections; CLS displays the available forms for the selected set. The following screen displays the available forms for the 1099-MISC Traditional set. Press N to return to the 1099/1098 Type prompt.

Continue? (Y,N) Press Y to accept the form selections, and the following screen appears. Press N to return to the Copies prompt for the first form.

Vendor Series (ENTER for all) Enter a vendor series, or press Enter to print forms for all series. Press F1 to select from a pop-up list of available series.

4-18 Payroll Tax Forms (TF) CLS Payroll Tax Programs

Select a Range of Vendors (Y,N) Press Y to print forms for a range of vendors. You will be prompted later to enter the beginning and ending vendor numbers. Press N to print forms for all vendors in the selected series.

Soc Sec No. Selection (1-3) Press 1 to print 1099/1098 forms for vendors with social security numbers (or tax I.D.), press 2 to print forms for those without social security numbers (or tax I.D.), or press 3 to print 1099/1098 forms regardless of social security number. Press F1 to choose the social security number selection from a pop-up list.

Print Totals (Y,N) Press Y to print totals for 1099 forms. The default response is set is program SI, Menu Selection 1 (3,2).

Minimum Payment ($0 - $999) Enter the amount per vendor below which 1099s/1098s should not be prepared. CLS automatically defaults to the minimum payment for the selected vendor series.

Is Year Preprinted on Forms (Y,N) Press Y if the year is preprinted on your 1099/1098 forms, or press N if it is not.

Continue? (Y,N) Press Y to accept the vendor series selections. Select the correct printer, and respond to the following prompts. Press N to return to the Vendor Series (ENTER for all) prompt.

Enter Beginning vendor: Enter Ending vendor: If you chose to print forms for a range of vendors: Enter the range of vendors for whom you want forms printed, or select a single vendor. Press F1 to select from a pop-up list of vendors for this ledger.

When printer is ready, load... Press ENTER to continue, or ESC to abort For laser 1099/1098 forms: CLS prompts you to insert the appropriate form copy or load the printer with the appropriate paper type. Press Enter to continue, or press Esc to abort 1099/1098 processing and return to the Vendor 1099/1098 Forms menu.

When all 1099s/1098s have been printed, CLS returns to the Vendor 1099/1098 Forms menu. Press Esc to return to the TF menu.

 Notes: • If CLS returns to the Vendor 1099/1098 Forms menu without printing any forms, use program PF, Menu Selection 2, to make sure you have defined valid column types for each column you want printed on the 1099/1098. • Vendor Option P in program EF, Menu Selection 1, checks Box 9 on the 1099-MISC, indicating that the payer made direct sales of $5,000 or more of consumer products to a

Payroll Tax Forms (TF) 4-19 CLS Payroll Tax Programs

buyer for resale.

 Batch Process Ledgers (2) Use this routine to print 1099/1098 forms for multiple ledgers. CLS provides several pre-defined sets of 1099/1098 forms to choose from, or you may create your own set. In each case, you may select the number of copies to print and choose the paper type to be used for each form (e.g., blank paper, perforated paper or preprinted forms).

1099/1098 Type Select the appropriate 1099/1098 type. Press F1 to select the form type from a pop-up list.

Vendor Selection Select the appropriate 1099/1098 form vendor. Press F1 to select the vendor from a pop-up list.

Set Selection For laser 1099/1098 forms: Select the set of forms to print. You may also print an individual form. Press F1 to select the set from a pop-up list.

Copy Selection If you chose to laser-print an individual form, select the appropriate copy. Press F1 to select the copy from a pop-up list.

4-20 Payroll Tax Forms (TF) CLS Payroll Tax Programs

Continue? (Y,N) Press Y to accept the copy selections, and the following screen appears. Press N to return to the Copies prompt for the first form.

Do you wish to CLEAR ALL selected ledger tags? This prompt appears only if you press Esc to exit. Press Y to clear the tags, or press Esc to return to the selection window without removing the tags.

Continue? (Y,N) Press Y to accept the tagged ledgers and continue to the next screen of prompts. Press N to return to the selection window.

Sort by Ledger or Form Type (L,F) For laser-printed forms only, press L to sort 1099/1098 forms by ledger as they are printed. Press F to sort 1099s/1098s by form type.

Soc Sec No. Selection (1-3) Press 1 to print 1099s/1098s for vendors with social security numbers (or tax I.D.), press 2 to print forms for those without social security numbers (or tax I.D.), or press 3 to print 1099/1098 forms regardless of social security number. Press F1 to select the social security number format from a pop-up list.

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Print Totals (Y,N) Press Y to print totals for the 1099 forms. The default response is set in program SI, Menu Selection 1 (3,2).

Minimum Payment ($0 - $999) Enter the amount per vendor below which 1099s/1098s should not be prepared. CLS automatically defaults to the minimum payment for the selected vendor series.

Is Year Preprinted on Forms (Y,N) Press Y if the year is preprinted on your 1099/1098 forms, or press N if it is not.

Continue? (Y,N) Press Y to accept the vendor series selections. Select the correct printer, and respond to the following prompts. Press N to return to the Sort by Ledger or Form Type (L,F) prompt.

Current printer: [HP Laser: Portrait]? (Y,N) Ready? (Y,N) For laser 1099/1098 forms: CLS prompts you to insert the appropriate form copy or load the printer with the appropriate paper type. Press Enter to continue, or press Esc to abort 1099/1098 processing and return to the Vendor 1099/1098 Forms menu.

*** End of Batch Processing of 1099/1098's *** When all 1099/1098 forms have been printed, CLS returns to the Vendor 1099/1098 Forms menu. Continue to press Esc to return to the TF menu.

 Print Corrected Forms (3) Use this routine to print corrected 1099/1098 forms.

 Note: Corrected 1098 or 1099 forms can be printed only for those vendors who have been assigned a C option in program EF, Menu Selection 1.

1099/1098 Type Select the appropriate 1099/1098 type. Press F1 to select the form type from a pop-up list.

Vendor Selection Select the appropriate 1099/1098 form vendor. Press F1 to select the vendor from a pop-up list.

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Set Selection For laser 1099/1098 forms: Select the set of forms to print. You may also print an individual form. Press F1 to select the set from a pop-up list.

Copy Selection For laser 1099/1098 forms: If you chose to print an individual form, select the appropriate copy to print. Press F1 to select the copy from a pop-up list.

Continue? (Y,N) Press Y to accept the form selections, and the following screen appears. Press N to return to the Copies prompt for the first form.

Vendor Series (ENTER for all) Enter a vendor series, or press Enter to print forms for all series. Press F1 to select from a pop-up list of available series.

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Soc Sec No. Selection (1-3) Press 1 to print 1099s/1098s for vendors with a social security number or tax I.D., press 2 to print forms for those without a social security number or tax I.D., or press 3 to print 1099/1098 forms regardless of social security number or tax I.D.. Press F1 to choose the social security number selection from a pop-up list.

Print Totals (Y,N) Press Y to print totals on 1099 forms. The default response is set is program SI, Menu Selection 1 (3,2).

Minimum Payment ($0 - $999) Enter the amount per vendor below which 1099s/1098s should not be prepared. CLS automatically defaults to the minimum payment for the selected vendor series.

Is Year Preprinted on Forms (Y,N) Press Y if the year is preprinted on your 1099/1098 forms, or press N if it is not.

Continue? (Y,N) Press Y to accept the vendor series selections. Select the correct printer, and respond to the following prompts. Press N to return to the Vendor Series (ENTER for all) prompt.

When all 1099s/1098s have been printed, CLS returns to the Vendor 1099/1098 Forms menu. Press Esc to return to the TF menu.

 Notes: • If CLS returns to the Vendor 1099/1098 Forms menu without printing any forms, make sure that all vendors for which you want to print corrected forms have been assigned a C option in EF 1. • Also, use program PF, Menu Selection 2, to make sure you have defined valid column types for each column you want printed on the 1099/1098. • Vendor Option P in program EF, Menu Selection 1, checks Box 9 on the 1099-MISC, indicating that the payer made direct sales of $5,000 or more of consumer products to a buyer for resale.

 Print Form Instructions (4) Use this routine to laser-print 1099/1098 form instructions.

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1099/1098 Type Select the appropriate 1099/1098 type for which to print instructions. Press F1 to select the form type from a pop-up list.

Number of Pages Enter the number of pages of 1099/1098 form instructions to print.

Continue? (Y,N) Press Y to print the 1099/1098 form instructions. You will be prompted to select the correct printer. Press N to return to the 1099/1098 Type prompt.

When all forms have been printed, CLS returns to the 1099/1098 Type prompt. You may print more form instructions, or continue to press Esc to return to the TF menu.

 Print Blank Forms (5) Use this routine to laser-print blank 1099/1098 forms on plain paper.

1099/1098 Type Select the appropriate 1099/1098 type for which to print blank forms. Press F1 to select the form type from a pop-up list.

Copy Selection Select the type of 1099/1098 for which you want to print blank forms. Press F1 to select the 1099/1098 copy from a pop-up list.

Payroll Year Enter the calendar year for the blank 1099/1098 forms; current choices are 2005-2010.

Number of Pages Enter the number of pages of blank 1099/1098 forms to print, or press Enter to print a single page of blank 1099/1098 forms.

Continue? (Y,N) Press Y to print the blank 1099/1098 form(s). You will be prompted to select the correct printer. Press N to return to the 1099/1098 Type prompt. When all forms have been printed, CLS returns to the 1099/1098 Type prompt. You may select another 1099/1098 type for which to print blank forms, or continue to press Esc to return to the TF menu.

 Form Alignment (6) Use this routine to print an alignment mask to make sure the 1099/1098 forms line up properly. These adjustments will move the data relative to the form image or preprinted form.

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1099/1098 Type Select the appropriate 1099/1098 type. Press F1 to select the form type from a pop-up list.

Vendor Selection Select the appropriate 1099/1098 form vendor. Press F1 to select the vendor from a pop-up list.

Copy Selection For laser 1099/1098 alignment masks: Select the appropriate form. Press F1 to select the form from a pop-up list.

Continue? (Y,N) Press Y to continue. Select the correct printer, and respond to the following prompts. Press N to return to the 1099/1098 Type prompt.

The following prompt appears only if you are printing 1099s/1098s on a dot-matrix printer:

Left Margin Adjustment (-5 to +5) You may change the left margin of the 1099/1098 dot-matrix form to allow for differences in printer alignment.

The following prompts appear only if you are printing 1099s/1098s on a laser printer. These adjustments move the data relative to the form image or preprinted form.

Vertical Offset (-0.5000 to +0.5000) You may adjust the vertical position of fields on the page. This adjustment moves all fields up (-) or down (+) on the page.

Horizontal Offset (-0.5000 to +0.5000) You may adjust the horizontal position of fields on the page. This adjustment moves all fields left (-) or right (+) on the page.

Vertical Stretch (-0.5000 to +0.5000) You may change the vertical spacing between lines on the page. This adjustment vertically stretches (+) or contracts (-) spacing between lines.

Horizontal Stretch (-0.5000 to +0.5000) You may change the spacing between fields on the page. This adjustment horizontally stretches (+) or contracts (-) spacing between fields.

When the alignment mask has been printed, CLS returns to the Left Margin Adjustment prompt for dot-matrix forms or the Vertical Offset prompt for laser forms. Enter additional adjustments until you are satisfied with the alignment, or continue to press Esc to return to the TF menu.

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1096 Transmittal Forms You may laser-print 1096 transmittal forms on preprinted forms or plain paper, and laser-print blank 1096 forms and alignment masks. Blank 1096 forms may be printed for the payer's copy only. Preprinted forms must be used for the submittable copy.

You cannot print 1096 forms using a dot-matrix printer, but the totals needed to prepare the forms will appear on dot-matrix 1099/1098 forms if you responded Y to the Totals on 1099s prompt in program SI, Menu Selection 1 (3,2).

Choose 4 from the TF menu and the following menu appears:

 Process Current Ledger (1) Use this routine to laser-print 1096 transmittal forms on preprinted forms or plain paper.

1099/1098 Type Select the appropriate 1099/1098 type. Press F1 to select the type from a pop-up list.

Set Selection Select the appropriate set of forms to be printed. You may also print an individual form. Press F1 to select the set from a pop-up list.

Copy Selection If you chose to print an individual form, select the appropriate copy. Press F1 to select the copy from a pop-up list.

Use the arrow keys (↑,↓) to scroll through the list of forms. Select the number of copies to be printed for each form.

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Continue? (Y,N) Press Y to accept the copy selections, and the following screen appears. Press N to return to the Copies prompt for the first form.

Vendor Series (ENTER for all) Enter a vendor series, or press Enter to print forms for all series. Press F1 to select from a pop-up list of available series.

Soc Sec No. Selection (1-3) Press 1 to print 1096s for vendors with social security numbers, or press 2 to print forms for those without social security numbers. Press 3 to print 1096 forms for all vendors. Press F1 to choose the social security number selection from a pop-up list.

Preprinted Payer Info (Y,N) If you are using preprinted laser forms, press Enter to accept the default N response if you want CLS to print the address on the submittable copy. Press Y if the address is already printed on the form.

Minimum Payment ($0 - $999) Enter the amount below which a vendor should not be included in the 1096 totals.

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Print Payer ID as: EIN (Box 1), or Soc Sec (Box 2) Press Enter to accept the default 1 response and print the payer I.D. as an EIN number in Box 1, or press 2 to print the payer I.D. as a Social Security number in Box 2.

Continue? (Y,N) Press Y to accept the vendor series selections. You will be prompted to select the correct printer. Press N to return to the Vendor Series (ENTER for all) prompt.

When printer is ready, load... Press ENTER to continue, or ESC to abort: CLS prompts you to insert the appropriate form copy or load the printer with plain paper. Press Enter to continue, or press Esc to abort 1096 processing and return to the Vendor 1096 Forms menu.

When all forms have been printed, CLS returns to the Vendor 1096 Forms menu. Press Esc to return to the TF menu.

 Batch Process Ledgers (2) Use this routine to print 1096 forms for multiple ledgers. You may select the number of copies to print and choose the paper type to be used for each form (e.g., blank paper or preprinted forms).

1099/1098 Type Select the appropriate 1099/1098 type. Press F1 to select the form type from a pop-up list.

Set Selection Select the set of forms to be printed. You may also print an individual form. Press F1 to select the set from a pop-up list.

Copy Selection If you chose to print an individual form, select the appropriate copy to print. Press F1 to select the copy from a pop-up list.

Continue? (Y,N) Press Y to accept the 1096 selections; CLS displays the available forms for the selected set. The following screen displays the available forms for the 1099-MISC Traditional set.

Use the arrow keys (↑,↓) to scroll through the list of forms. Select the number of copies to print for each form.

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Continue? (Y,N) Press Y to accept the copy selections, and the following screen appears. Press N to return to the Copies prompt for the first form.

Do you wish to CLEAR ALL selected ledger tags? This prompt appears only if you press Esc to exit. Press Y to clear the tags, or press Esc to return to the selection window without removing the tags.

Continue? (Y,N) Press Y to accept the tagged ledgers and continue to the next screen of prompts. Press N to return to the selection window.

Sort by Ledger or Form Type (L,F) Press L to sort 1096s by ledger as they are printed, or press F to sort 1096s by form type.

Payroll Consolidation (0-2) If forms will be printed for more than one payroll series, press 0 to print separate 1096s for each series. Press 1 to consolidate the series by federal I.D. Press 2 to consolidate the series totals by state I.D. The default response is set in program LI, Menu Selection 3 (1).

Preprinted Payer Info (Y,N) If you are using preprinted laser forms, press Enter to accept the default N response if you want

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CLS to print the address on the submittable copy. Press Y if the address is already printed on the form.

Minimum Payment ($0 - $999) Enter the amount below which a vendor should not be included in the 1096 totals.

Print Payer ID as: EIN (Box 1), or Soc Sec (Box 2) Press Enter to accept the default 1 response and print the payer I.D. as the EIN number in Box 1, or press 2 to print the payer I.D. as the Social Security number in Box 2.

Continue? (Y,N) Press Y to accept the vendor series selections. Select the correct printer, and respond to the following prompts. Press N to return to the Sort by Ledger or Form Type (L,F) prompt.

When printer is ready, load... Press ENTER to continue, or ESC to abort: CLS prompts you to insert the appropriate form copy or load the printer with plain paper. Press Enter to continue, or press Esc to abort 1096 processing and return to the Vendor 1096 Forms menu.

*** End of Batch Processing of 1096's *** When all forms have been printed, CLS returns to the Vendor 1096 Forms menu. Press Esc to return to the TF menu.

 Print Corrected Forms (3) Use this routine to laser-print corrected 1096 transmittal forms on preprinted forms or plain paper.

 Note: Corrected 1096 forms will include only those 1099/1098 vendors who have been assigned a C option in program EF, Menu Selection 1.

1099/1098 Type Select the appropriate 1099/1098 type. Press F1 to select the type from a pop-up list.

Set Selection Select the appropriate set of forms to be printed. You may also print an individual form. Press F1 to select the set from a pop-up list.

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Copy Selection If you chose to print an individual form, select the appropriate copy. Press F1 to select the copy from a pop-up list.

Use the arrow keys (↑,↓) to scroll through the list of forms. Select the number of copies to be printed for each form.

Continue? (Y,N) Press Y to accept the copy selections, and the following screen appears. Press N to return to the Copies prompt for the first form.

Vendor Series (ENTER for all) Enter a vendor series, or press Enter to print forms for all series. Press F1 to select from a pop-up list of available series.

Payroll Consolidation (0-2) If forms will be printed for more than one payroll series, press 0 to print separate corrected 1096s for each series. Press 1 to consolidate the series by federal I.D. Press 2 to consolidate the series totals by state I.D. The default response is set in program LI, Menu Selection 3 (1).

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Preprinted Payer Info (Y,N) If you are using preprinted laser forms, press Enter to accept the default N response if you want to print the address on the submittable copy. Press Y if the address is already printed on the form.

Minimum Payment ($0 - $999) Enter the amount below which a vendor should not be included in the 1096 totals.

Continue? (Y,N) Press Y to accept the vendor series selections. You will be prompted to select the correct printer. Press N to return to the Vendor Series (ENTER for all) prompt.

When printer is ready, load... Press ENTER to continue, or ESC to abort: CLS prompts you to insert the appropriate form copy or load the printer with plain paper. Press Enter to continue, or press Esc to abort 1096 processing and return to the Vendor 1096 Forms menu.

When all forms have been printed, CLS returns to the Vendor 1096 Forms menu. Press Esc to return to the TF menu.

 Print Blank Forms (4) Use this routine to laser-print blank 1096 transmittal forms on plain paper. You may print only the payer's file copy.

Payroll Year Enter the calendar year for the blank 1096 forms; current choices are 2005-2010.

Number of Pages Enter the number of pages of blank 1096 forms to print, or press Enter to print a single form.

Continue? (Y,N) Press Y to print the blank 1096 form(s). You will be prompted to select the correct printer. Press N to return to the Payroll Year prompt.

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When all forms have been printed, CLS returns to the Vendor 1096 Forms menu. Press Esc to return to the TF menu.

 Form Alignment (5) Use this routine to print an alignment mask to make sure the 1096 forms line up properly. These adjustments will move the data relative to the form image or preprinted form.

Copy Selection Select the 1096 copy for which to print an alignment mask. Press F1 to select the form from a pop- up list.

Continue? (Y,N) Press Y to continue. Select the correct printer, and respond to the following prompts. Press N to return to the Copy Selection prompt.

Vertical Offset (-0.5000 to +0.5000) You may adjust the vertical position of fields on the page. This adjustment moves all fields up (-) or down (+) on the page.

Horizontal Offset (-0.5000 to +0.5000) You may adjust the horizontal position of fields on the page. This adjustment moves all fields left (-) or right (+) on the page.

Vertical Stretch (-0.5000 to +0.5000) You may change the vertical spacing between lines on the page. This adjustment vertically stretches (+) or contracts (-) spacing between lines.

Horizontal Stretch (-0.5000 to +0.5000) You may change the spacing between fields on the page. This adjustment horizontally stretches (+) or contracts (-) spacing between fields.

When the alignment mask has been printed, CLS returns to the Vertical Offset prompt. You may enter additional adjustments until you are satisfied with the alignment, or press Esc to return to the Copy Selection prompt. Continue to press Esc to return to the TF menu.

W-2c and W-3c Forms This routine lets you prepare correction forms W-2c and W-3c.

Choose 5 from the TF menu and the following menu appears:

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 Employee W-2c Forms (1) Use this routine to enter corrected W-2 information for one or more employees and print W-2c forms.

Press 1 and the following menu appears:

 Add/Revise W-2c Information (1) Use this routine to add or revise an employee for whom you want to print a W-2c. The employee must already exist in the CLS payroll file.

Select an employee, and then press Y to continue. The following screen appears:

Enter or edit the employer and employee information as necessary. For boxes 1-19, enter only the amounts that have changed since they were previously reported.

 Print Laser W-2c Forms (2) Use this routine to print W-2c forms for employees who received incorrect W-2s. CLS will use the information you entered in step 1 above.

Use the arrow keys (↑,↓) to scroll through the list of forms. Select the number of copies to print for each form. Press Y to continue, and then select the employees for whom you want to print W-2c forms. Also, enter the payroll series to be used for the W-3c. You will be prompted to select the

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correct printer.

 Print Form Instructions (3) Use this routine to print W-2c form instructions for the employees who will receive W-2c forms.

Number of Pages Enter the number of pages of W-2c instructions to print, or press Enter to print a single page of instructions.

Continue? (Y,N) Press Y to print the W-2c instructions. You will be prompted to select the correct printer. Press N to return to the Number of Pages prompt.

When all instructions have been printed, press Esc to return to the TF menu.

 Print Blank Forms (4) Use this routine to print blank W-2c forms.

Copy Selection Select the type of W-2c for which you want to print blank forms. Press F1 to select the W-2c copy from a pop-up list.

Number of Pages Enter the number of pages of blank W-2c forms to print, or press Enter to print a single page of blank W-2c forms.

Continue? (Y,N) Press Y to print the blank W-2c form(s). You will be prompted to select the correct printer. Press N to return to the Copy Selection prompt.

When all forms have been printed, CLS returns to the Copy Selection prompt. You may select another type of W-2c for which to print blank forms, or continue to press Esc to return to the previous menu.

 Form Alignment (5) Use this routine to print an alignment mask to make sure the W-2c forms line up properly. These adjustments will move the data relative to the form image.

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Copy Selection Select the W-2c copy for which to print an alignment mask. Press F1 to select the form from a pop- up list.

Continue? (Y,N) Press Y to continue. Select the correct printer, and respond to the prompts below. Press N to return to the Copy Selection prompt.

Vertical Offset (-0.5000 to +0.5000) You may adjust the vertical position of fields on the page. This adjustment moves all fields up (-) or down (+) on the page.

Horizontal Offset (-0.5000 to +0.5000) You may adjust the horizontal position of fields on the page. This adjustment moves all fields left (-) or right (+) on the page.

Vertical Stretch (-0.5000 to +0.5000) You may change the vertical spacing between lines on the page. This adjustment vertically stretches (+) or contracts (-) spacing between lines.

Horizontal Stretch (-0.5000 to +0.5000) You may change the spacing between fields on the page. This adjustment horizontally stretches (+) or contracts (-) spacing between fields.

When the alignment mask has been printed, CLS returns to the Vertical Offset prompt. You may enter additional adjustments until you are satisfied with the alignment, or continue to press Esc to return to the TF menu.

 W-3c Transmittal Forms (2) Use this routine to print a W-3c transmittal form to accompany the W-2c forms you just printed.

Press 2 and the following menu appears:

Asterisks (*) beside menu selections 1 and 2 indicate routines which will be unavailable until you print the W-2c forms.

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 Revise W-3c Information (1) Use this routine to revise the information accumulated by CLS when the W-2c forms were printed.

 Print Laser W-3c Forms (2) Use this routine to print a W-3c form to be submitted with the W-2c forms printed above. Select the number of copies to print. Press Y to continue. You will be prompted to select the correct printer.

 Print Blank Forms (3) Use this routine to print blank W-3c forms.

Number of Pages Enter the number of pages of blank W-3c forms to print, or press Enter to print a single blank W-3c form.

Continue? (Y,N) Press Y to print the blank W-3c form(s). You will be prompted to select the correct printer. Press N to return to the Number of Pages prompt.

When all forms have been printed, CLS returns to the Number of Pages prompt. You may continue to press Esc to return to the TF menu.

 Form Alignment (4) Use this routine to print an alignment mask to make sure the W-3c forms line up properly. These adjustments will move the data relative to the form image.

Select the correct printer and respond to the prompts below.

Vertical Offset (-0.5000 to +0.5000) You may adjust the vertical position of fields on the page. This adjustment moves all fields up (-) or down (+) on the page.

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Horizontal Offset (-0.5000 to +0.5000) You may adjust the horizontal position of fields on the page. This adjustment moves all fields left (-) or right (+) on the page.

Vertical Stretch (-0.5000 to +0.5000) You may change the vertical spacing between lines on the page. This adjustment vertically stretches (+) or contracts (-) spacing between lines.

Horizontal Stretch (-0.5000 to +0.5000) You may change the spacing between fields on the page. This adjustment horizontally stretches (+) or contracts (-) spacing between fields.

W-2/1099 Form Requirements This routine calculates how many W-2 and 1099 forms will be required and which ledgers will require filing by magnetic media.

Choose 1 from the W-2 and 1099 Worksheets menu (TF 6), and the following screen appears:

Calendar Year When creating a form requirements report, CLS will analyze the current generation of each ledger in the data path, looking for payroll information. To restrict the search to a specific calendar year, enter the year here. CLS does not include prior generations in the report.

Series Type Select the series type for which to calculate forms. Press F1 to select the series from a pop-up list.

Minimum Payment ($0 - $999) For a vendor series, enter the minimum payment amount for which vendors should be included on the report.

Mark ledgers with at least ‘250’ employees. CLS defaults to 250 employees per ledger when calculating magnetic media requirements. You may change this limit if needed. An asterisk (*) will appear beside ledgers with employee counts which meet or exceed this limit.

Use Worksheet Format? (Y,N) Press Y to if you want CLS to provide space for your comments on the form requirements report.

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Continue? (Y,N) Press Y to continue.

(D)isplay, or number of copies to print (D,1-9) Press D to display the report, or enter the number of copies to print. Press 1 to print a single copy. CLS will prompt you to select the correct printer. When the report is complete, CLS returns to the TF menu.

Download Soft Tax Fonts Depending on your response to the Download Soft Tax Fonts (0-2) prompt in SI, Menu Selection 1 (3,2), CLS can download the fonts once per session or before printing each set of forms.

Use this routine if printing from another application has interfered with the downloaded fonts and they are no longer available to your printer.

Choose 7 from the TF menu to download soft tax fonts. Respond to the following prompt: Current printer: [HP Laser: Portrait ]? (Y,N) Select the printer to which the fonts should be downloaded.

Downloading Soft Tax Fonts Please wait… CLS downloads the fonts to the selected printer and returns to the TF menu.

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4.2 Payroll Tax Worksheets

Use this program to print the following reports: federal 941, 943, 944 and 940 forms and worksheets, 941-X, 943-X and 944-X forms, federal unemployment wage lists, and state unemployment continuation sheets. You may also print an alignment mask for the state continuation sheet, or a page alignment mask.

Downloading Soft Tax Fonts CLS uses tax fonts to create various form outlines on plain paper (e.g., 940 and 941 forms) using an HP-compatible laser printer. Depending on your response to the Download Soft Tax Fonts (0- 2) prompt in SI, Menu Selection 1 (3,2), CLS can download the fonts once per session or before printing each set of forms. The Payroll Tax Worksheets (TW) program also contains a menu selection to download the fonts. Use this routine if printing from another application has interfered with the downloaded fonts and they are no longer available to your printer.

Vertical Offset: Moves all fields up (-) or down (+) on the page. Horizontal Offset: Moves all fields left (-) or right (+) on the page. Vertical Stretch: Stretches (+) or contracts (-) spacing to change vertical spacing between lines on the page. Horizontal Stretch: Stretches (+) or contracts (-) spacing to change horizontal spacing between fields on the page.

 Tip: Print one copy of each type of form to check the alignment before running the entire batch of forms.

Choose TW from the Report Processing menu and the following menu appears:

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Federal 941, 943 and 944 Forms You may print 941, 943 and 944 Preliminary Reports and submittable forms for the current ledger. When you display or print a Preliminary Report, CLS creates a work file from which 941, 943 and 944 forms may be laser-printed on preprinted forms or plain paper. You may also laser-print blank 941, 943 and 944 forms and print alignment masks. The instructions that follow are for the 941 form; the 943 and 944 forms are similar. For form 943, Schedule A replaces form 941, Schedule B.

Choose 1 from the TW menu and the following menu appears:

Asterisks (*) beside menu selections 2-6 indicate routines that will be unavailable until you display or print a 941, 943 or 944 Preliminary Report.

 Print/Display 941 Preliminary Report (1) Use this routine to display or print a 941 Preliminary Report for any or all employee series in the current ledger. This step creates a work file with information from which the 941 may be printed. The work file will not be created unless you complete this step.

Respond to the following prompts:

Enter Payroll Series or press ENTER for all Series: Enter a payroll series, or press Enter for all series. Press F1 to select the series from a pop-up list.

 Note: If you select a single series, the work file will contain only that series. If you press Enter for all series, the work file will contain all employee series for the current ledger.

Separate Series, or Consolidated (S,C)? If forms will be printed for more than one payroll series, press S to print separate totals for each series, or press C to consolidate the series totals and use the same employer name and address. The default response is set in program LI, Menu Selection 3 (1).

Calendar Quarter to be Printed? Enter the calendar quarter for which the Preliminary Report is to be printed. CLS defaults to the current calendar quarter.

(D)isplay, or number of copies to print (D,1-9) Press D to display the 941 Preliminary Report, or enter the number of copies to print. Press 1 to print a single copy. After printing or displaying the Preliminary Report, you can edit the work file and print 941 forms using a laser printer.

 Edit Laser Form 941 Page 1, Page 2, Voucher (2) Use this routine to edit the information in the work file as needed. Remember, the work file contains only the information collected when you printed or displayed the 941 Preliminary Report.

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CLS displays the 941 work file for the selected series. Use the page-up, page-down and arrow keys (↑,↓) to scroll through the screen and make changes where necessary. When you are satisfied with the work file, press Esc to move directly to Accept or Escape? (A,Esc).

Payroll Series Enter a payroll series, or press F1 to select the series from a pop-up list. Press Y to continue, and the following screen appears:

 Note: CLS does not calculate deposits. Make sure you enter the Total Deposits for Quarter.

Accept or Escape? (A,Esc) Press A to accept the changes to the 941 form. Press Esc to return to the Payroll Series prompt without saving any changes.

941 Form has been updated. CLS updates the 941 form for the current series and returns to the Payroll Series prompt. Select another series, or press Esc to return to the Prepare Federal 941 Forms menu.

 Edit Laser Form 941 Schedule B (3) Payroll Series Enter a payroll series, or press F1 to select the series from a pop-up list.

Continue? (Y,N) Press Y to continue, and the following screen appears:

Select month to edit: (1-3) Select the number of the month within the current quarter to edit. Enter or edit each period's payroll tax liability. Use the arrow keys (↑,↓) to scroll through the columns and make changes where necessary.

Payroll Tax Worksheets (TW) 4-43 CLS Payroll Tax Programs

941 Form, Schedule B has been updated. CLS updates the 941 form when you return to the Select month to edit: (1-3) prompt.

 Edit Form 941 Schedule D (4) If a company is sold during the year, use this program to reconcile the tax amounts for the partial years of each company’s ownership.

Payroll Series Enter a payroll series, or press F1 to select the series from a pop-up list. Press Y to continue, and the following screen appears:

Tax Year of Discrepancy The default is the current year.

Type of Submission: Original - Correction Place an “X” beside the type of submission: original or correction.

Employer’s Phone Number Enter the phone number of the employer.

Filing Schedule D to report: Mark with an “X” either merger or acquisition and then choose the position of the filer in the merger or acquisition.

Date of Merger/Acquisition Enter the date of the merger or acquisition.

Other Party’s Information: Federal ID Employer Name Trade Name (if any) Mailing Address Phone Number Enter identifying information of the other party in the merger or acquisition.

941s for Year – W-2s for Year Social security wages Medicare wages and tips Social security tips

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Federal tax withheld Advance EIC payment For each of the five dollar amounts enter the total amount for this company for 941s and W-2s. If you are submitting more than one Schedule D, you can enter those individual amounts in the following fields.

This is Schedule 0 of 0. If you are submitting more than one Schedule D, enter the number of this schedule and the total number of schedules.

941s for Rept – W-2s for Rept Social security wages Medicare wages and tips Social security tips Federal tax withheld Advance EIC payment For each of the five dollar amounts enter the total amount for this schedule for 941s and W-2s.

Accept or Escape? (A, Esc) Press A to accept your entries. Press Esc to return to the Payroll Series prompt without saving any changes.

941 Form, Schedule D has been updated. CLS updates the 941 form and returns to the Payroll Series prompt.

 Print Plain Paper Laser 941 Forms (5) Use this routine to laser-print 941s on plain paper. We recommend that you compare the information printed on your 941 forms with the CLS Payroll Journal.

Respond to the following prompts:

Payroll Series (ENTER for all) Enter a payroll series, or press Enter to print 941s for all series. Press F1 to select from a pop-up list of available series.

941 Form Selection (1-7) Press 1 to print pages 1 and 2 of the 941 form, press 2 for page 1 only, press 3 for page 2 only, press 4 for Schedule B only, press 5 for Schedule D only, press 6 for both the 941 form and Schedule B, or press 7 to print the 941 payment voucher. Press F1 to select the form from a pop- up list.

Number of Copies Enter the number of copies to be printed.

Continue? (Y,N) Press Y to accept the form selections. CLS will prompt you to select the correct printer. Press N to return to the Prepare Federal 941 Forms menu.

When all forms have been printed, CLS returns to the Payroll Series prompt. Select another payroll series, or continue to press Esc to return to the Prepare Federal 941 Forms menu.

Payroll Tax Worksheets (TW) 4-45 CLS Payroll Tax Programs

 Print Preprinted Laser 941 Forms (6) Use this routine to laser-print 941s on preprinted forms. We recommend that you compare the information printed on your 941 forms with the Payroll Journal.

Respond to the following prompts:

Payroll Series (ENTER for all) Enter a payroll series, or press Enter to print 941s for all series. Press F1 to select from a pop-up list of available series.

Vendor Selection (1-3) Press 1 if you will use preprinted IRS forms with employer information, press 2 if you will use IRS forms without employer information, or press 3 if you will use preprinted Nelco forms. Press F1 to select the form vendor from a pop-up list.

Number of Copies Enter the number of copies to be printed.

Continue? (Y,N) Press Y to accept the form selections. CLS will prompt you to select the correct printer. Press N to return to the Prepare Federal 941 Forms menu.

When all forms have been printed, CLS returns to the Payroll Series (ENTER for all) prompt. Select another payroll series, or continue to press Esc to exit.

 Print Blank Laser 941 Forms (7) Use this routine to laser-print blank 941 forms.

941 Form Selection (1-6) Press 1 to print page 1 of the 941 form, press 2 for page 2, press 3 for Schedule B, press 4 for Schedule D page 1, press 5 for Schedule D page 2, or press 6 to print the 941 payment voucher. Press F1 to select the form from a pop-up list.

Number of Copies Enter the number of copies to be printed.

Continue? (Y,N) Press Y to accept the form selections. CLS will prompt you to select the correct printer. Press N to return to the Prepare Federal 941 Forms menu.

When all forms have been printed, CLS returns to the 941 Form Selection (1-3) prompt. Continue to press Esc to return to the Prepare Federal 941 Forms menu.

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 Align Laser-Printed 941 Forms (8) Use this routine to align preprinted and plain paper 941 forms. These adjustments will move the data relative to the form image or preprinted form.

941 Form Selection (1-6) Press 1 to align page 1 of the 941 form, 2 to align page 2, 3 to align Schedule B, 4 to align Schedule D page 1, 5 to align Schedule D page 2, or 6 to align the payment voucher. Press F1 to select the form from a pop-up list.

Vendor Selection (0-3) Select the correct form vendor. Press 0 to align plain paper forms, press 1 to align IRS preprinted forms with employer information, press 2 to align IRS preprinted forms without employer information, or press 3 to align Nelco preprinted forms. Press F1 to select the form vendor from a pop-up list.

Continue? (Y,N) Press Y to accept the form selections. Select the correct printer, and respond to the following prompts. Press N to return to the Prepare Federal 941 Forms menu.

Vertical Offset (-0.5000 to +0.5000) You may adjust the vertical position of fields on the page. This adjustment moves all fields up (-) or down (+) on the page.

Horizontal Offset (-0.5000 to +0.5000) You may adjust the horizontal position of fields on the page. This adjustment moves all fields left (-) or right (+) on the page.

Vertical Stretch (-0.5000 to +0.5000) You may change the vertical spacing between lines on the page. This adjustment vertically stretches (+) or contracts (-) spacing between lines.

Horizontal Stretch (-0.5000 to +0.5000) You may change the spacing between fields on the page. This adjustment horizontally stretches (+) or contracts (-) spacing between fields.

When the alignment mask is complete, CLS returns to the Vertical Offset prompt. You may make additional adjustments until you are satisfied with the alignment, or press Esc to return to the 941 Form Selection (1-7) prompt. Continue to press Esc to return to the TW menu.

Federal 941-X, 943-X and 944-X Forms You may use these forms to correct errors on 941, 943 and 944 forms. Basically, you will enter the adjustment information here, and then print the form. Choose 4 from the TW menu and the following screen appears:

Payroll Tax Worksheets (TW) 4-47

CLS Payroll Tax Programs

Select the form type to be corrected. Choose 1 to prepare a 941-X, 2 to prepare a 943-X and 3 to prepare a 944-X.

 Add/Replace Series Information (1) Choose 1 from the Prepare Federal 941-X Forms menu and the following menu appears:

Asterisks (*) beside menu selections 2 through 5 indicate routines that will be unavailable until employer information is entered using menu selection 1.

Use this routine to create a work file for the 941-X.

Respond to the following prompts:

Press 1 to Add/Replace Series Information, and respond to the following prompts:

Payroll Series Enter a payroll series, or press F1 to select the series from a pop-up list.

Continue? (Y,N) Press Y to continue. After completing this step, you can edit the work file and print 941-X forms using a laser printer.

 Menu Selections 2-3 Use these selections to complete the 941-X form:

2 Edit Laser Forms – Pages 1-3 3 Edit Explanation of Adjustments

When you have finished entering the appropriate information, use Menu Selection 4 or 5 to print a submittable 941-X form.

 Print Plain Paper Laser Forms (4) Use this routine to laser-print 941-X forms on plain paper. We recommend that you compare the information printed on your 941-X forms with the CLS Payroll Journal.

Respond to the following prompts:

Payroll Series (ENTER for all) Enter a payroll series, or press Enter to print forms for all series. Press F1 to select from a pop-up list of available series.

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Form Selection (1-4) Press 1 to print page 1 or the 941-X form, 2 to print page 2, 3 to print page 3, or 4 for all pages. Press F1 to select the form from a pop-up list.

Number of Copies Enter the number of copies to be printed.

Continue? (Y,N) Press Y to accept the form selections. CLS will prompt you to select the correct printer. Press N to return to the Prepare Federal 941-X Forms menu.

When all forms have been printed, CLS returns to the Payroll Series prompt. Select another payroll series, or continue to press Esc to return to the Prepare Federal 941-X Forms menu.

 Print Preprinted Laser Forms (5) Use this routine to laser-print 941-X forms on preprinted forms. We recommend that you compare the information printed on your 941-X forms with the Payroll Journal.

Respond to the following prompts:

Payroll Series (ENTER for all) Enter a payroll series, or press Enter to print forms for all series. Press F1 to select from a pop-up list of available series.

Form Selection (1-4) Press 1 to print page 1 or the 941-X form, 2 to print page 2, 3 to print page 3, or 4 for all pages. Press F1 to select the form from a pop-up list.

Vendor Selection (1,2) Press 1 if you will use preprinted IRS forms, or press 2 if you will use preprinted Nelco forms. Press F1 to select the form vendor from a pop-up list.

Number of Copies Enter the number of copies to be printed.

Continue? (Y,N) Press Y to accept the form selections. CLS will prompt you to select the correct printer. Press N to return to the Prepare Federal 941-X Forms menu. When all forms have been printed, CLS returns to the Payroll Series (ENTER for all) prompt. Select another payroll series, or continue to press Esc to exit.

 Print Blank Laser Forms (6) Use this routine to laser-print blank 941-X forms.

Form Selection (1-3) Press 1 to print page 1 or the 941-X form, 2 to print page 2, or 3 to print page 3. Press F1 to select the form from a pop-up list.

Number of Copies Enter the number of copies to be printed.

Payroll Tax Worksheets (TW) 4-49 CLS Payroll Tax Programs

Continue? (Y,N) Press Y to accept the form selections. CLS will prompt you to select the correct printer. Press N to return to the Prepare Federal 941-X Forms menu.

When all forms have been printed, CLS returns to the Form Selection (1-3) prompt. Continue to press Esc to return to the Prepare Federal 941-X Forms menu.

 Align Laser-Printed Forms (7) Use this routine to align preprinted and plain paper 941-X forms. These adjustments will move the data relative to the form image or preprinted form.

Form Selection (1-3) Press 1 to align page 1 of the 941-X form, 2 to align page 2, or 3 to align page 3. Press F1 to select the form from a pop-up list.

Vendor Selection (0-2) Select the correct form vendor. Press 0 to align plain paper forms, press 1 to align IRS preprinted forms, or press 2 to align Nelco preprinted forms. Press F1 to select the form vendor from a pop-up list.

Continue? (Y,N) Press Y to accept the form selections. Select the correct printer and respond to the following prompts. Press N to return to the Prepare Federal 941-X Forms menu.

Vertical Offset (-0.5000 to +0.5000) You may adjust the vertical position of fields on the page. This adjustment moves all fields up (-) or down (+) on the page.

Horizontal Offset (-0.5000 to +0.5000) You may adjust the horizontal position of fields on the page. This adjustment moves all fields left (-) or right (+) on the page.

Vertical Stretch (-0.5000 to +0.5000) You may change the vertical spacing between lines on the page. This adjustment vertically stretches (+) or contracts (-) spacing between lines.

Horizontal Stretch (-0.5000 to +0.5000) You may change the spacing between fields on the page. This adjustment horizontally stretches (+) or contracts (-) spacing between fields.

When the alignment mask is complete, CLS returns to the Vertical Offset prompt. You may make additional adjustments until you are satisfied with the alignment, or press Esc to return to the Form Selection (1-3) prompt. Continue to press Esc to return to the TW menu.

Federal Unemployment (940) Forms You may print 940 Preliminary Reports and submittable 940 forms for the current ledger. When you display or print a 940 Preliminary Report, CLS creates a work file from which 940 forms may be laser-printed on preprinted forms or plain paper. You may also laser-print blank 940 forms and alignment masks.

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Choose 5 from the TW menu and the following menu appears:

Asterisks (*) beside menu selections 2-6 indicate routines that will be unavailable until you display or print the 940 Preliminary Report.

 Print/Display 940 Preliminary Report (1) Use this routine to display or print a 940 Preliminary Report for any or all employee series in the current ledger. This step creates a work file with information from which the 940 form may be printed. The work file will not be created unless you complete this step.

Respond to the following prompts: Enter Payroll Series or press ENTER for all Series: Enter a payroll series, or press Enter for all series. Press F1 to select the series from a pop-up list.

 Note: If you select a single series, the work file will contain only that series. If you press Enter for all series, the work file will contain all employee series for the current ledger.

Selected Quarter or Year-to-Date (Q,Y)? [Q] Press Y to print year-to-date information, or press Enter to accept the default Q response and print information for the selected quarter.

Calendar Quarter to be Printed? Enter the calendar quarter for which the Preliminary Report is to be printed. CLS defaults to the current calendar quarter.

(D)isplay, or number of copies to print (D,1-9) Press D to display the 940 Preliminary Report, or enter the number of copies to print. Press 1 to print a single copy. If you chose to print the worksheet, CLS will prompt you to select a printer. When the Preliminary Report is complete, CLS returns to the Prepare Federal 940 Forms menu. You may now edit the work file and print 940 forms using a laser printer.

 Edit Laser Form 940 Page 1, Page 2, Voucher (2) Use this routine to edit the information in the work file as needed. Remember, the work file contains only the information collected when you printed or displayed the 940 Preliminary Report.

Payroll Tax Worksheets (TW) 4-51 CLS Payroll Tax Programs

Payroll Series Enter a payroll series number, or press F1 to select the series from a pop-up list. Press Y to continue, and the following screen appears:

CLS displays the 940 work file for the selected series. Use the page-up, page-down and arrow keys (↑,↓) to scroll through the screen and make changes where necessary. When you are satisfied with the work file, press Esc to move directly to the Accept or Escape? (A,Esc) prompt.

Accept or Escape? (A,Esc) Press A to accept the changes to the 940 form. Press Esc to return to the Payroll Series prompt without saving the changes.

940 Form has been updated. CLS updates the 940 form for the current series and returns to the Payroll Series prompt. Select another series, or press Esc to return to the Prepare Federal 940 Forms menu.

 Edit Form 940 Worksheet (3) Payroll Series Enter a payroll series number, or press F1 to select the series from a pop-up list.

Continue? (Y,N) Press Y to continue, and the following screen appears:

CLS displays the 940 worksheet for the selected series. Use the arrow keys (↑,↓) to scroll through the form and make changes where necessary. When you are satisfied with the work file, press Esc to move directly to the Accept or Escape? (A,Esc) prompt.

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Accept or Escape? (A,Esc) Press A to accept the changes and return to the Payroll Series prompt. Press Esc to return to the Payroll Series prompt without saving any changes.

Form 940 Worksheet has been updated. CLS updates the 940 form for the current series and returns to the Payroll Series prompt. Select another series, or press Esc to return to the Prepare Federal 940 Forms menu.

 Edit Laser Form 940 Schedule A (4) Use this routine to list Taxable FUTA Wages for credit reduction states.

 Print Plain Paper Laser 940 Forms (5) Use this routine to laser-print 940s on preprinted forms. We recommend that you compare the information printed on your 940 forms with the Payroll Journal. Respond to the following prompts:

Payroll Series (ENTER for all) Enter a payroll series, or press Enter to print 940s for all series. Press F1 to select from a pop-up list of available series.

940 Form Selection (1-4) Press 1 to print pages 1 and 2 of the 940 form, press 2 for the 940 Worksheet, press 3 for Schedule A, or press 4 to print the Form 940 payment voucher. Press F1 to select the form from a pop-up list.

Complete Payment Voucher (Y,N) Press Y if you would like the payment voucher completed (the dollar amount is entered using menu selection 2, above). Press N if you do not.

Number of Copies Enter the number of copies to be printed.

Continue? (Y,N) Press Y to accept the form selections. CLS will prompt you to select the correct printer. Press N to return to the Prepare Federal 940 Forms menu. When all forms have been printed, CLS returns to the Payroll Series (ENTER for all) prompt. Select another payroll series, or continue to press Esc to return to the Prepare Federal 940 Forms menu.

 Print Preprinted Laser 940 Forms (6) Use this routine to laser-print 940s on preprinted forms. We recommend that you compare the information printed on your 940 forms with the Payroll Journal.

Respond to the following prompts:

Payroll Series (ENTER for all) Enter a payroll series, or press Enter to print 940s for all series. Press F1 to select from a pop-up list of available series.

940 Form Selection (1-4) Press 1 to print pages 1 and 2 of the 940 form, press 2 for the 940 Worksheet, press 3 for Schedule A, or press 4 to print the payment voucher. Press F1 to select the form from a pop-up list.

Payroll Tax Worksheets (TW) 4-53 CLS Payroll Tax Programs

Complete Payment Voucher (Y,N) Press Y if you would like the payment voucher completed. Press N if you do not.

Number of Copies Enter the number of copies to be printed.

Continue? (Y,N) Press Y to accept the form selections. CLS will prompt you to select the correct printer. Press N to return to the Prepare Federal 940 Forms menu.

When all forms have been printed, CLS returns to the Payroll Series (ENTER for all) prompt. Select another payroll series, or press Esc to return to the Prepare Federal 940 Forms menu. Press Esc again to return to the TW menu.

 Print Blank Laser 940 Forms (7) Use this routine to laser-print blank 940 forms.

940 Form Selection (1-4) Press 1 to print pages 1 and 2 of the 940 form, press 2 for the 940 Worksheet, press 3 for Schedule A, or press 4 to print the all of the 940 forms. Press F1 to select the form from a pop-up list.

Number of Copies Enter the number of copies to be printed.

Continue? (Y,N) Press Y to accept the form selections. CLS will prompt you to select the correct printer. Press N to return to the Prepare Federal 940 Forms menu.

When all forms have been printed, CLS returns to the 940 Form Selection (1-4) prompt. Continue to press Esc to return to the Prepare Federal 940 Forms menu.

 Align Laser-Printed 940 Forms (8) Use this routine to align preprinted and plain paper 940 forms. These adjustments will move the data relative to the form image or preprinted form.

940 Form Selection (1-5) Press 1 to print page 1 of the 940 form, press 2 for page 2, press 3 for the 940 Worksheet, press 4 for Schedule A, or press 5 to print the payment voucher. Press F1 to select the form from a pop-up list.

Vendor Selection (0-3) Press 0 to align plain paper forms, press 1 to align preprinted IRS forms with employer information, 2 to align preprinted IRS forms without employer information, or 3 if you will use preprinted Nelco forms. Press F1 to select the paper type from a pop-up list.

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Continue? (Y,N) Press Y to accept the form selections. Select the correct printer, and respond to the following prompts. Press N to return to the Prepare Federal 940 Forms menu.

Vertical Offset (-0.5000 to +0.5000) You may adjust the vertical position of fields on the page. This adjustment moves all fields up (-) or down (+) on the page.

Horizontal Offset (-0.5000 to +0.5000) You may adjust the horizontal position of fields on the page. This adjustment moves all fields left (-) or right (+) on the page.

Vertical Stretch (-0.5000 to +0.5000) You may change the vertical spacing between lines on the page. This adjustment vertically stretches (+) or contracts (-) spacing between lines.

Horizontal Stretch (-0.5000 to +0.5000) You may change the spacing between fields on the page. This adjustment horizontally stretches (+) or contracts (-) spacing between fields.

When the alignment mask is complete, CLS returns to the Vertical Offset prompt. You may make additional adjustments until you are satisfied with the alignment, or press Esc to return to the 940 Form Selection (1-5) prompt. Continue to press Esc to return to the TW menu.

 Federal Unemployment (940) Wage List (9)  Note: This is an internal report.

Enter Payroll Series or press ENTER for all Series: Enter a payroll series, or press Enter for all series. Press F1 to select the series from a pop-up list.

Separate Series or Consolidated (S,C)? If a list will be printed for more than one payroll series, press S to print separate lists for each series, or press C to consolidate the series totals and use the same employer name and address. The default response is set in program LI, Menu Selection 3 (1).

Selected Quarter or Year-to-Date (Q,Y)? [Q] During the first three quarters of the calendar year, CLS defaults to Q (print current quarter payroll data). In the last quarter, it defaults to Y (print year-to-date information). Press Enter to accept the default value, or press Q or Y to override it.

Calendar Quarter to be Printed? Enter the calendar quarter for which the Preliminary Report is to be printed.

Make sure printer contains (8½ x 11) blank paper. *** Press ENTER to continue:

When the report is complete, CLS returns to the TW menu.

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State Unemployment Reports Choose 7 from the TW menu and the following menu appears:

 State Unemployment, SDI and Other Tax Worksheet (1)  Note: This is an internal contribution worksheet.

Enter Payroll Series or press ENTER for all Series: Enter a payroll series, or press Enter for all series. Press F1 to select the series from a list.

Separate Series or Consolidated (S,C)? If worksheets will be printed for more than one payroll series, press S to print separate reports for each series, or press C to consolidate the series and use the same employer name and address. The default response is set in program LI, Menu Selection 3 (1).

Selected Quarter or Year-to-Date (Q,Y)? [Q] Press Enter to accept the default Q value to print current quarter payroll data, or press Y to print year-to-date information.

Calendar Quarter to be Printed? Enter the calendar quarter for which the worksheet is to be printed. CLS defaults to the current calendar quarter.

 State Unemployment Continuation Sheet (2) Use this routine to print submittable state continuation sheets or an internal continuation sheet audit trail. Use Menu Selection 2, to align the submittable continuation sheet.

 Notes: • If the State Abbreviation you entered in the PF program is AL, AZ, CA, CO, FL, HI, IA, MD, MI, NC, NJ, OH, OR, SC, TN, TX, UT, WA, WI (or another state requiring OCR-scannable reports), the continuation sheets will automatically print in the OCR-readable format required by that state. • CLS uses formats tailored to specific state requirements for non-OCR states. • You are responsible for understanding special state reporting requirements. For example, many states allow continuation sheets to be printed on computer paper or preprinted forms, but some, like Hawaii, require preprinted forms. Other states have requirements about paper weight.

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• A single payroll series may not contain employees with different SUTA states.

Choose 2 from the State Unemployment Reports menu. Select the continuation sheet format, and respond to the following prompts:

Enter Payroll Series or press ENTER for all Series: Enter a payroll series, or press Enter for all series. Press F1 to select the series from a pop-up list.

Separate Series or Consolidated (S,C)? If a continuation sheet or audit trail will be printed for more than one payroll series, press S to print separate reports for each series, or press C to consolidate the series and use the same employer name and address. The default response is set in program LI, Menu Selection 3 (1).

Selected Quarter or Year-to-Date (Q,Y)? [Q] For the continuation sheet or audit trail, press Enter to accept the default Q value to print current quarter (submittable) payroll data, or press Y to print year-to-date (internal) information.

Calendar Quarter to be Printed? Enter the calendar quarter for which the worksheet is to be printed. CLS defaults to the current calendar quarter.

Print employees with zero balances? (Y,N) For the audit trial, press Y to include employees with zero balances.

Processing State… CLS displays the state represented by this payroll series.

Make sure printer contains (8½ x 11) blank paper. Make sure printer contains pre-printed forms. *** Press ENTER to continue: Depending on your state’s reporting requirements, you may be prompted to either select the appropriate paper type or make sure your printer contains the correct paper (blank or pre-printed). CLS saves the last state printed as the default and will only prompt you again for the paper type if the state changes.

Using Preprinted Labels (Y,N)? [N] If you are using pre-printed forms, CLS will also ask if the address is already printed on the form. When the report is complete, CLS returns to the State Unemployment Reports menu.

 State Unemployment Wage List - Tax 2 (3)  Note: This routine produces an internal wage listing for the second component of unemployment tax defined in program PF. This report does not contain the same information as the report printed in TW, Menu Selection 7 (2), and is not submittable.

Choose 3 from the State Unemployment Reports menu and respond to the following prompts:

Payroll Tax Worksheets (TW) 4-57 CLS Payroll Tax Programs

Enter Payroll Series or press ENTER for all Series: Enter a payroll series, or press Enter for all series. Press F1 to select the series from a pop-up list.

Separate Series or Consolidated (S,C)? If forms will be printed for more than one payroll series, press S to print separate reports for each series, or press C to consolidate the series and use the same employer name and address. The default response is set in program LI, Menu Selection 3 (1).

Selected Quarter or Year-to-Date (Q,Y)? [Q] Press Enter to accept the default Q value to print current quarter payroll data, or press Y to print year-to-date information.

Calendar Quarter to be Printed? Enter the calendar quarter for which the worksheet is to be printed. CLS defaults to the current calendar quarter.

Make sure printer contains (8½ x 11) blank paper. *** Press ENTER to continue: When the report is complete, CLS returns to the State Unemployment Reports menu.

 State Unemployment Tax Returns (4)  Note: An asterisk (*) will appear next to this menu selection indicating that it is unavailable unless you have installed the CLS ~ Unemployment Plus™ add-on program.

This routine prints forms for the following states: Alabama UC-CR4, Arizona UC-018, Arkansas DWS-ARK-209B, California DE-7, Connecticut UC-2/5A, Florida UCT-6, 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/UCE-101, Tennessee LB-0456 and LB-0851, Texas C-3, Virginia VEC-FC-20 and Wisconsin UCT-101.

 State Unemployment Magnetic Media Reporting (5)  Note: An asterisk (*) will appear next to this menu selection indicating that it is unavailable unless you have installed the CLS ~ SUTA Magnetic Media™ add-on program.

This routine provides SUTA electronic/magnetic media filing for: Alabama, Arizona, Arkansas, California, Connecticut, Florida, Georgia, Illinois, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, South Carolina, Tennessee, Texas, Virginia, Wisconsin and Wyoming.

 SUTA Rates and Limits by Ledger (6) Choose 6 from the State Unemployment Reports menu and respond to the following prompts:

Enter Ledger I.D. or press ENTER for all Ledgers: Select a ledger. Press Enter to select the current generation of all ledgers in the current data path. Press F1 to select the ledger from a pop-up list.

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Current Calendar Year If all ledgers are selected, CLS will analyze the current generation of each ledger in the data path, looking for SUTA rates and limits. To restrict the search to a specific calendar year, enter the year here. CLS does not include prior ledger generations in the report.

When the report is complete, CLS returns to the State Unemployment Reports menu.

 SDI and Other Rates and Limits by Ledger (7) Choose 7 from the State Unemployment Reports menu and respond to the following prompts:

Enter Ledger I.D. or press ENTER for all Ledgers: Enter the ledger I.D. for which you want to print SDI and Other Rates and Limits. Press Enter to print rates for the current generation of all ledgers in the current data path. Press F1 to select the ledger from a pop-up list.

 Align State Unemp Continuation Sheet (8) This routine is used for page alignment of dot-matrix or laser printers.

 Note: If you print a page alignment mask using a dot-matrix printer, realign the paper in the printer until the mask prints correctly; there are no general adjustments for dot-matrix printers.

Choose 8 from the State Unemployment Reports menu. Select the correct printer. For laser printers, respond to the following prompts:

Vertical Offset (-0.5000 to +0.5000) You may adjust the vertical position of fields on the page. This adjustment moves all fields up (-) or down (+) on the page.

Horizontal Offset (-0.5000 to +0.5000) You may adjust the horizontal position of fields on the page. This adjustment moves all fields left (-) or right (+) on the page.

Vertical Stretch (-0.5000 to +0.5000) You may change the vertical spacing between lines on the page. This adjustment vertically stretches (+) or contracts (-) spacing between lines.

Payroll Tax Worksheets (TW) 4-59 CLS Payroll Tax Programs

Horizontal Stretch (-0.5000 to +0.5000) You may change the spacing between fields on the page. This adjustment horizontally stretches (+) or contracts (-) spacing between fields.

When the print mask is complete, CLS returns to the Current printer prompt. You may make additional adjustments, or press Esc to return to the TW menu.

Year-to-Date Employee/Vendor Activity This routine produces reports showing year-to-date gross wages by employee or net payments by vendor.

Choose 8 from the TW menu and respond to the following prompts:

Enter Payroll Series or press ENTER for all Series: Enter a payroll series, or press Enter for all series. Press F1 to select the series from a pop-up list.

Employee, Vendor, Misc (E,V,M) or press ENTER for all Series: If you did not enter a payroll series: Select the series type to appear on the employee/vendor activity report, or press Enter to list all series types.

Enter Vendor Type or press ENTER for all Types: If you chose to print only vendor series: Select the 1099/1098 type to appear on the employee/vendor activity report, or press Enter for all types. Press F1 to select the vendor type from a pop-up list.

Ending Quarter to be Printed? Enter the calendar quarter through which the report is to be printed. CLS defaults to the current calendar quarter.

Use this routine if printing from another application has interfered with the downloaded fonts and they are no longer available to your printer.

Choose 9 from the TW menu to download soft tax fonts. Respond to the following prompt:

Current printer: [HP Laser: Portrait ]? (Y,N) Select the printer to which the fonts should be downloaded.

Downloading Soft Tax Fonts Please wait… CLS downloads the fonts to the selected printer and returns to the TW menu.

4-60 Payroll Tax Worksheets (TW) Appendix

Appendixes

A: Warning Messages ...... A-1

B: Glossary ...... B-1

C: CLS Ledger Limits (Payroll) ...... C-1

Appendixes

aAa Warning Messages

Cannot delete - Balances for Beginning of Year and Quarters 1-5 must be zero. Employees with balances or transactions cannot be deleted.

Caution - End of calendar year. Payroll balances will be cleared. This message appears at the end of the calendar year (EP) to warn you that payroll balances will be cleared.

End of calendar year... Would you like to UPDATE PAYROLL RATES WITH NEXT YEAR RATES? (Y,N) [Y] Would you like to DELETE INACTIVE EMPLOYEES/VENDORS? (Y,N) [N] These prompts appear at the end of a calendar year (EP). Press Enter to accept the default Y response and update state unemployment and disability rates for the new year. CLS will also ask if you would like to delete employees/vendors with no transactions during the prior year or who have been terminated based on a termination date entered in program EF.

'H' option set to suppress W-2 'H' option set to suppress 1099/1098 An H option has been assigned to this employee/vendor in program EF, indicating that a W-2 or 1099/1098 should not be prepared.

Invalid employee Invalid vendor The employee or vendor entered is outside the allowable range (100-9999), or no valid payroll series was found.

Invalid employee range for series selected Invalid vendor range for series selected The employee/vendor range entered is not valid. Make sure the employee/vendor entered belongs to the selected series.

Invalid Payroll/Vendor Account An invalid payroll/vendor account was entered (ET) for the selected employee/vendor.

Invalid payroll series The payroll series entered does not exist. Payroll series must be created in program PF.

Invalid series A payroll series does not exist or you have entered an incorrect series number.

A-1 Appendix Appendixes

Missing employee ‘112’ Press ENTER to continue: This message appears during posting (PT) if transactions exist for an employee that CLS cannot validate.

Selected printer is not a laser printer When printing forms that require a laser printer, CLS checks that a laser printer has been selected. Make sure your laser printer is properly defined in program SI, Menu Selection 1 (6,1); answer Y to the Laser Printer (Y,N) prompt.

Unemployment Plus is not installed. The CLS ~ Unemployment Plus is an add-on program. An asterisk (*) next to this selection on the TW menu indicates that the program is not installed.

Warning - End of calendar year Social Sec/Medicare rates for '2011' must be set in PF#4, #2 This message appears at the end of the calendar year (EP) if next year's Social Security and Medicare rates have not been defined in program PF, Menu Selection 4 (2).

Warning: Invalid payroll column types found in series ‘1000’. This message appears in the Payroll Tax Forms (TF) program if payroll columns have not been defined correctly. Check the payroll column setup (PF) for the payroll series for which you would like tax forms printed.

Warning: No valid series found. Select ledger? This message appears in the Payroll Tax Forms (TF) program if no valid payroll series exist for a ledger selected for batch processing.

Warning: Quarter Ending Date for this ledger is ‘3/31/10’. Continue? This message appears in the Payroll Tax Forms (TF) program if the quarter-end date is not the calendar year-end date.

Appendix A-2 Appendixes

aBa Glossary

Employee Number You are asked to assign a number to each employee or vendor set up in program EF. Valid numbers begin with the series number and end with the number before the beginning of the next series, or 9999, whichever comes first. For example, if you use series 100 for employees and series 5000 for vendors, valid employee numbers would range from 100 to 4999, while valid vendor numbers would range from 5000 to 9999.

Passive Payroll CLS has a built-in after-the-fact payroll module which is called passive because it does not calculate pay or print checks. It is designed to track payroll information for quarterly and end-of-year reporting.

Payroll Columns In the Payroll Journal you must define columns that correspond to gross pay and any deductions or additions you would like to record. You must then assign a payroll column type and an account number to each column. (Payroll columns that do not affect W-2s or 1099s/1098s should not be assigned a column type.)

Payroll Journal The Payroll Journal prints information about current-period gross pay, deductions and additions, and quarter and year-to-date totals for employees by payroll series. A Payroll Journal for a vendor series is called a Vendor Journal.

Payroll Series A payroll series defines a group of employees whose paychecks have the same set of possible deductions and additions and who share certain taxability characteristics. Tax Forms CLS lets you print employee W-2s and W-3s and vendor 1099/1098 and 1096 forms. Use program TF to print these forms and alignment masks.

Tax Worksheets CLS allows you to print 940/941/943/944 worksheets and submittable forms, state and federal unemployment continuation sheets, a state unemployment contribution worksheet and a federal unemployment deposit worksheet. Use the TW program to print these forms and alignment masks.

B-1 Appendix Appendixes

aCa CLS Ledger Limits (Payroll)

 Employees and Vendors 9900 records (per ledger)

 Dollar Amounts ± 21,000,000 in any field in an employee or vendor record

Appendix C-1 Index

Column Types 1-4 to 1-6, 2-26 to 2-27 Deleting 2-12 to 2-15 Index Local Jurisdiction 2-7, 2-10, 2-23 Name Control 2-8, 2-21, 2-23 Name Convention 1-3, 1-6, 2-6, 2-22, 2-23 Number 2-5 to 2-6 A Options 2-6 to 2-7, 2-8, 2-10 Querying 2-15 to 2-16 After-the-Fact Payroll (see Payroll File Maintenance) Renumbering 2-16 Alignment 4-2 to 4-3, 4-41 Seasonal 2-7 940 Forms 4-55 to 4-56 941, 943, 944 Forms 4-47 941-X Forms 4-47 to 4-51 1096 Forms 4-34 F 1099/1098 Forms 4-25 to 4-26 FICA Adjustments 1-8, 2-2 to 2-3, 2-22 Unemployment Continuation Sheet 4-60 to 4-61 FICA/FUTA Source 2-21, 2-28 to 2-30 W-2 Forms 4-9 to 4-10 Fonts, Soft Tax (see Soft Tax Fonts) W-2c Forms 4-36 to 4-37 Form Alignment (see Alignment) W-3 Forms 4-16 to 4-17 Form Requirements 4-39 to 4-40 W-3c Forms 4-38 to 4-39 Forms Vendors (W-2s, 1099s, etc.) 4-2 Annual Payroll Tax Summary 3-4, 3-7 Fringe Benefits 1-4, 2-26 Asterisk (*) 1-5, 1-9, 3-3, 3-4, 4-37, 4-39, 4-42, 4-48, 4-51, 4-59 G

B Gross-Pay Column 2-6, 2-25 to 2-27 Batch Processing 1096 Forms 4-29 to 4-31 1099/1098 Forms 4-20 to 4-22 H W-2 Forms 4-6 to 4-8 Horizontal Offset 4-2, 4-10, 4-17, 4-26, 4-34, 4-37, W-3 Forms 4-13 to 4-16 4-39, 4-41, 4-47, 4-51, 4-55, 4-60 Horizontal Stretch 4-3, 4-10, 4-17, 4-26, 4-34, 4-37, 4-39, 4-41, 4-47, 4-51, 4-55, 4-61 C Household/Agricultural Employees 2-3, 2-22 Cafeteria Plan 1-4, 2-27 California Unemployment Series Type 1-3, 2-21 to 2-22 Cash Wages 2-3, 2-22 J Column Accounts 1-4, 2-6, 2-8, 2-10, 2-25, 2-27 Journal Format (Payroll) 1-2, 2-21, 2-23 Column Types (Payroll) 1-4 to 1-6, 2-26 to 2-27 Computed Transactions (CT) 2-2 to 2-4 Contact Information 2-24 to 2-25 CT Options 1-8, 2-22 L Ledger Limits (Payroll) Appendix C D Local Jurisdiction 2-7, 2-10, 2-23

Default Account 1-4, 2-6, 2-8, 2-10 Default Column 1-4, 2-6, 2-8, 2-10 M Download Soft Tax Fonts 2-38 Medicare Column 1-3, 2-25, 2-27 Missing-Information Report 2-17 to 2-18 Missing-Information Worksheet 2-17 to 2-18 E Moore Wallace, Inc. 4-2 Employee File List (EL) 1-11, 2-17 to 2-18 Missing-Information Report 2-17 to 2-18 Missing-Information Worksheet 2-17 to 2-18 N New Hire Report 2-17 to 2-18 Employee File Maintenance (EF) 2-5 to 2-16 Name Control 2-8, 2-21, 2-23 Adding/Revising 2-5 to 2-11 Name Convention 1-3, 1-6 to 1-7, 2-6, 2-22, 2-23 Balances 1-7, 2-11 to 2-12 Nelco, Inc. 4-2 Check Counts 2-12 New Hire Report 2-17 to 2-18 Column 1 Account 1-4, 2-6, 2-8, 2-10

1 - Index Index

O R

Optional Sort Key 2-7, 2-9, 2-10, 2-18 Renumber an Employee or Vendor 2-16 Options Employee (see Employee File Maintenance) Vendor (see Vendor File Maintenance) S

Safeguard Business Systems 4-2 P SDI Adjustments 1-9, 2-4 SDI and Other Rates and Limits by Ledger 4-60 Payroll Column Taxability 2-30 to 2-31 SEP Plan (see Payroll File Maintenance) Payroll File Maintenance (PF) 2-19 to 2-34 Series Level FICA/FUTA/SUTA/SDI Accounts, Rates, 401K Plan 1-4, 2-26 and Limits 2-28 to 2-29 Active Series 2-33 Setting CLS Payroll Options (SI) 2-35 to 2-38 Adding or Revising a Payroll Series 2-19 to 2-24 Simple IRA 2-26 Cafeteria Plan 1-4, 2-27 Soft Tax Fonts 2-38, 4-2, 4-40, 4-41, 4-61 Column Definition 2-25 to 2-28 Sort Key 2-7, 2-9, 2-10, 2-18 Column Types 1-4 to 1-6, 2-25 to 2-27 State Unemployment Continuation Sheet 4-57 to 4-58 Contact Information 2-24 to 2-25 Alignment 4-60 to 4-61 Deleting a Payroll Series 2-33 State Unemployment Reports 4-57 to 4-61 Fringe Benefits 1-4, 2-26 State Unemployment, SDI and Other Tax Worksheet Primary Series 2-33 4-57 Querying a Payroll Series 2-33 to 2-34 State Unemployment Tax Returns 4-57 to 4-59 SEP Plan 1-4, 2-26 State Unemployment Wage List, Tax 2 4-58 to 4-59 Simple IRA 2-26 SUTA Rates and Limits by Ledger 4-59 to 4-60 Tip Processing 1-4 to 1-5, 2-26 Year-to-Date Employee/Vendor Activity 4-61 Payroll Journal (PJ) 1-2 to 1-6, 1-9 to 1-10, 3-2 to 3-4 System Level FICA/FUTA Rates and Limits 2-29 to 2-30 Payroll Limits (Ledger) Appendix C Payroll Options, Setting CLS (SI) 2-35 to 2-38 Payroll Series Types 1-2, 2-20 T Payroll Tax Calculations 1-8, 2-2 to 2-4, 3-4 Payroll Tax Forms (TF) 4-2 to 4-40 Tax Fonts (see Soft Tax Fonts) 1096 Transmittal Forms 4-27 to 4-34 Tax Forms (see Payroll Tax Forms) 1099/1098 Forms 4-17 to 4-26 Tax Worksheets (see Payroll Tax Worksheets) Box 13 4-5, 4-8 TFP Data Systems 4-2 Box 14 4-5, 4-8, 4-13 Tip Processing 1-4 to 1-5, 2-26 W-2 Forms 4-3 to 4-10 W-2c Forms 4-34 to 4-37 W-3 Transmittal Forms 4-10 to 4-17 U W-3c Forms 4-37 to 4-39 Payroll Tax Liability 2-32, 3-3 Unemployment Reports (see Payroll Tax Worksheets) Payroll Tax Rates and Limits 1-6, 2-28 to 2-30 Payroll Tax Worksheets (TW) 4-41 to 4-61 940 Forms 4-51 to 4-56 940 Wage Lists 4-56 V 941, 943, 944 Forms 4-42 to 4-47 Vendor File Maintenance (EF) 2-5 to 2-16 941-X, 943-X, 944-X Forms 4-47 to 4-51 Adding or Revising 2-5 to 2-6, 2-8 to 2-11 SDI and Other Rates and Limits by Ledger 4-60 Balances 1-7, 2-11 SUTA Rates and Limits by Ledger 4-59 to 4-60 Column Types 2-27 Pound Sign (#) on Payroll Journal 1-8, 3-3, 3-4 Default Account 1-4, 2-8, 2-10 Default Column 1-4, 2-8, 2-10 Deleting 2-12 to 2-15 Q Local Jurisdiction 2-8, 2-23 Missing-Information Report 2-17 to 2-18 Query Name Control 2-9, 2-23 Employee 2-15 to 2-16 Name Convention 1-3, 1-6 to 1-7, 2-6, 2-22, 2-23 Payroll Series 2-33 to 2-34 Number 2-5 to 2-6 Query Employee Detail (QE) 3-5 to 3-7 Options 2-8 Query Annual Payroll Summary 3-7 Querying 2-15 to 2-16 Query Current Detail 3-5 to 3-6 Series Types 2-20 Query Year-to-Date Detail 3-6 to 3-7 Vendor Journal 1-3 to 1-4, 1-6 to 1-9, 3-2 to 3-4 Verification of Employee Earnings 3-5, 3-6, 3-7 Verification of Employee Earnings (see Query Employee Detail)

Index - 2 Index

Vertical Offset 4-2, 4-10, 4-17, 4-26, 4-34, 4-37, 4-38, 4-41, 4-47, 4-51, 4-55, 4-60 Vertical Stretch 4-3, 4-10, 4-17, 4-26, 4-34, 4-37, 4-39, 4-41, 4-47, 4-51, 4-55, 4-60 Visible Computer Supply 4-2

Weeks Worked 2-7, 2-12, 2-22

Year-to-Date Balances (EL) 2-18 Year-to-Date Employee/Vendor Activity (TW) 4-61

3 - Index