Before we begin processing W-2's, we need to ensure that specific areas in CDM+ Payroll are properly set up. These areas include:

• Payroll Payer Records
• Deduction Setup
• Employee Records Setup and Housing Allowance Pay Item

Review Payer Records

Program → Payroll → Payer Records

1. Click All in the lefthand sidebar to see all of the created payer records. Select the one used to create this past year's payroll.
2. Ensure the Federal ID Number is correct.

3. Review Company information and make sure it is correct. 

4. Review Contact information and ensure that it is correct. This can also be updated in Aatrix Forms Viewer, but it will not be updated in CDM+.

   
   

   This information can be updated in the Aatrix Forms Viewer, however, this does not update the information in CDM+.

   Also, ensure that the proper 941 Depository Frequency is selected. If you file a Schedule B form, then select 'Semiweekly'. In our example, the church does not file a Schedule B so 'Monthly' is selected.

5. Ensure a State is selected and the State's Tax ID is correct.

Review Deductions

Example: 403-B Deductions to be printed on W-2's

Program → Payroll → Deduction Setup Records

Select the 403-B deduction in the Results list.

1. Select All
2. Select the '403-B Deduction' in the Results List.

3. Ensure the W-2 Field is correct for any deductions that will show on W-2s. 
   
   

   You can perform a simple search to find a specific deduction, by clicking on the Find option in the lefthand sidebar.

   
   

   
   

Example: Local Tax Setups

Select the Local Tax deduction in the Results list.

1. Ensure the Tax Form field is set to 'Local Withholding'.
2. Ensure the correct local tax account number is correct.
3. Ensure the correct Local Type is selected.

Review Employee Record Setup

Program → Payroll → Employee Records

1. Select an employee to review.
2. Select the Setup tab.

3. Review the information under the W-2 section of the Employee Records Setup tab. For example, if an employee is contributing to a retirement plan, then the checkbox labeled 'Retirement Plan' must be checked. Also, if there are employees who have elected to receive electronic W-2's, then the checkbox labeled 'Electronic W2 Only' must be checked. 
   
   

   The Electronic W2 Only option requires that you have signed authorization forms for each employee electing to receive electronic W-2's only. NOTE: NO paper W-2's are generated when this is selected.

4. Now, let's look at the Housing Allowance Pay Item. Click on the Pay Items tab.
   
   

Review Employee Record Housing Allowance Pay Item W-2 Field Setup

1. Ensure that the W-2 Line for the Housing Allowance is set to 'W2 Box 14 - Other' and the W2 Description reads 'Housing'.
2. Click on the Taxes/Deduction tab.

Review Employee Record Housing Allowance Pay Item Setup

1. Ensure all Tax Items are set to 'Exempt' and all of the checkboxes for 'Exclude from W-2' under Status are checked. 
   
   

   Ensuring that the checkboxes under Status are checked is critical. If these checkboxes are not checked, then the Housing Allowance will be included in Box 1 of the W-2 and Box 14 which will overstate your income in Box 1.

Begin the W-2 Process

With the above items reviewed, we are ready to begin the processing of this year's W-2's.

Reports → Payroll Reports → Payroll Tax Forms

1. Select the past year's W-2/W-3.
2. Enter 'the past year' in the Year field.