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

Review Payer Records

Program → Payroll → Payer Records

  1. Click All in the lefthand sidebar to see all of the created payer records. Select the record used to create this past year's payroll.
  2. Ensure 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 information can be updated in the Aatrix Form Viewer, however, this does not update the information in CDM+.

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

  5. Ensure that 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

  1. Click All in the lefthand sidebar to see all of the created deductions. 
  2. Select the 403-B Contribution record in the Results List.

  3. Ensure the W-2 Form field is set to 'W2 Box 12 - Code E.'

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


Example: Local Tax Setup

  1. Select the local tax deduction in the Results List. In our case, the local tax is named Clark County Tax.
  2. Ensure the Tax Form field is set to 'Local Withholding.'
  3. Ensure the correct local tax account number is correct.
  4. Ensure the correct Local Type is selected.



Review all deductions that will be reported on your W-2's to ensure that the W-2 field has the appropriate option selected. Contact a Tax Professional if you are unsure of the appropriate selection.

Review Employee Record Setup

Program → Payroll → Employee Records

  1. Open Setup tab of Employee Record window.

  2. 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 'Retirement Plan' must be checked. In addition, if the employee has elected to only receive their W-2's electronically, 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.

  3. 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. Select the 'Housing' pay item under the Pay Items list.
  2. Ensure that the W-2 Line for the Housing Allowance is set to 'W2 Box 14 - Other' and the W2 Description reads 'Housing.'
  3. Click on the Taxes/Deduction tab.


Review Employee Record Housing Allowance Pay Item Setup under Taxes/Deductions

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


Note: The 'Exclude from W-2' can be thought of as excluding this item from Box 1 on the W-2.


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 complete, 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.


Withholding Clarification window

Upon clicking to open the W-2/W-3 forms, a dialog opens wanting you to tell the Aatrix Forms Viewer whether you implemented the Payroll Tax Deferment Program in 2020. You must click the appropriate selection. 

In our example, we did not implement the Payroll Tax Deferment program, so we click No.