2013 Year-End Updates (W-2 & 1099)
2013 Payroll W-2 Form Update
The IRS will require the 2013 W-2’s, issued in January of 2014, to provide employer-sponsored health coverage cost information in Box 12 under the code DD as part of the Affordable Care Act. The DD amount is not taxable and the reporting requirement is to provide employees useful and comparable consumer information on the cost of their health care coverage. The current version of Elliott Payroll does not track this information, but since the 2012 year-end update it can be manually entered for the printed and electronic W-2’s. Follow the steps outlined in the 2013 Year End Payroll Update Procedures to report “employee-sponsored heath coverage cost information” on the W-2’s.
A higher bracket of additional Medicare tax of 0.9% was created for wages in excess of $200,000 in 2013 and Elliott 7.5 already supports this additional tax. As of this writing, information is not available if this tax will be adjusted in 2014. Refer to any future publications from the federal government on this matter.
There is no change to the 2013 W-2 Tax Form layout from 2012. If you need to purchase W-2 forms, our tests used STAPLES item number 198518, W-2 Tax Forms, Inkjet & Laser Compatible.
If you have more than 250 W-2 Tax forms to report, you will need to also file W-2’s electronically. For the exact W-2 filing requirements, refer to the IRS or SAA publications. The Elliott 2013 year-end update is required to file W-2’s electronically since the layout will have minor changes this year. The contact information, including name, address, phone and emails, have been added to the RE record (the employer record). In the past, contact information was only in the RA record (the submitter record). We prompt for contact information when creating the W-2 electronic file and the same contact information will be moved to both RA and RE records. We suggest downloading the 2013 AccuWage software from www.socialsecurity.gov/employer/accuwage/ and verify your electronic file before submitting it.
You must print W-2’s and create your W-2 electronic file at the end of 2013 before the first payroll is processed for 2014. Do not clear your Payroll employee YTD data until you have done so.
2013 AP 1099-MISC Tax Form Change
Even though no additional information is required on this year’s 1099 form, the IRS did change the 1099 form layout. Download the Elliott 2013 year-end update in order to print on the 2013 1099 forms correctly. We use the standard 1099-Misc layout as published on the IRS website. If you need to purchase 1099-Misc forms, our tests used STAPLES item number 198519, 1099-MISC Tax Forms, Inkjet & Laser Compatible. Follow the steps outlined in the AP 1099 Procedure to print 1099-Misc forms.
You will need to send 1099 forms to any individual or partnership (not including corporations) for payments over $600 in a calendar year. You can do so at the end of this year (print Vendor Amount Paid YTD), or early next year (print Vendor Amount Paid Last Year). Either way, you need to clear Vendor YTD Accumulators before processing 2014 payables. If you have more than 250 1099 forms to report, you will need to also file 1099’s electronically. For the exact 1099 filing requirements, refer to the IRS publications. We currently do not support creating the 1099 electronic file.
To download the latest Elliott v7.5 updates, click here.
If you are running Elliott v8.0, please contact us to get the year-end updates.
If you have any questions about the year-end updates, feel free to contact us at 888-595-3818, or email us at firstname.lastname@example.org.