It is that time of the year for W-2’s! Here are a few important reminders before you start preparing W-2s:
403b deductions should be recorded on an employee’s W-2. The total amount withheld from an employee should be recorded in Box 12 of the W-2 with code “E”. Instructions on how to do this in ConnectNow Payroll are in the Payroll Training guide (attached) on page 33.
Health Insurance premiums do not need to be recorded on W-2’s (for the majority of the parishes & schools in the Diocese). Only employers who are issuing 250 or more W-2’s need to record this amount on the W-2. Parishes with Schools might want to double check to make sure they have less than 250 W-2’s.
For Parishes/Schools that utilize ConnectNow Accounting for Payroll:
Before running your W-2’s please follow the below instructions from ParishSOFT.
From Payroll, click Forms > Edit Employee W-2 information > Reprocess All.
The program doesn’t automatically update the W-2’s each time payroll is run (this would be a major process every time they needed to reprint a w-2 before April 15th of the year!). So the clients need to tell the program to pop the new year’s information in by Reprocessing All before they begin.
Once they Reprocess All, the system will insert that Calendar YTD info into the W-2 automatically.
No longer do you need to use pre-printed forms to print W-2’s in ConnectNow! Copy B (the one given to the employee) of the W-2 should be printed on blank white perforated paper that can be cut into fourths (per IRS guidelines). You can purchase this through ParishSOFT or at most office supply stores. You should be able to use this same paper for multiple years (since it is blank). All other copies (including the W-3) can be printed on plan white paper.
If you have any additional questions, please contact ParishSOFT (for ConnectNow Payroll users) or the Diocesan Finance Department at firstname.lastname@example.org or (515) 237-5028