1. Planning for Year-end Processing in the United States
Dan Miller – Lawson GSC
Copyright © 2005 Lawson Software, Inc., All rights reserved.

2. Overview
Recommended Steps
Year End Website
Adjustments
Balancing Reports
Review of How W2’s Print

3. Recommended Steps
Install Lawson Year-End Programs
Reconcile pay periods to QTR and YTD
Identify discrepancies and make adjustments (PR82)
Define year-end parameters for W-2s or copy parameters from previous year

4. Recommended Steps
Run reports for negative wages (PR297 for negative
wages.)
Update EE information
Update EE Year-End Parameters
Double check pay/deduction structure
Verify EINs
Verify W-2 descriptions

5. Recommended Steps
Verify W-2 Parameters
Run Trial W-2 Forms
Run Trial Puerto Rico W-2 Forms
Run Trial MMREF File
Close Payroll Year
Print W-2 Forms

6. Run the Final MMREF File Run 1099-R
Recommended Steps
Back-Up W-2 Data
Run the Final MMREF File
Run 1099-R
Should have same balancing procedures
Update Year-End Parameters
Run 1099-R Report
Run 1099-R Forms

7. Adjustment Best Practices
Process adjustments during same quarter payment issued to avoid negative wages.
HR11 process level should match process level on PR82.
If you processed the adjustment incorrectly, do not try to fix the bad adjustment. Immediately reverse out what you did in the initial adjustment.
Run PR141 to ensure that your adjustment yields the expected results.

8. Net Amount is Positive:
Adjustments
Net Amount is Positive:
Use Manual Payment (PR80.1)
Pay attention to taxes and taxable wages
Net Amount is Negative or Zero:
Use Adjustment (PR82.1)
RULE: Net result must be zero or negative
If adjustments are made after you run (PR999), date for year-end closed date. Run them in a cycle by themselves through PR141 and Payroll Close. Use year-end closed date on PR197.

9. Positive Adjustments
Manual Payment (PR80.1) (Reserve on PR81)
Add the adjustment – PR80.1
Create audit trail – PR141 – Payroll Register
Update Payroll History – PR197 - Payroll Close
Run for Adjustments, update immediately

10. Positive Adjustments Net to Zero
Create wash deduction (PR05)
Assign deduction to EE (PR14)
Access Adjustment (PR82.1)
Amount field – type in the amount of the positive adjustment
Deduction – enter wash deduction amount as the difference between gross pay and EE deductions
Create audit trail – PR141 – Payroll Register
Update Payroll History – PR197 – Payroll Close

11. Zero Net Adjustments
Access Adjustment (PR82.1)
Define adjustment – correct taxable wages, excess wages, replace one deduction with another or replace one pay code with another. (+ or -)
Create audit trail – PR141 – Payroll Register
Update Payroll history – PR197 – Payroll Close

12. Negative Adjustments
Access Adjustment – PR82.1
Define the adjustment – Wages, Deductions
Create audit trail – PR141 – Payroll Register
Update Payroll History – PR197 – Payroll Close
Adjustment Distributions – PR82.2
Make appropriate adjustment amounts to GL distributions . Distributions will be updated based on GL defaulting scheme
Run PR141 and PR197 again for distributions

13. KB Adjustment Articles
KB article Adjusting 3rd Party Sick
KB article RE-Skip Adjustment when changing HR reporting structure mid year
KB article Check issued outside of Lawson
KB article Moving dollars between deduction codes (Federal/State)
KB article Reversing an adjustment that has been closed
KB article Full Reversal of a payment to an employee that was accidentally paid twice
KB article Reversing an Adjustment that has NOT been closed
KB article Net Pay $xxxx.xx must be < or equal to zero to process edit
KB article Warning: No gross wages amount included on deduction (s)
KB article Deduction not defined for employee
KB article – Loading checks with PR82
KB article Voiding a payment across quarters and creating negative wages

14. W2 Reports With Negative Wages
Run PR297 – W-2s – for Negative wages. Select Negative Wage in the report option
Negative wages must be corrected
EE with negatives will print on the following reports:
Error
Detail
Summary
Negative wage
Message: “No W-2 created, negative data exists”

15. W2 Preparation 7.2x
HR11 - Ensure SSN, names, and addresses are current; identify retirement plan participants, reportable GTL, qualified moving and business expenses, and nontaxable 3rd party sick pay
PR27 - Select information to print in W-2 boxes 10, 11, 12, and 14, as well as additional parameters; overrides HR11.1 values
PR Enter overriding pre-tax limits for employees making catch-up contributions for 401(k), 403(b), 408(k), and 457 plans
PR227 - Verify W-2 parameters defined on PR27.1 for specific company, head process level, or process level
PR297 - Identify employees with negative wages; generate trial and final records for W-2 forms
PR299 - Generate trial and final MMREF files

16. W2 Preparation 8.x
HR11 - Ensure SSN, names, and addresses are current; identify retirement plan participants, reportable GTL, qualified moving and business expenses, and nontaxable 3rd party sick pay
PR27 - Select information to print in W-2 boxes 10, 11, 12, and 14, as well as additional parameters; overrides HR11.1 values
PR11 - (PR27.2 in 7.2.x) Enter overriding pre-tax limits for employees making catch-up contributions for 401(k), 403(b), 408(k), and 457 plans
PR127 - (Form only in 8.0.x) Copy PR27.1 parameters from one year to the next or between companies and process levels; can also delete parameters
PR227 - Verify W-2 parameters defined on PR27.1 for specific RE Company, RE Process Level, RE All, or Process Level
PR297 - Identify employees with negative wages; generate trial and final records for W-2 forms
PR299 - Generate trial and final MMREF files

17. PR27 Year End Parameters
Define year-end parameters – PR27
Copy/delete year-end parameters – PR127 (8 Series)
Verify year-end parameters – PR227

18. Define Year-End Parameters
Lawson 2 ways to define: PR27 – Year-End Parameters or PR127 – Copy/Delete previous year. Based on company to company, process level to process level
PR127 - Run this job in ‘Report’ mode
Displays year-end parameters that will be copied or deleted, or current settings on PR27.
Displays records that are replaced. The replaced values will print.

19. Define PR27
Job selects information to print on W-2, in boxes 10, 11, 12 and 14.
If supplemental address is to be printed on W-2 this is where you define.
Pay Sum groups or deductions to be defined on parameters must be in place for entire year.
PR27.2 – Employee to enter overriding pre-tax limits – Catch up
Run Job PR227 – W-2 Parameter List, use the same parameters as for W-2s. View the output.

20. PR227 Report
Above are the results of running the PR227 for RE All. What that gives us are the PR27 parameters for all Report Entities. The Company is a Report Entity because it has the above “Dependent” Process Levels reporting to it. If you look at the HR01’s for the above Process Levels they will all have their “Independent” field flagged to “N”. So for Company 3327 there is only a Code C for GTL Pay Class set up on topic W4 (Box 12). No other topics are set up on PR27 for the Company.

21. PR277 Report
Report Entity ADMIN is set up as a Head Process Level on PR09 and has Dependent Process Level HR reporting to it. What the report shows is that RE ADMIN has PR27 information set up for topics W0, W1, W2, and W4. The PR227 is a good report to illustrate a companies HR Reporting Structure. This report will prevent having to ask the client for screen shots of PR27 parameters. They can just run the PR227 instead to verify what they have selected on the PR27 is being pulled into the PR297 and PR299 reports.

22. Run Trial W2’s & Mag Media
Check parameters and print format
Review Error report – it should be clean
Look at sample of high level employee
Look at sample of employee with unique processes, check on PR11
Verify cut-offs, etc.

23. Running W2s by Process Level
Based on employee’s current HR11 Process Level
Separate W-2s will be produced for earnings in each
Independent Process Level (Federal EIN)
When you run the year-end program by Process Level, the program will only process employees whose HR11 process level currently matches the job parameter process level. If the employee earned wages in more than one process level, they will receive separate W-2s for earnings in each Independent process level or Federal EIN.

24. Results running by Process Level
Run by Process Level CORP, Jane Smith is not currently assigned to the CORP Process Level on HR11, so no W2 is created for this employee.
Run by Process Level ODC, Jane is currently assigned to this Process Level on HR11. All earnings will print for Jane by Federal EIN:
EIN = = $5000
EIN = = $2500
Results when running by Process Level CORP – because Jane is not currently assigned to Process Level CORP, no W-2 is created for this employee.
When running by Process Level ODC, the employee is selected by the program because the employee’s HR11 process level is ODC. All earnings for this employee will be reported. Because the employee had earnings in two different Federal EINs, the employee will receive two W-2 forms, one for the earnings in the EIN associated with Process Level CORP and one for the earnings in the EIN associated with Process Level ODC.

25. Run W2s by Head Process Level
Based on employee’s payment Process Level (Historical).
Reports earnings for Process Levels tied to Head Process Level on PR09.
Does not report earnings in Process Levels not tied to the Head Process Level.
When you run the year-end programs by Head Process Level, the program will base reported earnings on the employee’s historical or payment process level. So, if the employee received earnings during the year in a process level that is currently tied to the Head Process Level (PR09), those wages will be reported. Earnings in process levels not currently tied to the Head Process Level will NOT be reported.

26. Example: Jane Smith is paid in Process Level…
CORP
(Independent)
FEIN=
$5000
ODC
(Independent)
FEIN=
TRANSFER
$2500

27. Results by Head Process Level
Run by Head Process Level CORP, Jane will receive a W2 for
EIN = for $5000 – wages paid in Head Process Level CORP.
Run by Head Process Level ODC Jane will receive a W2 for
EIN = for $2500 – wages paid in Head Process Level ODC
Results when running by Head Process Level CORP – only earnings within this head process level will be reported. Jane will receive a W-2 for $5000 only – the wages paid in Process Level CORP.
When running by Head Process Level ODC, only earnings within head process level ODC will be reported. Jane will receive a W-2 for $2500 – the wages paid in Process Level ODC.

28. Results running by Process Level
Run by Process Level CORP, Jane Smith is not currently assigned to the CORP Process Level on HR11, so no W2 is created for this employee.
Run by Process Level ODC, Jane is currently assigned to this Process Level on HR11. All earnings will print for Jane by Federal EIN:
EIN = = $5000
EIN = = $2500
Results when running by Process Level CORP – because Jane is not currently assigned to Process Level CORP, no W-2 is created for this employee.
When running by Process Level ODC, the employee is selected by the program because the employee’s HR11 process level is ODC. All earnings for this employee will be reported. Because the employee had earnings in two different Federal EINs, the employee will receive two W-2 forms, one for the earnings in the EIN associated with Process Level CORP and one for the earnings in the EIN associated with Process Level ODC.

29. PR297 Report Entity
If PR297 is run by RE Company, it will return all employees that have a “blank” Report Entity field in QUARTDED and QUARTWAGE files.
If PR297 is run by RE Process Level you will have to indicate the RE Process Level, it will return all employees that have that Process Level in Report Entity field in QUARTDED and QUARTWAGE files.
If PR297 is run by RE ALL, it will return all employees regardless of what is stored in the Report Entity field in the QUARTDED and QUARTWAGE files.

30. Required format for filing W-2s with SSA
PR299 MMREF
PR299 – MMREF-1
Required format for filing W-2s with SSA
State reporting is also available in MMREF-1 format
SSA AccuWage software – Verification of MMREF-1 files
The SSA does provide free software, which you can download on ssa.gov, to verify the MMREF file you will be submitting to them. So, after you create the PR299 MMREF file, you can test the file using the AccuWage software to verify the accuracy of the file. AccuWage identifies many, but not all, wage submission errors, but it is a good tool to check the contents of the file being submitted

31. Balancing Reports
PR260 – Payment Detail Listing – Includes pay, deductions and taxable wages. Balance with totals from PR141 for a specific time period for Gross Wages and Net Wages
PR290 – Quarterly Report – Includes quarter and YTD gross and taxable wages by tax authority. Balance to PR260
PR294 – Balancing Report – Includes quarter and YTD gross and taxable wages and taxes by tax authority. Balance to PR260/PR290
PR297 – W-2 Form Printing – Can be run in detail or summary for YTD W-2 taxable wages and deductions. Balance to YTD totals on PR290/PR294.
Refer to Appendix B Year End Balancing for the UNIX and iSERIES files referenced when pulling in the information. Pay close attention to whether the reports are looking at a SUMMARY file or DETAIL file. Example: Summary file would be QUARTDED for deduction totals by quarters. A detail file would be PAYDEDUCTN which will show deductions by specific payment date.

32. Changes payroll year on HR00 – determines Drill Around® year.
Payroll Year Close PR999
Changes payroll year on HR00 – determines Drill Around® year.
Updates Pay Plans with Work Periods and Pay Periods for the new year.
Deletes arrears for “withholding” deductions on PR39.
There is currently a PT out there for PR999 advancing the pay periods, but not the work periods causing the edit, “Timerecord date not included in any current schedule”. The PT number is # CTP was created for this for the release. CTP #29800 was created for the release. This PT was resolved on 9/10/04.

33. W2 and Magnetic Media
W-2 and Magnetic Media
Run final PR297, print those W-2s
Run final PR299, create Mag. Media files
Recommend: Back-Up W-2 and Mag. Media File.

34. 1099-R
Update year-end parameters on PR27.1 – Topic R1/Payer Info
Run 1099R Report – PR253
Run for negatives
Fix negative wages using adjustment process
Run 1099R print forms – PR250
Run 1099R Mag. Media – PR251

35. Setup New Year
Install new year changes from BSI
Updates can be found on web site or bulletins from BSI
Change Company Match limits on Benefit plans
BN15 – Contribution Button BN18.6 and BN18.7
Create New flex Plans
BN15 and BN18.3

36. Thank You