Tax Form Maintenance

Menu Group: File Maintenance: Tax Tables

This function is used to define the contents of the boxes on the tax forms (Canada - T4 & Releve 1, US - W2). Each box has an entry in this file that will contain a list of EBD's that are associated with that box. In the screens below you will see the contents of box 14 defined.

When you receive the software all the EBD's that are provided with the system will be defined as belonging to a particular form box. If you add new EBD's it is your responsibility to ensure that the EBD is properly accumulated to the correct box. For example, if you add a new EBD for earnings then you must add that EBD to the appropriate earnings box for the form. In our example below you would add the new EBD to box 14.

In the event that the revenue department or IRS changes the form drastically, we will provide new data for the standard EBD's so that they are properly accumulated to the proper box. You will be notified in advance of this change so that you can properly code any of your user defined EBD's.

Special Consideration for W2's

Box 14 - Other, has 3 lines. It is set-up in Tax Form Maintenance, using box number 94, box number 95, and box number 96.
Box 12a/b/c/d - is a 2 step process. First, you set up box 12 in Tax Form Maintenance with all the related EBD's associated to print in these spaces. Second, you must go into EBD Maintenance and assign a related code (as described in the Instructions for W2's, box 12) to the EBD's that you assigned box 12 in Tax Form Maintenance.

Having chosen box 14 the system lists all the EBD's within the box.

Clicking the EDIT button will allow you to change the information about that EBD, You may also add or delete EBD's from the box.

Here is an example showing how some boxes would be set up:

Form-type: W2
Box-no: 1 Description: Wages, tips, other compensation

EBD-no: Action (Plus/Minus)

101 Regular Hourly Pay    + (to be added)
102 Overtime Hours         +
120 Salary (per period)     +
401 401K Plan                 - (to be subtracted).

In this example all earning EBD's are to be added into box 1 and the 401K plan is to be subtracted.

Box 18 should have the name of locality if optional local reporting will be used.

Box 12: Box 12 is a special box that relates to specific earnings categories. The box is divided into 4 sub boxes (a-d). In fact, it may be divided into more than four sub boxes by printing more than 1 W2 for the employee. This means that an employee who has more than four earnings classifications that would be included in box 12 will have multiple W2's. All relevant EBD's are to be added and or subtracted into box 12. A relevant EBD is one that corresponds to the earnings category as per the W2 instructions. You will also classify the sub box number (a-z) on the EBD setup. You will need to setup under the switches tab W2-codes as per Instructions for Forms W2 Department of the Treasury Internal Revenue Service.

Since there are three lines in Box 14 use the following box numbers to represent the information to be printed in box 14:

Box 94 = First accumulation line
Box 95 = Second accumulation line
Box 96 = Third accumulation line.

Also place a 12 character description in the first 12 characters of the description field for boxes 94 through 96.

The state information will be printed from the w2-state file. This file is created by running the W2 State Detail Update function and MUST be run prior to printing the W2's. The w2-state file can be modified or deleted through the Employee YTD Maintenance function. The information entered in the Tax Form Maintenance program for boxes 15 through 17 and boxes under boxes 15 through 17 will be ignored in favour of the information provided in the w2-state file. Failure to run the W2 State Detail Update function will result in zero amounts being printed for state wages and income tax.

Last updated October 20, 2006