Process W2 Forms

Follow this instruction guide to print W2 forms employees and create electronic submission files. Review W2 Processing Checklist.

Important W2 Processing Notes

REQUIRED: Users should make sure they have an updated version of the Payroll Management module to ensure that the printed W2s comply with current requirements.

NAVIGATION: ABOUT

Before processing W-2s, ensure that your Horizon Payroll Software is the correct version.
1. The correct version number needed will be announced on the Payroll Start page. It is also listed in the Payroll Year-End Guide. The Year-End-Guide can be found on the Payroll Start page for download in Mid-December. If you are unable to download the Year-End Guide, please the Horizon Help Desk.
When your software is updated, the dates on the complete versions will be set for the new W2 reporting year.
If you feel you will need to print a copy of W2s from the previous reporting year, it should be done before you receive the new update.
1. When creating this year’s W2s, the previous year's W2 information are removed.

Create W2 Records

NAVIGATION: UTILITIES menu > W2/1099R Processing > Create W2/1099R Records

Enter or select the Date Range, i.e., Start 01/01/2024 End 12/31/2024
Pay Frequency: select all of the Frequency types (recommended) or run the process one at a time for each frequency that you use.
Local Tax Information - check COMBINE LOCAL TAX checkbox
1. Normal process is to file quarterly to each county tax collector. Do not select Combine if you file quarterly.
2. Select this option only if you have elected to file Local Tax (EIT) monthly to one Tax Collector.
  1. Checkmark the box and enter the two digit County Code for the Tax Collector you are submitting all the local tax reports to.
  2. The County Code is the first two digits of the PSD code.
  3. All local taxes will be combined into this one local tax amount for reporting purposes on the W2.
3. The code reported on the W2 is the County Code for where the employer reported the tax information, not where the employee lives.
The first time you create W2 records, you should mark the circle for CREATE NEW RECORDS
1. This will remove all old W2 information from the previous year, and then create the new information based on your selections.
2. If you are repeating the process for multiple pay frequencies, you should make sure the circle next to Add To is marked.
3. This option will not remove any information already calculated.
4. The information for the selected Frequency will be added to the existing data.
5. Important – Do not run this process for a Frequency more than once unless you clear the data with CREATE NEW RECORDS. Also note that CREATE NEW RECORDS removes all W2 records not just data for the selected Frequency.
Under Mode Selection, select Form W2
Press the Create Process button on the Quick Links bar
When complete, you will receive a PROCESS COMPLETE verification.

Edit W2 Information

This step will allow you to any information that will appear on the W2.

NAVIGATION: UTILITIES menu > W2/1099R Processing > Edit W2 Information

This is the W2 or 1099R Work File. You can view, add or edit W2 or 1099R information for each employee by selecting them using the Browse Button. Changes made in the work file will not be saved in the Employee Master or the history file.
Select an employee using the SSN browse.
1. This will list the employees in Employee # order (Control #).
2. When editing or entering additional data, if the employee has two records listed, both may need edited.
General - You may change address information or correct the Federal Wage and Tax information.
1. A checkmark may be entered in the Approved for Electronic W2 box for employee's who will receive their W2 through Stratus DocumentViewer.
2. This box along with the DO NOT Print Approved for Electronic W2's box in the Print W2 Forms program will stop the W2 from printing to paper.
Box 12/13/14 - You may add additional codes or change amounts.
1. This information is pulled during the Create W2/1099R Record process based on the Employee and Employer W2 Box Codes that are entered in the Deduction/Benefit Master for deductions that are used during the payroll process.
2. Box 12 - to add another code, find the first empty Code field. Select the correct code from the list. Enter the amount to report in the Amount box to the right. Note: Entering employer health care costs in the W2 Health Cost Editor will add code DD - Cost of Employer Health Coverage to Box 12 for an employee.
3. Box 13 - check or uncheck any of the boxes that the employee should be reporting.
  1. The Retirement Plan box is checked during the W2 creation process if a deduction/benefit code with an Employee Box Code of 12D, 12E, 12F, 12H or 12S has been used for an employee.
4. Box 14 - record any other information for the employee, such as union dues, health insurance premiums and educational assistance payments. Contributions to retirement plans that have no code can be listed here too. All entries should be clearly labeled. There is no set code list issued by the IRS, use a 4 character abbreviation for the information being reported. Enter the amounts to report in the Amount boxes to the right of each code entered.
  1. Box 14 information may be entered by the program during the W2 creation process if a deduction/benefit code with an Employee Box Code of 14 with a brief code has been used for an employee.
5. State/Local - You may add additional information or change amounts.
6. 1099-R Information - You may edit or enter information for 1099 R forms here.
Click SAVE or APPLY after completing each employee's changes.
If you calculate the cost of employer provided health care coverage with each pay, this amount should be included on the W2; otherwise, there is a new quick entry grid to add or edit Box 12 DD - Cost of Employer Health Coverage.
1. See Enter the Cost of Employer Health Coverage to an Employee's W2 for instructions.
2. Important: Information entered in this grid will be wiped out by re-pulling W2 information.
3. Always verify other information before entering Health Care information into the grid.

Review W2 Audit Report

This report shows the totals for each employee and grand totals for all of the forms that will be printed.

NAVIGATION: UTILITIES menu > W2/1099R Processing > Audit Reports > W2 Audit Report

Click PRINT or PREVIEW
Review the report. If amounts for any employee are incorrect, repeat Step 2 to correct.

Review 1099R Audit Report

This report shows the totals for each employee and grand totals for all of the forms that will be printed.

NAVIGATION: UTILITIES menu > W2/1099R Processing > Audit Reports > 1099R Audit Report

Click PRINT or PREVIEW
Review the report. If amounts for any employee are incorrect, repeat Step 2 to correct.

Update Company Information

The company information settings is the the default information that will be printed on the W2 forms. Both Name1 and Name2 combine as company name on the W2. Review to ensure your company information is correct before printing.

NAVIGATION: SYSTEM menu > Company Information

The Federal ID should be entered without the hyphen (-)
Edit any incorrect or missing information
Click SAVE.
Update the company contact information
1. Go to Settings > Payroll Settings
2. Go to the tab Contact/Company
3. Enter contact information
4. Select the Kind of Employer
  1. Most companies will use the option Non Apply.
  2. Other options include: Federal Government, State/Local Government, State/Local Tax Exempt Employer, Tax Exempt Employer
5. Click SAVE.

Print W2/W3 Forms (or 1099R forms)

Before printing, make sure you verified and reviewed all employee and company information in the previous steps.

WARNING: Make sure you are not set to print double sided to your printer. You can use Print with Setup to select your printer, then Preferences to select options, i.e., 1-Sided.

NAVIGATION: UTILITIES menu > W2/1099R Processing > Print W2 Forms

Ensure that your company information is correct. This will be pulled from Company Information described previous step.
Make any changes before printing, these changes will not save when entered in this program
Select the Print Mode
1. Employee Copies
  1. Select the Format - 4 Down (1 Employee) - Complete
  2. If Document Viewer is used for electronic W2 delivery, check mark the option DO NOT Print Approved for Electronic W2's
  3. Load the IRS/W-2 forms L87B into the printer
  4. Click PRINT
  5. If Document Viewer is used for W2 delivery, go to Utilities > W2-1099R Forms > Publish W2 Information
  6. Review the Company Information and edit any incorrect information. The Federal ID should not contain the - hyphen
  7. Enter the Tax Year
  8. Click the Publish W2 Information button. When complete the total documents sent will be displayed.
  9. Click the OK button.
2. State Copies (Repeat for Local and for Employer copy)
  1. You may skip this section if sending electronic media files.
  2. For State submission see Create an Electronic W2 Submission File for the IRS or State
  3. For Local submission see Process Quarterly Taxes > Export the Local EIT Report. Use the date range for the full year 1/1/20xx to 12/31/20xx
  4. Select the Print Mode - IRS Copy - No Extra Locals Printed
  5. Select the Format - 2 Down (2 Employee) - Complete
  6. Make sure the option - DO NOT Print Approved for Electronic W2's is now UNCHECKED
  7. Load IRS/W-2 forms LW2NB into the printer
  8. Click PRINT
  9. As an alternative to printing the employer copy. The forms may be saved as a PDF. Make sure the file is saved somewhere secure and that it is being backed up. See Report Preview, Print and Save Options.
3. W3 Form
  1. This step may be skipped if you are sending electronic media
  2. Select the Print Mode - IRS Copy - No Extra Locals Printed
  3. Select the Format - W3 Form
  4. It is recommended that a test be printed - either to blank paper and held up against the W3 form or on a spare W3 form. Use the Top and Left Adjustment fields to move the print as needed. When the alignment is correct, proceed.
  5. Load IRS form LW3 into the printer using the orientation noted in the test.
  6. Click PRINT
4. IRS RED Copy
  1. You may skip this section if sending electronic media files. See Create an Electronic W2 Submission File for the IRS or State
  2. Select the Print Mode - Print from Selected Sequence
  3. Enter a Starting Seq # and Ending Seq # of 1
  4. Select the Format - 2 Down (2 Employees)
  5. Either using an extra W2 form LW2A or on a plain 8 1/2 by 11 paper, mark the top side and bottom side showing the direction the paper is feeding into the printer. Load the paper into the printer. Use the same tray the W2s will be printed from.
  6. Click PRINT. The marks on the paper will show the correct orientation to load the actual IRS forms.
    1. Does the information print in the boxes? If not use adjustments to correct.
  7. Adjustments
    1. A top or left adjustment can be entered if your printer prints the forms slightly off. If printing to low on page try -25 in the Top Adjustment, if printing to high try 25. If printing to far to the right try -25 in the Left Adjustment, If to far to the left use 25. Test print, increase or decrease the adjustment values until the printing aligns within the boxes.
    2. Top Adjustment and Left Adjustment: To be used for printing the IRS Red Copy and the W3.
    3. Test print the IRS Red Copy before printing all.
    4. Recommended for Pre-Printed Forms: Print the first employee's W2 to plan paper and hold it up to a form to see if it is aligned. If the from is not printing in the boxes, Use the adjustments. Preprint the W3 form in the same way.
    5. Continue to test print until you are satisfied with the alignment.
  8. Select the Print Mode - IRS Copy - No Extra Locals Printed
  9. Select the Format - 2 Down (2 Employees)
  10. Make sure the option DO NOT Print Approved for Electronic W2's is now UNCHECKED.
  11. Load IRS/W-2 form LW2A - preprinted Red copy A into the printer using the test orientation.
  12. Click PRINT

Available Print Formats

4 Down (1 Employee)–Complete: For Employee, laser copies using blank W2 stock, Prints 4 copies for one employee on 1 page
4 Down (4 Employee)–Complete: For Employer, laser copy using blank paper, Prints 4 different employees’ data on 1 page
4 Down (1 Employee): For Employee, using pre-printed 1 ply form, Prints 4 copies for one employee on 1 page
4 Down (4 Employee): For Employer, using pre-printed 4 ply form/ or for Employer using pre-printed 1 ply form, Prints 4 different employees’ data on 1 page
2 Down (1 Employee): For Employee using pre-printed 1 ply form. Prints 2 copies on 1 page, user will need to run the print process twice in order to have 4 copies.
2 Down (2 Employees): use for Federal Red pre-printed form
2 Down (1 Employee)–Complete: Employee laser copies using blank W2 stock, Prints 2 copies on 1 page, user will need to run the print process twice in order to have 4 copies.
2 Down (2 Employee)–Complete: Employer laser copy using blank paper, Prints 2 different employees’ data on 1 page
W3 Form – use for the Federal W3 Red pre-printed form

Print Selected Sequence

Enter the Seq# range you wish to print
You can print W2s for one employee or a series of employees by using the Starting and Ending Sequence Numbers. If you are not sure of the sequence number repeat Step 2 to view the sequence numbers for the employee or check the audit report.
Select the appropriate format based on the forms you are trying to print, i.e., Company, Federal or Employee copies.
1. Formats that include complete in the name print the form boxes and titles along with the information.
2. Formats that do NOT have complete in the name are for preprinted forms.
3. If you are unsure about the format to print, please contact the Horizon Help Desk.
If Stratus DocumentViewer is enabled, employee W2s may be sent to Stratus DocumentViewer where the employee may print their own W2s for their records.

Print 1099R Form (For Retirement Disbursements only)

NAVIGATION: UTILITIES menu > W2/1099R Processing > W2-1099R Forms > Print 1099R Forms

Ensure that your company information is correct.
Select the appropriate format based on the forms you are trying to print.
1. 2 Down (1 Employee): For Employee using pre-printed one ply form. Prints two copies on one page, user will need to run the print process twice in order to have four copies.
2. 2 Down (2 Employees): use for Federal Red pre-printed form or for company copy.
If you are unsure about the format to print, please contact the Horizon Help Desk.