Drake Accounting®: How do I generate, process, print, and e-file Forms W-2 and W-3 using the payroll function?
Drake Accounting® produces W-2 Forms for employees based on earnings throughout a year. The employee must be set up and at least one payroll check printed and dated in the processing year or an ATF check recorded with a check date in the processing year. Only payments made with a check date in the processing year are included in the employee’s W-2.
20YY forms W2 and W3 must be generated, processed, and e-filed through DAS 20YY.
W-2 information must be “processed” before being saved/printed or uploaded to the Social Security Administration. “Processing” prepares the Forms W-2 to be printed and automatically generates the W-3.
This article assumes you use live or ATF payroll functions and have purchased the software. W-2/W-3 printing and e-filing are not available in the free evaluation software.
This process involves multiple steps. Click on a link to access it directly:
To get started, you must first have the client, employees, and payroll set up. If this is already done, skip to step 3.
- Set up Client. Go to Client > Add or Client > Edit and enter/verify the following information is complete:
- Contact Information tab - Client Code, Name, Address, Contact Person, Contact Title, Email, Phone 1, Federal ID with EIN selected and the Employer's EIN entered.
- Federal Form Setup tab
- Select the Default W-2 Print Type
- Use 2-up W-2
- Use 3-up W-2
- Use 4-up W-2
- Use 4-down W-2
- Select the W-3 Information (Kind of Payer)
- Household Employer
- Medicare Government Employer
- Select the W-3 Kind of Employer
- None Apply
- 501c non-government
- State/Local non-501c
- State/Local 501c
- Federal Government
- e-File Options tab > W-2 File section
- Enter the appropriate BSO User ID Number.
- Select the appropriate Agent Indicator Code and enter the Agent EIN (only for codes 1, 2, or 3). See the SSA EFW2 Specifications for details.
- 1: 2678 Agent (Approved by IRS)
- 2: Common Paymaster (A corporation that pays an
employee who works for two or more related
corporations at the same time.)
- 3: 3504 Agent
- 4: Other
- Select your Preparer Code type.
- Click Save.
- Set up Employees.
- At Employees > Employee Setup, set up applicable information for each employee.
- Enter or record payroll:
- At Employees > Live Payroll, create Live Payroll entry and print checks with dates reflecting a current year date.
- At Employees > ATF Payroll, create ATF payroll with dates reflecting a current year date.
- Generate and Print Forms W-2. There is no limit to the number of Forms W-2 that can be generated.
- Select Employees > Federal Forms.
- Under Form Type select Forms W-2/W-3.
- Then select W-2 in the Form drop list.
- Process Forms W-2 either for all employees at once (default) or individually.
- Select the check box to the left of the Name column header to process Forms W-2 for all employees.
- Clear the check box to the left of the Name column header, then select the individual employees to process Forms W-2 for just those select employees.
- Click Process. Processing places a check in the Processed column in the list next to each employee for which a W-2 has been processed. A W-2 cannot be processed unless:
If an employee's W-2 column remains blank after processing and these selections have been made, review check status for the employee.
- A W-3 Kind of Employer and a W-3 Kind of Payer selection has been made at Client > Edit on the W-2/W-3/1099/1098 Setup tab. A warning message appears when you try to process Forms W-2 if this selection has not been made.
- Payroll has been entered or printed with a current year date for an employee selected for processing.
- Save/Print options become available after processing.
- Double click an employee to view their W-2.
- Their W-2 will display in an edit screen on the right, allowing you to review, edit and save changes for each W-2 as needed.
- After a W-2 is edited, processing resets it to the original payroll values.
- Do not reprocess an edited W-2 unless you intend to reset it.
- The W-3 is automatically modified when a W-2 is changed by editing or reprocessing.
- Choose the radio button to select which copies you want to print:
- SSA- Copy A— This option prints a copy of the W-2 for the Social Security Administration.
- Other Copies All— Use this option to select to print all copies other than copy A.
- Other— This option selects all copies to be printed, including copy A. Clear any check boxes for copies you do not wish to print.
- Select the Print Type:
- 2-up W-2 — This is the default selection. When this option is selected, Forms W-2 print two per page, one above the other. When this selection is made, all copies of the W-2 and the W-3 can be printed on plain paper when using a laser printer.
- 3-up W-2 — Prints three Forms W-2 per page, one above the other. All are for the same employee.
- 4-up W-2 — Prints four Forms W-2 per page. Two are at the top and two are at the bottom of the form. All are for the same employee.
- 4-down W-2 — Prints four Forms W-2 per page, one above the other. All are for the same employee.
- Click the Save/Print button.
- A preview of the completed form shows. Save a PDF copy or choose to physically print the copy, using the Printer icon.
- Print Form W-3 by selecting Print W-3 at the left of the window. The W-3 will display in a separate PDF window.
- Control Number (optional) — A control number is a unique number assigned by an employer to identify individual W-2 wage and tax statements. Enter a control number if desired.
- Establishment Number (optional) — This number may be used by the employer to identify separate business establishments or locations within the company for internal tracking purposes. Enter an establishment number if desired.
- Electronic Signature — If an electronic signature has been set, select the desired signature from the drop list that should be used to sign the W-3. If electronic signatures have not been set up to be used with tax forms, the Electronic Signature drop list will be empty.
- e-File W-2/W-3.
State wage reports can be e-filed only if the specific state e-file function has been programmed. Some state wage reports can be e-filed.
- e-Filing Setup.
- Create payroll and process W-2/W-3 as stated above. You do not have to print W-2/W-3 in order to generate a transmission file.
- The individual transmitting the W-2/W-3 must have a user ID and password assigned by the SSA. To receive this, go to http://www.socialsecurity.gov/bso/bsowelcome.htm and select Register.
- Enter your registration information. Once you’ve entered your information, you will be prompted to select the services you will be using.
- From the Main Menu on the left side of the screen, go to Manage Services.
- Select Request New Services.
- Select SSA Services Suite for Employers. You will be assigned the login information needed to submit the W-2/W-3 electronically.
- e-File creation.
At e-Filings > W-2 > Create File:
- Verify the information on the Federal e-Filings W-2 screen:
- BSO User ID Number (required): This 8-character user ID would have been assigned by the SSA to the employee who is attesting to the accuracy of the file. This user ID is assigned when the employee registers to use the SSA’s Business Services Online. This information pulls from Client > Edit > e-File Options tab. if completed.
- Preparer Code (required): Choose the preparer type that applies to the person preparing the file. This information pulls from Client > Edit > e-File Options tab if completed.
- Agent Indicator Code (required): choose the type of agent. This information pulls from Client > Edit > e-File Options tab, if completed.
- Employer EIN: This information pulls from Client > Edit >Contact Information tab.
- Agent EIN (optional): Enter the Agent EIN, if needed. This information pulls from Client > Edit > e-File Options tab, if completed.
- Click Create File
- An alert box shows confirming that the file was created and where it is located. Take note of the file location(s) before exiting the window.
- e-File review with AccuWage.
Note: Using the AccuWage is not required, but strongly recommended.
Java must be installed in order to run AccuWage. If Java needs to be installed on your computer, go to the Java Website to download and install this free program. AccuWage is available online only (a downloadable program is no longer available).
- Go to e-Filings > W-2 > Transmit File. Click the link to the AccuWage Online or SSA website. Follow AccuWage's instructions to test your file.
- If the file generates errors, correct them before submitting to the SSA. After correcting the errors, create the file again and review it on the AccuWage website to confirm that it is error-free before proceeding.
- When there are no errors, proceed to e-file transmission.
- State file. If you have to correct errors and recreate the federal file, use the state file created with the error-free federal file.
- After you have tested your e-file transmission, you can complete the upload by using the Business Services Online login on the AccuWage website or proceed to the next step.
- Submitting the file. Return to the Transmit W-2 screen located under e-Filings > W-2 > Transmit File.
- Select the option that W-2 files have been tested using AccuWage. Then, click the link Click here to link to the Social Security Website. This will take you to the Social Security website where you can log in and complete the e-file process by uploading the file from step 4(b)(iii).
- After completing the process, you will receive an acknowledgement that the SSA has accepted the file format you have transmitted.
- Remember or write down the SSA file name provided in the SSA acknowledgement. In case there is an error or an SSA inquiry and you must transmit again, you have to associate the SSA file name with the appropriate client’s Efile_W2s file that you initially transmitted.
- DAS will not receive any other type of acknowledgement from the SSA for the W-2 package you submit.
- The SSA will review the file in detail during the next few months. If there’s a question, the SSA will contact you.
- State transmission. Follow instructions at the state site where you e-file.