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Home > FMS Policies and Procedures CA > Year-End Tasks > Issue Forms W-2

Issue Forms W-2

Policy: 

By January 31 of each calendar year, F/EA submits Forms W-2 to consumers’ employees for wages earned in the previous calendar year. A employee receives an individual form W-2 for each employer for whom they work, as a distinct employer/employee relationship exists for each employer/employee relationship. 

Forms W-2 are produced per Internal Revenue Code Section 3504, Revenue Procedure 70-6 and Revenue Procedure 2013-39. Each Form W-2 shows Federal and State taxable wages earned in the calendar year by the employee from the employer.

By March 31 of each calendar year, F/EA or the reporting agent submits Forms W-2 to the Social Security Administration electronically per specifications published by the Social Security Administration in Publication EFW2, Specifications for Filing Forms W-2 Electronically. Forms W-2 are submitted to State Department of Revenue by <<March 31>> of each calendar year per <<State>> Electronic W-2 specifications (<<or via paper, depending on the state process>>.
 
<<Three times annually (see Policy and Procedure document 3.5), F/EA submits Change Request Forms to consumers to collect updated contact information for workers. This information is important for completion of year-end responsibilities to ensure that employees receive forms W-2 and that those who qualify receive any FICA refund checks>>.
 
A reconciliation of Forms W-2 is performed using  separate processes as outlined in separate Policy and Procedure documents:
 
  1. Reconciliation of FICA and FIT Returns (941) and Payments, performed quarterly
  2. Reconciliation of FICA, FIT and SIT payment to General Ledger, performed monthly
  3. Reconciliation of W-2 report to Forms 941 for calendar year, performed annually (see Policy and Procedure document <<X>>).
 
Procedure: 

 

  1. Prior to December 31 of each calendar year, F/EA staff update workers address information per received Change Request Forms.  Address updates are made in the Payroll System for each affected workers.
  2. F/EA balances and reconciles Form W-2 reports to State Withholding Tax returns and Forms 941
  3. <<Insert process to do this>>
  4. <<Control Sheets are used for reconcilations>>
  5. <<Insert who reviews and signs off on control sheets before Forms W-2 are mailed to workers>>
  6. Prior to January 31 of each calendar year, F/EA mails Forms W-2 to each workers to whom wages were paid as part of the program in the preceding calendar year
  7. Forms W-2 are populated as follows (with applicable tax and wage information for each workers)
  8. After mailing forms W-2 to consumers, <<Payroll Staff Title>>  e-mails <<Customer Service Staff Title>> to notify that Forms W-2 have been mailed to consumers
  • Customer Service Unit staff are notified because workers and consumers may begin calling with questions about Forms W-2

  9.  Prior to March 31, F/EA submits an electronic file of Forms W-2 to the Social Security Administration via their Business Services Online portal

  10.  A file of electronic Forms W-2 is produced per Social Security Administration publication EFW2

  11.  The file is uploaded to the Social Security Administration

  12.  After uploading the file, the F/EA receives a Transmittal Confirmation receipt

  13.  <<Staff Title>> saves Transmittal Receipt confirmation to <<File Path>>

  14.  Transmittal Receipt confirmation is saved for a minimum of 7 years per File Retention Policy

  15.  Also prior to March 31, reporting agent submits an electronic file of Forms W-2 to the State Department of Revenue in the required format

  16.  After submitting the file, a Transmittal Confirmation receipt is received

  17.  <<Staff Title>> saves Transmittal Receipt confirmation to <<File Path>>

  18.  Transmittal Receipt confirmation is saved for a minimum of 7 years per File Retention Policy

Internal Controls: 

The internal controls used by F/EA to monitor this process establish responsibility, segregate duties, document procedures and ensure independent internal verification. The methods of internal control utilized by F/EA in are:

  1. Separate reconciliations are performed throughout the year to ensure that values reported on Forms W-2 are correct.
  2. Pre-numbered Control Sheets are used to perform W-2 Reconciliation processes prior to issuing Forms W-2 to workers.
  3. Prior to mailing Forms W-2, <<Staff Title>> and <<Staff Title>> review, sign and date Control Sheets.
  4. Control Sheets are stored for a minimum of 7 years per File Retention Policy.
  5. Transmittal Confirmation receipts for electronic files of Forms W-2 submitted to the IRS/SSA and State DOR or equivalent are provided by the reporting agent to the <<Staff Title>>
    • <<Staff Title>> stores e-mail Transmittal Confirmation receipts for a minimum of 7 years per File Retention Policy.