As the year comes to a close, we are getting a lot of questions about year-end updates and changes for W-2 and 1099-R reporting for Microsoft Dynamics GP. Here is what you need to know.
W-2 and W-3 Form Layout Changes
- The layouts for forms W-2 and W-3 are unchanged, and no new fields have been added for 2009
- There are no changes to forms 1099-Div, 1099-Int, 1099-Misc, and 1099-R
For form 1099-R, distribution code U (distributions under Internal Revenue Code 404(k)) has been added. Distribution codes B and U are a valid combination for 2009.
W-2 Electronic Filing Changes
Changes in the 2009 EFW2 file generated by Microsoft Dynamics GP include the following:
- The following country codes have been added: Kosovo (KV), St. Barthelemy (TB), St. Martin (RN).
- The country code for Serbia has changed from RB to RI
Please note that the U.S. 2009 Year-end update supports Dynamics GP 9.0 and 10.0 ONLY.
To identify the release you’re using, start Dynamics GP. Choose Help | About Microsoft Dynamics GP.
Installing the latest 2009 tax table updates
Before you install the year-end update, it’s important for your system to be up to date with the latest 2009 Payroll tax updates for the states in which you do business. The latest tax tables will ensure that the FICA wage limit is correct.
You can check the most recent tax table update date in the Payroll Tax Setup window (9.0 Tools >> Setup >> System >> Payroll Tax; 10.0 Microsoft Dynamics GP menu >> Tools >> Setup >> System >> Payroll Tax). The date must be 12/19/2008 or later.
If the Last Tax Update value in the Payroll Tax Setup window isn’t 12/19/2008 or later, you should install the October 2009 Round 9 Payroll tax table update.
If you plan to submit W-2 statements electronically using the EFW2 format, you must first register for a User Identification Number (User ID) with the Social Security Administration. You only need to register once for a User Identification Number, after which you may use it indefinitely.