2020 Year End Processing & FAQs

Updated: December 23, 2020

There’s really nothing more to say about 2020. Instead, we’d like to look forward by wishing you a safe and happy holiday season, with best wishes for the New Year.

Without further ado, here are the 2020 Year End Processing Instructions and FAQs. As always, don’t hesitate to reach out with any questions or comments.

Please remember that the information in this article subject to periodic revision as new information arises.

Table of Contents

What’s New for 2020?

As a reminder, the Tyler Payroll application is no longer being updated to support changes to State or Provincial requirements. It will remain part of the base package if customers determine they can still use it in its present form.

USA

The deadline for filing is February 1, 2021.

W2s

No new programs are required as of this writing.

We will update this as needed should changes be discovered. There is new information regarding Boxes 8 and 12, both of which are entered manually on the 10-60-01 screen. Please consult irs.gov if either of these boxes affect your reporting.

Laser Form
If you need the numbers to print larger on the W2 Laser Form, you can change the ‘Printer Font’ from ‘Verdana’ to ‘Lucida Console’ in Convergence > Setup > Preferences > Fonts.

1099s

A new program is required for the changes to 1099 reporting. It was installed to Tyler on December 23, 2020.

Please see our NewsFlash for details.

If you are a client with your own server, contact Tyler Support for assistance.

Please be aware there are now two separate forms for 1099s, which means many businesses will have to file two separate forms:

  • The original 1099-MISC form and a new 1099-NEC form. Both forms can be printed in Tyler.
  • The new 1099-NEC is for non-employed contractors.
  • The 1099 Miscellaneous Form will still be required for reporting other income such as rent, royalties, healthcare payments, etc.
  • If you are currently a business that is using Box 7 on the 1099-MISC, you will have to move that information to Box 1 on the 1099-NEC for 2020. Please consult irs.gov or your CPA if you need further assistance.
Forms 1094-x, 1095-x

As in prior years, Tyler does not produce these forms. Contact your health insurer or CPA if you need assistance.

Canada

T4 Form

No new programs are required.

The form is the same as last year. Should you have alignment or compliance issues, please contact us at support@tylernet.com with the details and your T4 form number. The form number is located on the bottom left corner of the T4 form. Our testing is verified to work on Form T4(14).

We are presently unaware of any changes to electronic T4s.

FAQs: W2s and T4s

  1. What are my options for printing Federal W2 forms?

  1. Federal W2 forms can be printed on laser or continuous feed printers. Electronic transfers may also be processed in Tyler if your company meets federal requirements. Please check irs.gov to determine eligibility.
    NOTE: You cannot print W2s to a PDF file.

  1. What are my options for printing state W2 forms?

  1. State W2 forms can be printed on laser or continuous feed printers. Tyler does not offer electronic W2 reporting or uploads for any state unless your state accepts the federal electronic file format.

  1. When printing W2s / T4s on laser, do I need pre-printed forms or just blank paper? (Do laser forms print the boxes, labeling, etc.)

  1. You must acquire pre-printed forms. The program only prints the employee information and dollar amounts.

  1. What are my options for printing T4 forms?

  1. T4 forms can only be printed on laser printers or submitted electronically. They must be submitted via electronic spreadsheet if you have 50 or more employees.

  1. What are the correct printer settings in Convergence?

  1. Please use the following:

    For Laser W2 Forms:
    Emulation: System
    Right Margin: 132
    Lines per inch: Default
    Characters per inch: 17

    For Laser T4 Forms:
    Emulation: System
    Right Margin: 132
    Lines per Inch: Default
    Characters per Inch: 17

    For Laser 1099 Forms:
    Emulation: System
    Right Margin: 0
    Lines per Inch: Default
    Characters per Inch: Default

    For Dot Matrix W2 Forms:
    Emulation: Generic
    Right margin: 132
    Lines per inch: Default
    Characters per Inch: 17

    For Dot Matrix 1099 Forms:
    Emulation: Generic
    Right margin: 80
    Lines per inch: Default
    Characters per inch: 10

  1. Can I print W2 or T4 forms more than once?

  1. Yes, as many times as needed prior to running YTD reset.

  1. What happens if I have an employee who has worked in two US states?

  1. If an employee works in multiple states throughout the year, one W2 will support up to two states.

    If an employee works in three or more states, a second employee number must be set up for that person. The third and fourth states’ figures will have to go under that second employee number.

  1. I’m a US client that has my own server. Will I need new programs for either W2 or 1099 processing?

  1. You will need a new program for 1099s once our programming department has completed it. As of now, no new programs are needed for W2s.

  1. I’m a Canadian client that has my own server. Will I need a new program for T4 processing?

  1. No, not if you used the programs last year.

  1. Does my company’s federal and State/Province ID numbers print on W2/T4 forms?

  1. Yes. The Federal ID comes from 10-33, and the State ID comes from 10-30.

  1. Why can’t I get into 10-60?

  1. Most likely this is a TMIS Security issue and you will need to change your settings in 34-40. To correct, please add 10.60 with a code of ‘1’ in the applicable TMIS access code.

  1. How do I submit electronic W2s?

  1. In 10-60-20 enter your ‘Contact Email Address’ if this field is blank. Then complete 10-60-20 to build the file and 10-60-21 to download it. The file being downloaded is named ‘W2REPORT’. You will then send or upload the file to the IRS.
    NOTE: This file is in a streaming format that is not conducive to spreadsheets.

  1. How do I submit electronic T4s?

  1. First run selection 10-60-10 to create the T4 file. Then run 34-80-03 to download the file (named ‘T4XML’) to your computer. Use #1 – ‘DOS text download’ and an output file name of ‘T4XML.xml’. You will then send or upload the file to Revenue Canada.

  1. Does Tyler sell blank W2 or T4 forms?

  1. No. Please visit your local office supply store for the forms that you require. Please visit irs.gov or the revenue Canada website. Tyler uses ‘1 across’ forms.

  1. Should I be using 2, 4 or 6 part forms?

  1. Ask your CPA or auditor. This varies by state or local requirements.

  1. What about employees who were terminated during the year?

  1. The applicable W2 for the portion of the year that the employee(s) worked will print. If it does not, it means that the 10-45 termination list was run mid-year, in error. Should this occur, please contact Tyler Support.

  1. How do I get the Misc. Box 12’s to print on my W2s?

  1. These amounts and codes must be manually entered for each employee. This is done in 10-60-01 (applies to Roth IRAs, Employer-paid health insurance, etc.)

  1. The printing on laser W2s is very small. Can I make it bigger?

  1. Yes. In Convergence > Setup > Preferences > Fonts, change the ‘Printer Font’ from ‘Verdana’ to ‘Lucida Console.’

FAQs: 1099

  1. Can I generate 1099 forms on Tyler??

  1. Yes. Before generating, make sure that the subcontractor information in the Vendor Master File is correct. If you have your own server, make sure you have the new 2020 1099 program installed on your system before proceeding.

  1. What options do I have for obtaining 1099s?

  1. 1099-MISC and 1099-NEC can both be printed on continuous feed or laser printers, or transferred electronically.

  1. Does Tyler sell blank 1099 forms?

  1. No. Please visit your local office supply store for the forms that you require.

  1. In what order should 1099 forms be generated?

  1. See the following table:
    Order Selection Number Selection Name
    1 11-42-06 Current 1099 Balance Report
    2 11-42-05 Current 1099 Balance Maintenance (if desired)
    3 11-43 Year to Date Reset (builds 1099 file and zeroes YTD from 11-30)
    4 11-42-01 1099 Maintenance (if desired)
    5 11-42-03 1099 Report
    6 11-42-02 Form 1099 Print
    7 11-42-07 Magnetic Media (if desired)
    8 11-42-04 Purge by Year

FAQs: Payroll

  1. Can I process a 2021 payroll before running W2s?

  1. Before processing a pay run in January, the Year-to-Date Reset selection (10-15) must be run. YTD Reset should only be run after ALL required W2s have been printed and confirmed for accuracy. If your company wants to process a payroll prior to issuing W2s, Tyler suggests printing at least two copies of all needed W2s to a secure spooler for issuing at a later date. Also, if required to submit electronically, you will need to build and download your file in selection 10-60-20 and 10-60-21. If this option is chosen, Tyler highly recommends printing a YTD listing in 10-42.

  1. I completed my year to date reset in payroll. However, when I printed my preview check register, I noticed that the prior year figures did not clear out. What’s wrong?

  1. Check Selection 10-24; if the figures have reset for the year there, but are still appearing on the check stubs, your company probably ran the YTD reset after Payroll Calculation (10-10) was run. Try re-calculating the payroll in 10-10. If that does not resolve the problem, contact Tyler Support for assistance.

Form Availability Summary

Form
Continuous Feed Printer (Dot Matrix)
Laser Printer
Electronic Reporting/Export
PDF
FEDERAL W2
Yes
Yes
Yes
No
CANADIAN T4
No
Yes
Yes
No
STATE W2
Yes
Yes
No
No
1099-MISC
Yes
Yes
Yes
No
1099-NEC
Yes
Yes
Yes
No

Yearly Processing Overview

Complete the following to correctly close the year in Tyler.

Backup

(Stand Alone Servers only)

Please make two backups: one backup before Month End and Year End are started, and one after both are finished. Remove these 2 tapes from the normal rotation of backup tapes. If you back up to the cloud, make sure these are saved as well.

Accounts Receivable

12-81: Year End Processing

This selection zeros YTD figures in 12-20, Page 2.
If Revolving A/R is used, this selection also zeros the YTD finance charges in 14-37.

Payroll

10-60-11: Yearly Register
10-60-10: W2 Statements
10-60-20: Prepare File (If required to electronically transmit)
10-60-21: Download File to PC (If required to electronically transmit)

**Do not continue if W2s have not been printed and checked.**

10-15: MTD, QTD, YTD Reset

10-45: Termination List

10-21: Employee Special Maint (optional)

For each employee, reset the “HOURS EARNED” for vacation and sick time to 40, 80, etc. if these are replenished on January 1st and you wish to track them using Tyler. Vacation and Sick Time are deducted automatically by Special Check Entry, 10-03. Personal Time has no programming attached to it and must be manually maintained, if used.

Time Clock

10-62-90-03: Time Clock System Holiday Setup

Enter the 2021 paid holidays for your company (for which active, full time employees are to receive compensation.)

Accounts Payable Menu

11-42-06: Current 1099 Balance Report
11-42-05: Current 1099 Balance Maintenance
11-43: Year to Date Reset
11-42-01: 1099 Maintenance
11-42-03: 1099 Report
11-42-02: Form 1099 Print
11-42-07: Magnetic Media
11-42-04: Purge by Year

Fixed Assets

16-09: Year End Update

This selection zeros the year to date book and tax depreciation amounts for each asset. Make sure that the last month’s depreciation calculation and update has been run before running the Year to Date Update.

NOTE: If you do not use this module and receive a message stating that Fixed Asset depreciation or YTD reset must be run, contact Tyler Support.

Rental

22-81: Yearly Asset Processing

This selection zeros YTD depreciation in 22-40.

Centralized Delivery

21-90-60: Holiday Maint

Set up the holidays for 2021 that are ineligible for deliveries. Delete all expired holidays from 2018 and prior years, if they exist.

Spoolers

Evaluate the contents of all spoolers for cleanup. Erase unwanted jobs, then use selection 34-01-01 or 34-01-12 to download jobs you wish to save to your computer.

Discretionary Purge

37-20: Item Number Purge

It is recommended that obsolete or unwanted item numbers be evaluated for possible purging. Companies that have used the Tyler Inventory Import program (24-10) may especially benefit by evaluating and purging unwanted item numbers. Contact Tyler Support if you do not know your discretionary purge password or need other assistance.

General Ledger

15-05: Journal Entry

After the General Ledger has been closed for the last month of the fiscal year and the General Ledger’s Control Record (15-01) is in the first month of the new year, you must make a manual journal entry to move the dollars from the Current Profit/Loss Account on the Balance Sheet to the Retained Earnings Account on the Balance Sheet. Both of these accounts are in the Equity Section. This journal entry is made as a prior period entry dated the last month of the fiscal year. The result should be zero in the Current Profit/Loss Account.

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