Filing W2’s via Magnetic Media
Previously, people have filed employees W-2’s via Magnetic Media. Are there any changes?
The Social Security Administration (SSA) will not accept W-2 information from employers on any type of magnetic media. Instead, they require electronic filing of W-2 information. Sage ERP MAS 90 or 200 versions 4.0, 4.05, and 4.10, and Sage ERP MAS 200 for SQL versions 3.73 and 3.74 Magnetic Media module and Sage ERP MAS 90 and 200 versions 4.2, 4.3 and 4.4 Electronic Reporting module will allow you to create a MMREF-1 (EFW2) format file for uploading to the SSA’s website (www.ssa.gov/employer). The MMREF-1 file is formatted to the SSA’s Electronic Filing and Magnetic Media Reporting specifications provided the applicable IRD has been downloaded from Sage and properly installed on your system. File will be created in directory EFW2/”company code” as file name “W2REPORT.TXT”. Please call Friendly Systems support at 678-273-4010 ext 2 if you have questions on this Sage Payroll IRD for your system.
Form W-2 Reporting of cost of employer-sponsored health coverage :
Under the PPACA legislation, W-2 reporting of the value of health insurance sponsored by employers was to have become mandatory for 2011.
However, the IRS has granted interim relief for 2011 reporting. Sage is monitoring the requirements, with additional guidance to be released by the IRS later this year. Although reporting the cost of coverage will be optional with respect to 2011, the IRS continues to stress that the amounts reportable are not taxable. Included in the Affordable Care Act passed by Congress in March, the new reporting requirement is intended to be informational only, and to provide employees with greater transparency into overall health care costs.