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December 2020
Volume 32, No. 12
​Dear Friends:
This special issue of News from GMS is devoted to things you need to know about W2’s, 1099’s, 1095C’s, and 1098’s. We encourage you to read it immediately, forward to all staff involved in these processes and to contact us should you have any questions.
​W2, 1099, 1095C and 1098 instructions are included in the Help manuals. We are identifying the highlights in this newsletter and encourage you to refer to your Help manuals for the specific technical details. This way you can focus your attention on the items that apply to you. Instructions for downloading your revised accounting software will be emailed to you later this month. You will want to load these after the last paychecks are issued for 2020 and before the first paychecks are issued for 2021. The memo will describe the software updates and instruct you on loading. 
RLSS software revision is being sent in early December. You need to be certain this revision is installed before printing/preparing your 1098 forms.
Please note the article on Service Calls in this newsletter. We want to provide you with the very best service. To do so, we need your help.
​Final Thoughts from our President/CEO
Donald Cassady GMS
As you may have heard, effective December 31, 2020 I am retiring from my position as President/CEO of GMS. I will have been with GMS for a little over 30 years. For the first 18 years, as a lot of you know, I was a GMS field staff that took me on site to help install and train our clients on the GMS system. And in the very early days of my career there were many times when my first duty was to help a client unpack and set up their brand new FIRST computer!
 
It was certainly a learning experience for all involved including myself as well as our clients. “Calling the Help Desk” or “Reaching Out to IT” at that time meant looking for the instructions in the box! A lot of the days were long and weeks exhausting but there is no other career I would ever have traded this for.
 
We’ve had a few GMS staff come and go over my 30 years with the company but as the majority of you know, based on our staff’s longevity we all have been in this for the “long haul”. Here’s a statistic: currently, over 70 % of our staff have been with GMS for over 20 years! It’s truly a great company to work for and I am blessed to have been able to work with people that I consider my friends.
 
If there was a hardship that I had to endure in the beginning it was being away from my family and friends for an average of 40 weeks per year. I am incredibly fortunate to have a wife, Karen, that has been supportive of my work since day one. This may be difficult to understand, but I believe that in certain ways the constant travel strengthened our relationship, as it made us appreciate so much more the time we had with each other. I am truly blessed to have her in my life.
 
My final thoughts go out to you, our clients. I have been involved with non-profit organizations in one way or the other for pretty much all my professional career, including public accounting, being a Finance Director at a CAP Agency and the 30 years with GMS. It’s always been very important to me to know that in some way, to some extent, I am helping people through my job.  I cannot ask for a better way to help people than to have worked with a client base such as you through the services you provide.  I want to let you all know that I admire you for what you do day after day, all for the common goal of helping others. And I thank you for letting me be part of your effort.
 
God bless you and please stay safe and healthy. I will miss you all.
 
Donald
Service and Assistance ​
January is by far the busiest month in the year for our Software Technical Support Staff. W2’s, 1095’s, 1099’s and 1098’s are prepared and printed, tax and other software changes are being installed and many agencies are beginning their new fiscal year.  Here are some things that you should know. Thank you in advance for your patience and understanding
​
  • GMS service hours are 8:30 am to 7:00 pm EST Monday through Thursday. On Fridays, our service hours are 8:30 am to 5:00 pm EST. It is GMS policy to respond to every service call within two hours of receipt (unless another arrangement is made). Calls received after 6:00 pm EST will be responded to no later than 10:00 am the following day.
  • Calls are responded to on a first come - first served basis.
  • You may place your service call by phone 800.933.3501, via the website at www.gmsactg.com or by email to service@gmsactg.com.  Or if it is a quick question, you can use the Service Chat via the web.  The link is on our website or by clicking on Help in the upper left corner of your software. Service Chat hours are 8:00 am EST to 4:30 pm EST Monday thru Friday.
  • When you place a call, we need your name, client number, extension number and a brief (but specific) description of the problem so we can route the call most efficiently.
Note:  All GMS offices will be closed on December 24, 25, & 31, 2020, and January 1, 2021,  for the Christmas and New Year’s holidays. 
​For all of us and all of you, January can be a particularly stressful time. Our service call volume usually grows threefold. As we prepare, there are some things that you can do that will help us serve all GMS clients.
  1. Review your W2, 1095, 1099 and 1098 instructions this month - in December. Should you foresee questions or issues, please feel free to contact us now, when our service call volume is much lighter.
  2. If a problem does occur, see if it is addressed in the Help Manual before placing a service call.
  3. When you do call, please let us know the urgency of the issue and an extension number. If you have a deadline, tell us. If there is no urgency, we appreciate knowing that as well. 
  4. If you are returning a call from a member of the Software Technical Support Staff, please let us know so your call can be routed ASAP. GMS Clients and Software Technical Support Staff members all share a common frustration - telephone tag.
  5. Please do not email a Software Technical Support Staff Member directly as this will slow down our response time.
Things You Must Do Before Your First Payroll in January
Here is a simple checklist of those steps you must perform after your last 2020 paycheck is issued and before issuing your first paycheck in January - regardless of when you print your W2’s. More details can be found in your Help manual.
  • Check employee gross-to-net amounts on the YTD Payroll Register. Make sure all final adjustments have been entered and processed, particularly for 3rd party sick pay, certain business expense reimbursements, the cost of life insurance in excess of $50,000 or employer sponsored health insurance.
  • Check all last minute items like address changes, name spellings and Social Security numbers.  You will have a chance to correct these later - but it will be easier now.
  • Check your state tax code by displaying to see that information is correct - state codes, names and reporting ID’s.  This can be done by going to Payroll, Set Up, State Tax.
  • Print and review State and Local Tax Analysis.
  • Complete all Quarterly Reporting activities.
  • Install December software revisions before proceeding.
Follow these procedures on your Payroll - Annual Menu – W2 Processing
  1. Click on the Save/Clear YTD Amts button.  You will be asked to specify the drive and folder on which your database is stored.  It will make a copy of your database and save it in the same folder called W2xx-xx-xxBU.mdb  ( The xx-xx-xx represents the computer date the file was backed up).  It will also copy the information from your year-to-date payroll and deduction tables into W2 tables, and then zero out the year-to-date amounts in the payroll and deduction tables. 
  2. Check employee files. You should find that year-to-date amounts are now zero.  
  3. You may now proceed with processing your first payroll in January.   W2 printing may take place at your convenience.
When Should You Perform W2, 1099 and 1098 Activities?
​As you set your timetable for performing these activities, here are some general rules to keep in mind.
  • The proper time to follow W2 preparation procedures is after the last paid payroll in the calendar year and before the first paid payroll in the new calendar year. Paid payroll is defined by the date on the payroll check - not by the pay period ending date.  If your paid payroll includes all or part of days worked in December, but checks are not dated and issued until sometime in early January, then W2 steps should be followed before January paychecks are issued.
  • You will need to run certain steps to save the current calendar year payroll information and clear year-to-date amounts before issuing your first payroll in January.  Once these steps are performed, you may print W2’s at any time.
  • You may perform normal 1099 activities anytime after you have issued the last accounts payable checks for the year. You do not have to print 1099’s before issuing checks in the new year.
  • If you will be preparing 1098’s for your RLSS system, then you must make certain that transactions dated in the current calendar year are recorded before proceeding.  1098’s review loan histories for specified dates allowing you to print 1098’s at any time - even after new year transactions are entered.
Consider These Special Issues Please!
​Double check to see if you are affected by one or more of these special issues now. If so, please review the Help Manual for details. 
  • ​Do you have a cafeteria plan?
  • Will you have 3rd party sick pay that will need to be reported on your W2’s?
  • Did any of your present or terminated employees receive life insurance in excess of $50,000?
  • Have you made any expense reimbursements that are considered taxable?
  • Do you have a qualified pension plan?
  • Did you withhold dependent care benefits from any employees that must be reported in Box 10 on W2’s?
  • Did you withhold any Ohio School District taxes?
  • Did you have employees who made contributions to a deferred compensation retirement plan? 
  • Do you have an employer sponsored health plan that needs to be reported?
Common W2 Errors
​
  • Not setting up the right box # and letter with no spaces next to the deduction for Box 12
  • Not putting a “Y” under the retirement column next to the correct deduction
  • Putting a “Y” under the W2 box column rather than putting the box number and letter
  • Not saving the edits after adding box numbers and letters
  • Going back to Edit/Prepare and answer “Y” to the override W2 question after saving edits
  • After making changes in the W2 box setup, the proof listing doesn’t reflect the changes because “Y” was not answered to the override W2 question
  • Not reading the instructions
  • Retirement box was not checked because they had no retirement deductions even if the employer contributed.
Is GMS Printing Your W2’s, 1095’s, 1099’s or 1098’s?
​If so, follow the instructions to send us your files.  Please allow a week turn around upon receipt of your files.  Forms will be printed in the order the files are received.  Remember, the deadline for file submission to GMS is January 20, 2021.  Forms will be sent to you once they have been printed. 
​GMS Tax Form Printing or Electronic File Preparation
​For those agencies who have requested that GMS print their W2, 1095, 1099 or 1098 forms and/or prepare the electronic file, there are several important things you need to know.
  • ​Print out the instructions that are in your Help manual under each appropriate section:  Payroll Annual, Supplement #400 W2 Electronic File Reporting, Supplement #330 Complete 1099’s and/or Supplement #804 RLSS 1098’s.
  • If you have requested that GMS print W2, 1095, 1099 or 1098 forms, make sure that these forms have been proofed and are ready to be printed when you transmit your database to us. We will keep your blank forms in our office and send the forms to you once we have printed them.
  • Always include the transmittal form, which you have filled in and saved, exported to either a PDF or Rich Text format, with a copy of your database.
  • Always include the Proof Listing, which has been exported to a PDF format or Rich Text format, with a copy of your database. Excel formats may give incorrect amounts.
  • There is a special electronic file format for the states of AL, AR, GA, IA, IN, KY, MD, MS, NE, OH, OR, PA, UT and VT; the cities of Warren, Dayton, and Ravenna, OH; and also RITA for Ohio and PA Berkheimer.  If your order form specified one of these states or cites, a separate file will be prepared and emailed to you.
  • After you have notified us that you have completed the appropriate steps above, we will email a link to you to be used to upload your database and any supporting documents.  This link is to a secure site and is the only method that should be used in transmitting this information to us.
Need to Prepare Files for IRS or the Social Security Administration?
​Many GMS clients report W2 information electronically to the Social Security Administration and/or 1095C, 1099 and 1098 amounts to the Internal Revenue Service.  Remember you have two options available:
  1. Supplement #400, W2 Electronic File Reporting, Supplement #330 Complete 1099’s and/or Supplement #804 RLSS 1098’s will enable you to prepare and submit these files yourself. You may order these supplements via the client section of our website at www.gmsactg.com.
  2. You may also choose to have GMS prepare the files for you to be electronically submitted. Note - You must Purchase, or have already Purchased Supplement #330 Complete 1099's and/or Supplement #804 RLSS 1098's in order for GMS to prepare the files. Instructions for the file preparation and transmission to GMS can be found in the Help manual under the appropriate supplement.
W2 Electronic File Reporting, 1099 and 1098 Supplement Prices
Following are the prices of the three supplements referenced throughout this special edition of the GMS Newsletter.  Should you need to order one or more of these, click on Help, GMS Website within the software and browse to the Client Portal​.
 
Supplement #400 W2 Electronic File Reporting
1-2 users:           $120.00/$40.00 annual license/maintenance
3-4 users:           $150.00/$50.00 annual license/maintenance
5+ users:            $190.00/$63.00 annual license/maintenance

Supplement #330 Complete 1099’s
1-2 users:           $28.00/$85.00 annual license/maintenance
3-4 users:           $350.00/$105.00 annual license/maintenance
5+ users:            $440.00/$135.00 annual license/maintenance

Supplement #804 RLSS 1098’s
1-2 users:           $28.00/$85.00 annual license/maintenance
3-4 users:           $350.00/$105.00 annual license/maintenance
5+ users:            $440.00/$135.00 annual license/maintenance
If you are submitting W2 files to SSA, you need to register for a User ID and Password
You must register with the Social Security Administration in order to use their Business Services on-line.  Registering allows you to use the Employee Services to submit a wage file, W-2 on line, view status, view notices and view errors. It also allows you to use the SS number verification service. Registration is required if you plan to file using Electronic Data Transfer.
 
December 2020 is the preferred period for new registrations.  You may register at http://www.ssa.gov/employer, select Business Services Online, select Register.  To register by phone, call the Employer Reporting Branch at 1-800-772-6270.  Information you will need to register is (some of the information below is optional) company name, phone number, address and the Employer Identification Number of the company you work for, your name (first name, middle initial and last name) as shown on your Social Security card and your mailing address, your Social Security number, date of birth, your work telephone number, e-mail address and fax number to contact you if they have a problem processing your file.
 
If all of the information given is verified, they will issue a User ID and password, formerly called your PIN#.  For further information on registering, go to their web site to review other questions and answers about using the User ID and password. 
 
If you previously received a User ID, you may be notified and reminded to change your password in order to keep your User ID issued by SSA valid.  If you have not done so and the User ID # becomes invalid, a new User ID will need to be issued and can take up to 10 business days for reissue. 
 
If you received this notification, please go to http://www.ssa.gov/bso/bsowelcome.htm and click on login to change password or call SSA at 800.772.6270 to change the password, as that is what SSA is recommending for assurance purposes. The person who was issued the User ID is the one that should call to change the password.
Applying to File IRS Information Returns Electronically
FIRE
​All filers must obtain approval from the Internal Revenue Service, Technical Services Operation (TSO), and be assigned a Transmitter Control Code (TCC) prior to electronically filing Forms 1042-S, 1097-BTC, 1098 Series, 1099 Series, 3921, 3922, 5498 Series, 8027, 8955-SSA, and W-2G. Once approval to file electronically has been received, filers shouldn't reapply each year. There are two exceptions where a filer would need to apply for a new TCC: (1) If the TCC hasn't been used for two consecutive years; or (2) files were previously transmitted by a service bureau using the service bureau's TCC and the filer has the computer equipment that's compatible with TSO and wishes to prepare the files in-house.
Form 4419, Application for Filing Information Returns Electronically (FIRE) must be filed electronically to request the original TCC.
​Upon approval, a five-character alpha/numeric Transmitter Control Code (TCC) will be assigned and included in an approval letter. The TCC is used to identify payers/transmitters and to track their files electronically. Only one TCC is required for each transmitter who files Forms 1097-BTC, 1098 Series, 1099 Series, 3921, 3922, 5498 Series, and W-2G for multiple payers. However, if filing Forms 1042-S, 8027, 8955-SSA, or ACA returns (Form 1094-B, Transmittal of Health Coverage Information Returns; Form 1095-B, Health Insurance Coverage; Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns; and Form 1095-C, Employer-Provided Health Insurance Offer and Coverage), a separate TCC is required for each of these types of returns. Filers/transmitters may not electronically file information returns until the application has been approved and a TCC has been assigned. If any information on the Form 4419 changes, filers must notify TSO in writing so the database can be updated. Be sure to include the TCC in all correspondence.
​Some service bureaus will transmit files using their TCC, while others will require filers to obtain a TCC of their own. Payers should contact their service bureau for further information.
​Filers of information returns may be subject to penalties for failure to file timely, failure to include all or correct information, and failure to file electronically when required. Questions concerning penalty notices should be directed to the address or telephone number printed on the notice.
​For general instructions for certain information returns for 2020, refer to https://www.irs.gov/instructions/i1099gi.  
​For additional information, call the TSO Customer Service Section toll-free at 866-455-7438 or at 304-579-4827 (not toll-free) if using the Telecommunications Device for the Deaf (TDD). Foreign filers may call 304-263-8700 (not toll-free).
SSA
​Electronic filers of Form W-2 must contact the Social Security Administration for all information, forms, and publications relating to the filing of Form W-2; visit SSA.gov/employer or call 800-772-6270.
AIR
​AIR is the e-file platform used for Affordable Care Act returns. To electronically file ACA information returns, a firm or an organization must submit the ACA Application for TCC. See Affordable Care Act Information Returns (AIR) Program at  https://www.irs.gov/e-file-providers/affordable-care-act-information-returns-air for more information.
Deadlines to Remember
Remember these important deadlines for W2’s, 1099’s, 1095C’s, and 1098’s. 
 
January 22, 2021
  • Latest date you can send files to GMS for form printing and expect to receive them before January 31.
  • Latest date you can send files to GMS for preparation of IRS or Social Security Administration file to be submitted electronically and expect to receive the file back before January 31.
 
January 31, 2021
  • W2’s & 1095C’s are to be furnished to employees.
  • 1099’s and 1098’s must be given to recipients.
  • W2, 1095, 1099, and 1098 information must be filed with Social Security Administration. This applies to both electronical filing and filing of paper forms.


Please Note:
​W2, 1095, 1099 or 1098 forms will not be sent to any clients that ordered forms from GMS who have an outstanding balance for any charges prior to November, 2020.  They will be sent in early December to those clients who have paid their balances due as of 10/31/20 and are printing their own forms.  Those agencies that requested GMS to print forms or prepare electronic files for submission also must not have an overdue balance.
GMS Offices will be closed December 24, 25, and 31, 2020, and January 1, 2021, to allow staff to celebrate the holidays with their families.
Donald Cassady Retires
​Celebrating his 30th anniversary with GMS on December 1 is our President/CEO Donald Cassady.  We are grateful for his excellent leadership and his dedication to GMS.  Happy anniversary, Donald! 
​
Donald enjoying the Florida sunshine with wife Karen at our 2016 GMS Annual Summit in St. Pete Beach, FL.
​Deborah Gerken, Executive Director at Northwestern Ohio C.A.C. in Defiance, OH is retiring in mid-December after 45 years of employment there.   That is an amazing length of service for one employer!  We wish you the best, Deborah, in this new chapter of your life.

Martha Hall, long-term Fiscal Officer at Northeast MS PDD in Booneville, MS, will be retiring at the end of December.

Elizabeth Johnson, Finance Director at Middle Peninsula Planning District Commission in Saluda, VA will also be retiring at the end of the year.  Replacing Elizabeth as Finance Director will be Heather Modispaw.
​
It’s been a pleasure working with you, Martha and Elizabeth.  You both will be missed.  We wish you much happiness as you begin this new chapter in your lives.  Welcome, Heather!  We look forward to getting to know you and please do not hesitate to give us a call should you have any questions.

We at GMS wish our President/CEO Donald Cassady a relaxing retirement after his dedicated 30 years with GMS.  Donald will be greatly missed by the GMS Staff, our clients and those that have had the pleasure to meet him thru the years.  Thank you for all you have done, Donald!  
To save or print the November issue of GMS News:
December 2020 Newsletter.pdf
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