Preparing for Year-End

Answers to some of the most common questions related to preparing for year-end processing.

How many forms should I order?

If you plan to use the plain-paper format of the W-2 and file electronically, you don't need to order forms.

If you do need to order forms, a reliable way to determine how many forms might be needed is to perform the Build W-2 Forms and print the "totals only" format of the W-2 Form Listing. This report includes "# of W-2s" on the page.

Allow extra pages for potential alignment errors, printer jams, and reprints for employees who may have lost their W-2s.
Tip: Some filers opt to order twice the number of forms they expect to need. Should an error be found at the last minute, this ensures that the entire W-2 run can be successfully reprinted before the deadline.

Do I need any programming modifications in order to produce W-2s and 1099s at the end of this year?

Please load Spectrum 2023 R3 for up-to-date Year-End programming on W-2s, 1099s, and other year-end functions.

How do I show life insurance in excess of $50,000 and/or personal use of company-owned automobile on the W-2?

The IRS publishes a table detailing the amount of earnings to be applied. Contact your accountant for more information regarding your company's specific responsibility. See Year Round Benefit Setup for Year-End Reporting for more information on recording benefits in your Spectrum application.

What can I do before my final payroll cycle this year to prepare for year-end?

There are several things you can do now to make year-end processing easier:

  • Review these Help pages carefully.
  • Order forms if you don't plan to use the plain-paper W-2 format.
  • Print copies of the Notice to Employee if you plan to issue plain-paper W-2s.
  • Collect information on state, county, and local tax changes.
  • Record benefit accumulations for each employee. Consult your CPA for more detailed information on your company's specific obligation.
  • Perform a W-2 pre-test.
  • Print the Wage and Tax History Report in summary for each state and verify that no major corrections are needed.
  • Update to the Spectrum year-end version (R3).

What is a W-2 pre-test?

The W-2 pre-test is a test performed before the end of the tax year. We recommend you perform a pretest of your W-2 processing, particularly if you are a new Spectrum user or operating in a different state for the first time. This can be done well in advance of year-end - it is not necessary to wait until January 2024 to begin the review process.

  • Run the Build W-2 Forms function.
  • Review the year-to-date 2023 information for accuracy.
  • After the final payroll cycle of the year, run the Build W-2 Forms again; this clears all information and rebuilds the file automatically.

What should I do if I find a problem during the pre-test?

If you find a problem and you are not sure how to correct it, you may submit a case through the Viewpoint Customer Portal.