[Revenews] LISTSERV Feb 2012

Tue Feb 28 09:04:04 PST 2012

 Payroll Tax News LISTSERV: iWire Information, Part 2
Special Informational LISTSERV
February, 2012.
Please be sure to provide this information to all who will benefit from it.
A. Introduction:
Effective last year, if you issue employees a W-2 you must also submit the information to DOR electronically. This is true even if you aren't required to file them with the Social Security Administration (SSA) electronically.

Businesses that issue 250 or more of certain Forms 1099 must also submit them directly to the DOR. Next year, that number drops to 100 or more.
1. How do I electronically file W-2s?
Employers will be able to submit their W2 information using one of two ways:

A. Employers can submit their information using our iWire system. That system uses the same file as you use for filing W-2s with the SSA. Most software vendors already support filing electronically for Oregon. Contact your vendor to determine if the software you have will work for you. The SSA provides a list of software vendors at https://secure.ssa.gov/apps10/ewr/vendors.nsf/byname if you choose to purchase or upgrade your software.

B. The department is providing a new filing system for small businesses to manually enter W-2 information so they can meet the requirement. It's called "iWire Direct", it's free, and doesn't require new software. It'll be available the first part of March 2012 by going to https://secure.dor.state.or.us/iWire .

2. How do I electronically file 1099s?
The department uses the same file for 1099 information as the Internal Revenue Service does. This means your software likely will create the file following federal Publication 1220 with additional specifications found in our 1220 Addendum located on the iWire webpage.

Employers who do not meet this threshold are not required to mail in paper copies of their 1099's or the 1096 form for 2011.

3. Can't I just print off the information when I submit my W2's online through the SSA and send the PDF file to you?
No, iWire is not designed to process PDF files because a PDF is really just a picture of the W-2 and does not contain the data we need. The file you submit must be a text (.txt) file unless you use our iWire Direct system which will be available in March. iWire Direct will create the file we need behind the scenes with a small amount of information entered by you from the W-2 itself.

B. Common iWire errors (W2 reporting):
The three most common errors filers using iWire see are:

1.  The value "01234567" is not a valid State Employee Account Number (Oregon RS specification).
This is an error generated by how your software enters the BIN into the file. The field for the BIN is a 20 character field. The numbers need to be right justified meaning that the number appears at the end on the entry, with "0"s added to the front to make the total 20 digits. Therefore a BIN of 1234567-8 should be keyed in as 00000000000012345678. You should contact your software vendor to notify them that their program isn't correctly formatting that field.

2.  The value "(503) 123-4567" is not a valid contact number:
This entry is a 15 character field in the RS record. It is a numeric entry, so the phone number must be entered first with no dashes or spaces. Then, the other five spaces are "blank "filled to equal the 15 characters that are required. Therefore, a telephone number of 503 123-4567 would be entered as 5031234567-----(blanks). Again, consider contacting your software vendor to tell them their software package isn't formatting the telephone number correctly.

3.  We were unable to determine if your file is a W-2 or 1099 data submission. Usually this is because your file does not start with a "RA" record (for W-2 submissions) or a "T" record (for 1099 submissions)
You are submitting a file that is not in the correct format and does not meet the correct specifications as indicated above.
The "RA" and "T" is also not a file name: these are records within the file that identify whether the information is W2 or 1099. Again, consider contacting your software vendor to tell them their software package isn't indicating what file type it is transmitting to us.
NOTE:  You must use the Oregon specifications for both the "RS" and "RV" records located on our website at http://www.oregon.gov/DOR/BUS/docs/iwire_specs.pdf . These specifications are different from those provided by the SSA. Failure to do so will cause the file to be rejected.

C. Additional Questions:

1.    QuickBooks provides an Excel spreadsheet with the W2 information. What if I convert that to a text file and submit? Can't that be used?
This file is not in the correct format and will not be accepted

2.    What is used as a Submitter ID? Do I need to register with the SSA to obtain that number?
No, you do not need to register with the SSA. You may use one of several numbers:
a. BIN:  (Business Identification Number for Oregon)
b. SSN:  (of Submitter)
c. FEIN: (Federal Tax Identification Number)
d. Business Registry Number (Secretary of State) or
e. SSA Submitter ID number (Provided when registering with the BSO)

3.    I received an e-mail indicating I had validation errors. Am I required to correct these and resubmit my file, or does it process anyway?
You must correct all errors in the file and resubmit it.
4   Since I am not required to submit my 1099's electronically this year, how do I get them to you? Do I mail them in? What transmittal form do I use?
If you do not meet the threshold for electronically filing, you are not required to mail in your 1099's. However, we do ask that you keep copies on file. Be sure to include the amount withholding on your Form WR (Withholding Annual Withholding Reconciliation Report).
IMPORTANT: Be sure to also review the "Frequently Asked Questions and Trouble Shooting Tips" at http://www.oregon.gov/DOR/forms/business/iwire-faq-troubleshoot.pdf for additional information and answer.

     The Payrolltax-News e-mail list provides employers with complete and up-to-date payroll tax information. Employers can self-subscribe here<http://listsmart.osl.state.or.us/mailman/listinfo/payrolltax-news>. Representatives in the Business Division will send information to employers through this list. Employers can request additional information by e-mailing payroll.help.dor at state.or.us<mailto:payroll.help.dor at state.or.us>.

As a standard practice, e-mail sent from the department will be in text form only. Department of Revenue will not open attachments.

Questions about list content and subscription problems should be directed to the list owner:

Cathy Tavares
Oregon Dept of Revenue
Cathleen.M.Tavares at state.or.us<mailto:Cathleen.M.Tavares at state.or.us>
503-945-8762

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