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W-2/1099 PREPARATION PROGRAMS Reviews W-2/1099 Preparation Programs By Steven Phelan, CPA.CITP A s we approach the e n d o f t h e y e a r, many tasks are still a h e a d o f accounting profes- sionals. There are year-end tax plan- ning situations to address, year-end accounting issues required to finalize financial state- m e n t s a n d , o f c o u r s e, y e a r - e n d reporting compliance for W-2s and 1099s. Although the rules have largely remained the same over the past sev- eral years, the impor tance of this year-end fling remains signifcant. As a reminder, the Afordable Care Act (ACA) requires certain businesses to report the cost of health care coverage on the annual W-2 flings. Te ACA also modified tax forms to include questions regarding the mandate for all businesses to file 1099 forms to recipients as required. A s we look at the current year review of W-2 and 1099 sofware, it is important to note that not all solu- tions refect fnal 2014 rules and regu- lations. Some vendors are also in the midst of adding and enhancing fea- tures for the upcoming release. Typi- cally, the October through December timeframe produces final software results. Each product review refects updates and expected changes as each respective sofware vendor provided information. For the current year reviews, there is only one cloud option for W-2 and 1099 processing, Afer-the-Fact Pay- r o l l b y A c c o u n t a n t s Wo r l d . A l l remaining products install locally or in a network environment. Most of the sofware solutions ofer add-on mod- ules that provide functions separate from the core product. Without the add-on modules, many solutions pro- duce only basic functionality. From a design and usability pro- spective, most products offer input screens similar to the forms them- selves. This, of course, makes data entry much easier, especially for less experienced staf members. Trough- out this product categor y, the data entry screens are generally clean and intuitive. Many of the summary forms, such as the W-2 and 1096, automati- cally populate to mitigate any addi- tional required data entry. Reporting aspects of each vendor solution are usually the key diferenti- ating factors. As with many payroll s o l u t i o n s , su p p o r t f o r a l l f o r m s beyond traditional forms is often missing. To enhance the forms capa- bilities, users will typically need to purchase add-on modules. A similar scenario exists for printing features, with add-on modules required to print on plain paper or generate PDF fles. All vendors suppor t electronic fling of the core federal compliance forms. Some of the state electronic fling compliance is absent, however, in most vendors. Many of the vendors provide functions to assist users in verif ying Social Security Numbers through verifcation programs ofered b y t h e I R S a n d S o c i a l S e c u r i t y Administration. Microsof Excel and CSV fle for- mats remain the standard for data import. QuickBooks support is avail- able with some products, but ofen it requires a separate module. Many of the vendors provide the W-2 and 1099 reporting as a separate product within a suite of other product offerings. When this is the case, tight integration with the other suite products is gener- ally positive. All products reviewed provide a w ide variet y of help and suppor t options. Traditional in-program help and manuals are included in addition to searchable tools on vendor main- tained websites. Phone, fax and email support is available, but each vendor treats these options diferently. Some are favor ing emai l and web chat options over phone-based support. All help and support options are included within the product licensing fees. ● READ THE FULL VERSION OF THESE REVIEWS ONLINE AT WWW.CPAPRACTICEADVISOR.COM/ 12004259 REVIEW SECTIONS BASIC SYSTEM FUNCTIONS • General Navigation/Ease-Of-Use • Ease Of Data Entry • Multi-Users (Concurrent) • Client Management (On-Screen Management) • Saas Or Hosted Version Available REPORTING • Electronic Filing Capabilities (Federal, States) • Multi-State Capabilities • Billing Capabilities – Integration With Time & Billing Application? – Automated Invoice Creation • Forms Supported • Savable Formats (Pdfs, Etc.) • Pre-Printed Forms Stock, Blank Paper • Stuff And Mail Service • Overall Client Dashboard IMPORT CAPABILITIES • Import Capabilities From Major Accounting Systems • Import Capabilities From Common File Formats (CSV, Excel, Xml, Etc.) HELP/SUPPORT • Built-In Support Features • System Updates • Support Website/Documentation • Live Support Steven M. Phelan, CPA Steven is currently a tax manager at North Bay Associates, a family group ofce based in Oklahoma City, Oklahoma. He also owns a small tax and accounting practice as a side business. Prior to this, he spent 12 years in public accounting practice, with a primary focus on tax and technology consulting. He is active within the CPA profession and is a fequent speaker at various seminars and conferences throughout Oklahoma. 10 October 2014 • www.CPAPracticeAdvisor.com