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September 2023 – Volume 27 Issue 3

September 2023 – Volume 27 Issue 3

With fall upon us and the weather starting to get a little cooler, it won’t be long before the end of calendar year is here.  And that means it will be time to issue and file 1099s, W2s, and 1095s.  For 2023, there are important changes to be aware of that affect the end of calendar year process.

One of the biggest changes is with the requirement for electronically filing 1099s and W2s – beginning with tax year 2023 forms filed in 2024, employers must add the number of 1099s and W2s to be filed (along with other forms stipulated by the IRS; click here to see the full list), and if the total number of information returns to file equals 10 or more, you must file all the forms electronically.  For example, if your organization has 5 1099 forms and 30 W2 forms to issue and file for tax year 2023, you will be required to file both 1099s and W2s electronically (because 5 1099s plus 30 W2s equals 35, which is greater than 10).  Also, if any corrections to the tax year 2023 forms need to be submitted, the corrected forms must also be filed electronically if the requirement for filing the original form electronically was met.

For Accounts Payable, the School Accounting System will be updated to have a direct connection to the Internal Revenue Service’s application in order to submit the files for the 1099 information returns, including the initial file and any corrected files if applicable.  With the application-to-application connection, the process to file 1099s electronically to the Internal Revenue Service will be very simple and secure, and will not require any pre-authorization or approval process; thus, all School Accounting System users will file the 1099 information returns electronically.  An important note to keep in mind, since all users will be required to file 1099s electronically to the Internal Revenue Service, do NOT purchase any Copy A pre-printed 1099-NEC or 1099-MISC forms.  For the applicable states in which our customers are located, an option will still be available to create a file to submit the 1099 information returns electronically to the state if needed.

For Payroll, the option to create the electronic file for W2s to submit to the federal government (and state and local government, if applicable) will continue to be available and work like it has in the past.  For example, the federal W2 electronic file would need to be created from within the School Accounting System and then uploaded to the Social Security Administration using the Business Services Online (BSO) website.  If corrected W2s need to be filed to the federal government, they can be manually entered and submitted electronically from within the BSO website.

Also, as a reminder, the BSO website login changed on March 25, 2023, and redirects you to the Social Security Sign In page.  BSO users now need a Social Security online account that was created before September 18, 2021, or a or account, which can be created from the Social Security Sign In page if needed.  The new requirement for accessing the BSO website provides an additional level of security and ensures information is protected.  If you do not have a Social Security online account that was created before September 18, 2021, or a or account, complete the steps to set one up now so that everything is ready to go before the end of the calendar year.  For more information, click here and refer to the Updated Registration Process section.

All the changes noted above, along with the instructions for completing the end of calendar year process in Accounts Payable and Payroll, will be covered in our upcoming end of calendar year workshops and webinars.  Click here to access the Training Calendar and register today.