W2 Processing

On this page:

The W2 Processing page includes options for entering employer information, creating a workfile of employee records, printing W2 forms, running reports, and creating an electronic file for IRS reporting. If needed, you can set up and submit more than one workfile for the current year.

The W2 options must be run after the last payroll of the year and before using any Year End options to start the new calendar year.

Menu Path:  Human Resources > Periodic Routines > Year End > W2 Processing

W2 Wizard

The W2 Wizard leads you through the setup options in the W2 Processing page. These options include:

Setup W2 Parameters

Enables you to enter the tax year, employer data, and contact information. You can also set controls for printing W2 forms and generating an electronic file.

Setup Employer Records

Enables you to add, change, and delete employer records for each Employer Identification Number (EIN) your organization uses.

Copy W2 Information

Enables you to copy the current year's employee information into a workfile for generating W2 forms. Do not use this option if you have already run a payroll for the new year. For more information, refer to Copy W2 Information.

Create Employee W2 File

Enables you to build your workfile of employee data and set additional parameters for printing W2 forms.

You can use the Wizard's action buttons to navigate between the setup pages. These buttons include:


Returns you to the first page used by the previous option.


Displays either the next page for the current procedure or the first page for the next option.


Returns you to the W2 Processing page, where you can select the next option to resume the Wizard process or return to a previous option.

The system keeps track of the steps completed in the W2 Processing page's Setup Options section by selecting the checkboxes next to the options' buttons. After completing the last setup option, Create Employee W2 File, you can select the options in the page's Employees and W2 Forms/Electronic File sections individually.

Menu Path:  Human Resources > Periodic Routines > Year End > W2 Processing > click Set Up W2 Parameters

Additional W2 Processing Options

Once you set up your employer and employee records, you can use the remaining options in the W2 Processing page to prepare your file for generating W2 forms and submitting your data to the IRS.

Employee W2 File Update

Enables you to review, add, update, and delete employee records stored in a W2 workfile.

Employee W2 File Edit Reports

Enables you to generate reports for verifying W2 totals and reviewing changes to employees' workfile records.

Employee W2 File Purge

Enables you to delete all records in a W2 workfile. You must purge the workfile if you need to re-load employee records with the Copy W2 Information option.

Print W2 Forms

Enables you to generate W2 forms. You can also use this option to reprint employees' forms.

Create W2 Electronic File

Enables you to produce an electronic file for submitting your W2 records to the IRS as well as your state and limited local tax filings. For more details, refer to your state tax documentation.

W2 Address Prompting Enabled

Checkbox which enables you to have the W2 / 1099R information updated when you update the employee's record. If this box is blank, changes to the employee's W2 / 1099R information will need to be manually updated.

W2 Workfiles

When you set up your W2 information, the data is stored in workfiles. Workfiles are tables that can include records for all of your employees or groups of employees, for example, if your organization files under more than one federal Employer Identification Numbers (EIN).

Using workfiles offers two major advantages:

  • Data Security: Workfiles enable you to change employees' W2 data without affecting their permanent records. Also, if you find significant errors in the workfile you are creating, you can purge the file and start over at any point prior to generating your W2 forms.
  • Flexibility: In addition to being able to use multiple workfiles, you can run many of the W2 options as many times as needed until your data is correct.

Once you run the procedure to copy all of your workfiles, you can set up the Payroll System for the new year. These steps are outlined under Year-End Maintenance in the Copy W2 Information section.

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