Process W2 Forms

Follow this instruction guide to print W2 forms employees and create electronic submission files. Review W2 Processing Checklist.

Important W2 Processing Notes

REQUIRED: Users should make sure they have an updated version of the Payroll Management module to ensure that the printed W2s comply with current requirements.

NAVIGATION: ABOUT

Before Processing W-2s: Verify Your Horizon Payroll Version
1. Before you begin processing W-2s, make sure your Horizon Payroll software is up to date.
2. The required version number will be announced on the Payroll Start page.
3. It is also listed in the Payroll Year-End Guide, available for download on the Payroll Start page around mid-December.
4. If you’re unable to download the Year-End Guide, please contact the Horizon Help Desk.
How to Check and Update Your Version
1. You must have Payroll Management version 16.201.27.2 or later.
2. To check your version: Open Payroll and click “About” in the upper-right corner of the screen.
3. Once your software is updated, the version will reflect the new W-2 reporting year.

Create W2 Records

NAVIGATION: UTILITIES menu > W2/1099R Processing > Create W2/1099R Records

Select Date Range
1. Enter or select the date range for the W-2 year:
2. Start: 01/01/2025
3. End: 12/31/2025
Pay Frequency
1. Recommended: Select all Pay Frequencies at once.
2. Or, run the process separately for each pay frequency (e.g., weekly, biweekly, semi-monthly).
Local Tax Information – Combine Local Tax (EIT)
1. Check the "Combine Local Tax" checkbox only if you report EIT monthly to a single Tax Collector.
2. Do not check this box if you file quarterly with individual county tax collectors.
3. If combining:
  1. Enter the two-digit County Code for the Tax Collector you're submitting all local taxes to.
  2. The County Code is the first two digits of the PSD code.
  3. All local tax amounts will be combined under this code for W-2 reporting.
  4. The W-2 will reflect the employer’s reporting location, not the employee’s residence.
Create 2025 Records
1. First Time Running W-2s for the Year: Select “Create New Records” to remove prior W-2 data and generate new records.
2. Adding Additional Frequencies: Select “Add To” to keep existing W-2 data and append the new frequency data.
  
  ⚠️ Do not use “Create New Records” unless you're clearing all W-2 data, not just one frequency.
Mode Selection: Under Mode Selection, choose Form W-2.
Run the Process
1. Click the Create Process button on the Quick Links bar.
2. Wait for the “Process Complete” confirmation message to appear.

Edit W2 Information

This step will allow you to any information that will appear on the W2. The W-2/1099-R Work File allows you to view, add, or edit W-2 and 1099-R data for each employee. This is a temporary work file — changes made here do not affect the Employee Master or Payroll History.

NAVIGATION: UTILITIES menu > W2/1099R Processing > Edit W2 Information

Selecting an Employee
1. Click the Browse (SSN) button to select an employee.
2. Employees will be listed in Employee # (Control #) order.
3. If an employee has multiple records, be sure to review and update each one as needed.
General Section
1. Address and Federal Wage/Tax Information can be edited here.
2. To mark an employee for Electronic W-2s, check the box labeled: Approved for Electronic W-2.
  1. This works with the “DO NOT Print Approved for Electronic W2s” setting in the W-2 printing program to prevent paper printing.
Box 12 – Coded Amounts (You can add or change codes and amounts)
1. The Retirement Plan box is checked automatically during W-2 creation if the employee had deductions with Box Codes like 12D, 12E, 12F, 12H, or 12S.
2. Data is pulled from the Deduction/Benefit Master based on W-2 box codes used during payroll.
3. To add a code:
  1. Find the next empty Code field.
  2. Select the appropriate code.
  3. Enter the corresponding Amount.
  4. Example: Adding Code DD (Cost of Employer Health Coverage) via the W-2 Health Cost Editor.
Box 13 – Checkboxes
1. Check/uncheck applicable boxes (Statutory, Retirement Plan, Third-Party Sick Pay).
Box 14 – Miscellaneous Info
1. Use for items like union dues, health insurance premiums, educational assistance, or retirement contributions without Box 12 codes.
2. Use a four character abbreviation (e.g., HLTH, EDUC).
3. Enter amounts in the fields next to each code.
4. This info can also be pulled automatically during W-2 creation if a deduction uses Employee Box Code 14 with a defined abbreviation.
State / Local Section: Add or adjust state and local wage/tax details as needed.
1099-R Information: You can edit or enter 1099-R data here for applicable recipients.
Saving Changes: Click SAVE or APPLY after editing each employee’s record.

⚠️ Important Notes on Employer Health Coverage (Box 12 DD) If you calculate the cost of employer-provided health care per pay, this should be reflected on the W-2. A quick entry grid is available for entering or editing Box 12 DD values.

⚠️ Re-running W-2 creation will erase any manually entered DD values, so verify all other data first before entering health care info manually.

Review W2 Audit Report

This report shows the totals for each employee and grand totals for all of the forms that will be printed.

NAVIGATION: UTILITIES menu > W2/1099R Processing > Audit Reports > W2 Audit Report

Click PRINT or PREVIEW
Review the report. If amounts for any employee are incorrect, repeat Step 2 to correct.

Review 1099R Audit Report

This report shows the totals for each employee and grand totals for all of the forms that will be printed.

NAVIGATION: UTILITIES menu > W2/1099R Processing > Audit Reports > 1099R Audit Report

Click PRINT or PREVIEW
Review the report. If amounts for any employee are incorrect, repeat Step 2 to correct.

Update Company Information

The Company Information settings contain the default details that print on all W‑2 forms. Name1 and Name2 combine to form the company name on the W‑2, so be sure everything is correct before printing.

Company Information Setup

Navigation: System Menu > Company Information

Review the company information for accuracy.
Enter the Federal ID (FEIN) without the hyphen (-).
Correct any missing or incorrect details.
Click SAVE.

Update Company Contact Information

Navigation: Settings menu > Payroll Settings

Select the Contact/Company tab.
Enter or update the contact information.
Select the Kind of Employer:
1. Most companies use Non Apply
2. Other available options include:
  1. Federal Government
  2. State/Local Government
  3. State/Local Tax Exempt Employer
  4. Tax Exempt Employer
Click SAVE.

Process Employee W2 Forms

Before You Print

Review employee and company info (address, wages, ID numbers).
Ensure you're using the correct version of the Horizon Payroll software.
Disable double-sided printing:
1. Go to Print with Setup > Preferences > 1-Sided.
2. Before printing, make sure you verified and reviewed all employee and company information in the previous steps.

Print Paper W2 Forms

NAVIGATION: UTILITIES menu > W2/1099R Processing > Print W2 Forms

Confirm Company Information: Make sure company info is correct — pulled from System > Company Information. Changes made here are not saved permanently. Federal ID should not include a hyphen (e.g., 123456789).

Step 1: Test Print for Alignment
1. Print Mode: Employee Copies
2. Format: 4 Down (1 Employee) (make sure the format matches the paper copies you are using)
3. Use blank paper first to test alignment.
4. If the text needs adjusted on the printed copy, use the Adjustment field:
  1. Top Adjustment: Try -25 (for printing too low) or 25 (too high)
  2. Left Adjustment: Try -25 (too far right) or 25 (too far left)
5. If using Document Viewer for electronic W-2s: Check “DO NOT Print Approved for Electronic W2's”
Step 2: Final Print on IRS Forms
1. Load the proper IRS form for employee copies.
2. Click PRINT
Step 3: Employer Copy (Alternative)
1. Use PREVIEW - PDF Preview to generate a PDF file instead of printing.
2. Save the PDF file securely and ensure it's backed up.

Publish W2s to Document Viewer (Optional)

NAVIGATION: UTILITIES menu > W2-1099R Forms > Publish W2 Information

Verify and edit company information if needed.
Enter the Tax Year (e.g., 2025)
Click PUBLISH W2 INFORMATION
A confirmation message will show how many records were published.

Print State, Local, and Employer Copies

Skip this section if filing electronically.

Step 1: Test Print for Alignment
1. Print Mode: IRS Copy – No Extra Locals Printed
2. Format: 2 Down (2 Employees) – Complete
3. Use blank paper first to test alignment.
4. If the text needs adjusted on the printed copy, use the Adjustment field:
  1. Top Adjustment: Try -25 (for printing too low) or 25 (too high)
  2. Left Adjustment: Try -25 (too far right) or 25 (too far left)
5. If using Document Viewer for electronic W-2s: Check “DO NOT Print Approved for Electronic W2's”
Step 2: Final Print on IRS Forms
1. Load the proper IRS form for employee copies.
2. Click PRINT
Step 3: Employer Copy (Alternative)
1. Use PREVIEW - PDF Preview to generate a PDF file instead of printing.
2. Save the PDF file securely and ensure it's backed up.

Print W-3 Form

Skip this section if filing electronically.

Step 1: Test Print for Alignment
1. Print Mode: IRS Copy – No Extra Locals Printed
2. Format: W3 Form
3. Use blank paper first to test alignment.
4. If the text needs adjusted on the printed copy, use the Adjustment fields:
  1. Top Adjustment: Try -25 (for printing too low) or 25 (too high)
  2. Left Adjustment: Try -25 (too far right) or 25 (too far left)
Step 2: Final Print on IRS Forms
1. Load the proper IRS form for W3
2. Click PRINT
Step 3: Employer Copy (Alternative)
1. Use PREVIEW - PDF Preview to generate a PDF file instead of printing.
2. Save the PDF file securely and ensure it's backed up.

Print IRS Red Copy A

Skip this section if filing electronically.

Step 1: Test Print for Alignment
1. Print Mode: IRS Copy – No Extra Locals Printed
2. Format: 2 Down (2 Employees)
3. Use blank paper first to test alignment.
4. If the text needs adjusted on the printed copy, use the Adjustment fields:
  1. Top Adjustment: Try -25 (for printing too low) or 25 (too high)
  2. Left Adjustment: Try -25 (too far right) or 25 (too far left)
Step 2: Final Print on IRS Forms
1. Load the proper IRS form for IRS Red Copy A
2. If using Document Viewer for electronic W-2s, make sure this is NOT checked “DO NOT Print Approved for Electronic W2's”
3. Click PRINT
Step 3: Employer Copy (Alternative)
1. Use PREVIEW - PDF Preview to generate a PDF file instead of printing.
2. Save the PDF file securely and ensure it's backed up.

Tax Form Available Print Formats

Depending on the tax forms your agency is using, select the proper FORMAT.

4 Down (1 Employee) – Complete: For Employee, laser copies using blank W2 stock, Prints 4 copies for one employee on 1 page
4 Down (4 Employee) – Complete: For Employer, laser copy using blank paper, Prints 4 different employees’ data on 1 page
4 Down (1 Employee): For Employee, using pre-printed 1 ply form, Prints 4 copies for one employee on 1 page
4 Down (4 Employee): For Employer, using pre-printed 4 ply form/ or for Employer using pre-printed 1 ply form, Prints 4 different employees’ data on 1 page
2 Down (1 Employee): For Employee using pre-printed 1 ply form. Prints 2 copies on 1 page, user will need to run the print process twice in order to have 4 copies.
2 Down (2 Employees): use for Federal Red pre-printed form
2 Down (1 Employee) – Complete: Employee laser copies using blank W2 stock, Prints 2 copies on 1 page, user will need to run the print process twice in order to have 4 copies.
2 Down (2 Employee) – Complete: Employer laser copy using blank paper, Prints 2 different employees’ data on 1 page
W3 Form – use for the Federal W3 Red pre-printed form

Print Selected Sequence Explained

You can print W2s for one employee or a series of employees by using the Starting and Ending Sequence Numbers. If you are not sure of the sequence number repeat Step 2 to view the sequence numbers for the employee or check the audit report.
Select the appropriate format based on the forms you are trying to print, i.e., Company, Federal or Employee copies.
1. Formats that include complete in the name print the form boxes and titles along with the information.
2. Formats that do NOT have complete in the name are for preprinted forms.
3. If you are unsure about the format to print, please contact the Horizon Help Desk.
If Stratus DocumentViewer is enabled, employee W2s may be sent to Stratus DocumentViewer where the employee may print their own W2s for their records.

Print 1099R Form (For Retirement Disbursements only)

NAVIGATION: UTILITIES menu > W2/1099R Processing > W2-1099R Forms > Print 1099R Forms

Ensure that your company information is correct.
Select the appropriate format based on the forms you are trying to print.
1. 2 Down (1 Employee): For Employee using pre-printed one ply form. Prints two copies on one page, user will need to run the print process twice in order to have four copies.
2. 2 Down (2 Employees): use for Federal Red pre-printed form or for company copy.
If you are unsure about the format to print, please contact the Horizon Help Desk.