1/11/2018 Electronic Submission of W ‐ 2s & 1099s Nicole W Nicole Watson tson What’s New? O Businesses < 50 W-2s & 1099s O Delayed implementation for tax year 2017 O Give small businesses more time to comply. O 2017 filing requirements the same as 2016. 1
1/11/2018 Requirements for Tax Year 2017 What’s New? Can IDR make filing easier? O Working with software vendors O register and test software prior to the 1/31/2018 filing deadline. O Guiding businesses required to file O Provide list of vendors who have completed testing O They offer software services for Iowa file formats. O 17 vendors so far 2
1/11/2018 Vendor List https://tax.iowa.gov/tax-year-2017-w-2-filing-vendor-list O 1099 Pro, Inc. O Intuit O Aatrix Software, Inc. O Kronos Inc. O American HealthTech, Inc. O MasterTax LLC/ADP O CFS Tax Software, Inc. O Real Business Solutions, Inc. O Drake Software O Sage O Financial MicroSystems, Inc. O Solutions, Inc. O Greatland Corporation O Thomson Reuters O Heartland Inc. Tax and Accounting O IDMS Account Ability O Infor Global Solutions Tax Year 2017 Filing Requirements Who What hat Is it R it Required? ed? Filin iling Due g Due Dat ate Must file Verified Business with a Summary of Yes 1/31/2018 withholding permit Payments (VSP) Business with 50 or more Must file W-2s Yes 1/31/2018 W-2s with Iowa withholding Business with fewer than 50 W-2s with Iowa May file W-2s No 1/31/2018 withholding Business with a May file 1099s or withholding permit or filing No 1/31/2018 W-2Gs though a bulk filer 3
1/11/2018 How should I prepare my file? O Do it yourself O Do you have an ASCII programmer on staff? O If not, use a service provider. O Service Providers O 17 vendors are currently registered O Vendors listed on the IDR website. O Filing extensions: https://tax.iowa.gov/webform/application-extension-time-file- iowa-w-2-wage-statements Iowa Does Not Accept O Other types of files (for example, PDFs scanned or created with any other software product). O Paper W-2 wage statements and 1099 information returns. O CD-ROMs; Cartridges; Flash drives; Floppy disks; Magnetic media; PDF files created at SSA website. 4
1/11/2018 Does Iowa Participate in Combined Reporting? O The SSA offers no Combined Reporting program for reporting W-2 wage statements to both the SSA and state revenue agencies. O The IRS offers Combined Federal/State Filing program (CF/SF) for reporting certain information returns to both the IRS and state revenue agencies. IDR does not participate in IRS program. What is the plan for 1099s? O 1099 filing is currently optional and available to O Any business registered with an Iowa withholding permit O Any business using a bulk filer to submit a 1099 file on their behalf O The Department will not issue permits and Business eFile Numbers (BENs) for purposes of electronically filing 1099s or W-2s with no withholding. 5
1/11/2018 1099s forms accepted O Form 1099-B, Proceeds From Broker and Barter Exchange Transactions O Form 1099-C, Cancellation of Debt O Form 1099-DIV, Dividends and Distributions O Form 1099-G, Certain Government Payments O Form 1099-INT, Interest Income O Form 1099-K, Payment Card and Third Party Network Transactions O Form 1099-MISC, Miscellaneous Income O Form 1099-OID, Original Issue Discount O Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Submitting Wage Statements and Information Returns 6
1/11/2018 Upload a File O Visit the Department’s eFile & Pay web application at https://efilepay.idr.iowa.gov/iao_aaa/welcome.asp O You need your business’ Business E File Number (BEN) to login. Upload a File O If you are a Service Provider enter your BEN, not the BEN of your client. O Verify that the BEN and Employer Legal Name match the information for the W-2 Wage Statement file you are about to upload. 7
1/11/2018 Upload a File O Enter the User ID and password. Upload a File O Select file type. Service providers select File for Client if uploading on behalf of a client. 8
1/11/2018 Upload a File O Click Upload New File to upload a W-2 file. Upload a File O Click the Choose File button to select the file to upload. 9
1/11/2018 Upload a File O Select the appropriate W-2 file for Iowa. In this example we are using IAW2-88771054-2016003.txt Upload a File O After you have selected your file, click the Upload button. 10
1/11/2018 Upload a File O After uploading the file click the Refresh button to update the information on the page. Page contents will not update automatically. How Will I Know the Department Received my File? 11
1/11/2018 Do I need authorization to upload my file to Iowa? O Transmitters registered as Bulk Filers with the IDR must use their own eFile & Pay credentials to upload withholding returns, wage and tax statements, and information returns on behalf of their software subscribers. O Payroll Service Providers registered as Bulk Filers with the Iowa Department of Revenue must use their own eFile & Pay credentials to upload withholding returns, wage and tax statements, and information returns on behalf of their clients. Do I need authorization to upload my file to Iowa? Companies registered to file Iowa withholding returns O Use your existing eFile & Pay credentials O Upload wage and tax statements and information returns O Or use your software company to provide transmitter service. 12
1/11/2018 Is a test file required? O Software vendors: Testing is required. O Software vendors (and commercial payroll service providers who develop their own software) are issued login credentials for use on an eFile & Pay test site hosted in a User Acceptance Test (UAT) environment after they register their product(s) with the Iowa Department of Revenue. O Software customers: Testing is discretionary. Sample files may be uploaded through Iowa’s production eFile & Pay set to DEMO mode https://tax.iowa.gov/efile-pay. How Will I Know the Department Received my File? W-2 or 1099 Results File O For each W-2 or 1099 file Iowa receives, Iowa posts a corresponding results file, distinguished by the same filename as original W-2 file, but appended with “results”. e.g. IAW2-12345678-2017001results.txt O Warning: If the results file doesn’t appear, remember to click the “REFRESH” button. O Large files take longer to process, delaying the results file. O Extremely large files including errors may cause the system to time out. O Try uploading a smaller file in an effort to identify a common error. O Fix that error everywhere it occurs O Upload again. 13
1/11/2018 How Will I Know the Department Received my File? Compressing files is optional O IDR recommends compressing files O Reduces transmission time O Only compress one data file into a single zip archive file. O Before zipping your file, name the original (unzipped file) according to the filename pattern described in 44-082. O Archive filenames should match the original. O For example: IAW2-12345678-2018001.txt.zip; IAIR-12345678- 2018001.txt.zip Resources 14
1/11/2018 Resources Visit the IDR website at https://tax.iowa.gov/ Resources Visit the IDR website at https://tax.iowa.gov/ 15
1/11/2018 Resources Visit the IDR website at https://tax.iowa.gov/ A business can: O Apply for Extension of Time to File Iowa W-2 Wage Statements O Sign up for email updates on Electronic Filing of W-2 and 1099s O View step by step instructions regarding W-2 Wage Statement File Upload Instructions Resources Visit the IDR website at https://tax.iowa.gov/ A software vendor can: O Access technical file specifications in the Electronic Reporting of Wage Statements and Information Returns 44-082 O Register with the Department with the 2017 IA W-2 1099 e-File Vendor Registration Form O Apply to become a Bulk Filer of withholding returns or uploading of W-2/1099 files O View W-2 Reporting Errors 16
1/11/2018 Information Online Information Online 17
1/11/2018 THANK YOU!! Center for Agricultural Law and Taxation 2017 Legislative Update 18
1/11/2018 2017 Legislative Update Income Taxes Non ‐ Conformity with Internal Revenue Code What is “conformity?” • The calculation for Iowa net income relies on federal AGI • To do this, the Iowa Code “conforms” with the IRC as it existed on a certain date • In past years, the Iowa Code was updated annually to conform with the most recent IRC • During the 2017 Iowa legislative session, lawmakers did not update the Iowa Code to conform with the most recent IRC • The Iowa Code now conforms with the IRC as it existed on January 1, 2015 19
1/11/2018 Non ‐ Conformity with Internal Revenue Code Impact of Non ‐ Conformity for TY2017 and Beyond • The federal Tax Cuts and Jobs Act was signed into law December 22, 2017; most provisions affect TY2018 and later • Currently, Iowa does not conform with the Act • During the 2018 legislative session, Iowa lawmakers will decide whether and how Iowa law will conform with the IRC, including the PATH Act and the Tax Cuts and Jobs Act • The Department will provide updated information on conformity for TY2017 as soon as possible Non ‐ Conformity with Internal Revenue Code Impact of Non ‐ Conformity for TY2016 • For MOST taxpayers, non ‐ conformity will not affect Iowa net income • Taxpayers who claimed certain items for federal purposes must make adjustments when calculating Iowa net income • For Iowa purposes, taxpayers must calculate federal AGI as if the PATH Act had never passed 20
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