PowerSchool ERP Payroll and Human Resources
PowerSchool ERP Payroll and Human Resources
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Create W2 Electronic File

Use this option to create an electronic submission file for W2 records.

Refer to your State reporting documentation for information on state-specific implementations of the W2 electronic filing process.

Select one or more Employer Information Number (EIN) and control number combinations to include in the file. When you select a specific combination, the file includes only records associated with that control number — not all records for the Federal Tax ID. To create files for additional control numbers, rerun the process for each combination, or select multiple combinations if your submission allows it.

From the Human Resources menu, select Periodic Routines. From the Year End menu, select W2 Processing.

Create the Electronic File

  1. On the W2 Processing page, select Create W2 Electronic File.

  2. The Tax Year field defaults to the Tax Year on the W2 Wizard: W2 Parameters page. Select a different year if required.

  3. Refer to the Field descriptions, enter or select information in the required fields, and then select Accept.

  4. In the Print dialog box, the name of the electronic file depends on the Media Type selected on the W2 Wizard: W2 Print Controls page.
    The Media Type is always D - Disk/Electronic File.

  5. Select OK.
    The Social Security submission file for processing is created. The default file name is w2report.txt.

  6. Select the Destination for the W-2 Edit file:

    • Select File to save the w2edit file in .rpt format.

    • Select Screen to save the w2edit file in .pdf format.

  7. Select OK.
    The W-2 electronic file detail report is created. The default file name is w2edit.rpt.
    The detail report includes Social Security numbers and addresses, as well as employees' gross wages, taxable wages, federal income withholdings, and Medicare and Social Security taxes.

  8. Select the Destination for the W-2 Negative/Zero Amounts error log:

    • Select File to save the error log in .log format.

    • Select Screen to save the error log in .pdf format.

  9. Select OK.
    The W-2 Negative/Zero Amounts error log is created. The default file name is w2med_neg.log.

  10. Save the file and log.

  11. Navigate to the folder containing the file and log.

  12. Inspect the files. Update data if needed.

  13. Repeat these steps until all the required data is included.

Transfer the W2 file, without opening it, to the Social Security Administration for processing.

Field descriptions

The W2 Processing - Create W2 Electronic File page contains the following sections:

Electronic File Criteria

The following table describes the fields in the Electronic File Criteria section on the W2 Processing - Create W2 Electronic File page.

Field

Description

Tax Year

The year for which the W2 is filed.

Federal Tax ID Number

The Employer Information Number (EIN) and the Control Number associated with the file being submitted.

3rd Party Income Tax

The amount of income tax withheld by a third party, such as a sick pay vendor.

Include RS Records

Indicates whether to include supplemental state and local reporting records in the W2 file.

When this option is selected, the Additional Options section is displayed.

IA Business E-File Number

The eight-digit Business E-File Number used when submitting a W2 electronic file to the Iowa Department of Revenue.

This field is displayed when IA is selected in the Create State Format field in the Additional Options section.

Central Registration Number

The eight-digit central registration number assigned by the Comptroller of Maryland.

This field is displayed when MD is selected in the Create State Format field in the Additional Options section.

State Withholding Account Number

The employer's state withholding account number assigned by the state tax authority.

For Maine, this field is pre-populated with the employer ID and is 10 digits with no dashes.

For Oklahoma, this is a required 10-digit account number (no dashes) assigned by the Oklahoma Tax Commission, included in the state electronic file.

This field is displayed when ME or OK is selected in the Create State Format field in the Additional Options section.

Create Philadelphia Wage Records Only

Indicates whether to limit the electronic file to Philadelphia Wage Tax records only, excluding all other Pennsylvania wage records.

This field is displayed when PA is selected in the Create State Format field in the Additional Options section.

PA Account Number

The eight-digit Pennsylvania account number as it appears on the employer's tax coupons.

This field is displayed when PA is selected in the Create State Format field in the Additional Options section.

WI Account Number

The 15-digit Wisconsin withholding tax account number (TAN).

This field is displayed when WI is selected in the Create State Format field in the Additional Options section.

WV Account Number

The eight-digit WV account number assigned by the state.

This field is displayed when WV is selected in the Create State Format field in the Additional Options section.

Resub Indicator

Indicates if the file is being resubmitted.

WFID Number For Resubmit

If the file is being resubmitted, enter the Wage File Identifier (WFID) from the Social Security Administration (SSA) notice.

Locality/County Crosswalk

Indicates whether to crosswalk locality codes for employees who live out of state but must be reported in the Indiana W2 electronic file.

When this option is selected, the Locality to Crosswalk and County Code fields are displayed.

This field is displayed when IN is selected in the Create State Format field in the Additional Options section.

Locality to Crosswalk

The local tax code associated with the locality name defined in W2 Maintenance for employees who live out of state but must be reported in the Indiana W2 electronic file.

This field is displayed when Locality/County Crosswalk is selected.

County Code

The state-assigned county code for the district to be written into the Indiana W-2 electronic file.

This field is displayed when Locality/County Crosswalk is selected.

Employer Type

The employer type associated with the file being submitted. This field corresponds to the Kind of Employer field required in the file.

Select:

  • F - Federal Government

  • S - State and Local Governmental Employer

  • T - Tax Exempt Employer

  • Y - State and Local Tax Exempt Employer (Default)

  • N - None Apply

Total MW506 Tax Reported

The total Maryland income tax reported on all MW506 employer withholding returns filed during the tax year. Used to complete the MW508 annual reconciliation filing.

This field is displayed when MD is selected in the Create State Format field in the Additional Options section.

MW508 Representative Name

The name of the individual authorized to certify the MW508 Annual Employer Withholding Reconciliation submission.

This field is displayed when MD is selected in the Create State Format field in the Additional Options section.

MW508 Representative Title

The title of the individual authorized to certify the MW508 Annual Employer Withholding Reconciliation submission.

This field is displayed when MD is selected in the Create State Format field in the Additional Options section.

MW508 Representative Phone

The 10-digit phone number (no dashes) of the individual authorized to certify the MW508 Annual Employer Withholding Reconciliation submission.

This field is displayed when MD is selected in the Create State Format field in the Additional Options section.

MW508 NAICS Code

The six-digit North American Industry Classification System (NAICS) code that identifies the employer's primary business activity, as required on the MW508 reconciliation.

This field is displayed when MD is selected in the Create State Format field in the Additional Options section.

OK Employer/Agent ID

The 9-digit employer or agent identification number (no dashes) assigned by the Oklahoma Tax Commission.

This field is displayed when OK is selected in the Create State Format field in the Additional Options section.

First Quarter Tax Due

The first quarter tax due amount. The system rounds to the nearest whole dollar per state requirement.

This field is displayed when WV is selected in the Create State Format field in the Additional Options section.

Second Quarter Tax Due

The second quarter tax due amount. The system rounds to the nearest whole dollar per state requirement.

This field is displayed when WV is selected in the Create State Format field in the Additional Options section.

Third Quarter Tax Due

The third quarter tax due amount. The system rounds to the nearest whole dollar per state requirement.

This field is displayed when WV is selected in the Create State Format field in the Additional Options section.

Fourth Quarter Tax Due

The fourth quarter tax due amount. The system rounds to the nearest whole dollar per state requirement.

This field is displayed when WV is selected in the Create State Format field in the Additional Options section.

Total Tax Due for the Year

The total tax due for the year. The system rounds to the nearest whole dollar per state requirement.

This field is displayed when WV is selected in the Create State Format field in the Additional Options section.

Total Tax Withheld

The total tax withheld for the year. The system rounds to the nearest whole dollar per state requirement.

This field is displayed when WV is selected in the Create State Format field in the Additional Options section.

Additional Options

This section displays

The following table describes the fields in the Additional Options section displayed on the W2 Processing - Create W2 Electronic File page when Include RS Records is selected.

Field

Description

Create State Format

Indicates an additional state's file format to include in the file other than the State on the W2 Wizard: W2 Parameters page.

Select a state to include only employees with wages and taxes for that state in the electronic file. If you are creating files for your home state only, leave this field blank.

If you select a state with a custom format, such as Maryland, additional fields are displayed in the Electronic File Criteria section:

  • IA - IA Business E-File Number

  • IN - Locality/County Crosswalk

  • ME - State Withholding Account Number

  • MD:

    • Central Registration Number

    • Total MW506 Tax Reported

    • MW508 Representative Name

    • MW508 Representative Title

    • MW508 Representative Phone

    • MW508 NAICS Code

  • OK:

    • State Withholding Account Number

    • OK Employer/Agent ID

  • PA:

    • Create Philadelphia Wage Records Only

    • PA Account Number

  • WV:

    • First Quarter Tax Due

    • Second Quarter Tax Due

    • Third Quarter Tax Due

    • Fourth Quarter Tax Due

    • Total Tax Due for the Year

    • Total Tax Withheld

  • WI: WI Account Number

Neighbor State Employees

Employers can create W2 electronic files for their home state and the bordering states where some employees may live and pay state taxes.

Home state

Alternate state

Iowa (IA)

Illinois (IL)

Illinois (IL)

Iowa (IA)

Indiana (IN)

Iowa (IA)

Indiana (IN)

Kentucky (KY)

Indiana (IN)

Ohio (OH)

Maryland (MD)

Pennsylvania (PA)

Ohio (OH)

Indiana (IN)

Ohio (OH)

Kentucky (KY)

Ohio (OH)

Pennsylvania (PA)

Ohio (OH)

West Virginia (WV)

Pennsylvania (PA)

Maryland (MD)

Pennsylvania (PA)

Ohio (OH)

To create multiple state files, you must run the process multiple times.