Creating the W-2 Extract at Year-End

You can create a W-2 Extract for year-end.

All employers who file 250 or more Forms W-2 must extract W-2 information to a file and transmit it electronically to the Social Security Administration. Currently, the Social Security Administration only accepts files electronically, so if you file fewer than 250 Forms W-2, you can still create an extract file for your forms. The extract follows the Social Security Administration's specifications for filing Forms W-2 electronically (EFW2) for the extract file.

Use the W-2 Extract tab on the Period End Reports menu to create the work file, print the work file, edit employer and employee information, and create an extract file. The extract includes a summary, which serves as the W-3.

The Social Security Administration offers free software that checks your extract file for errors. You can download the program and use it on your extract file before submitting it.  For more information, visit http://www.ssa.gov/employer/accuwage.

Note: The Social Security Administration does not accept compressed files or diskettes. Do not use a compression utility such as WinZip, PkZip or DynaZip.

Creating the W-2 Extract Work File

  1. Under Generate Reports, click the Period End Reports tab.
  2. In the drop-down list, select Payroll 941, W2s, and ACS Forms, then click Go .
  3. Click on the W-2 Extract tab, then select the Year.
  4. Optional: To filter employees by departments, select Department, then click Select to choose the departments.
  5. To create a work file for a state's W-2s, enter the State Tax ID.
  6. To create a work file for multiple states' W-2s, select Multiple States, then click Tax IDs to enter or select those state tax IDs.
  7. Select Create Work File.
  8. Click OK.
  9. A confirmation message listing the number of employees processed displays. Click OK.

Printing a W-2 Extract File Proof List

You can also print the W-2 Extract File Proof List. This report contains the same information in the work file, and you can verify that the information is correct before sending it to the Social Security Administration.

Some fields you enter on the employees' Form W-2 do not display on the W-2 Extract. These fields include:

W-2 Field

Field Description

dControl Number
12 Code JNontaxable sick pay
12 Code K20% excise tax on excess golden parachute payments
12 Code LSubstantiated employee business expense reimbursements
12 Code PExcludable moving expense reimbursements paid directly to employee
14Other
20Locality Name
  1. Under Generate Reports, click the Period End Reports tab.
  2. In the drop-down list, select Payroll 941, W-2s, and ACA Forms, then click Go .
  3. Click on the W-2 Extract tab.
  4. Click the up and down arrows to select the correct W-2 year.
  5. To print a work file for a state's W-2s, enter the State Tax ID.
  6. To print a work file for multiple states' W-2s, select Multiple States, then click Tax IDs to enter or select those state tax IDs.
  7. Select Print Work File, then click OK.
  8. Optional: Use the preview tools to review the report prior to printing.
  9. Click Print.

Editing Employee Information

After creating the W-2 Extract work file, you can edit an employee's name and address information, as well as federal, state, and local tax information. Changes made to W-2s through the W-2 extract only affect the extract files and are not reflected on printed W-2s.
  1. Under Generate Reports, click the Period End Reports tab.
  2. In the drop-down list, select Payroll 941, W2s, and ACA Forms, then click Go .
  3. Click on the W-2 Extract tab, then select the Year.
  4. Select Edit Employee Information and click OK.
  5. When the Edit Employee's W-2 Information window displays, click Find to locate the employee whose information you want to edit. Click OK.
  6. Click Edit.
  7. On the Federal Information, State Information, and Local Information tabs, edit the fields as necessary.
  8. When finished, click OK.

Editing Employer Information

You can also edit your organization's company, submitter, contact, and employer information. These changes only affect the extract files and are not reflected on printed W-2s.
  1. Under Generate Reports, click the Period End Reports tab.
  2. In the drop-down list, select Payroll 941, W2s, and ACA Forms, then click Go .
  3. Click on the W-2 Extract tab, then select the Year.
  4. Select Edit Employer Information and click OK.
  5. When the Edit Employer's W-2 Information window displays, navigate to the appropriate tab and verify the information. To edit a field, click Edit on that tab.
  6. When finished, click OK.