Payroll: Year End

Update to Version 4.4.3 or higher.

Year End 2023

Keystone 4.4.3 and higher includes 2024 tax rate changes to federal and some state taxes. See the Release Notes for more information.

Please update Keystone to the latest version throughout the month of January to make sure you have the latest federal and state tax rates.

• There are no changes to the printed W2 form for 2023.
• There are no changes to the printed W3 form for 2023.
• Keystone 4.4.3 has been updated with 2023 changes for e-filing W-2s.
• January 31, 2024 is the deadline for E-File and Printed W-2s.
• SSA.GOV W-2 information for 2023: https://www.ssa.gov/employer/
• ACA Reporting: See Payroll: ACA Reporting to determine if you need to file 1094/1095. Typically any employer with greater than 50 employees.
• Use Keystone to prepare and upload data to our online service partner. See: W-2 Filing Web Service for more information.
• The following states do not require *state* filing of W-2 forms: AK, CA, FL, NH, NV, NY, SD, TN, TX, WA, WY.

Notes for 2023 Year End

• Two programs we recommend to enhance year end maintenance:
  • Adjust Company Definitions & Factors - Great for setting up annual Limits for 401K and IRAs.
  • Adjust Definition Balances - Great for making changes to one definition for all employees.

• Employers with more than 250 employees will need to report health insurance costs paid by the company to each employee.
  • Keystone has the ability to track these health insurance costs. Keystone payroll users have 2 options:
    • Follow the special procedures in Keystone to track employer paid health insurance. See Payroll: Year End Modifications
    • Calculate and manually enter employer paid health insurance at the end of 2023. Using the new program Adjust Definition Balances makes this much easier.

Also see: Health Insurance

Year End Procedures

Before Running the first Payroll of the new Year

• Make a backup to file and save in a permanent location. see Keystone Database Backup
• Web Update to the latest Keystone version.
• Review Health Insurance and determine if you need to run Year End Modifications to configure health insurance reporting information for 2023.
• Set up Payroll Periods for 2024. see Setup Periods

Set Up Retirement Plan Limits

• Run Adjust Company Definitions & Factors from the payroll Setup/Utilities Menu
• Select the correct Link for the retirement plan.
• Stretch the width of the screen or scroll to the right until you see the factor name for annual limit
• Update the annual limit amount.

NOTE: Check for changes to retirement plans for 2024

For Employees who qualify for the higher catch up limit:

• Run Adjust Definition Balances From the Payroll Setup/Utilities menu.
• Widen the screen or scroll to the right and find the Limit factor.
• Set the higher limit amount. Leave Blank for all other employees.

Set Up Suta Rates & Limits

Note: Not all Keystone Payroll systems are configured to calculate Suta & Futa during the payroll process.

• Run Adjust Company Definitions & Factors from the Payroll Setup/Utilities Menu
• Select the correct Link for the Suta Calculation
• Stretch the width of the screen or scroll to the right until you see the factor name for annual limit and rate.
• Update the limit and rate amounts.

Processing W2s

• Determine if Health Insurance needs to be reported. See: Health Insurance
• Verify all year end balances are correct for 2023
• Update W2 Setup
  • Make sure to update this for health insurance reporting if required
  • Make sure all States are complete with up to date E.I.N. codes
• Print W-2 Audit list by using Print W2s and selecting Audit List.
• If you choose the new premium services finish filing with W-2_Filing_Web_Service. Otherwise continue...
• Print W2s
  • Verify W2 Values
• Print W3s (Not required when E-Filing)
  • Verify W3s with company totals

NOTE: Payroll may be run in the new year before the prior year W2s are printed. Payroll runs in the new year will not affect prior year W2s.

Frequently check Keystone Help and this page for any updates

GivenHansco strongly recommends that you manually verify the numbers reported on W2/W3 forms whether printed or created by Web Services. By submitting W2/W3 forms and W2 E-File Export data to the IRS, you are legally testifying to the accuracy of the data.

ACA Reporting - 1095-C

Preparing Keystone Data for 1095

When preparing Keystone data for 1095 forms, be sure to setup the company level ACA information PRIOR to the employee level ACA information!

• Company Maintenance contains an "ACA" tab for the entry of company level ACA information Payroll Company Maintenance
• Employee Maintenance contains an "ACA" tab for employee level entries related to the ACA Payroll: Employee File Maintenance

Processing ACA Forms (1094/1095)

If required continue on to Payroll: ACA Reporting

Tax Year 2024

• Keystone 4.4.3 has been updated with new 2024 FEDERAL income tax rates and Social Security and Medicare income thresholds as well as the following state income tax rates:

(To be announced)

• Please check this page throughout the year for further updates!!

• To assist with state specific tax information, please consult the following link: http://www.payroll-taxes.com/state-tax.htm
  (NOTE: GivenHansco is not responsible for the information provided on this site, we are providing this as a self-help service for our customers.)

W-4 Form

In 2020 the IRS created a new W-4 form which impacts calculation of federal taxes in Keystone Payroll.

Going forward, Keystone automatically adds new employee factors to the Federal Tax definition of every employee.

New Employee Factors in Keystone Payroll

Here is a description of the new factors and how they relate to the new 2020 W-4 form.

NOTE: These factors are only used with the new W-4 Form.

Keystone Factor Id	2020 W-4 Form	Comment
W4YEAR		Enter 2020 when using the new 2020 W-4 form, blank otherwise
TAXFILEST	Step 1(c)	Enter: 1 for Single 2 for Married filing Jointly 3 for Married filing Separately 5 for Head of Household 6 for Qualifying Widower
W4TWOJOBS	Step 2(c)	Enter Y if the box is checked, blank otherwise
W4DEPEND	Step 3 Line 3	Enter the amount (this is an annual amount)
W4OTHINC	Step 4 Line 4(a)	Enter the amount (this is an annual amount)
W4DEDUCT	Step 4 Line 4(b)	Enter the amount (this is an annual amount)
TAXADDWH	Step 4 Line 4(c)	Enter the amount (this is a per pay period amount)

Example

Here is an example 2020 W-4 Form for an employee:

Here is an example from Employee Maintenance showing how to enter the data from the form into Keystone:

The employee has filled out the new W-4 Form. Enter "2021" in the W4YEAR factor.

The employee's filing status is Single. Enter "1" in the TAXFILEST factor.

The employee has checked the "two jobs" box in step 2(c). Enter "Y" in the W4TWOJOBS factor.

The employee has indicated 1 qualifying child under age 17 which results in a $2000 entry in step 3 line 3. Enter "2000" in the W4DEPEND factor.

The employee has indicated $8000 of Other Income in step 4 line 4(a). Enter "8000" in the W4OTHINC factor.

The employee has indicated $12000 of Deductions in step 4 line 4(b). Enter "12000" in the W4DEDUCT factor.

The employee has indicated $50 of Extra Withholding in step 4 line 4(c). Enter "50" in the TAXADDWH factor.

Search Terms: W4