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SeminarsIn this issue:

  • California Proposition Changes 2012 Withholding
  • Please install W2/1099 now!
  • Are you ready to e-file W2s and 1099s?
  • PTIN Renewal and Competency Test Reminders
  • Windows 8

California Proposition Changes 2012 Withholding
As our California customers are no doubt aware, Proposition 30 increases state income taxes effective January 1, 2012, for individuals with income greater than $250,000. The state has released new 2012 withholding tables incorporating the changes.

We have posted updates for the 2012 versions of TaxTools, Small Business Tools, Financial Planning Tools, Payroll System, and W4 Calculator to comply with the new withholding tables. If you use any of the above programs, make sure you have updated to the latest version.

Our W4 Calculator is invaluable in situations such as this, when changes need to be made to withholding late in the year. If you've never had the W4 Calculator, purchase the 2012 version now and get the 2013 version free!

Please install W2/1099 now!
January is the busiest time of the year for our technical support department. We realize that it is also the busiest time of the year for you. Because of this, we strongly suggest that you install W2/1099 Payroll System now, so that we can resolve any issues you may have before tax season.

If you ordered W2/1099 on CD, you have probably already received it. It may be sitting on your desk, buried under a stack of mail. If you renewed before May 31st, it will come in the same package as your free forms starter kit. If you didn't order the program on CD (or can't find it under that stack of mail), you can download it from our web site.

However, if you have previously purchased and installed the 2012 version of LivePayroll or 941/940, you do not need to install W2/1099. Just make sure you have installed the latest Payroll System update by selecting "Update from the Web" from the "Internet Options" menu, and make sure you are using the current license code by checking it against your MyCFS account.

Make sure the program is installed on the computer you will be using in January, and print a few test forms using the printer you will be using then. For tips on using the program, including detailed instructions on how to obtain and update your license code, see the Year-end Forms Filing Tips for W-2s and 1099s video on our Instructional Videos page. If you will be using the E-file Add-on to e-file W2s and/or 1099s, see the following article for information regarding e-file requirements.

Are you ready to e-file W2s and 1099s?
W2/1099 E-file Add-onIf you will be using W2/1099 Payroll System and the W2/1099 E-file Add-on to e-file W2s and/or 1099s, there are several requirements you should be aware of.

Before e-filing Forms W-2 for the first time via Social Security's Business Services Online, you must have:

  • an EIN (file Form SS-4) and
  • a User ID (call SSA at 1-800-772-6270)

Before e-filing Forms 1099 for the first time via the IRS FIRE System, you must have:

  • an EIN (file Form SS-4) and
  • a TCC number (file Form 4419)

Note: You must apply for a TCC number at least 45 days before you plan to file. Passwords for both Social Security and IRS web sites must be changed at least every 90 days to keep them from expiring.

Forms SS-4 and 4419 are included in CFS Payroll System, as are links to the Social Security and IRS web sites. We have also posted Instructional Videos on our web site explaining the e-file process for W2s and 1099s.

PTIN Renewal and Competency Test Reminders
Last month, the IRS posted a news release reminding tax return preparers to renew their Preparer Tax Identification Numbers (PTINs) and schedule competency tests:

"We ask that you renew your PTIN as soon as possible to avoid a last-minute rush. It’s easy to let this slip as the holiday season approaches," said Carol A. Campbell, Director, IRS Return Preparer Office. "And, if you have a testing requirement and haven't yet scheduled an appointment, please do so at the same time."

You can register or renew your PTIN at www.irs.gov/ptin. The process takes about fifteen minutes. The Registered Tax Return Preparer (RTRP) test can be scheduled by selecting "next steps and additional requirements" from the PTIN account Main Menu. The more extensive Special Enrollment Exam (SEE) can be scheduled at www.prometric.com/see.

For more information, see IR-2012-79.

Windows 8
As you have no doubt heard, Microsoft released its new operating system last month. Windows 8 was designed to work with touch-screen devices—such as tablets and smart phones—as well as computers. Our technical support staff have done some testing with Windows 8, and we are happy to report that CFS programs will run under the new operating system.

However, we would also like to caution our users that it is best to avoid upgrading to a new operating system—especially an operating system as different as Windows 8—this close to tax season. Because it was designed to be compatible with touch-screen devices, Windows 8 is unlike any previous version of Windows and will require a learning curve.

CFS Customer Service

2-for-1 Specials

TaxTools '12 & '13 . . . . . . . . . . $189

Financial Planning Tools '12 & '13 . . $550

CA Sales Tax Preparer '12 & '13. . . . $119

CA 571 Preparer '12 & '13. . . . . . . $ 99

MD Personal Property '12 & '13 . . . . $179

Quick Reference Guide '12 & '13. . . . $ 39

Tax Corresponder '12 & '13 . . . . . . $ 49

W4 Calculator '12 & '13. . . . . . . . $ 89

Payroll Corrector '12 & '13. . . . . . $ 49

Please contact us if you would like to discontinue this free monthly service.

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