Access the 1099-R Magnetic Reporting Rules from the Organization window. You can display them by selecting the Organization Classification of Government Reporting Entity and clicking Others. From the Additional Organization Information window, you select 1099-R Magnetic Reporting Rules. You must define the rules for each retirement GRE.
The reporting rules require the following parameters:
| 1099-R Transmitter |
| Transmitter Control Code |
| Bureau |
| Combined Filing |
| Recording Mode |
| Parity |
| Label |
| Density |
| Contact Name |
| Contact Phone No. |
| Contact E-mail Address |
| Produced using Oracle |
You must enter the contact information for the vendor that produces the magnetic file you are submitting. If you select Yes in the produced Using Oracle field, then the following fields provide seeded vendor information:
| Vendor Name |
| Vendor Address |
| Vendor City |
| Vendor State |
| Vendor Zip |
| Vendor Contact Name |
| Vendor Phone Number |
If you are reporting for Georgia, Michigan, New Jersey, or Pennsylvania, the 1099-R uses the contact information specified for Form W-2 and ignores the values provided here.
Note: Make sure you use the proper format when specifying the phone number/extension number. The 1099-R report formats these phone numbers to comply with the Form's requirements. This is the number that appears in the magnetic file.
The report removes all non-alphanumeric characters, including all variations of extension, spaces, and "-" (dashes).
The phone field allocates 15 spaces for the phone number and extension. This field is left-justified, and blanks occupy all unused spaces.
The first 10 digits holds the Contact Phone field.
The last five digits holds the Phone Extension field.
Do not preface the phone number with "1," as this would cause the phone number to overflow into the extension field.
Example
A phone number entered as:
222-333-4444Ext555
would appear as:
2223334444555
on the Form's magnetic file.
Vendor Email Address
If you are reporting the 1099-R information to the Iowa DOR, then complete the following steps to include the Business eFile Number (BEN) in the K record of the 1099-R Form:
Enter or query the GRE in the Organization window.
In the Organization Classifications region, select Government Reporting Entity.
Click Others, and select W2 Employer Rules 2.
Click in the Additional Organization Information field to open the W2 Employer Rules 2 window.
Enter the employer's business efile number assigned by the Iowa DOR in the BEN (IA) field.
Record all GREs with the same Transmitter Control Code on the same magnetic media file. For a retirement GRE that is not a 1099-R transmitter, the last eight parameters are not used and may be left blank.
Note: Since the State 1099R Magnetic Report for New York uses State Quarterly Wage Listings, North Carolina and Michigan use the TIB4 format, you must define W2 Reporting Rules for the pertinent retirement GRE to generate the NY, NC, and MI 1099-R reports.
Avoid a potential mismatch in B and K record state and federal amount totals. In the Federal 1099R Magnetic Media output file, for employees that live, or work, or both in multiple states during the reporting year, the amount totals for some states reported in the K (State Totals) Record, positions K16 to 178, may not match with the corresponding B (State) Record amounts reported in positions B55 - 162. To resolve the potential mismatch in B and K record state and federal amount totals, set the 'HR:1099R: Match B Rec Totals with K Rec' profile option. By setting this profile option to 'Yes', the amounts displayed in the K record will match with the corresponding total amounts of the B records for the applicable state. If this profile option is set to No or left blank, then the amounts will be reported using the default behavior which may result in a mismatch between the B and K records. Note: If this profile option is set to Yes after running the Year End PreProcess, then you must run the Year End Pre-Process Re-Archive (ER info only) process with the Selection Criterion of 'Federal' prior to running the Federal 1099R Magnetic Media process.
The following example explains how the amounts are reported in both the B and K records before and after the profile option is set to Yes.
In this example, employee 'EMP1' has 2 B records for 2 states. Note that the values '04' and '18' represent the standard state codes used in 1099-R reporting. Consider that the federal level amount, FIT is 500.
Before the Profile Option is set to Yes:
Before setting the 'HR:1099R: Match B Rec Totals with K Rec' profile option to Yes, there is a mismatch as the total for state 18, B record holds 500 and K record holds 0.
The totals are reported as follows:
Totals in the B Record
| B | 500 | 04 |
| B | 000 | 18 |
Totals in the K Record
| K | 500 | 04 |
| K | 500 | 18 |
After the Profile Option is set to Yes:
With the 'HR:1099R: Match B Rec Totals with K Rec profile option set to Yes, the K record totals are matched correctly with the corresponding B record totals for the state.
The totals are reported as follows:
Totals in the B Record
| B | 500 | 04 |
| B | 000 | 18 |
Totals in the K Record
| K | 500 | 04 |
| K | 000 | 18 |
The Federal and State 1099R Magnetic Report generates two output files:
Magnetic report with naming convention [FE or STATE ABBREVIATION][TRANSMITTER CONTROL CODE]_99R[YEAR].mf
Example
For example: FEXXXXX_99R99.mf, NYXXXXX_99R99.mf
Transmitter report with naming convention FE[TRANSMITTER CONTROL CODE]_[YEAR].a01 for Federal or [STATE ABBREVIATION][TRANSMITTER CONTROL CODE]_99R[YEAR].a01
Example
For example: FEXXXXX_99.a01, NYXXXXX_99R99.a01
Note: If you use Microsoft Windows NT to generate the magnetic media, you must shorten the first part of the filenames so they contain no more than 8 characters.
You can view the post archival reports from the application. After the magnetic media process completes successfully, navigate to Payroll Process Results to view the output files
If there is more than one B (State) Record for an employee corresponding to different locations, that is, the employee lived, or worked, or both in more than one state during the reporting period, then the total amounts reported in the K records for each state will match the corresponding B records amounts, where applicable. To avoid any potential mismatch between the B and K records, the application archives the prorated Federal 1099-R amounts based on each state. These archived values are reported as required in the Federal 1099R Magnetic Media output so that the total amounts reported in the K records for each state will match the corresponding B records amounts, where applicable.
Defining the HR:1099R: Prorate B Record Amounts Profile Option: This profile option determines whether to prorate B Record Federal amounts if there are multiple B records for an employee in the Federal 1099R Magnetic Media output.
If this profile option is set to Yes, then amounts will be prorated among the B records else the default behavior of reporting complete Federal Amounts in the First B record is followed. By default this option is set to No.
If there is a change in this profile option, then you must run the Year End Pre-Process Re-Archive (ER only) process to archive the profile option value. Proration is done based on the archived profile option value and not the active value. Rearchiving the profile option value is mandatory every time the profile option value is changed.
If you run a Magnetic 1099R report, and it does not complete successfully, the View Requests window indicates that an error has occurred. To read the error message, you must open the log file specified in the View Requests window.
Errors most often occur because:
Assignments are still marked for retry from a Year End Pre-Process run.
You did not run the Year End Pre-Process for every GRE in the enterprise.
No employees existed in a particular state with wages more than zero for a State 1099R.
To resolve an error, you must roll back the magnetic report and fix the error. Once you resolve the error, you can rerun the magnetic report.