2025 End-of-Year Payroll Guide

Penta for Windows

Payroll - End of year

One of the benefits of your annual license fee is receiving the modifications Penta Software makes to the software for compliance issues, including:

• Common federal regulations including W-2 reporting requirements.

• Our best effort is to meet state and local regulations, including W-2 reporting requirements.

• Updates of federal and state payroll tax tables.

This Guide includes information related to payroll year-end, update installation, W-2 processing, and specific other annual return processing.

PENTA requires that all customers submit their W-2s to the Social Security Administration (SSA) electronically. PENTA does not support paper filing to the SSA.

PENTA supports W-2 laser PostScript® forms for paper employee and employer copies.

Notes:

• The use of PostScript forms minimizes printer alignment problems experienced with regular laser and continuous forms. Printing on PostScript forms requires a PostScript-compatible printer.

• PostScript is a page definition language for laser printers, created by Adobe Systems, Inc. Printer manufacturers sometimes include either a licensed copy of PostScript from Adobe® or a PostScript emulation program to accompany their printers. The advantage of these printers is that they can print graphics, thus minimizing form/printer alignment problems, and allowing the graphics to vary, depending on the data requirements.

PENTA supports magnetic media and electronic state W-2 submissions. Refer to state publications for information on W-2 filing method(s) accepted. Some states only accept electronic submissions.

• Updated dates and links.

• Revised MD-FML dates, the Effective Date for Maryland FAMLI contributions has changed from 2025/07/01 to 2027/01/01.

• Minnesota Paid Family Leave Tax Type – MN-FML.

• Added DE-PFL, DE-PML, DE-PPL to Box 14 reporting.

• Added ME-FML to Box 14 reporting.

• Exclude the Box 14 amount for Alabama exempt overtime wages from the Box 16 Alabama state wages.

• The OMB No. on the 2025 W-2 form has changed from 1545-0008 to 1545-0029.

To run your end of year W-2 tax reporting process, use the following checklist. You can complete Steps 1 through 6 at any appropriate time prior to installation of the year-end software update. Only perform Step 9 (W-2 Returns) and Step 10 (Other Annual Returns) after the update is installed.

As you complete each step, you can place a checkmark in the corresponding box to track your progress. W2 Processing Checklist.pdf

SSA

The Social Security Administration (SSA) requires all non-paper submissions of Form W-2 to follow the EFW2 format. PENTA’s federal W-2 file complies with EFW2 requirements.

Companies submitting Form W-2 using the EFW2 format must register with the SSA. Refer to the SSA for specific information on registering as an EFW2 submitter. SSA publications such as Specifications for Filing Forms W2 Electronically (EFW2) for Tax Year 2025 and the SSA’s “Employer W-2 Filing Instructions & Information” webpage (www.ssa.gov/employer/) contains information on EFW2 requirements and registration procedures.

State

Most states follow the SSA and accept electronic and magnetic media submissions in the EFW2 format only. PENTA state files comply with individual state requirements.

Some states may require authorization to file electronically or magnetically. Refer to individual state regulations to determine whether you are required to register or obtain approval to file via these methods.

Note: PENTA users should review SSA publication Specifications for Filing Forms W2 Electronically (EFW2) for Tax Year 2025 to ensure familiarity with SSA requirements and procedures.

W-2 PostScript Laser Form

PENTA supports printing of W-2 PostScript laser forms on Nelco form stock #83631. The PENTA W-2 process prints the boxes as well as data on the front of these forms. The PostScript W-2 minimizes form alignment issues and is the only W-2 form type PENTA supports.

Order W-2 Forms

Order forms through our new preferred paper form supplier Nelco Solutions. Our partner ordering page can be found here with currently supported forms and envelopes.

FORM #83631

8 ½ x 11 –inch sheet, four-corner style

Nelco Solutions offers one version of this form to PENTA users:

1. Form #83631 – Form W-2 - 4up Quadrant (Instructions on all panels) is a standard Nelco Solutions form. It is a nearly blank 8 ½ x 11-inch sheet, with one vertical perforation and one horizontal perforation, four parts per page, employee instructions preprinted on the back. Use this form for employee copies of W-2s.

2. For Employer copy forms, your organization might keep W-2 copies on tape, diskette, plain paper, etc. Employer file copy forms are optional.

PENTA produces at least one version of the W-2 form for each employee who paid wages during the calendar year. Employees working in multiple states or local taxing jurisdictions receive multiple W-2s.

A W-2 refers to a full four-part sheet. That is, if an employee works in three states, PENTA produces three W-2 forms, or sheets. All four parts on a single sheet contain the same data.

Increase the quantity of forms ordered to:

• Include the number of employees working in multiple states and localities.

• Accommodates more than four Box 14 items.

• Accommodates more than four Box 12 items.

• Allow reprinting of spoiled forms.

Forms supported reflect that PENTA requires customers to submit W-2s to the Social Security Administration (SSA) electronically. PENTA does not support paper filing to the SSA.

PENTA only supports W-2 laser PostScript forms for 2025 employee copies. (Refer to this Guide’s Introduction section for information on PostScript.)

You can order W-2 forms with the form numbers indicated above from our certified business partner, Nelco Solutions. You can also order from any vendor supplying a W-2 form that conforms to one of the supported layouts. Note that form numbers vary from vendor to vendor and that the ones mentioned above are specific to Nelco Solutions. To ensure you receive forms in time to meet year-end obligations, check with individual vendors regarding deadline dates for ordering.

W-2 Box Descriptions

The following table contains descriptions of the W-2 boxes and information on how PENTA provides the data. It is based upon the federal government’s requirements.