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CFS Tax Software's W2/1099 Payroll System is a mature product that offers support for paperless (electronic) and paper print wage and information return preparation for most versions of Form(s) 1099, 1098, W-2 and associated transmittals.
CFS subscribers who are familiar with the interface, which is common to all CFS programs, will quickly feel at home with the W2/1099 Payroll System ($109). It consists of a basic program with the following add-ons: E-file (which enables electronic filing to IRS, SSA and supported states for $99), an After-the-Fact 941/940 program for $99, and a very handy Payroll Return Corrector, which supports corrections to previously filed forms for $39. A network upgrade costs $100.
Henry M. Anding, a sole practitioner from Los Angeles, selected CFS based on a friend's recommendation. He has about 500 clients and thinks CFS offers an excellent product. "Clients call me every payroll period now — every two weeks — and have me calculate their net pay and deposits necessary," Anding says. "I'm helping my clients do their payroll and can stay right on top of their immediate payroll." Anding also appreciates the ability to download the program online so he no longer has to deal with program CDs.
USABILITY/NAVIGATION
The CFS Payroll System features an interface divided into three sections or panes: a client list at the top left, completed forms list to the right, and a comprehensive list of available forms that includes a printable fax cover sheet, invoice utility, memo and a W-2/1099 client solicitation letter. Navigation is fast and easy, and the program is quickly learned, making it second nature after preparation of a user's first return.
Users will likely appreciate the simple layout of the program, but the addition of a sortable, on-screen client listing would be helpful. For firms with a large number of clients, sortable listings are a necessity to successful program operation. CFS noted that a sortable listing is available for each client's employees/payees.
Configuration options allow the user to control system behavior in areas such as the recalculation of social security taxes withheld and decimal key defaults in data entry. When creating a new form, W2/1099 prompts the user to import the data or to select the option to manually enter data. This is smart behavior and to the point. Client data can be entered directly into on-screen form replicas or transferred from the 941/940 program, which includes a handy paycheck withholding calculator for manual check entry and automatically calculates FICA withholding when entering payroll into the CFS Payroll System. Forms-based data entry features color-coded fields that show whether information was entered by the system (via calculations or transferred from supporting documents) or entered directly by the user.
CFS W2/1099 provides applicable instructions at the bottom of the screen for the active data-entry field — a helpful add-on that eliminates any unnecessary guesswork while quickly teaching those new to the process of Form(s) W-2 and 1099 preparation.
REPORTING & IMPORT/EXPORT CAPABILITIES
W2/1099 users will not be able to import files unless they also have the 941/940 program. No support is available for import from other file formats such as spreadsheets, *.CSV files, comma- or tab-delimited files, or other database or columnar files. CFS noted that the CFS After-the-Fact 941/940 program supports QuickBooks as well as ASCII importing of employees, employers and paychecks. If the user also owns W2/1099, recipient information may be copied into the W2/1099 program.
CFS provides reconciliation and client summary reports, and prepares Form(s) W-2, W-3, 1099-MISC, 1099-SA, 1099-INT, 1099-DIV, 1099-A, 1099-B, 1099-C, 1099-PATR, 1099-R, 1099-S, 1098, 1098-T, and 1096. It also prepares the following state forms: A1-R/A1-APR (AZ), CT-W3 (CT), G-1003 (GA), IL-W-3 (IL), MW 508 (MD), NJ-W-3M (NJ) and VA-6 (VA).
SUPPORT FOR PAPERLESS TRANSMISSION
Using the E-file module, users can electronically file W-2s and 1099s with the IRS and SSA. The E-file module provides support for preparation and printing of Form(s) 4419, 4804, 6857, 8508 and California state forms.
HELP/TRAINING
The CFS Payroll System features online integrated Help features and an indexed Windows Help utility. It provides a "Tip of the Day" upon startup (which can be turned off for very experienced users), mouse-over button descriptions, and line-specific instructions for the active line while in the forms-based entry mode.
A tutorial is also included, along with a wizard for the creation of cover letters, envelopes and invoices. Program support is available via the Web, traditional telephone support, and through seminars and training. Updates are available online, and the program can be configured to automatically check for online updates.