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Drake Software User’s ManualPersonal Service Income (W-2, 1099-MISC)Personal Service Income (W-2, 1099-MISC)Use the W2 and 99M screens, both accessible from the General tab, to enter personalservice income data from a taxpayer’s W-2 and 1099-MISC forms, respectively.W-2Screen code: W2Accuracy ofW-2 DataScreen code: VERThe W2 screen is designed to reflect the IRS Form W-2, Wage and Tax Statement.Data entered on the W2 screen must match the client’s W-2 form. The following fieldscan be completed automatically by the program:• Names and Addresses — The employer information could be filled in automaticallyif the EIN is in your Drake database. The employee information is notrequired unless it is different from that provided on screen 1.• Wages and Withholding — When wages are entered in box 1 of the W2 screen,boxes 3–6 are filled automatically. These amounts should match those on the W-2.If the Social Security or Medicare withholding is incorrect and must be verified, usethe Verification of W-2 screen, accessible from the Other tab, for documentation._NOTESIf, after contacting (or attempting to contact) the employer, you suspectfraud, immediately contact Drake, the RAL bank if appropriate,and the nearest IRS Criminal Investigation office. Call the tax fraudhotline at (800) 829-0433.If a W-2 has incorrect Social Security or Medicare withholdings, aRAL is not allowed until the W-2 is verified with the employer.W-2VerificationNew in 2008, optional verification fields can help ensure that wage and federal withholdingamounts are correct. These fields require that the user re-enter wages and federalwithholding amounts at the bottom of the W2 screen.Figure 5-5: New in 2008: Verification fields for wages and federal withholdingsIf the verification amounts do not match the amounts entered in the equivalent boxesat the top of the W2 screen, an EF message will be generated. Amounts must be correctedbefore the return can be e-filed._NOTEActivate this option from Setup > Options > Data Entry tab..ForeignEmployersTo indicate a foreign employer on the W2 screen, enter the city and country in the“city” field of the employer address, then select Foreign from the State field (a dotappears in the field). Leave the ZIP code field blank. (See example in Figure 5-6.)Tax Year 2008 87