Table of Contents

Cover Letter

Greg Hatfield Updated by Greg Hatfield

The steps below describe the cover letter which encompasses the 941/940 Payroll, W-2/1099, and Payroll Corrector programs.

This module generates a cover letter with instructions to the client pertaining to the enclosed tax forms. The mailing addresses for certain federal forms (941, 943, 944) are completed by the program based on the CLIENT'S STATE ADDRESS.

Follow the steps below to create a cover letter.

  1. Select the desired client to save data and insert demographics (Map Client).
  2. Type an X in the boxes for all federal returns on the first screen to include in the letter. Paper filing instructions will be used by default unless an electronic filing instruction option is selected by using the E-Filing options box in each section. See Electronic Filing Options below.
  3. All state returns and additional federal forms (W-3c, 945, 941-X, etc.) are available by selecting STATE/OTHER FORMS from the menu. Enter an X in the box and select the desired form from the dropdown list. Addresses and certain other lines are filled automatically. If the form is not on the list, select "Other form" and edit the description on the Description line. The address entered for the form may be saved in the Custom Label file of the Label/Envelope Maker module by clicking the Save Address button. Any address in the Custom Label file may be loaded into the Cover Letter by clicking the Load Address button. To edit a saved address or to print a label or envelope the user must access the Label/Envelope Maker module.
  4. Enter or edit the applicable items for each return. The program fills in the due dates based on the quarter selected. The quarter may be changed by clicking the Change Quarter button. If the user has saved a return for the selected quarter (or any annual form) then the amount due will be filled in automatically. The mailing address for federal forms is filled in based on the client's State address. Some mailing addresses are different for returns with and without payment. The address will change automatically if a payment is entered. Fields are provided for the user to enter their own instructions either before or after each section of the letter. Text entered in these fields, both on the federal screen and on the state screen, can be saved by clicking either of the two Save Text buttons at the bottom of the federal screen. Save Test as Default will cause the text to be loaded for all new cover letter files. Save Text for Client will cause the text to be loaded only for the current client's new cover letter files.
  5. Select Preview/Print from the File menu to have the program construct the letter. Paper filing instructions will be used by default unless an electronic filing instruction option is selected by using the e-filing options box in each section. See Electronic Filing Options below.
  6. Edit the letter as desired and print. Text may be highlighted and cut, copied or pasted using Windows standard methods (<CTRL>+C or <CTRL>+INSERT to copy to clipboard, <CTRL>+V or <SHIFT>+INSERT to paste from clipboard). This technique can be used to paste the letter into your favorite word processor.
  7. In order to make any changes in the underlying screens appear in the letter, the user must construct a new letter by selecting Preview/Print again. Constructing a new letter in this manner will result in the loss of any previous changes made in the editor.

Electronic Filing Options

The default paper filing instructions can be modified to correspond to a selected list of electronic filing options by entering the appropriate number in the options box in each section. See the field help in each options box for a description of each option.

Federal Employment Tax Returns (940, 941, 943, 944, 945)

The e-file options box for the Federal Employment Tax Returns is near the top of the first page above Form 940. Enter the number corresponding to the desired E-Filing instructions. The options are:

  1. Paper file form, Electronic payment by taxpayer required;
  2. Reporting Agent e-filed form, Payment was e-filed with form;
  3. Reporting Agent e-filed form, Payment must be made by the taxpayer separately;
  4. Form 8879-EMP required to e-file form, Payment will be e-filed with form;
  5. Form 8879-EMP required to e-file form, Payment must be made by the taxpayer separately;
  6. Form 8453-EMP required to e-file form, Payment will be e-filed with form;
  7. Form 8453-EMP required to e-file form, Payment must be made by the taxpayer separately;

Leave the field blank to instruct taxpayers to paper file the form and enclose a check for payment.

Note: This options box also controls the instructions for Form 945 even though it must be selected on the State/Other Forms page

Form W-3 and 1096

The E-File options box for Form W-3 and 1096 is directly above Form W-3 on page 1. Enter the number corresponding to the desired e-filing instructions. The options are:

  1. Taxpayer mails federal and recipient copies;
  2. Taxpayer mails federal copies, Preparer mails recipient copies;
  3. Federal copies were E-Filed, Taxpayer distributes recipient copies;
  4. Federal copies were E-Filed, Preparer mails recipient copies;

Leave blank - Taxpayer mails federal copies, No instructions on recipient copies.

State/Other Forms

The e-file options box for state and other forms is in each form's section on page 2 directly right of the Amount Due field. Enter the number corresponding to the desired e-filing instructions. The options are:

  1. Paper file form, Electronic payment by taxpayer required;
  2. Preparer E-filed form, Payment was E-Filed with form;
  3. Preparer E-filed form, Payment must be made electronically by the taxpayer separately;
  4. Taxpayer must log into the tax agency website to complete and e-file the form and pay electronically;
  5. Preparer e-filed form, taxpayer must mail a check for balance due with enclosed coupon or voucher.

Leave the field blank to instruct taxpayers to paper file the form and enclose a check for payment.

NOTE: E-File options for FORM 945 are controlled using the federal employment tax return option box for E-FILED returns on page 1.

How did we do?

CA Form DE 89 - Employer of Household Worker Election Notice

Fax Transmission Cover Sheet

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