APS Common W-2 Adjustments

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W-2 adjustments help ensure year-end wages, taxes, and benefits are accurate before final forms are issued. APS releases W-2s for review on Jan 1, 2026, and all forms must be approved by Jan 12, 2026 at 5 pm CT. Submit any corrections that cannot be processed in a 2025 payroll run through a Help Center request as soon as possible and no later than Jan 8, 2026 to avoid delays or additional tax responsibilities.

This content is for informational purposes only.
R365 is not a legal service and does not provide legal advice. These services are not intended to replace external legal counsel.

Human Resources

Employee and Payee Verification

  • Verify employee records, including names, addresses, Social Security numbers, and tax withholdings, especially for local tax requirements.

  • Verify all 1099 payees reported for 2025, including names, Social Security numbers or TINs, mailing addresses, and any unrecorded 1099 wages.

Year-End Balances and Records

  • Reconcile all vacation, sick leave, and PTO balances for year-end payout or carryover, if applicable.
    Accrual balances for the new year will not update until the accrual date appears in the next year’s pay period dates.

  • Review bank reconciliation for uncleared payroll checks.

  • Move current-year terminated personnel files to storage.

Employee Communication

  • Remind employees to submit an amended W-4 if their filing status or exemptions have changed.


Payroll

Payroll Reconciliation

  • Confirm all 2025 payroll runs, including bonuses and commissions, are processed correctly in APS OnLine for W-2 and 1099 employees.
    Reconcile year-to-date wages, taxes, and deductions with payroll and general ledger reports.

  • Ensure aggregate premium totals for group medical benefits (employee and employer portions) are entered in APS OnLine.
    Missing entries can be imported in the W-2 workflow after Jan 1.

  • Ensure aggregate contribution totals for Health Savings Accounts (HSA) are entered in APS OnLine for 2025.

  • Ensure accurate contribution totals for retirement plans are recorded in APS OnLine for 2025, including additional contributions made outside APS.
    Submit a Help Center request if adjustments are needed.

Fringe Benefits and Additional Reporting

  • Determine the value of group term life insurance over $50,000 for employer-paid portions using the IRS table.
    Add values for active employees in a scheduled payroll to avoid year-end entry fees.

  • Verify mileage payments and reimbursements are recorded in APS OnLine. Missing amounts can be added in a payroll submission.

  • Provide APS an itemized listing of third-party sick pay for each employee.

  • Confirm S-Corp health insurance benefits are included in wages.

  • Ensure all taxable fringe benefits are reported in APS OnLine, including personal use of a company car, company housing, relocation allowances, and education assistance.


Benefits

  • Verify employee and dependent coverage.

  • Update benefit plans and premiums for the upcoming year, if applicable.

  • Distribute updated health or dental insurance cards, if applicable.

  • Verify contribution limits for 401(k), FSA, HSA, and other benefit plans.

  • Compile census information for retirement plan testing, including highly compensated employee details.

  • Verify FSA balances to confirm full deductions by year-end.


ACA Reporting

Filing Requirements

Employers filing ten or more aggregate returns must file Forms 1094 and 1095 electronically. This requirement includes non–Applicable Large Employers (ALE) that sponsor a self-insured health plan.

What APS Supports

  • APS processes 6056 Reporting (Forms 1094-C and 1095-C) only.

Determine Employer Requirements

  • Determine ALE status using a full-time employee (FTE) report in Report Manager or through your insurance carrier or third-party administrator’s FTE Calculator.

  • Verify whether the company is self-insured or fully insured.

Filing Rules

  • 50 or More Employees: Complete and efile Forms 1095-C and 1094-C.

  • Fewer Than 50 Employees (Self-Insured): Complete and efile Forms 1095-B and 1094-B.

  • Fewer Than 50 Employees (Fully Insured): Insurer completes and efiles forms.

  • Fewer Than 50 Employees (No Insurance): Reporting is not required.

Information Needed for ACA Submission

  • Employer name, EIN, telephone number, and address

  • Months in which coverage was offered

  • Employee share of monthly self-only premium, when required

  • Months where a safe harbor or other exception applied

The IRS may impose fines for failure to file or distribute Forms 1094 and 1095.


Year-End Adjustments

Include all needed adjustments in a 2025 payroll batch to ensure taxes are applied and remitted correctly.
Submit a Help Center request if adjustments are required for:

  • Wage items not processed in a 2025 payroll

  • Third-party sick pay

  • Terminated employee entries

  • Voiding payroll records for 2025


Year-End Form Workflow

Review and Approval

APS sends an email when W-2 and 1099 forms are ready for review. After approval:

  • APS completes production.

  • APS prints and ships forms, if applicable.

  • APS submits forms to the Social Security Administration.

Adjustments after approval result in corrections and additional charges.

Accessing Forms

  • Employer copies of W-2s and 1099s are available in DocVault.

  • Employees can access forms through eSELFSERVE.COM.
    To delay employee access, update settings in the Admin console.

Distribution

Employee W-2 and 1099 copies ship via FedEx unless the organization elects to print in-house or have APS mail them directly. Shipping typically completes by the third week of January.

Reprints

Reprints are available in the Reporting console under W-2/1099/1095 Forms.


Important Information About Tax Payments

APS cannot process prior-year or prior-quarter EFTPS tax payments, including liabilities from Form 941-X.
Payments due after Jan 8, 2026, must be submitted directly by the employer.

APS also cannot process EFTPS payments for Form 940 FUTA Credit Reduction taxes. These may apply to California, Connecticut, and New York employers for 2025.

EFTPS Enrollment

If not enrolled, register at www.eftps.gov or call (800) 555-4477 for a form.
If enrolled, confirm credentials to ensure access for any required payments.