W-2 and 1099 Magnetic Media Filers
Guidelines for Tax Year 2007

October 2007

A new Web Question and Answer section has been added for reporting W-2 and 1099 information. 

Nebraska Legislation was passed and will take effect January 1, 2008.  LB223 states that Employers issuing more than 250 W-2 statements in a year will now be required to file them with the Department of Revenue electronically.  This requirement will be in effect for reporting Tax Year 2008 withholding information in 2009.

Revenue is implementing a W-2 and 1099 Web Filing System.  Information on using the system will be available on our Web site.  The Web Filing System will use a secured web site for protection of data being transferred.

DVD media has been added to types of media accepted for reporting W-2's and 1099 information.

The Department of Revenue will no longer accept 3480 or 3490 cartridges for Tax Year 2007 reporting.

The file layout for magnetic media reporting had minor changes  for Tax Year 2007 W-2 and 1099 reporting.  Please refer to the information guides 21-MMREF, 21-CM, and 21-EFW2 user guides.

The RV31 record has been added to the 21-MMREF and 21-EFW2 user guides.   The RV31 record contains the State withholding total records.

The Department of Revenue strongly encourages all employers to use some form of magnetic media or E-File for filing Nebraska copies of Forms W‑2, 1099‑R, 1099‑MISC, and W‑2G.

If you have not filed using magnetic media, you must file Form 4419N, Nebraska Application for Computer Reporting, with the Department.

Be certain to attach an external label on all CD‑R, DVD, and Diskettes with the following:

    * Tax year for which the file is prepared;
    * Nebraska ID number;
    * Name and address of your organization;
    * Name and phone number of contact person;
    * Type of information returns submitted; and
    * Sequence and total number of items sent (e.g., "1 of 3", "2 of 3", etc.) when there are two or more media for the same file.

Please follow the requirements in the information guides:

    * Nebraska Computer Reporting Procedure, for Wage & Tax Statement, Form W‑2 (21MMREF) (10/2007)

    * Nebraska Web Reporting Procedure, for Wage & Tax Statement, Form W-2 (21-EFW2) (10/2007)

    * Nebraska Computer Reporting Procedure, for Forms 1099‑MISC, 1099‑R, & W‑2G (21CM) (10/2007)

1099‑MISC and 1099‑R Reporting

Information guide 21CM (Nebraska Computer Reporting Procedure, for Forms 1099‑MISC, 1099‑R, & W‑2G) Revised 10/2007 is current for Tax Year 2007 filing.

The Nebraska Department of Revenue will continue to participate in the Internal Revenue Service Combined Federal/State Filing program, for reporting Tax Year 2007, 1099‑MISC (Miscellaneous Income) and 1099‑R (Recipients of Annuities, Pensions, Retired Pay, or IRA payments) information.

Approval from the IRS is required to participate in the Combined Federal/State Filing program.

Please refer to the section Combined Federal/State Filing program of the IRS Publication 1220 for current IRS guidelines.

The Nebraska Department of Revenue dollar criteria for the Combined Federal/State Filing of 1099‑Misc. and 1099‑R is $600 or greater. The department also requires filing all 1099‑MISC and 1099‑R information returns when Nebraska withholding has been withheld.

The department will continue to accept 1099‑MISC and 1099‑R information using the Nebraska Computer Reporting Procedure, 21CM, for those wishing not to participate in the Combined Federal/State Filing program.

W‑2 Reporting

The Nebraska Computer Reporting Procedure, for reporting Wage and Tax Statement Form W‑2 information (21MMREF), has minor changes for Tax Year 2007 reporting. The Department will accept CD‑R, DVD, and 3½"diskettes. The record format for the RS state record is provided in the Nebraska Computer Reporting Procedure, 21MMREF. The Nebraska Computer Reporting Procedure, 21MMREF is used in conjunction with Social Security Administration Publication No. 42-007. The procedure dated October 2007, is the current version for Tax Year 2007 reporting.

Check the box on the Nebraska Reconciliation of Income Tax Withheld, Form W3‑N, if magnetic media (CD‑R, DVD, 3½" diskettes), Web based, or Combined Federal/State filing is used for filing W‑2 and 1099 information.

W‑2, 1099, and other State of Nebraska Department of Revenue information may also be obtained at http://www.revenue.ne.gov.

Tax Year 2007 Highlights

	Nebraska prefers reporting of information on Web Base, CD, or DVD filing.
	Nebraska accepts reporting on CD‑R, DVD, and 3½" diskettes.
	Check the box on the Nebraska Reconciliation of Income Tax Withheld, Form W‑3N, if magnetic media ( CD‑R, DVD, and 3½" diskettes), Web based, or Combined Federal/State filing is used for reporting W2 forms.
	Magnetic media and the completed W‑3N may be mailed in the same package.
	3480 and 3490 cartridges are no longer accepted for reporting information.
	File a completed Nebraska Application for Computer Reporting, Form 4419N, if filing W2s using magnetic media reporting for the first time.

Home