CFS Tax Software, Inc. — W2/1099 Payroll System

The program opens to a three-paned
window with a client list at the
top left, an in-use forms list to
the right, and a comprehensive forms
list at the bottom. The format makes
the screen a little cluttered but
provides a good singular point from
which users have access to clients,
forms and most features, making
navigation fairly simple. Although
the alphabetical client/payer list
is not sortable, other aspects of
the interface?s layout add
utility to the program, including
the structure of the in-use forms
directory. This menu tree places
employee/payee records into logical
folders, such as Employee/Recipient
Forms for W-2s and 1099s, and Employer/Payer
Forms and Documents for items such
as wage reports and 940 series forms.

When creating a new form, the system
prompts the user to import the data
from a source file, or select the
option to manually enter data. Data
can be directly entered onto form
replicas or, if the professional
is also providing payroll services
for a client, can be transferred
from the CFS Payroll System, which
includes a paycheck withholding
calculator for manual entry, and
automatically calculates FICA withholding
when using the Payroll System. While
in the payroll component of the
program, the interface provides
links to jump to a payee?s
W-2 and other related forms. Forms-based
data entry uses color-coded fields
that show whether information was
entered by the system (via calculations
or transfer from supporting documents)
or was entered by the user, and
provides instructions at the bottom
of the screen for the active data-entry
field.

The W2/1099 System can be used in
a networked office; the network
upgrade covers all payroll modules
? 941/940, W-2/1099, Mag Media
& payroll corrector ?
and costs $100 per year, allowing
multiple users access to files,
but ensuring integrity of files
using a file-locking system that
prevents simultaneous users from
overwriting in-progress changes.

Reporting
& Import/Export Capabilities
– 3.5 Stars

Although the CFS program has limited
import capabilities, it does allow
direct transfer of data from QuickBooks.
Unfortunately, it does not allow
import of even ASCII-formatted files,
thereby likely requiring redundant
data entry. CFS includes reconciliation
and client summary reports and prepares
forms 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, 1096, and state forms
A1-R/A1-APR (AZ), IL-W-3 (IL), MW
508 (MD), NJ-W-3M (NJ).

Support
for Paperless Transmission
– 4.5 Stars

Using the optional e-file/ Magnetic
Media module, users can e-file or
use floppy disks to transfer information
to the appropriate agency. The e-file/Magnetic
Media module supports filing of
most 1099s, as well as federal forms
4419, 4804, 6857, 8508 and California
state forms.

Help/Training
– 5 Stars

For a low-cost program, W2/1099
Payroll System has exceptional integrated
help features, including a ?Tip
of the Day? on startup, mouse-over
button descriptions and line instructions
for the active line while using
the forms-based entry mode. The
program also includes an indexed
Windows Help utility, as well as
a tutorial and a wizard for creation
of cover letters, envelopes and
invoices. The company offers online
tech support, seminars and training,
and programs can be updated and
even fully downloaded from its web
site. The program automatically
checks for updates on startup and
asks the user whether they want
to download any available updates.

Relative
Value – 4 Stars

The W2/1099 Payroll System offers
a fairly easy-to-use program with
strong form support for federal
and a select number of states with
e-filing and magnetic filing capabilities
through the e-file/ Magnetic Media
module. Small and mid-sized firms
without a W-2 or 1099 component
in their existing software collection
and who offer payroll or year-end
information return services to clients
in the supported states will find
the greatest value in the program,
although improved integration or
import capabilities would further
this value through saved data-entry
time.

2004
OVERALL RATING: 4.5

For this review section, we scored
the reviewed products on the following:

Usability/Navigation, which covers ease-of-use; number of clients and form recipients; primary navigation tools; and general operation of the program, including data entry.

Reporting & Import/Export Capabilities focuses on managerial tasks, printing functions and data transfer between the program
and spreadsheets and other applications
such as payroll and AP modules.

Support for Paperless Transmission. With increasing state and federal requirements for magnetic or electronic transmission of W-2s and 1099s, as well as the cost and timesaving benefits of minimizing printing, we considered the capabilities of these programs to perform paperless transmission of year-end returns.

Help/Training looks at built-in help utilities such as right-click menus and tutorials,
external help tools such as online
support centers and functionality,
as well as productivity tools and
training options.

Relative Value provides the reviewer’s subjective opinion of what the user gets for the price. There is some variance in the pricing of the programs in this review, but it is not very wide. Value, of course, is not exclusively related to cost. However, sometimes the best deal is not the cheapest, and sometimes the most expensive option does not provide the best function.

The Overall Rating represents a comprehensive view of how a product scored in the above
categories, and is the average of
those scores rounded to the nearest
half-star.