Year-End Processing

Dear eCMS Customers,

We are reaching out to you as a reminder that Hot Fix 315 (HF315) includes the new 1099 filing requirements and IRIS (Information Returns Intake System). Please contact Software Delivery to schedule a date and time for the installation of Hot Fix 315 by submitting an incident or opening a support ticket.

Open Support Ticket 

⚠️ If you have not started the IRS Application for TCC (Transmitter Control Code), please start the process immediately. Feedback from the IRS takes 4 to 6 weeks. This process is documented in the attachment IRIS Application for TCC.pdf.

IRIS Application for TCC 

Once you have a TCC number, we encourage you to send your 2025 test files through IRIS now to work out any errors that may occur. Please do not wait until the end of the year. If there are any setup errors, please enter an incident, as the 1099 process with eCMS should be set up correctly.

➡️ Please Note: The IRS has not provided file changes for the year 2026. The 2026 file changes will be made available as soon as they are known to CGC.

The total process for 1099s is included as an attachment. This document will walk you through the process, from creating and paying the 1099s to creating the upload file and uploading the file:

1099 Process.pdf.

1099 Process Document

There is also an attachment that only covers the creation of the upload file and the uploading of the file:

1099 IRIS Export.pdf.

1099 IRIS Export

If you have any questions about this process, please enter an incident referring to 1099 IRIS. 

Thank you, Computer Guidance Corporation

IRIS 101 Online Class

https://events.gcc.teams.microsoft.com/event/1fbffc45-d05b-425f-98f4-35c4a30e7e78@f2372b85-8802-490c-b196-7b96c73fee3b?source=copyLinkLegacyShareLinkDialog

Information Returns Intake System (IRIS) Application for Transmitter Control Code (TCC) Filing

This is a follow-up communication regarding what was published in the CGC Customer Newsletter, 2nd Quarter 2026. Please forward this information to those responsible for processing 1099s electronically for the 2026 reporting year. We encourage you to start now if you have not done so already. You must register and apply for an IRIS TCC code in order to submit your files electronically for the 2026 reporting year. Please note that feedback from the IRS can take approximately 4 to 6 weeks, so we encourage you to register as soon as possible if you have not already done so. The old FIRE system for electronically filing 1099s has been retired. You are required to obtain an IRIS TCC code to submit your 2026 files electronically. To access the IRS Application for TCC Tutorial and CGC’s version of the tutorial, visit the CGC Portal under Knowledge Center > eCMS Quarter-End and Year-End Documentation > IRIS Filing: https://cgcportal.computerguidance.com/home/quarter-end-and-year-end/ Additional CGC documentation will become available during our Year-End presentation. For now, your first step is to register to receive your IRIS TCC code. If you have any additional questions, please open a Support Ticket. Thank you for your continued partnership. Sincerely, Computer Guidance Corporation

Dear Valued Customer,

It has come to our attention that the states of Arizona and Kansas are rejecting the W2 electronic file for the following error message:

Error Code#: 4200 Line or Position#: 1406 Record: RS Field Position: 320-330. Incorrect field

The field length is incorrect in position 320-330 of the RS record. Positions 328-330 are coming in as blank, and they need to be zero if there is not another value that populates in that field.

This error message may not be limited to Arizona and Kansas.  You need to receive updated program PRP440.  This will be installed as Quick Fix 552 (QF552).

This program fix will be installed automatically for hosted customer.  If you are enterprise customers, please create an on-line ticket to request the install of QF552.

Customer Support Website

The majority of the states have state specific programs and will not be affected. A handful of states use the “generic” PRP440 program which include Arizona and Kansas.

Thank you!

Dear Valued Customer, An additional change for Year-End Processing was needed for electronic filing under the FIRE system for 1099 electronic filing. The Golden Parachute is no longer reported on Form 1099-MISC. Program APP140 was changed so that the “A” record no longer includes the “B” value in positions 26–45.Quick Fix Q551 (QFQ551) will be installed automatically for hosted customers. For Enterprise/On-Premise customers, please create an online ticket to request the updated program APP140. Customer Support Website Online Ticket This updated program is only needed if you report 1099-MISC forms. If you only have 1099-NEC forms, then you should not experience this problem.Here is an example of the error message you may receive from the IRS if you do not have the updated program APP140 and you process 1099-MISC forms.

Dear CGC Customers:

The 2025 Year End Update # 2 (Q55) is now available for all Production and Test environments.
The Q55 Update contains changes for 2025 ACA and W2 fixes for Michigan and Alabama.

The minimum eCMS Release level for (Q55) is 4.2 Fix Pack 3 – Hot Fix 311.
This is the same minimum release level required for the 2025 Year End Update (Q54).

The (Q55) update does not require users to be logged out of eCMS. All changes will take effect immediately.

The eCMS v.4.2 F03 2025 Year End Update #2 (Q55) Release Notes document is located on the CGC Portal/Knowledge Center. 

Please review the documentation and schedule installation as soon as possible.

For hosted customers:
Since the (Q55) update can be installed while your users are logged into eCMS. 

The Software Delivery Team will be logging onto systems, in the days to come to install the (Q55) update.

For those customers who have already informed us to notify them before updating their production environment, you will be contacted by Software Delivery soon.

If you prefer a specific date/time for these updates or have any questions.
Please submit a ticket, requesting to be contacted by Software Delivery.

For non-hosted customers:
Please submit a ticket requesting the installation of 2025 Year End Update (Q54) into your Production / Test environments. 

Following the install of updates and after nightly processing, the updated eCMS Release Level will display in the lower right hand corner of the eCMS menu. Thank you! 

Dear CGC Customers,

The purpose of this communication is to assist with explaining the Federal Exempt Overtime Premium that is starting this year. In this email, we will discuss the premium and the equation used to calculate the premium credit. Useful links are included at the bottom of the email.

Informational video and PDF are available in the Knowledge Center under the Quarter-End and Year-End section at https://cgcportal.computerguidance.com/.

The Overtime Deduction will be for 2025 through 2028, “individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay – such as the “half” portion of “time-and-a-half” compensation – that is required by the Fair Labor Standards Act (FLSA) and that is reported on a Form W-2, Form 1099, or other specified statement furnished to the individual.”

“Employers and other payers are required to file information returns with the IRS (or SSA) and furnish statements to taxpayers showing the total amount of qualified overtime compensation paid during the year.” This year, the W-2 box 14 is used.

This information came from the One, Big, Beautiful Bill link below.

The calculation as per the government:

Add all Hours Worked for the week.

Add Gross Pay (use reg rate for ALL hours. Since the premium is only for over 40 hrs/week we start with the reg rate).

Divide Gross Pay by Hours Worked to get the Average Worked Rate.

Divide Average Worked Rate by 2 to get the Premium Rate (divide by 2 to get the half portion of the rate).

Multiply the Overtime Hours Worked (hours over 40) by the Premium Rate to get the Premium Paid.

What the calculation means is that the Overtime Premium Deduction is not based on the type of pay a qualified person received during the week. It is based on the number of hours they worked in that week.

Because the calculation is based on per week, if the hours were entered on a biweekly basis there will be manual editing that must be done. The recommendation is to export out the weekly view and use that to manually calculate the overtime premium paid and then export the summary view and edit the amounts appropriately. Going forward it is recommended to discuss the change in entering the hours weekly vs editing the amounts at the end of the year on the spreadsheet.

Links with more information:

One, Big, Beautiful Bill Act: Tax deductions for working Americans and seniors

Overtime Pay

Fact Sheet #23: Overtime Pay Requirements of the FLSA

If you need further assistance beyond the information provided here, we will need you to please submit an incident. Customer Support Site .

Thank you!