2008 YEAR-END INFORMATION

Updated December 11, 2008

We are in the process of completing our 2008 Year-End changes, which include the following:

• 1099 MISC and INT - System and screens changed to allow only electronic transfer of data. After December 1, 2008, electronic file will be the only acceptable method to send returns to the IRS/ECC-MTB.
  
  
  • EXCEPTION TO ELECTRONIC FILING: The IRS will still accept paper filing if you have fewer than 250 1099 forms or fewer than 250 W-2 forms. If you meet the fewer-than-250-forms criteria, you can file electronically or file paper forms.
• There are no changes to the US W-2, 1099-MISC and INT forms, or the Canadian T4 form.

We have also added new features beyond traditional federal requirements. These changes include the following:

• Option to shift printed 1099 output similar to what is available in W-2 forms
• Ability to print W-2 or 1099 forms for selected individuals as needed
• Option to choose between two W-2 4-up forms.
• Ability to report HSA (Health Savings Account) employee deductions and company contributions.

IES® Host customers may begin scheduling Year-End updates now using the Year-End Update link on our Customer Resources Site. Innovative Access® and Innovative Access Plus® customers do not need to request Federal Year-End changes, as these updates will be completed automatically for all Software as a Service or "SaaS" (formerly ASP) Year-End customers. All Year-End customers, including Host and SaaS customers, should submit a project request for any State Mag Media changes they will require. We will begin installing these updates on December 1, 2008 and plan to continue through January 15, 2009.

In order for all updates to be completed in a timely manner, we will again utilize a pricing schedule for any update submitted after January 15, 2009. Updates requested prior to this date will continue to be completed at no additional charge, while any update requested after this date will incur a tiered update fee based on when the update is requested. The 2008 Pricing Schedule is the same as the one used in 2007 and is posted in the "Year End" section of our Customer Resources Site.

Over the coming months, we will continue to use our newsletter to update you with additional Year-End information. Our first Year-End e-mail with detailed information directed to your IT and Payroll teams was sent the second week of November. Use our contact information update form to verify or update the contact information for these individuals. We will send periodic, year-end reminder e-mails through January, 2009.

User documentation, sample IRS forms, and IRS form ordering information can be found in the "Year End" section of Innovative's Customer Resources Site. Please check the site often for updated details. We are also offering online training, which is detailed below.

Any questions related to 2008 Year-End processing may be directed to our Customer Service team.