About W-2 Box and W-2 Code in payroll calculations

Under Reporting in the 5-3-1 Payroll Calculations window, there are four text boxes in which you may have to enter values. Two of them refer to calculations on W-2 forms.

• W-2 Box: To include the total of a payroll calculation on the W-2, you can provide the W-2 box number. Use this for amounts that you must include in boxes 11 through 14 on the W-2.

  Note: The following list of W-2 codes became effective for the 2007 tax year.

• W-2 Code: You can provide the special W-2 code, required by certain entries on the W-2.

Valid W-2 Box 12 codes:

• A: Uncollected Social Security tax on tips
• B: Uncollected Medicare tax on tips
• C: Taxable cost of group-term life insurance greater than $50,000
• D: Elective deferrals under a Section 401(k) cash or deferred arrangement (plan)
• E: Elective deferrals under a Section 403(b) salary reduction agreement
• F: Elective deferrals under a Section 408(k)(6) salary reduction SEP
• G: Elective deferral and employer contributions under a Section 457(b) plan
• H: Elective deferrals under a Section 501(c)(18)(D) tax-exempt plan
• J: Non-taxable sick pay
• K: 20% excise tax on excess golden parachute payments
• L: Substantiated employee business expense reimbursements
• M: Uncollected Social Security or RRTA tax on taxable cost of group-term life insurance greater than $50,000 (for former employees)
• N: Uncollected Medicare tax on cost of group-term life insurance greater than $50,000 (former employees only)
• P: Excludable moving expense reimbursements paid directly to employee
• Q: Non-taxable combat pay
• R: Employer contributions to your Archer MSA
• S: Employee contributions under a 408(p) SIMPLE plan
• T: Adoption benefits
• V: Income from exercise of non-statutory stock option(s).
• W: Employer’s contribution to a Health Savings Account (HSA)
• Y: Deferrals under a section Section 409A non-qualified compensation plan (For more information, see Internal Revenue Bulletin: 2005-47, Code Sec. 409A.)
• Z: Income under Code Sec. 409A on a non-qualified deferred compensation plan.
• AA: Designated Roth contributions under a Section 401(k) plan.
• BB: Designated Roth contributions under a Section 403(b) plan
• CC: HIRE exempt wages and tips
• DD: Cost of employer-sponsored health coverage
• EE: Designated Roth contributions under a governmental section 457(b) plan