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.
• 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

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

• 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 409A non-qualified compensation plan (For more information, see Internal Revenue Bulletin: 2005-47, Code Sec. 409A.)
• Z. Income under a nonqualified deferred compensation plan that fails to satisfy section 409A.
• 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