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Earnings and Deduction Accumulators Manual - Pai

1. DO NOT confuse this with the concept of excess contributions to a 401 k those being contributions in excess of the dollar limit which must subsequently be withdrawn and included in income for the year to which the excess contribution applies PERI 3L PERSI Wage Amounts Accumulates PERSI eligible wages for Public Employee s Retirement System of Idaho 59 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description MSA 3M Medical Savings Accounts Medical Savings Accounts This accumulator has been established to handle EMPLOYEE CONTRIBUTIONS to MSA accounts but it currently has no functional capability Keep in mind that EMPLOYEE CONTRIBUTIONS to MSAs are typically simply an employee deduction with no Federal tax or reporting requirements Most state programs in effect prior to the Federal legislation had no W 2 or other reporting requirements on behalf of the employer If you become aware of state level MSA programs with W 2 or payroll related requirements please contact Payroll Associates See COMSA Code 3N for details concerning EMPLOYER CONTRIBUTIONS Be aware that employee and employer contributions CANNOT be made in the same year Also see IRS Pub 969 COMSA 3N ER Contributions MSA 12 Code R EMPLOYER CONTRIBUTIONS to a Medical Savings Account Be aware that employer and employee contributions CANNOT be made in the same year This accumulator has no Fed
2. as appropriate 49 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description LIFINS 5J DO NOT USE 01 This accumulator has been established for a specific situation where an employer s accountant insists that PS58 costs relating to a split dollar life insurance program be reported on the W 2 in Box 1 only Not subject to FUTA This treatment is technically incorrect although the eventual result for the employee is the same from the standpoint of his personal income tax obligations This W 2 reporting method for PS58 costs was replaced in the 1970 s by the current reporting method of including PS58 items on Form 1099R with a code 9 in Box 7 This correct treatment is accomplished by using PayChoice Earnings Accumulator PS58 Code 5E CAUTION Do not use this accumulator unless it this non standard form of reporting is DEMANDED by your client PLEASE CALL PAYROLL ASSOCIATES BEFORE USING THIS EARNINGS CODE AUTO 3 5R DO NOT USE 01 03 05 amp 14 Taxable Auto Allowance Taxable Reported only for FWT fully taxable for FICA and Medicare Not taxable for Pennsylvania State and Localities CCTIP 66 DO NOT USE Credit Card Tips MEALIT 6G DO NOT USE IL SUI Taxable Meals Used for Illinois SUI taxable meals only MEALIT 6H DO NOT USE IL SUI TAXABLE MEALS NOTAX 6l DO NOT USE Food and Beverage Sales ILSUBS 6Y DO NOT USE Sub S Health No Federal withholding tax Social Se
3. stubs This codeword may ONLY be inserted for deductions that do NOT already have an existing Base Accumulator STUB also includes PayChoice Earnings Codes S2 S3 and S4 STUB S2 Prints on Pay Stub Same as Earnings Code S1 STUB 3 Prints on Pay Stub Same as Earnings Code S1 STUB S4 Prints on Pay Stub Same as Earnings Code S1 SCORDT SD S CORP Distribution Distribution to an S Corp owner that is considered wages for State Unemployment purposes This is not taxable for FUTA FIT or SIT 46 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description STATO2 SN Statutory Employees 01 03 amp 05 Box 13 Statutory Employee Statutory employees subject to FUTA therefore included in BASE2 Wages are included in Box 1 for reporting purposes only NOT subject to withholding Federal or State This accumulator is generally used for statutory employees in the following categories 1 An agent or commission driver who delivers food or beverages other than milk or laundry or dry cleaning for someone else or 2 A traveling or city salesperson other than an agent driver or commission driver who works full time except for sideline sales activities for one firm or person getting orders from customers In 2 the order must be for items for resale or for use as supplies in the customer s business the customers being retailers wholesalers contractors or operators of hote
4. which does permit a reduction of taxable income IF AND ONLY IF the employer meets the requirements of NJ TB 39 USE THIS IN THESE UNIQUE CIRCUMTANCES ONLY This deduction code will reduce wages in Box 01 03 and 05 and NJ State wages SEC529 Al Section 529 Contributions 14 Employee after tax contributions for a Section 529 Tuition Plan SEC132 4J Section 132 Transit Pass Pre Tax deduction for Section 132 Transit passes 64 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description SC132M 4K Section 132 Transit Pass Pre Tax deduction for Section 132 Transit passes effective 2012 this is the same as code 4J Prior to 2012 this was taxable for MA Income Tax purposes CAFAFL AL Medical Section 125 03 amp 05 Cafeteria plan Section 125 taxable for Social Security and Medicare wages ONLY CAFNWT 4M Medical Section 125 03 amp 05 Cafeteria plan Section 125 not taxable for Federal but taxable for Social Security Medicare State and Local wages HSACEE AN Health Savings Account EE portion 12 Code W Health Savings account for a Pre Tax Cafeteria Plan contribution by the Employee Taxable for WI DPPREM 4P Domestic Partner Medical Prem 01 03 05 amp 16 Domestic Partner cost of insurance premium This code is to be used when the state follows the Federal definition and does not allow the premium to be offer on a pre tax basis See code 6G for the premium
5. 1099MC MC Crop Insurance Proceeds 1099 MISC Box 10 Report crop insurance proceeds paid to a farmer by an insurance company unless the farmer has informed the insurance company that expenses have been capitalized under IRC Section 278 263A or 447 43 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description 1099MG MG Other Payments SUTA Taxable 1099 MISC Box 7 Guaranteed payments made to an owner that requires only SUTA This is not taxable for FUTA FIT or SIT 1099MI MD Section 409 a Income Reported on 1099 ADJMTA MT NY MTA ADJUSTMENT NOFICA NF Agricultural Worker First 150 paid to agricultural worker that is not subject to Social Security or Medicare Reported on Form 943 Use regular earnings codes if earnings are expected to exceed 150 for the year CLERG2 P1 Clergy Earnings Se as Earnings Code 9T CLERG2 P2 Clergy Earnings Sch as Earnings Code 9T CLERG2 P3 Clergy Earnings Er as Earnings Code 9T CLERG2 P4 Clergy Earnings SR as Earnings Code 9T dd P5 Clergy Earnings Worker s Compensation Same as Earnings Code 9A with the exception that it is for clergy covered by worker s compensation Used when class code 8840 was added to a coverage policy See code 9A for details on the taxation CLERG4 PF Clergy Earnings 01 and 16 Clergy earnings FW and State taxable only 44 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info
6. 1F Bonus Taxable Wages 01 03 amp 05 This gross bonus code is a fully taxable earnings code however DOES not withhold Federal or State tax This accumulator will display the bonus on the pay stub separately NOTE Do NOT use the method on the F8 input pay screen when using this code STUEXP 1G Student Wages 01 Student wages taxable for FWT STATE and SUI only Not taxable for FUTA NCTPAY 1H Nontaxable Combat Pay 12 CODE Q If you are a military employer report any nontaxable combat pay in box 12 UNSUB 1J Supplemental Unemployment Benefits 018 14 Supplemental Unemployment benefits under a Union plan paid to a former Employee Not taxable for FICA MED FUTA and SUI purposes STRIKE 1K Strike Benefits Strike and lockout benefits paid by a union to its members to provide them with money to pay bills during a strike generally are not wages and are not subject to federal income tax withholding or social security Medicare or FUTA taxes Do not use if this is for an hourly wage for picketing activity these payments are wages COMPR 1L Commissions for Puerto Rico PRW 2 Box 8 Commissions Commissions reported on Puerto Rico W 2 ALLOW 1M Allowances for Puerto Rico PRW 2 BOX 9 Allowances Allowances reported on Puerto Rico W 2 TIPSPR 1N Tips Reported for Puerto Rico PRW 2 BOX 10 TIPS Tips reported on Puerto Rico W 2 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code D
7. BASE ACCUM W 2 BOX Code Description 1099R1 R1 Gross Distribution 1099 R Box 1 Total amount of distribution including taxable and nontaxable amounts before any withholding amount Includes direct rollovers premiums paid by trustee custodian for PS58 costs See PS58 Code 5E gross IRA SEP distributions and death benefits not part of pension plan NOTE PayChoice builds up the value in Box 1 by summing the values accumulators in income boxes 2 5 and 6 Therefore direct entries made using Code R1 should represent only dollar amounts not already entered by having used 1099R2 1099R5 and or 1099R6 Example If a Gross Distribution should be 1000 and the Taxable Amount should be 600 enter 600 for R2 and 400 for R1 1099R2 R2 Taxable Amount 1099 R Box 2a Taxable Amount taxable portion of amount in 1099 R Box 2a is generally the amount includible in income If not determined check Box 2b Generally the R2 entry will be a calculated number determined by your client If you are in doubt as to the correctness of the entry review appropriate IRS Regulations and Revenue Rulings If a distribution is a loss do NOT enter a negative amount 1099R3 R3 Capital Gains 1099 R Box 3 Capital gains will be included in the1099 R calculated amount for Box 2 as determined by your client Box 3 however is in essence a stand alone information box It is to include the amount eligible for capital gain treatment for lump sum distri
8. Clergy Te dte 40 9V GE MMS Larsons 40 9W Exempt Clergy HOUSING xcs ois Nee annan 40 9X Clergy Earnings Fully Taxable eneee 41 9Y 1042 Foreign Worker Wages 41 9Z Clergy Earnings for CAWH ceeeeeeeeeeeeeeeeeeeeeeeeeeeeeenanees 41 CL Casual AN ON sis ce ce dia 41 DP Differential Pay sido 41 G1 AA A heehee at td 41 G2 Prior FUI SUI Wages 41 G Prior EE Ee scsi 41 G5 Prior FUTA Wages omic 42 HT Affordable Care Act Taxable Wages 42 ES A Na 42 MO Other Income NV SU icons dci 42 MS Dher INCOMIG sireicts dsc cla a 42 M5 Fishing Boat Proceede en 42 M6 Medical and Health Care Payments occccccccccnnnoncnoccccnnnicnn 43 M7 Non Employee Compensaton 43 M8 Substitute Payments coda pis 43 MA Attorney Payments rrrnnnnnnnnnnnvnnnnnrrrnnnnnnnnnnrnnnnnrrrnnnnnnnsnnnnn 43 MC Crop Insurance Proceede 43 MG Other Payments SUTA Taxable 44 MD Section 409 a Income Reported on 1000 44 MT NY MTA ADJUSTMENT Tocando 44 NF Agricultural Worker 44 PI CITY Eamhas nda 44 P2 Clergy Earnings EE 44 Po Gled A A Da 44 P4 Clergy o nne 44 P5 Clergy Earnings Workers Compensation ccccceeeees 44 PF Clergy Earnings ita a a a seatieiocad 44 R1 Gross DISTHIDUT ON cost AE Ae 45 R2 Taxable AMO EEE 45 5 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info 1099R3 R3 Capital Gang 45 1099R5 R5 EE Contribution or INS Premiums 45 1099R6 R6 Net Unrealized Apprecaion 46 1099R8 RS ANNUITY Contracta eearri EAEE 46 STUB ST P
9. Death Beneficiary or Estate Eammgs 25 5K Cafeteria Fringe Beneits 26 5L Fringe Boot EE 26 5M MEDICAL HEALTH BENER Poscunraaa 26 5N FRINGE BENEFITS AN 26 50 Medical 125 Premium rnnrrrrrnnnnnnnnnnnnnnnrrrnnnnnnnnnrrnnnnnrrnnnnnne 26 5P GTL Insurance RIED cusco 26 5Q 3rd Party Payment of Moving Exvpenses 26 Do Fringe Benefis anne 26 ST TRANSIFPASSPRINGE AG 26 5U MEDICAL RE MMS aa 27 SV TAXABLE LT DIS PREMIUM siii 27 5W EMPLOYER HEALTH aaron arroba 27 5X EMPLOYER HEALTH FULLY TASABRLE 27 2 TRS SC105R W2PENS DECTIP NOTAX NOTAX CCTIP ALCTIP BNQTIP MEALTX MINTIP DECTIP NOTAX DECTIP DECTIP DECTP2 MINTIP TRIMET LANEWG FITPCR DECTP2 BNQTPY TIPS DEFC12 UNFORM DEPCAS FLXSPN PENSNT LTDISB MEALNX DEFCMP DEFCM2 ADOPTN ADOPTX DEFCM4 MEALUI NQDCPA SUTLLC DEFCMP NONPRF CQ457H DEFCM5 409ANC AUTO 7 DEFCM6 409ADQ Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info 5Y TEXAS TEACHERS RETR DV 27 5Z SUB S CORP SEC105 REIMBURSMENT onssas 27 60 Taxable Pension Distributions c ceeeeeeeeeeeeeeeeeeeteees 27 63 Declared TIPS eneeier eies 27 BA MINNE ae 28 HS MINO ona idad 28 66 Credit Gard TIPS yield 28 67 Allocated Tips kite 28 ie tt 28 A nu 28 6A Tips Deemed Wages EE 28 GB Make UP Tios silicio 29 6C Food and Beverages Gales 29 CONS NPS sonen 29 A EE 29 6F Declared Tips FICA Exempt en 29 6J Internal Use Only 2000 2 2 ce eeeeceeeeeeee cece eee eeeeeeeeeeeeeeeeee
10. H 401K D 501CCU H 401K50 D 501CUN H 401KC D 501CX H 410B D 3PSNT J FPPA D 3PSNTX J SIMP50 D GPARCH K SIMPLE D MILAGE L SMPKCU D TOOLCX L SNGLCU D UNFICA M SNGLEK D UNFIMC N USERA1 D UNMEDC N USERA2 D EXMOVE P USERA3 D NTCPAY Q USERA4 D COMSA R USERA5 D SMPI50 S USERA6 D SMPICU S 403B E SMPIRA S 403B2 E ADOPTN T 403B2C E ADOPTX T 403B50 E STKOP2 V 403BCL E STKOP3 V 403BCU E STKOPP V TSA E COHSA W TSACU E HSAC55 W 408CU F HSACAF W 408K6 F HSACEE W 408K65 F SUBHSA W 408K6C F 83 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info W 2 Box 13 Retirement Plans PayChoice marks Box 13 Retirement Plans when any of the following accumulators are used if the employee has Year To Date information for the respective accumulator 401K 401KC 401K50 403B 403B2 403B2C 403BCL 403B50 403BCU 403RCU 403RTH 408K6 408K6C 408CU 408K65 410B 501C50 501C 501CCU 501CX 501CUN CO401K CO403B COSIMP COSIMP2 COSMPK COSRSP PTXRTH RTHKCU SARSEP SARSPC SEPP SIMPLE SMPICU SMPIRA SEPMA SNGLEK SIMP50 SMPI50 SNGLCU SMPKCU TSA TSACU USERA1 USERA2 USERA3 USERA4 USERA5 USERA6 If it is necessary to check the Retirement Box in situations where one of the accumulators listed above has not been used during the current year select the F3 screen for the appropriate employee s and select Y in the W 2 Pension field To check the Statutory Box go to the employee s F3 screen Enter S in t
11. HRA DISTRIBUTION N T Non taxable Earnings code to reimburse the employee for medical expenses HEARTA 4H HEART ACT VOL FIREFIGHTERS Box 14 Non taxable Earnings code to reimburse the Volunteer Firefighters 30 a month up to 360 per year PERCAR 40 PERSONAL USE OF CAR AUTO 8 4R Federal State Taxable Auto Allowance Taxable auto allowance for FUTA Federal and State Only Taxable for WIUI AUTOSN 4T AUTO ALLOWANCE NON TAXABLE 20 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description AUTO 6 4U Federal State Fica Taxable Auto Allowance 01 03 05 amp 14 This code is taxable for Federal State and FICA amp MEDICARE No federal taxes will be withheld AUTO 5 4V Reportable Auto Allowance for Clergy 14 Special Earnings Code for Clergy Auto that is reported in Box 14 of the W 2 EXSICK 4X Federal Taxable Sick Pay for CA and NV 01 03 amp 05 Fully taxable sick pay under employer s special deferred internal plan in California or Nevada Review details with the appropriate state as to what constitutes a plan Taxable for FWT Social Security Medicare SWT Exempt only for California Disability CADD CADDNC and Nevada Unemployment NVUI STDSPA 4Y Short Term Disability 01 This Short Term Disability code is taxable for federal however is non taxable for Pennsylvania ESICK2 4Z ESICKPA 01 03 amp 05 Fully taxable sick pay earnings code however
12. PRIGR2 G2 Prior FUI SUI Wages Prior Owner FUI SUI Taxable Gross Prior FUI SUI wages from the previous owner which are used to give employer appropriate credit toward tax ceilings in a Predecessor Successor business purchase For more information on predecessor successor refer to the Green Advanced User Manual Chapter A 2 or the Customer Support Website under PayChoice Documentation PRIGR4 G4 Prior SUI Wages Prior Owner SUI Taxable Wages Prior SUI wages from the previous owner which is used to give employer appropriate credit toward tax ceilings in a Predecessor Successor business purchase For more information on predecessor successor refer to the Green Advanced User Manual Chapter A 2 or the Customer Support Website under PayChoice Documentation 41 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description PRIGR5 G5 Prior FUTA Wages Prior Owner FUTA Taxable Wages Prior FUTA wages from the previous owner which is used to give employer appropriate credit toward tax ceilings in a Predecessor Successor business purchase ACATAX HT Affordable Care Act Taxable Wages 14 Taxable wages for states that have not adopted the current provision of the Affordable Care Act which exclude from wages the benefit for health insurance for children that have not attained the age of 27 as of the end of the tax year NOTAX L1 L9 User Defined NOTAX Base Accumulators used in memo earning
13. ROTH IRA HSAC55 5J HSA CATCH UP FOR A CAFE PLAN NQEDFN 5Q NON QUAL ELECTIVE DEFERED 415C 5R Deferred Comp LIMIT 415C 5S 415 Deferred Comp 401KPR 5T 401 k for Puerto Rico 69 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description 403RTH 5V 403 b ROTH Deduction 12 401ACL 5W 401A CLERGY PENSION 403RCU 5X 403 b ROTH Catch Up NQDFNT 5Y NON QUALIFIED DEFFERED COMP COSEP 5Z CO SEP EMPLOYER CONTRIBUTION MILAGE 60 Non Taxable Business Expense 12 Code L Used as a reverse deduction for the non taxable part of employee business expense reimbursements if the payments are made via a per diem or mileage allowance For further details see Earnings Code 36 HRA 61 501 Health Reimbursement Account Box 01 and 14 The cost of the health and accident insurance premiums made on behalf of it s greater than 2 S corporation shareholder employee is deductable by the S corporation and reportable as additional compensation to the shareholder Not subject FICA Med and FUTA taxes 457RTH 6D 457 ROTH Sponsors of governmental 457 b plans that have added a ROTH account to their plans DPPTPM 6G Domestic Partner Medical Prem 01 03 05 amp 16 Domestic Partner cost of insurance premium This code is to be used when the state does not follow the Federal definition and allows the premium to be offered on a pre tax basis See code 4P for the premium when the state follows the Federal def
14. Reportable EMP Wages 01 03 8 05 Gross Earnings in PayChoice is defined as all live Earnings paid to the employee as displayed on the Check Journal MTD and QTD amp YTD Gross as a Base Accumulator is the general term used to define earnings which are fully taxable for all taxes Includes PayChoice Earnings Codes 01 thru 19 20 thru 23 25 thru 29 30 thru 34 38 and 40 thru 43 46 47 49 50 61 62 75 82 83 92 and 99 BONUS3 1A Bonus Taxable Wages 01 03 amp 05 This gross bonus code is a fully taxable earnings code however does NOT withhold Federal or State tax This accumulator will display the bonus on the pay stub separately NOTE Do NOT use the method on the F8 input screen when using this code BONUS2 1B Bonus Taxable Wages 01 03 05 amp 17 This bonus code is not taxable for FUTA and SUI BONUS5 1C Bonus Taxable Wages 01 03 amp 05 This gross bonus code is a fully taxable earnings code however is NOT TAXABLE for FUTA and SUI This code does NOT withhold Federal or State tax This accumulator will display the bonus on the pay stub separately NOTE Do NOT use the method on the F8 input screen when using this code Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description CAVATR 1E CA Termination Vacation Pay 01 03 amp 05 This was set up for a licensee where California vacation pay upon termination is NOT taxable for SUI DIS BONUS3
15. USE Qualified Tuition Reduction Setup for a specific client HWOWNR 4F DO NOT USE Health and Welfare Special deduction CAFTRS 4H DO NOT USE Cafeteria Plan for TRS FRINGC 5K DO NOT USE Cafe Fringe please use Earnings Code 54 or Earnings Code 5K 403B2 5L DO NOT USE 03 amp 05 12 Code E 13 Retirement Plan Special Retirement plan that is excluded from FUTA and KSUI 457FHC 5M DO NOT USE For Highly Compensated plan TUTRED 5N DO NOT USE Qualified Tuition Reduction 457COF 50 DO NOT USE C0457 F MA168 5P DO NOT USE Reduces MA State wages only Used for Mass Chapter 168 EE contributions Setup for a specific client CERTRF CF DO NOT USE Fringe Deduction for Certified Payroll 81 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description 403B2C EL DO NOT USE 03 amp 05 12 Code E 13 Retirement Plan Special Catch Up contribution not taxable for FUTA KSUI and MOUI WKWORK WW DO NOT USE Weeks Worked YTD 82 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info W 2 Box 12 Codes Base Accum Box 12 Code Base Accum Box 12 Code Base Accum Box 12 Code FICAUN A SARSEP F 409ADQ Y FIUN A SARSPC F 409ANQ Y PTXRTH AA SEPMA F 409A Z RTHKCU AA SEPP F 409ANC Z FIMCUN B 457 G 409ANF Z FMUN B 45750 G 403RCU BB 457CU G 403RTH BB 457FHC G CLRINS C C0457 G INSPR2 C C04572 G INSPR3 C CO457F G INSPRM C 501C H FIERCW CC 501C50
16. and locals as exceptions to the rule exempt these premiums from taxation Employee resolves any tax due as part of filing his ner personal return See Earnings Code 5P to withhold Federal tax FRING4 5A Non cash Fringe Benefits 01 03 amp 05 Non cash parking as a fringe benefit In general the excludible amount of employer provided parking is limited to 190 month for 2003 There are other qualifying conditions If in question your client should consult with their tax advisor 23 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description EXMOVE 5B Qualified Moving Expenses 12 Code P Reimbursements made by the employer for expenses both incurred and reimbursed for qualified Section 132 moving expenses Qualified moving expenses include only reasonable costs of moving household goods and personal effects from employee s former residence to new residence and reasonable costs of travel and lodging excluding meals from old location to the new one NOTE THIS ACCUMULATOR AND THE CORRESPONDING REPORTING AS P IN BOX 12 d IS TO BE USED ONLY FOR EXCLUDABLE EXPENSES PAID DIRECTLY TO THE EMPLOYEE RATHER THAN ANY PAYMENTS TO A THIRD PARTY VENDOR SUCH AS A MOVING COMPANY ON BEHALF OF THE EMPLOYEE See Pub 17 Chapter 27 and Pub 521 STIPND 5C Stipend Payment 01 Taxable Federal wages reported to certain types of otherwise exempt employees Taxable for State where
17. applicable DEATH 5D Deceased Wages 03 8 05 Final Wages paid to the estate of a deceased employee in the year of death are reported on final W 2 as taxable for Social Security and Medicare only The actual wage amount will be reported on 1099 MISC Box 3 The use of these accumulators relates to post death wages e g wages due for services performed but yet unpaid at the time the employee died If the monies are paid in any year other than the year of death they are to be reported on 1099 MISC Box 3 against the TIN of the beneficiary or estate but will have NO Social Security or Medicare taxation See DEATH1 and DEATH PS58 5E Split Dollar Life Insurance 1099 R Boxes 1 amp 2A Code 9 in Box 7 of 1099 R relates to premiums paid by a trustee or custodian for current life or other insurance protection PS58 often referred to as split dollar life insurance PS58 costs are reported in Boxes 1 and 2a of 1099 R PS58 costs and distributions should be reported on separate 1099 R forms See IRS Reg 1 72 16 b DIFREE 5F Director s Fees 1099 MISC Box 7 Self employment income unless paid for services performed other than those required by attendance at and participation in directors meetings 24 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description DOMEST 5G Domestic Employees 01 03 amp 05 This accumulator is intended for use in situations where a client has d
18. exempt Created on request from a specific Service Bureau NOCITY 8Z No City Double time NOTAX 98 DO NOT USE DO NOT USE Memo Hours worked for internal use CLRERR 9D DO NOT USE Clergy Employer Medical Reimbursement PRIGR3 G3 DO NOT USE Prior New Jersey Disability Wages INSFM GF Federal Wages Revision 10 1 2015 DO NOT USE 51 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description INMAI GM DO NOT USE MA Wages ACAFST HF DO NOT USE Health Care Taxable Taxable wages for federal and states that have not adopted the current provision of the Affordable Care Act which exclude from wages the benefit for health insurance for children that have not attained the age of 27 as of the end of the tax year This is not FICA taxable This was set up for a specific client please contact PayChoice to confirm the proper usage and the states that are taxable RABPHS PG DO NOT USE Rabi Parsonage Housing PS58 R9 DO NOT USE 1099 R Box 9 1099P1 RA DO NOT USE Patronage Dividends 1099P2 RB DO NOT USE Non Patronage Distribution 1099P3 RC DO NOT USE Per Unit Retain Allocation 1099P5 RE DO NOT USE REDEP of MQ Notice amp Ret 1099P6 RF DO NOT USE Certain Credits 1099P7 RG DO NOT USE Investment Credit 1099P8 RH DO NOT USE Work Opportunity Credit 1099P9 RI DO NOT USE Patron s Amt Adjustment FL1099 RJ DO NOT USE Florida 1099 Workers Comp 1099 N RK DO NOT U
19. not taxable for PA State wages FRING1 51 Fully Taxable Fringe Benefits 01 03 05 amp 14 Fully Taxable Fringe Benefits ALL taxes are withheld when entered in PayChoice however must be submitted with other paid wages to allow for tax deductions The fringe can also be submitted as an adjustment to allow Social Security Medicare to automatically catch up on current or next live payroll check voucher Same as Code 5S 21 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description FRING2 52 Fully Taxable Fringe Benefits 01 03 05 amp 14 Fully Taxable Fringe Benefits however only Social Security Medicare taxes are withheld when entered in PayChoice FRING2 entries must be submitted with other paid wages to allow for tax deductions or must be submitted as an adjustment to allow Social Security Medicare to automatically catch up on current or next live payroll check voucher Usually reported as LIVE included in Net earnings Typically includes such fringes as Cars provided by employer Flights on aircraft provided by employer Free discounted commercial flights Discounts on property or services Country club or social memberships Tickets for entertainment sporting events Vacation expenses paid by the employer NOTE This is a fully taxable federal and state fringe benefit code This code WITHHOLDS PA State Tax ONLY Do NOT use this code for PA auto fringes Use AUTO 1 C
20. of the calendar year This is a POST TAX DEDUCTION The base accumulator 401KC accumulates the eligible wages EB and should be joined to 4W RTHKCU 4X ROTH 401 k Catch Up Accumulates the catch up contributions to be made by anyone reaching age 50 before the end of the calendar year This is a POST TAX DEDUCTION The base accumulator 401KC accumulates the eligible wages EB and should be joined to 4X SNGLEK 4Y SINGLE k Salary Reduction Plan 03 05 amp 12 Code D 13 Retirement Plan A Single Participant 401 k plan is available to self employed individuals or businesses with no employees other than their spouse Always use a limit of 999 999 99 when setting up this code The Annual PayChoice Yearend release will automatically up date any federal limits that have changed for the coming year SNGLCU 4Z SINGLE k Catch Up Contributions 03 amp 05 12 Code D 13 Retirement Plan Participants of Single participant 401 k plans may also take advantage of the new age 50 catch up contributions provided they qualify 66 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description 403B 50 Section 403 b 03 amp 05 Box 12 Code E 13 Retirement Plan Section 403 b Salary Reduction Agreement employee contributions Elective deferrals NOTE Under certain circumstances as spelled out in the specific 403 b plan documents a long term plan participant may be a
21. provides model trust provisions that the taxpayer may adopt to create a rabbi trust NQEEDF 4E Non Qualified EE Elective Deferral 03 05 8 14 Nonqualified Employee Elective Deferral To be used for an employee contribution into a Nonqualified plan This accumulator can be used for plans which are identified by a variety of titles such as deferral plans wrap around plans Ineligible plans etc There are rather specific requirements that must be adhered to by the employer in order to qualify for the taxing treatment set up by this accumulator The meeting of these requirements is the responsibility of the employer in his employment relationship with the employee Use this accumulator ONLY if you are confident it meets the explicit needs of your client A PA licensee set up this accumulator initially for use BASE1 treats NQEEDF as a reduction of Federal wages NQEEDF has been added back to the PA and NJ state wage definitions along with certain locals being used by the requesting licensee Keep in mind that most states begin their individual income tax return calculations by looking at Federal AGI If it becomes necessary to add back NQEEDF for a specific state or local tax please contact Payroll Associates NOTE This includes 457 f plans NJTB39 4G Cafeteria Plan Deductible for NJ Generally CAFE plans are NOT deductible from wages for NJ However there is one very unique circumstance discussed in NJ Technical Bulletin 39
22. select the Deduction Category and select Catch Up Contributions for Pension Plans SMPCU EQ SIMPLE Catch Up Wage Accumulator Accumulates the SIMPLE IRA AND 401K Catch Up Wage Accumulator For setup instructions please go to the Customer Support Website Support Knowledge Base select the Deduction Category and Catch Up Contributions for Pension Plans 403BCL ER 403 b Life Time Catch Up 03 amp 05 12 Code E 13 Retirement Plan Same as Deduction Code EF 414DCU EU 414 d Catch Up Contribution 03 05 amp 14 75 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description USERA1 EV USERRA Military Catch Up 2001 03 amp 05 12 Code DO1 A rehired Veteran must be permitted to make up missed contributions required to earn a benefit accrual for the military service period A rehired veteran has up to three times the period of service not to exceed 5 years to make up missed employee contributions The amount of makeup contributions is subject to the limits that would have applied during the military service period USERA2 EW USERRA Military Catch Up 2002 03 amp 05 12 Code D02 A rehired Veteran must be permitted to make up missed contributions required to earn a benefit accrual for the military service period A rehired veteran has up to three times the period of service not to exceed 5 years to make up missed employee contributions The amount of makeup con
23. taxable only not Taxable for State or Local STKOP2 9R Stock Options 01 03 05 amp 14 12 Code V Taxable Stock Options Non qualified Stock Options also referred to as NSOs or non statutory options Fully taxable STKOPT 9S Incentive Stock Options 01 14 Incentive Stock Options ISO An ISO is one of two types of statutory options the other being an employee stock purchase plan Be sure the client clearly indicates to you the type of plan being used STKOPT is entered in Box 1 for reporting purposes only NOT subject to withholding Taxable for Federal Non taxable for Social Security and Medicare Taxable for State and Local where applicable CLERG2 9T Clergy Earnings 01 Special accumulator set up to accumulate minister earnings and withholds Federal tax If the minister is also paid a housing allowance Code 9T must include the TOTAL of wages and housing Housing in this case is entered as negative amount using Code 9B Use CLERGY Code 9A for minister earnings that will NOT withhold Federal tax however is still taxable CLERG2 9U Clergy Earnings esis as Earnings Code 9T CLERG2 ov Clergy Earnings S R as Earnings Code 9T ren 9W Exempt Clergy Housing Exempt Clergy Housing To be used with Earnings Code 9X where the clergy person is fully taxable for wages Enter this amount as a positive number This code is taxable for PA 40 Revision 10 1 2015 Earnings amp Deduction Accumulato
24. to Independent Contractors or non employee compensation Reported in Box 7 of 1099 MISC Can also use Earnings Codes 96 and 97 Used for NVUI NVMBT and NVMBTF when Independent Contracts are in fact employees subject to NVUI Law 1099 96 Independent Contractors 1099 MISC Box 7 Same as Earnings Code 95 1099 97 Independent Contractors 1099 MISC Box 7 Same as Earnings Code 9 CLERGY 9A Clergy Earnings 01 Special accumulator set up to accumulate minister earnings only Federal taxable however does NOT WITHHOLD Federal tax If the minister is also paid a housing allowance Code 9A must include the TOTAL of wages and housing Housing in this case is entered as a negative amount using Code 9B Use CLERG2 Code 9T if Federal withholding tax is requested to be deducted REVHSE 9B Clergy Housing 14 Clergy Housing Allowance entered as a negative Earnings amount This reduces clergy taxable wages in Box 1 The entry for codes 9A or 9T should be the SUM of wages plus housing CLRHSE 9C Clergy Housing Allowance 03 05 amp 14 Clergy Housing Allowance taxable for Social Security and Medicare only This is a special treatment that should only be used upon the insistence of your client Note This is PA taxable 38 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description 3PSKUI 9E 3PSP Taxable for FUTA and SUTA This Third Party Sick Pay earnings code is taxable on
25. B2 BL DO NORUS EE 81 457FHC 5M DO NOT USE eet 81 TUTRED 5N DO N T H LEE 81 457COF 50 DO NOT USE COABOIEI 81 MA168 SP D NOTLUSE suse EE 81 CERTRF CR DO NOT SE a do 81 403B2C EL DONOT USE la eii 82 WKWORK WW DONOTUSE 82 W 2 BOX Ke EE 83 W 2 Box 13 Retirement Plans 84 RENTGEN S A AAA AAA E E 85 12 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info EARNINGS AND DEDUCTIONS IN PAYCHOICE Each EARNINGS type and some DEDUCTIONS types in PayChoice have been identified with a 6 character Base Accumulator These accumulators are used in a formula for each tax table to build its taxable wage base The amounts associated with each Base Accumulator are added together or subtracted to establish the taxable wages at both time of deduction and at End Of Quarter EOQ and End Of Year EOY reporting Each time a check is calculated PayChoice first calculates BASE 1 Federal Withholding Taxable Wages and BASE 2 FUTA Taxable Wages Each state and local income taxable wage is calculated as a hybrid of BASE 1 with applicable earnings or deductions types added to or subtracted from BASE 1 Similarly each state unemployment taxable wage is derived from BASE 2 NOTE All State Taxable Wages start with BASE 1 All State Unemployment Taxable Wages start with BASE 2 Depending on what is taxable vs non taxable for each state the base accumulators will be added or subtracted to calculate the correct taxable wage base for eac
26. CLRDEP CLRHSA CL403B ERHCST LTD CHSUPP 401ACE PENSN2 401ACR CHSUPP DEPCRE 401KAB STUB STUB ERRA 7 ERRA 8 ERRA 9 ERRA 1 ERRA 2 ERRA 3 ERRA 4 ERRA 5 ERRA 6 401KC 401KC SARSPC SARSC 408K6C 403BCU 457CU 501CCU 414HCU TSACU SMPICU SMPKCU SMPCU Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info 5Y NON QUALIFIED DEFFERED COM 70 5Z CO SEP EMPLOYER CONTRIDBUTION 70 60 Non Taxable Business Evpense 70 61 501 Health Reimbursement Account 70 DE OL DE EE 70 6G Domestic Partner Medical rem 70 89 ER Paid Health Benefits Lavassnernnnkernnknisiids 70 90 4011 Coa ER 70 9T ATAD LO E 71 9D Clergy Cafeteria Deduchons ceeeeeeeeeeeeeeeeeeeeeeeeeteees 71 9E Clergy Dependent Care 71 OF Clergy Pre Taxed Abusos 71 9G Clergy 403 b veritas 71 9H Employer Healthcare Coste 71 Bk Long Term Disability s mise a coords 71 AGHA SUPPO seer 71 CE CERS for Kentucky Employee Contribution 71 CP Company Paid Pension 71 CR CERS for Kentucky Employer Contribution 71 CSI SPPON sandete elve 71 D3 Dependent Care over mt 71 DO DE DR 71 DP NJ Private Plan Deduction seccional 72 DQ NJ FML Private Plan s ssnessinssetassuristissseimnipeioltesssuieie 72 DR USERRA Wage Limit 2007 rrnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn 72 DS USERRA Wage Limit 2008 72 DT USERRA Wage Limit 20009 72 E4 USERRA Wage Limit 20071 72 E5 USERRA Wage Lim
27. Catch Up Eligible Wages For setup instructions please go to the Customer Support Website Support and Knowledge Base select the Deduction Category and select Catch Up Contributions for Pension Plans 72 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description SARSPC EC SARSEP Catch Up Contributions 03 amp 05 12 Code F 13 Retirement Plan The Economic Growth and Tax Relief Act of 2001 EGTRA allows individuals age 50 and older to make catch up contributions to various tax favored retirement plans beginning January 1 2002 This act allows catch up contributions to be made by anyone reaching age 50 before the end of the calendar year For setup instructions please go to the Customer Support Website Support and Knowledge Base select the Deduction Category and select Catch Up Contributions for Pension Plans SARSC ED SARSEP Catch Up Wage Accumulator Accumulates the SARSEP Catch Up Eligible Wages For setup instructions please go to the Customer Support Website Support and Knowledge Base select the Deduction Category and select Catch Up Contributions for Pension Plans 408K6C EE 408 k 6 Catch Up Contributions 03 amp 05 12 Code F 13 Retirement Plan The Economic Growth and Tax Relief Act of 2001 EGTRA allows individuals age 50 and older to make catch up contributions to various tax favored retirement plans beginning January 1 2002 This act al
28. Corporation NJ Sole Owner 01 03 054 14 New Jersey S Corporation Accident and Health Insurance premiums paid by the corporation for the sole owner that does not offer an equivalent medical plan to its non owner employees e g a discriminatory plan Taxable for Social Security Medicare This accumulator is to be used in those instances where the corporation has made the S Corp election for BOTH Federal and State tax purposes SUBSNP 8H S Corporation NJ 2 Owner 018 14 New Jersey S Corporation Accident and Health Insurance premiums paid by the corporation for owners with at least 2 ownership in an S Corp where an employee non discriminatory plan is offered Social Security Medicare and FUTA Exempt This accumulator is to be used in those instances where the corporation has made the S Corp election for BOTH Federal and State tax purposes CODMPR 8l Company Domestic Partner Premium 01 03 8 05 Taxable company paid domestic partner insurance premium This code is to be used when the state follows the Federal definition and considers the amount a taxable fringe benefit This must be paid with regular wages See code 8V for company paid domestic partner insurance premiums which are not considered taxable to the state but are for Federal purposes SUBHSA 8J S Corporation 2 HSA 01 amp 12 code W Contributions to an HSA of a 2 Shareholder Employee that are not wages subject to FICA tax even though the amounts must be incl
29. D on checks stubs This codeword may ONLY be inserted for deductions that do NOT already have an existing Base Accumulator STUB also includes PayChoice Earnings Codes S2 S3 and S4 These codes appear in the Master Earnings table SICBAL Pay Stub Print Used to print sick balance on the 8 by 11 check 79 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description VACBAL Pay Stub Print Used to print vacation balance on the 8 Y by 11 check PERBAL Pay Stub Print Used to print personal balance on the 8 by 11 check CHARTY W 2 Box 14 Print Used for any charity deductions you want to report in box 14 This can be added to any deduction code FICA Count de FICA Hire Count Codes 6A 6B and 6C are used to record employees eligible for the FICA Hire Credit in 2010 Internal Use di Internal Use Codes KA through KI KM KN KP KQ KR KT KU KV NN NP NQ NW QA through QG QI QL QM QN QP QR and QS are reserved 80 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description Do Not Use Deduction Codes COIRA 29 DO NOT USE NOT CURRENTLY USED Employer paid contribution into an IRA funded pension plan May be part of taxable base for unemployment in some states AFTER TAX DEDUCTION ADCCAF 2M DO NOT USE Adoption as part of Cafe DOMPRE 2N DO NOT USE Domestic Partner Medical Premium QTRD 3U DO NOT
30. DEATH1 EI Post Death Beneficiary or Estate Earnings 1099 MISC Box 3 Post death wages i e wages due for services performed but yet unpaid at the time the employee died are taxable income to the BENEFICIARY or estate to whom they are paid If these monies are paid during the year of death the related Social Security and Medicare appear in Boxes 3 and 5 respectively of the employee s final W 2 by use of Earnings Code 5D DEATH The amount taxable to the beneficiary or estate is reported on 1099 MISC Box 3 against the name and TIN of the beneficiary or estate The base accumulator to be used is DEATH1 If the monies are paid in any year other than the year of death they are to be reported on 1099 MISC Box 3 against the TIN of the beneficiary or estate but will have NO Social Security or Medicare taxation 25 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description FRINGC 5K Cafeteria Fringe Benefits 03 05 amp 14 Cafeteria Fringe Benefit taxable for Social Security and Medicare only Not reported as taxable for Federal or State FRINGC entries must be submitted with other paid wages to allow for tax deductions or must be submitted as an adjustment to allow Social Security Medicare to automatically catch up on current or next live payroll check voucher Functions the same as Code 54 FRING3 FRING6 5L Fringe Benefit 03 05 8 14 Taxable fringe benefit for Social Security
31. Deductions Code 36 401ACR CR CERS for Kentucky Employer Contribution Employer contributions to the County Employees Retirement System CERS which is a qualified benefit plan under Section 401 a CHSUPP CS Child Support Child Support and OR flat dollar amount payment deductions DEPCRE D3 Dependent Care over limit 401KAB DO ASDF 71 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description STUB DP NJ Private Plan Deduction STUB DQ NJ FML Private Plan ERRA 7 DR USERRA Wage Limit 2007 ERRA 8 DS USERRA Wage Limit 2008 ERRA 9 DT USERRA Wage Limit 2009 ERRA 1 E4 USERRA Wage Limit 2001 ERRA 2 E5 USERRA Wage Limit 2002 ERRA 3 E6 USERRA Wage Limit 2003 ERRA 4 E7 USERRA Wage Limit 2004 ERRA 5 E8 USERRA Wage Limit 2005 ERRA 6 E9 USERRA Wage Limit 2006 401KC EA 401 k Catch Up Contributions 03 amp 05 12 Code D 13 Retirement Plan The Economic Growth and Tax Relief Act of 2001 EGTRA allows individuals age 50 and older to make catch up contributions to various tax favored retirement plans beginning January 1 2002 This act allows catch up contributions to be made by anyone reaching age 50 before the end of the calendar year For setup instructions please go to the Customer Support Website Support and Knowledge Base select the Deduction Category and select Catch Up Contributions for Pension Plans 401KC EB 401 k Catch Up Wage Accumulator Accumulates the 401KC
32. EG NO STATE TAX NS RE 17 STNOTX 2B OVERTIME STATE NO TA tee ecee 17 STNOTX 2C HALFTIME STATE NO TAX aaa ria 17 STNOTX 2D DOUBLE TIME STATE NO TAX coocooococcccccconnccnccnnnnncnnncnnnnnos 17 MFA 2E MFA SALA Mis G Gb biene 18 ZONE LE Zone EEN ege ee ee 18 COMMI2 2G COMMISSION for INSURANCE AGENTS rrrrnnrrnnnnnrnnnnnn 18 NOTAX 35 Mileage Non Taxable Reimbursement sssseseeeeees 18 MILAGE 36 Per DIM it di 18 SEVERN 97 Severance Pato 18 EDUCAS 39 Educational Taxable AAA 19 SEVUTU 3A Severance Pay in Ulea 19 SEVNC 3B NC Severance N T bOo0o0n 19 EDUCA4 3E Non Taxable Education Aesisiance 19 3PSLTX 3L 3RD PARTY SICK LTD RS 19 SEVRNP 3T Severance pay for Non Profit Organization oommmo 19 EDUCA2 3U California Graduate Tuition occccccnnnnnncncccccnnnnnccnnnnnanannnons 19 EDUCA3 3V California Graduate Tumton 4 cece e cette eeeeeeeeeeees 19 MILETX 3W Mileage Taxable Heimbursement 19 NOTAX 44 Draw Non Taxable A 20 1 NOTAX CELLPH LAPTOP COSHSA FRINGT MEDINS HRAREM HEARTA PERCAR AUTO 8 AUTOSN AUTO 6 AUTO 5 EXSICK STDSPA ESICK2 FRING1 FRING2 NOTAX FRING3 AUTO 1 AUTO 2 MOVE 1 INSPRM FRING4 EXMOVE STIPND DEATH PS58 DIFREE DOMEST DEATH2 DEATH FRINGC FRING6 MHB FRING7 MEDTAX INSPR2 EXM3RD FRING1 TRNPAS MDREIM TXLTDP ERHLTH ERHLT2 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info 45 Business Expenses Non Taxable ooooccccccnocccc
33. FW but no FW tax withheld Not taxable for state or locals except KY locals Do not use unless for this reason DEFCM5 7Q DEFCOMP 01 Deferred compensation taxable for FW and State withholding not taxable for FICA MED Taxable for SUI DIS not taxable for FUTA DEFCM7 7R DEFCOMP 01 03 amp 05 Fully taxable deferred compensation however NO FW is deducted DEFCM8 7S DEFCOMP 01 03 amp 05 Deferred compensation fully taxable except for PA state and PA Locals 457FDS 7T 457F DISTRIBUTION 01 03 amp 05 Fully taxable distribution of a 457F 409A 7U 409A NON QUALIFIED INCOME 01 16 amp 12 Code Z Taxable for State and FUTA not FICA or MED 33 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description DEFCM9 7V DEFCOMP FW MC STATE TAXES 01 05 BOX 11 Deferred compensation taxable for FW MED and STATE and Local withholding Taxable for FUTA and SUI Earned in year when employee reached the FICA limit 409ANF 7W DEF COMP FW MC STATE TAXES DEFCMF 7X DEF COMP NOT TAXABLE FOR FW DEFCMS 7Y DEF COMP NT FICA MED DEFC10 7Z DEF COMP FED ONLY BOX 01 11 MEALTX 80 Lodging Allowance 01 03 05 amp 14 Taxable Lodging Allowance paid by the employer when OTHER THAN 1 On the employer s business premises 2 For the employer s convenience and 3 In kind Cash may not be paid USED FOR NON ACCOUNTABLE MEAL LODGING PLANS Code 69 is for the MEALS portion of non accountabl
34. H4 8Y DO NOT USE S Corporation Sole Ownet 00 51 NOCITY BZ DO NOTUSE ur rte sn Geert 51 NOTAX 98 DO NOT USE avaro daria 51 CLRERR IO JEE TUE NADA 51 6 Earnings amp Deduction Accumulators W 2 Print Info PRIGR3 G3 DO NOT Egeter eebe 51 INSFM GE DO NOT USE zei aieeaii a aaa 51 INMAI GM DO NOT US E steinete datiden 52 ACAFST HF DO NOT USE Health Care Taxable ineccineeeeeneeennnn 52 RABPHS PG DO NOT USE Rabi Parsonage HousiNQ cccccnnnccccccccccn 52 PS58 R9 DONOT USE anadir 52 1099P1 RA DO NOT USE TS 52 1099P2 AB DO NOT USE e ES 52 1099P3 RE DONOT USE ts 52 1099P5 RE IO NOT WISE lt a dedic 52 1099P6 RAPIDO NOT USB aimara iaa aaa 52 1099P7 RG DO NOT USE constan ia 52 1099P8 RH DO NOTO SS Escarola arado 52 1099P9 RIDONO TUE 52 FL1099 RJ DO NOT USE Florida 1099 Workers Comp 52 1099 N RK DO NOT USE Non Taxable Compensation 0 52 TRS Ti DO NOT USE ut ia 53 TRS T2 DOUNOT WISE aii 53 TRS TS DO NOT USE nadaa ais 53 TRS T4 DO NOT USE Lerret vaca ah 53 WCDM W1 BO NO USE aa 53 WCOFF W2 DONOTUSE 53 DEDUCTIONS CODES sunne eee cds 54 HEALTH 14 Health Post E aaa 54 HEALTH 15 Medea Post Maa 54 HEALTH 16 Insurance Post TICA E a 54 HEALTH 19 Dental POST Tacones 54 UNFORM 25 Uniform Deducti0N ooccccnnccncnnccccnnacinnnacinonacinonacinonacinanacinns 54 TOOLS 26 TOS AA AAA iia 54 IRADED EA POST en 54 ATSAVE 28 Pension Post E EE 55 IRACUD 2A IRA CATCH UP DEDUCTION ceecee 55 A
35. LIENA 2B ALIENS woo eeec cece ccceeceeceeccccecseeeeeeeeeceeeeseseeeeeeeeeeeeeeeeeesenaaaesess 55 TOOLCX 2G TOO Langgata a a dubs Giahcuda dude GS Gre 55 CTRP 2D CONN ALT RETIREMENT PLAN 55 CTRT 2E CONN ALT RETIREMENT PLAN St 55 COCTRT 2F CO MATCH FOR CT RETIREMENT BLANN 55 401AIC 2G A01AICMADLAN 55 401A 2H 401A RETIREMENT BLANN 55 RTIRCU 21 ROTHIBACATCHUR 56 PSERS 2d EEN 56 LEGAL 2K LEGAL Fee Reducido 56 TOOLNT 2L TOOLS NO TAX NE 56 PTXIRA SOR te 56 401K 31 401 k Salary Reduction Plan 56 401K 32 401 k Salary Reduction Plan 56 7 Revision 10 1 2015 401K CO401K 401K PENSN2 SEPP SEPIRA SARSEP SIMP SIMPLE SIMPLE COSIMP COSIM2 COSMPK PERSI PERSI SMPIRA SMPIRA EX401K PERI MSA COMSA COHSA HSA 401A 401ASR SEPMA ILMSA CO403B 403B WIHSA 401AKL 401AKF CAFE1 CAFE2 CAFE3 CAFE4 CAFE5 CAFE6 CAFE1 CAFE7 CAFE9 HSACAF COSRSP SRSP CO457 RABTRS Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info 33 401 k Salary Reduction Plan 56 34 Company Match for 401 k 0ooooocccccccccccccccccococcnonoconananananonons 57 35 401 k Eligible Wages soosssnneneeeeeeeeenrnnnnneneseerrrnnnnnesee 57 36 Company Pension Contributions sssssseeeeeeeeseereeerrn ereen 57 37 SARSEP 40EKO ed 57 38 Simple Employee Pension Plan 57 39 SARSEP 408 k 6 vannene 57 3A Simple Eligible Wages 57 3B Simple 40111 AA 58 3C Simple A O eh aa a Re ek ee 58 3D Company Match Simp
36. ME STATE NO TAX 01 03 amp 05 Halftime Hours and Dollars This Code was setup for a specific licensee s application This earnings code is taxable for Federal Social Security Medicare and FUTA It is non taxable for Wisconsin State and Wisconsin Unemployment STNOTX 2D DOUBLE TIME STATE NO TAX 01 03 amp 05 Double time Hours and Dollars This Code was setup for a specific licensee s application This earnings code is taxable for Federal Social Security Medicare and FUTA It is non taxable for Wisconsin State and Wisconsin Unemployment Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description MFA 2E MFA SALARY 01 03 amp 05 BOX 14 Special Earnings Code This Code was setup for a specific licensee s application This earnings code is taxable for Federal Social Security Medicare FUTA and SUI This was set up to report in Box 14 ZONE 2F Zone Pay 018 14 Special Earnings Code for union contracts of Zone Pay Included in Federal and State taxable wages however No Tax Withheld Not taxable for FUTA and SUI COMMI2 2G COMMISSION for INSURANCE AGENTS 01 03 amp 05 Special Earnings code for Commission pay that is fully taxable for FW FICA Med and State Taxable for FUTA not taxable for SUTA except for CA IA NV amp WY NOTAX 35 Mileage Non Taxable Reimbursement This mileage reimbursement is setup to use the federal mileage rate Itis not taxable and not
37. Please refer to the specific state setup found on the Customer Support Website Support Knowledge Base Category of States 77 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description ORWCWG OX Oregon Workers Compensation Oregon workers compensation code Please refer to the Oregon State setup Please refer to the specific state setup found on the Customer Support Website Support Knowledge Base Category of States ORWBFH OY Oregon WGF Hours COPERA P2 Match Pera Benefit Company Match PERA Benefit ARSR PD ARIZONA STATE RETIREMENT PERA PE PUBLIC EMP RETIRMENT ASSOCIATION Public Employee s Retirement Association KSPERA PF KPERS 03 05 16 and Box14 of the W 2 Kansas Public Employees Retirement fund Not taxable for FWT COKPER PG COKPERA Employer contribution to the Kansas Public Retirement fun MESEAS SW Maine Seasonal Wages Maine Seasonal Wages MENSEA SY Maine Non Seasonal Maine Non Seasonal Wages SSXSNP SZ Company Same Sex Premium Same Sex cost of insurance premium This code is to be used when the state does not follow the Federal definition and does not allow the premium to be offer on a pre tax basis RRHR_1 T6 Railroad Payrolls Railroad payrolls other deductions tax may be used are Codes T2 T4 and T5 Please call Payroll Associates for additional information RRHR 2 T7 Railroad Payrolls Railroad payrolls other deductions tax may
38. Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info Earnings and Deduction Accumulators W 2 Print Info EARNINGS AND DEDUCTIONS IN PAYCHOICE rrnnnrnnnrnnnnnrnnrrnnnnrrnnrnnnnnrnnnnnn 13 SETTING UP EARNINGS OR DEDUCTIONS IN PAYCHOICE rrnrrrnnnnrnnnrnnnnr 14 REFERENCES iaa taaan 14 ENPN E 15 BASE1 Federal Taxable Wages ooooooooocccccnnccccnncnncononccnncnnncnnnnnannnnnnos 15 BASE2 FUTA Taxable Ee rause nakne 15 GROSS Fully Taxable and Reportable EMP Wages osssssnneeeeeeen 15 BONUS3 1A Bonus Taxable Wages 0 15 BONUS2 1B Bonus Taxable Wages ci ciones 15 BONUS5 1C Bonus Taxable Wages cesa aio eder 15 CAVATR 1E CA Termination Vacation Pay EE 16 BONUS3 1F Bonus Taxable Wages 16 STUEXP 1G Student Wages EE 16 NCTPAY 1H Nontaxable Combat Pay AEN 16 UNSUB 1J Supplemental Unemployment Benefits cee 16 STRIKE HS Strike Benefits 2 esgeteesuege rerge drgeEEr e teeb eege Edge Ee 16 COMPR 1L Commissions for Puerto RICO rrrrnnnnnnnnnnnnnnnrrrnnnnnnnnnrnnnnnnnn 16 ALLOW 1M Allowances for Puerto Rico rrrrrrnnnnnnnnnrnnnnrrrrnnnnnnnnrrrnnnnnnn 16 TIPSPR 1N Tips Reported for Puerto Hien 16 PRDTPS IP Declared Tips for Puerto Rico EE 17 GPARCH 1Q EE GOLDEN PARACHUTE PAYMENT oooonnccccccnnnnnccnccnnn 17 BONUSF 1R Bonus No Federal Tax Deducted ns nneneeeeeeeeeneeeeeenn 17 NOTAX 24 Absent No Tax Earnings Code cccccccccnnccccoccccncccconnnananananons 17 STNOTX 2A R
39. SE Non Taxable Compensation 52 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description TRS T1 DO NOT USE 14 Teachers Retirement System Eligible Wages Same as Earnings Code 5Y TRS T2 DO NOT USE 14 Teachers Retirement System Eligible Wages Same as Earnings Code 5Y TRS T3 DO NOT USE 14 Teachers Retirement System Eligible Wages Same as Earnings Code 5Y TRS T4 DO NOT USE 14 Teachers Retirement System Eligible Wages Same as Earnings Code 5Y WCDM Wi DO NOT USE Deemed Wages WCOFF W2 DO NOT USE Exempt Wages 53 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description DEDUCTIONS CODES There are many deductions codes setup without Base Accumulators and can be used for In Net Memo Deductions and Calculations Storage The only deductions listed are ones with Base Accumulators For a list of Deductions please refer to the Master Deduction Code Table found in Service Bureau Maintenance Options pull Down Menu HEALTH 14 Health Post Tax Gg Tax Medical Deduction that prints in W 2 Box 14 for information only HEALTH 15 Medical Post Tax Ge Tax Medical Deduction that prints in W 2 Box 14 for information only HEALTH 16 Insurance Post Tax DE Tax Medical Deduction that prints in W 2 Box 14 for information only HEALTH 19 Dental Post Tax Go Tax Medical Deduction that prints in W 2 Box 14 for inform
40. Taxable for FUTA and SUI only 3PSPAY 3P DO NOT USE 3PSNTX 3Q DO NOT USE 3PSPAY 3R DO NOT USE 3PSNTX 3S DO NOT USE MILENT 3X DO NOT USE Non Taxable Milage SARSEP 48 DO NOT USE 03 05 amp 12 Code F 13 Retirement Plan Salary Reduction SEP 408 k 6 NOTE The use of this code as an earnings code was set up for a specific licensee s application Contact Payroll Associates before using it in any current company applications Please refer to the Deductions Section Code 39 SARSEP if a SARSEP code is needed 408 k 6 Salary Simplified Employee Pension Deferred Compensation usually handled as deduction before FWT and SWT Must be entered as a negative earnings amount No new SARSEP plans were set up after 12 31 96 However existing plans can continue to accept contributions as well as new enrollees TRTYEX 4A DO NOT USE Treaty Exempt Wages Setup for a specific client A Foreign Citizen where the first 5 000 of wages are exempt from Federal while being subject to FUTA SUTA and WI Income Tax All wages exempt from FICA Interpretation of US Tax Treaty with Russia AUTO 4 4W DO NOT USE 01 03 05 8 14 This code is taxable for FED State and FICA Medicare not taxable for PA Locals except for Philadelphia and Pittsburgh MOVE 2 58 DO NOT USE 14 There should be no 2001 2002 and 2003 activity under this accumulator Any monies appearing under this accumulator should be reviewed then redistributed to either EXMOVE or MOVE 1
41. UST be posted along with a live check amount so that there are monies available to deduct the taxes for special earnings amounts If the memo special earnings amounts are entered as an adjustment on the data entry F7 screen PayChoice will self adjust the Social Security and Medicare taxes on the next live check REFERENCES References are also made to specific IRS publications available by calling the IRS at 1 800 929 3676 or at WWW IRS GOV Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description EARNINGS BASE1 l Federal Taxable Wages 01 03 8 05 The collection of accumulators which define Base 1 comprising both Earnings and Deductions plus and or minus They accumulate a basic definition for Federal Taxable wage withholding that in turn is used as the starting point for deriving all State and Local Income taxable wages Box 1 of Form W 2 includes additional accumulators See W 2 Report Layout in Service Bureau Maintenance Reports pull down menu BASE1 is also the foundation for building FICA Box 3 and FIMC Box 5 taxable wages BASE2 FUTA Taxable Wages The collection of accumulators which define Base 2 comprising both Earnings and deductions plus and minus They accumulate a basic definition for Federal Unemployment taxable wage which in turn is used as the starting point for deriving all State Unemployment wage bases GROSS Se Fully Taxable and
42. V ROTH 401 K EE 66 4W ROTH 401 k Catch Up la 66 4X ROTH 401 k Catech UP ccccccnnnncocococonononccononanonanononnnnncnnnnnnnos 66 4Y SINGLE k Salary Reduction Plan 66 4Z SINGLE k Catch Up Contributions rrrrrrrrrrrrrrrrrrrnnnnnnn 66 50 SECON AOS Dante 67 51 Section 457 b EE Contributions ennnennnnnnnnnnneneeennn 67 52 Section 408 k p a 67 53 501 c Non Profit A O 68 54 Distributions from a Non Qualified Plan 68 55 414 h Contributions eegen ek aii 68 56 Tax Sheltered AU eegen 68 De Clergy HON cestas 68 58 Housing Allowance strict 69 59 Non Taxable Deduction rrvvrrrrrrrrrrrrvrrrrrrrrrrrrrnrrrrrsrssnnnn 69 5A Retirement Health SavindS ccccccceceeeeeeeeeeeeeeeeeeeeeeeeeeees 69 5B Retirement Health Savings Ae 69 5C Co Retirement Health Savings AEN 69 5D NON TX TRANS PASS PHILADELPHIA eee 69 DE Health Savings Catch Up bb 69 DE Company Match AB A 69 5G State Pension Plan 414 d ennnnnnnnnnnnnvvnnnnnnnnnnnnnnnnnnnnnnne 69 5H 501 C 18 D PENSJON Gy eEen 69 AMROTH Rubus A IA 69 5J HSA CATCH UP FOR A CAFE BLANN 69 5Q NON QUAL ELECTWNEDEFERED 69 5R Deferred Comp UIMIT 69 5S 415 Deferred Comp 69 5T 401 k for Puerto EE Ge EE 69 5V 403 b ROTH D dudtibnuasuparnpnn ege 70 DW 401A CLERGY PENSION rrrrrrrrrrrnrrannnnrvvrvnrrrrrnnrnnnnnnvnvnnen 70 5X 403 b ROTH Catch Uria 70 9 NQDFNT COSEP MILAGE HRA 457RTH DPPTPM COHLTH 401KLN 414HLN CLRCAF
43. W2 New Mexico Workers Compensation rrnnnnnnnnnnnnnnnnnnnnnn 79 W3 New Mexico Workers Compensaton 79 W4 New Mexico Workers Compensaton 79 W5 Workers Compensation rrrrnnnnnnnnnnnnnnnrrrrrrnrnnnnnnnnnnnnnnen 79 W6 Nevada Workers Compensation ccceceeeeeeeeeeeeeeeees 79 W7 Washington Workers Compensation rnnrrrrrnnnnnnnnrnnnnnnnr 79 W8 Washington Workers Compensation rrnnnnnnnnnnnnnnnnnnnnnnnn 79 W9 Nevada Workers Compensation ccccceeceeeeeeeeeeeeees 79 WE Workers Compensation Excluded Dollars 79 WJ Workers Compensation AAR 79 WK Workers Compensaton nnn nnnreennn nna 79 WO Workers Compensation cccceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeees 79 11 Earnings amp Deduction Accumulators W 2 Print Info STUB A o O ds 79 SICBAL O eebe eebe 79 VAGBAL P SID PA EE 80 PERBAL Pay Stub Plana ias 80 CHARTY Wi BOK AAA e AN At ih 80 FICA Count FICA Hire COUMt cccconccccnncncnnccccnnacinonaccnnnacnnnnacononanononacinonaninns 80 Internal Use Internal Use cri 80 Do Not Use Deduction CGodes ccccccooccccncccconccnnccnononnnnononnnnnnononnnnnnonannnnnnonanenannnnos 81 COIRA 29 WOUN OTS anses eo ek bad 81 ADCCAF 2M DO NOT USE Adoption as part of Cafe 81 BOMPRE 2N DONOT USE curia raro als 81 QTRD SU DO NOFUS EE EN HWOWNR 4F DONOTUGE 81 CAFTRS 24 DONOT USE rens senr A brae 81 FRINGC 5K DO NOT USE huse 81 403
44. alifornia state wages EDUCA3 3V California Graduate Tuition14 California Graduate Tuition in excess of 5 250 00 is considered taxable for FUTA SUTA and CA and DI wages MILETX 3W Mileage Taxable Reimbursement 01 03 8 05 This mileage reimbursement is for any amount reimbursed over the federal limit and is fully taxable See Earnings Code 35 for Non Taxable Mileage Reimbursement Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description NOTAX 44 Draw Non Taxable This NOTAX base accumulator can be used for non taxable draw payments NOTAX 45 Business Expenses Non Taxable This NOTAX base accumulator can be used of non taxable business expense reimbursements CELLPH 4B Taxable Fringe 01 03 05 amp 14 Fully Taxable Fringe Benefits all taxes are withheld when entered in PayChoice Not taxable for Pennsylvania State and Locals LAPTOP 4C Taxable Fringe 01 03 05 amp 14 Fully Taxable Fringe Benefits all taxes are withheld when entered in PayChoice Not taxable for Pennsylvania State and some localities COSHSA 4D COSHSA FOR 2 SHAREHOLDER 01 Box 12 code W2 FRINGT 4E FRINGE 01 03 05 amp 14 Fully Taxable Fringe Benefits all taxes are withheld when entered in Paychoice Not taxable for Pennsylvania State and PA locals MEDINS 4F MEDICAL INSURANCE 01 amp 05 No state Medical Insurance taxable for FW Med only No state tax withheld HRAREM 4G
45. alth Savings Account Cafeteria Plan contributions by the employer taxable for WI W H amp PA W H and PA Locals COSRSP 4A SARSEP ER Contributions 13 Retirement Plan Employer contributions to an employee SARSEP Retirement Plan No new SARSEPs were established after 12 31 96 However existing SARSEPs can continue to accept new enrollees as well as current year contributions SRSP 4B SARSEP Eligible Wages Accumulates SARSEP Eligible Wage computation calculated as a memo deduction taking 100 of Gross Pay minus those earnings types not eligible C0457 4C Non Qualified Plan ER Contributions 12 Code G Employer Contributions to an Employee Non Qualified Retirement Plan If an employee has a contribution and a company matching contribution the company match portion will print on a second W 2 63 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description RABTRS 4D Rabbi Trust Pension Plan 03 05 amp 11 Rabbi Trust Pension Plan will be reported as a Non Qualified Plan Employee deferrals which are non forfeitable to a Rabbi Trust are to be excluded from Box 1 and included in Boxes 3 and 5 of W 2 Box 11 is to include a reference to a non qualified Rabbi Trust Employer contributions are not reportable on the W 2 For reference contributions by an employer to a non qualified plan are not deductible on the business income tax return of the employer Revenue Procedure 92 64
46. and Medicare wages only Not reported as taxable for Federal or State FRING6 entries must be submitted with other paid wages to allow for tax deductions or must be submitted as an adjustment to allow Social Security Medicare to automatically catch up on current or next live payroll check voucher Functions the same as Code 54 FRING3 MHB 5M MEDICAL HEALTH BENEFIT Medical Health benefit Taxable for Federal Guam and the Virgin Islands FRING7 5N FRINGE BENEFITS 01 03 8 05 Special Fringe earnings code that is not taxable for state of locals MEDTAX 50 Medical 125 Premium 03 Medical premium not taxable for FICA INSPR2 5P GTL Insurance Premiums 01 03 05 amp 12 Code C Taxable Group Term Life Insurance Premiums Same as Earnings Code 59 This earnings code is Federal Taxable AND WITHHOLDS Federal Tax Please see Earnings Code 59 if federal tax should not be withheld still taxable EXM3RD BO 3rd Party Payment of Moving Expenses 3RD party payment of qualified moving expenses to be reported on the 940 Annual Returns FRING1 5S Fringe Benefits 01 03 05 amp 14 Used for fully taxable fringe benefits Same as Earnings Code 51 TRNPAS 5T TRANSIT PASS FRINGE Taxable for Pennsylvania State and Localities and Newark New Jersey 26 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description MDREIM 5U MEDICAL REIM 01 Set up for a specific client Taxable Medical Rei
47. ation only UNFORM 25 Uniform Deduction ae Tax Uniform Deduction that prints in W 2 Box 14 for information only TOOLS 26 Tools Ge Tax Tool Deduction that prints in W 2 Box 14 for information only IRADED 27 IRA Post Tax NO Post Tax employee IRA contributions 54 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description ATSAVE 28 Pension Post Tax After tax employee contributions to a savings investment plan typically coupled with a 401 k plan As this accumulator is presently configured it is simply a deduction There are no dollar limits in place In addition there is no tax or reporting implications as presently configured CAUTION Before using this accumulator be sure you understand the contribution limits of the employer s plan as spelled out in the plan prospectus or other documentation IF the plan contains dollar limits on this after tax contribution due to it s affiliation with a 401 k or other tax deferred program please contact Payroll Associates before using this accumulator ATSAVE Code 28 is based on a percentage application A comparable deduction accumulator EX401K Code 3K functions as a dollar amount application IRACUD 2A IRA CATCH UP DEDUCTION ALIENA 2B ALIENS 01 The added amount for calculating income tax withholding on nonresident aliens Set up instructions under documentation TOOLCX 2C ToolChex W 2 BOX14 Pretax deduction not taxable
48. ations Guide For Reporting Agent Authorization and Federal Tax Depositors Pub 1779 Independent Contractor or Employee Brochure The IRS publications listed above can be obtained by download from www rs gov 85 Revision 10 1 2015
49. axable company paid Same Sex insurance premium This code is to be used when the state does not follow the Federal definition and considers the amount a taxable fringe benefit This must be paid with regular wages VOCREH VR Vocational Rehabilitation To be used for employees participating in a workshop where the earnings are subject to federal and state withholding but not subject to FUTA and SUTA 47 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description NOTAX VX VERMONT WORK HOURS 1099 Z1 Independent Contractors 1099 MISC Box 7 Same as Earnings Code 95 NOTAX ae Non Taxable Payments Non Taxable Payments not otherwise classified to Employees or Independent Contractors Examples include expense reimbursements in an accountable plan per diem expense reimbursements not in excess of government specified rates etc Also includes Non Taxable Fringe Benefits paid to employees consisting of the following 1 No Additional Cost Services 2 Qualified Employee Discounts 3 Working Condition Fringes 4 De Minims Fringe Benefits Includes PayChoice Earnings Codes 24 35 44 45 53 64 65 6C 61 84 98 and L1 thru L9 48 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description Do Not Use Earnings Codes CTAWBP 1D DO NOT USE Court Awarded Back Pay This Code was setup for a specific licensee s application
50. be used are Codes T2 T4 and T5 Please call Payroll Associates for additional information SSTIPX TP Alien Tips Exc From FICA Deduction used to exclude credit tips when FICA Med is turned off Only use if this is the situation 78 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description VTHRSW VX VT Hours for Health Deduction used to report hours for the Vermont Health Care NMWC W1 New Mexico Workers Compensation NMWC W2 New Mexico Workers Compensation NMWC W3 New Mexico Workers Compensation NMWC W4 New Mexico Workers Compensation WCOFF W5 Workers Compensation NVWC W6 Nevada Workers Compensation WAWCWG W7 Washington Workers Compensation Please refer to the specific state setup found on the Customer Support Website Support Knowledge Base Category of States WAWCWG W Washington Workers Compensation Please refer to the specific state setup found on the Customer Support Website Support Knowledge Base Category of States NVWC Wa Nevada Workers Compensation WRKEXP WE Workers Compensation Excluded Dollars This code can be used in conjunction with Deduction Code WC WCOFF WJ Workers Compensation Ohio Exempt WC Wages WCOFF WK Workers Compensation Construction Exempt WC Dollars WCOFF WO Workers Compensation WC Officer Wages STUB Pay Stub Print No taxable or W 2 implications STUB forces deduction to print YT
51. butions included in Box 2a as specified in TRA 1986 Section 1122 h 3 1099R5 R5 EE Contribution or INS Premiums 1099 R Box 5 Employee Contributions or Insurance Premiums Appropriate employee contributions to a profit sharing or retirement plan or insurance premiums Generally the amount recovered tax free during the year based on the method chosen to determine the taxable amount in Box 2a Your client should provide this value See Revenue Procedure 92 86 and 1992 42 IRB 37 45 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description 1099R6 R6 Net Unrealized Appreciation 1099 R Box 6 Net Unrealized Appreciation NUA in Employer s Securities For reporting NUA in a distribution Enter all NUA in securities if a lump sum distribution If not a lump sum distribution report only NUA in employer securities attributable to employee contributions See IRS Regs 1 402 a 1 b and Notice 89 25 Include NUA in Box 1 but not in Box 2a 1099R8 R8 Annuity Contract 1099 R Box 8 Enter the current actuarial value of an annuity contract that is part of a lump sum distribution Do not include this item in Boxes 1 or 2a If an annuity contract is part of a multiple recipient lump sum distribution also enter in Box 8 the percentage of the total contract for each 1099 R recipient STUB S1 Prints on Pay Stub No taxable or W 2 implications STUB forces deductions to print YTD on check
52. butions to 403 b Salary Reduction Plans for Private Schools 403B 3W 403 b Wage Accumulator 403 b wage accumulator for 403 b Salary Reduction Plans for Private Schools WIHSA 3X WI Contribution to HSA 12 Code W Employee Health savings account taxable for WIUC and W H 61 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description 401AKL 3Y 401A KRS Taxable for Louisville 03 05 amp 12 Code D 401k that is taxable in Louisville KY 401 AKF 3Z 401A KRS PUR SER CR TX Louisville 03 05 amp 12 Code D 401k that is taxable in Louisville KY CAFE1 40 Medical Section 125 Pre tax deduction for MED 125 plans or other employer Cafeteria plans Reduces taxable wages for all taxes with the exception of some state unemployment wage bases NOTE Illinois clients should only use Code 40 and 46 CAFE1 for their medical portion on section 125 dental and flex spending use CAFES 4or5or6 PA clients should use these accumulators for Premium Only Plans POP that are exempt from taxation by the State of PA PA locals do not allow this same exclusion and tax CAFE2 41 Medical Section 125 Same as CAFE1 3 4 5 amp 6 except taxable for some states as income and or unemployment CAFE3 42 Medical Section 125 Same as CAFE1 Deduction Code 40 and 46 however with the exception of some state Please see Deduction Code 40 and 46 CAFE4 43 Medical Section 125 Same as CAFE1 De
53. ccccccccccccnnnnnns 20 AB Taxable Fringe utili 20 4C Taxable Fringe EE 20 4D COSHSA FOR 2 SHAREHOLDER sssssssnseseeenneeeeenneeeee 20 TE FERGIE lena ca 20 AE MEDICAL INGUDANCE 20 4G HRA DISTRIBUTION N Toca 20 4H HEART ACT VOL EIREFEIGHTERG 20 40 PERSONAL USE OF GAR oia od 20 4R Federal State Taxable Auto Allowance 20 4T AUTO ALLOWANCE NON TAXABLE ssssineseeeneeeeeerneeeee 20 4U Federal State Fica Taxable Auto Allowance 21 AN Reportable Auto Allowance for Clem 21 4X Federal Taxable Sick Pay for CA andNV cece 21 4Y Short Term Disability e e da 21 AZ ESICGKPA annie 21 51 Fully Taxable Fringe Benefits rrrnnnnrrrrnnnnnnnnornnnnnrrnnnnnn 21 52 Fully Taxable Fringe Benefits ooocoonninccccccccnnnccccnnccanancnoos 22 53 FRINGNT Non taxable Fringe sesssssseenneeesssessrrrnnnneeses 22 54 Fringes FIGAME TAXABLE soso 22 55 Taxable Auto Allowance AAA 22 56 Non Taxable Company Provided Vehicles 22 57 Taxable ER Paid Moving Evpenses 23 59 Group Term Life Insurance Premiums nnnnnnnnnnnneneneenn 23 5A Non cash Fringe Beneits 23 5B Qualified Moving Expenses oooooccccccccccnononononcncncncnonananananonons 24 5C Stipend PA MEN uc sao 24 5D Deceased Wages diiniita 24 5E Split Dollar Life Insurance ooooccccccccccccnccooconccononcnonanananananons 24 BE Directors FeS sau oo 24 5G Domestic EMPploye smarunsmsmmmmannnjiiannnid id 25 5H Beneficiary or Estate Eammngs nn 25 5I Post
54. cccccnnnccccinanananaccnoninon 75 EV USERRA Military Catch Up 2001 76 EW USERRA Military Catch Up 2007 76 EX USERRA Military Catch Up 2007 76 EY USERRA Military Catch Up 2004 76 EZ USERRA Military Catch Up 2005 76 F1 USERRA Military Catch Up 2006 77 F2 Match FPPA Berre ira 77 F3 MILITARY CATCH UP 2004 een 77 F4 MILITARY CATCH UP 2008 77 FS MILITARY CATCH UP 2009 concoionsiiocio till 77 F7 FICA Credit Wages 2010 77 FG FIGA T x Cr dit on TIPS aii AAA 77 FD Fire amp Police Disability Deduction rrrrnnnnnnnnnnnrrrrrnnnnnnnnnnn 77 FP Fire amp Police Pension BE 77 OC Wages Paid to Non Residents cceeeeeeeeeeeeeeeeeees 77 OP Occupational Privilege Tax 77 OW Oregon Workers Compensation rrnnrnvnnnnnnnnnnnnnnnnrrnnnnnn 77 OX Oregon Workers Compensation annnnrnvnnnnnnnnnnnnnnnnnrnnnnnn 78 OY Oregon VV GPR OUIG ooh ie dad dd 78 P2 Match Pera Benefit ccccccccccceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeees 78 PD ARIZONA STATE RE IREMENT oinoaoaonaannnneneeeeeneneeen 78 PE PUBLIC EMP RETIRMENT ASSOCIATION 78 PE EE 78 PESTO PERA ae dle 78 SW Maine Seasonal Wages EE 78 SY Maine Non SeaSonal viii 78 SZ Company Same Sex Premium 78 T6 Railroad Payrolls AA ae ele al ce ae 78 TZ Railroad PayrollS usina das 78 TP Alien Tips xc From FICA cenas 78 VX VT Hours for Health rrrrrrrnrnnrvrrnrrrrrrrrrrrrrrrrrrrssrrrrsrrssnnnnn 79 W1 New Mexico Workers Compensaton 79
55. ch up contributions to be made by anyone reaching age 50 before the end of the calendar year For setup instructions please go to the Customer Support Website Support and Knowledge Base select the Deduction Category and select Catch Up Contributions for Pension Plans 74 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description SMPICU EN SIMPLE IRA CATCH UP CONTRIBUTION 03 amp 05 12 Code S 13 Retirement Plan The Economic Growth and Tax Relief Act of 2001 EGTRA allows individuals age 50 and older to make catch up contributions to various tax favored retirement plans beginning January 1 2002 This act allows catch up contributions to be made by anyone reaching age 50 before the end of the calendar year For setup instructions please go to the Customer Support Website Support and Knowledge Base select the Deduction Category and select Catch Up Contributions for Pension Plans SMPKCU EP SIMPLE 401 k Catch Up Contributions 03 amp 05 12 Code D 13 Retirement Plan The Economic Growth and Tax Relief Act of 2001 EGTRA allows individuals age 50 and older to make catch up contributions to various tax favored retirement plans beginning January 1 2002 This act allows catch up contributions to be made by anyone reaching age 50 before the end of the calendar year For setup instructions please go to the Customer Support Website Support and Knowledge Base
56. count ER Portion rvrrrrrrrrrrrrrrrrnrrnrnnnnn 63 4A SARSEP ER Contributions ssssssssvvnvnnnnnnnnnnnnnnnnnnnnnnnnnnn 63 4B SARSEP Eligible Wages EEN 63 4C Non Qualified Plan ER Contributions rnrrrrrrrrernnnnrrrnnnnnnr 63 4D Rabbi Trust Pension Plan 64 8 NQEEDF NJTB39 SEC529 SEC132 SC132M CAFAFL CAFNWT HSACEE DPPREM 409ANQ 1099DF COPERS COROTH PTXRTH PTXRTH RTHKCU RTHKCU SNGLEK SNGLCU 403B 457 408K6 501C 457NQ 414H TSA HOUSNG HOUSE MEALNT RHS RHSEE CORHS SCP132 HSACU CO457F 414D 501CUN RTHIRA HSAC55 NQEDFN 415C 415C 401KPR 403RTH 401ACL 403RCU Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info AE Non Qualified EE Elective Deferral rrnnnrrrrnnnnnnnnrrnnnnnnnr 64 4G Cafeteria Plan Deductible for Nl 64 Al Section 529 Contributions sssseeseeeeseeesenrnrreeeseerrnrrnrnneeee 64 4J Section 132 Transit PASS cuidao 64 4K Section 132 Transit bass AAA 65 4L Medical Section 128 65 4M Medical Section Tila 65 AN Health Savings Account EE portiON cccccnnnncccccccnccccccnnnannns 65 4P Domestic Partner Medical Prem rrrrrnnrrrrrrrrrrvrrrnrnrnnnnnnn 65 4Q 409 a Non Qualified Deferral Compensation 65 4R Section 409 a Deferrals oooonnnncccccccnnnncccnnnccnaccnccconnncnnnnnnnns 65 45 Company PERSI Retirement Match 65 4T Company Match Roth401 k Pension Plan 66 4U ROTH 401 a Plan FELG Laste 66 4
57. ctive deferrals to a tax exempt organization plan funded only by employees Tax exempt organization refers to a specific list of types of Deferred Comp Pension organizations enumerated in the IRC Certain unions also offered these plans to their members with plans often established prior to 1959 This item is subtracted from Gross in deriving Base 1 but is added back into W 2 Box 1 for reporting purposes only For information purposes be aware that this satisfies the Federal W 2 instructions as published which include a clarifying comment indicating that the taxpayer will subsequently deduct this amount in arriving at Adjusted Gross Income AGI on their individual income tax return This accumulator should be sequenced in PayChoice Above Federal Withholding code FW 457NQ 54 Distributions from a Non Qualified Plan 01811 DISTRIBUTIONS from non qualified plan or section 457 plans Although the distribution amount is an earning for the employee in PayChoice entering the amount in Data Entry Using the F7 adjustment screen must enter the amount as Deduction Code 54 Be sure to enter the distribution as a POSITIVE amount in the F7 screen NOTE If this in the ONLY entry for an employee and Federal Withholding Tax is entered the FWT will NOT flow through to the 1st page of the 941 returns However it will appear on the 941 Schedule B To avoid this situation enter 01cent in a valid earnings code and offset with 01 cent in a Misc Deduc
58. curity or Medicare State withholding for IL only Setup for a specific client MED125 73 DO NOT USE This accumulator was established for a specific licensee s use Use the regular CAFE accumulators if this accumulator was not established for your use Salary reduction amount due to a Cafeteria Plan or MED 125 Plan Usually handled as a pre tax deduction in PayChoice May be handled as a negative earnings amount Also for Cafeteria Plans treated as Deductions see Deductions Codes 40 through 47 Note that Deductions Code 42 has very narrow application MHEAT 8M DO NOT USE Miami Heat Special Earnings 50 Revision 10 1 2015 BASE ACCUM W 2 BOX Code NOCITY 8N Out of City overtime CANERN 8P Canada SS amp MED Wages MHB 8Q 01 Monthly Health Benefit FW 409AFQ 8R 409AFT 85 DEFCOM 8T CIVIUN 8U NO CITY 8X No City Overtime SUBSH4 8Y 018 14 Earnings amp Deduction Accumulators W 2 Print Info Description DO NOT USE DO NOT USE DO NOT USE DO NOT USE 409A Non Qualified Plan DO NOT USE 409A Fully Taxable DO NOT USE 457 DefComp No FICA MED DO NOT USE Civil Union DO NOT USE DO NOT USE S Corporation Sole Owner S Corporation Accident and Health Insurance premiums paid by the corporation for owners with at least 2 ownership in an S Corp where an employee non discriminatory medical plan is offered Federal and State Taxable wages are reported but the tax is not withheld all other taxes are
59. deductions for SIMPLE IRA plans beginning Same explanation 3B and 3C except these are for IRAs with 3I being up to 3 3J being any excess Always use a limit of 999 999 99 when setting Pension up this code The Annual PayChoice Year End release will automatically update any federal limits that have changed for the coming year For set up information please go to the Customer Support Website Support Knowledge Base Category of Deductions SMPIRA 3J Simple IRA 03 05 amp 12 Code S 13 Retirement Plan Same as Deduction Code 3l EX401K 3K Post Tax 401 k Contributions 14 After tax employee contributions to a savings investment plan typically coupled with a 401 k plan As this accumulator is presently configured it is simply a deduction There are no dollar limits in place In addition there is no tax or reporting implications as presently configured CAUTION Before using this accumulator be sure you understand the contribution limits of the employer s plan as spelled out in the plan prospectus or other documentation IF the plan contains dollar limits on this after tax contribution due to it s affiliation with a 401 k or other tax deferred program please contact Payroll Associates before using this accumulator EX401K Code 3K is based on a fixed dollar application A comparable deduction accumulator ATSAVE Code 28 functions as a percentage application NOTE Although this accumulator contains the letters EX
60. duction Code 40 and 46 however with the exception of some state Please see Deduction Code 40 and 46 CAFE5 44 Medical Section 125 Some states Same as CAFE1 Deduction Code 40 and 46 however with the exception of Please see Deduction Code 40 and 46 CAFE6 45 Medical Section 125 Same as CAFE1 Deduction Code 40 and 46 CAUTION New Jersey UC IS CONSIDERED TAXABLE IF THIS CODE IS USED always use Deduction Code 40 or 46 62 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description CAFE1 46 Medical Section 125 Pre tax deduction for MED 125 plans or other employer Cafeteria plans Reduces taxable wages for all taxes with the exception of some state unemployment wage bases NOTE Illinois clients should only use Code 40 and 46 CAFF1 for their medical portion on section 125 dental and flex spending use CAFES 40r50r6 PA clients should use these accumulators for Premium Only Plans POP that are exempt from taxation by the State of PA PA locals do not allow this same exclusion and tax CAFE7 47 Section 129 Dependent Care 10 That portion of a Cafeteria Plan pre tax deduction that is used for section 129 Dependent Care Assistance payments CAFE9 48 Section 129 Dependent Care 10 That portion of a Cafeteria Plan pre tax deduction that is used for section 129 Dependent Care Assistance payments PAID BY THE EMPLOYER HSACAF 49 Health Savings Account ER Portion 12 Code W He
61. e plans See IRS Pub 525 See comments for Code 69 NOCITY 81 Non Resident City Tax Wages paid to a non resident employee for working outside of the tax authority city Reduces local city taxable wages See Philadelphia and Kansas City wage definitions Also see Deductions Code OG NOTAX 84 User Defined May be used for memo earnings codes SUBSL2 85 S Corporation Sole Owner 01 03 05 amp 14 Same as Earnings Code 87 however NOT taxable for PA Locals SUBSLP 86 S Corporation 2 Owner 018 14 S Corporation Accident and Health Insurance premiums paid by the corporation for owners with at least 2 ownership in an S Corp Social Security Medicare and FUTA exempt Similar to Earnings Code 88 with variations to specific authorities however NOT taxable for PA Locals Taxable for WIUI as the 2 Owner who does not have a substantial interest are not eligible for exclusion 34 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description SUBSH2 87 S Corporation Health 2 Owner 01 03 05 amp 14 Same as Earnings Code 85 SUBSHP 88 S Corporation Sole Owner 01 amp 14 S Corporation Accident and Health Insurance premiums paid by the corporation for owners with at least 2 ownership in an S Corp where an employee non discriminatory medical plan is offered Social Security Medicare and FUTA exempt For New Jersey employers this accumulator relates to those S Corps t
62. ealth services NOTE In the case of a physician s corporation list the corporation as the recipient rather than the individual providing the services 1099M7 M7 Non Employee Compensation 1099 MISC Box 7 Amounts of 600 or more for fees commissions prizes and awards for services rendered or other forms of compensation for services rendered to a business by an individual who is not an employee These amounts are normally subject to self employment taxes Included in Workers Comp and or Ul wages in some states In regard to Payments to Attorneys this accumulator might be used in conjunction with 1099MA Code MA 1099M8 M8 Substitute Payments 1099 MISC Box 8 Payments in lieu of dividends or interest Generally in lieu of dividends where a broker received payments on behalf of a customer as a result of a transfer of a customer s securities for use in a short sale See IRS detailed instructions if you deal with these types of transactions 1099MA MA Attorney Payments 1099 MISC Box 7 or 14 Any payments made to attorneys must be reported in either Box 7 or Box 14 Fees in 600 or more are to be reported in Box 7 However if your client made payments in connection with legal services and the attorney s fee portion cannot be determined the TOTAL no 600 minimum amount of gross proceeds paid must be reported in Box 14 Your client should confirm their reporting requirements in conjunction with their accountant and or attorney
63. ed to calculate Gross Pay minus any other non eligible wage types For set up information please go to the Customer Support Website Support Knowledge Base Category of Deductions 57 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description SIMPLE 3B Simple 401 k 03 05 amp 12 Code D 13 Retirement Plan Simplified Pension Plan deductions for SIMPLE 401k plans beginning 3B is to be used for up to the first 3 of eligible wages which the employee wants withheld as his her contribution 3C is to be used for any percentage which exceeds 3 i e if the total is 5 3B would be 3 3C 2 Always use a limit of 999 999 99 when setting up this code The Annual PayChoice Year End release will automatically update any federal limits that have changed for the coming year For set up information please go to the Customer Support Website Support Knowledge Base Category of Deductions SIMPLE 3C Simple 401 k 03 05 amp 12 Code D 13 Retirement Plan Same as Deduction Code 3B COSIMP 3D Company Match Simple Pension Plan 13 Retirement Plan Employer matching portion of a SIMPLE IRA plan Employers can match 100 of the employee s first 3 deduction An alternative of not less than 1 can be used in any 2 out of 5 years with proper notification NOT to be used in conjunction with 3E For set up information please go to the Customer Support Web
64. eeeeeeeeaaees 29 6K Tri met Wages OH EE 29 6L Lane Wages OR EE 29 6M FICA TIP CREDIT WAGE CALC anat 29 6T Declared Tips FICA Exempt 29 lee ONT ET 30 OX LEE 30 6Z Paid Deferred Comp Non Box 11 30 70 Uniform Allowance ee ee 30 71 DEP CARE ASSISTANCE PLAN rnnnrnnnnrrnnrrnnnnrrnnrnnenrennnnnn 30 72 Flexible Spending Account ee 30 74 Non Taxable Pension Pavments 30 76 Long Term Disability Pavments 30 77 Meal Expenses aa oia 30 78 Paid Deferred Gomp uiunminasminmsivannisngjigssmsnnisg chs 31 79 Paid Deferred Compras aaa 31 7A Adoption Assistance 31 7B Adoption Assistance 31 7C Accrued Deferred Comp 31 7D Meals State UC Taxable Aen 32 7E NON QUALIFIED DEFCOMNP s sssssssssssnssnnnnerernneerrrnnnerreenene 32 7F DRAW TAXABLE FOR SUTA ON 32 7G DEFEREBED COMP eege 32 7H Non Profit Earnings sa io 32 71 Company 457 PM AS 32 7J Accrued Deferred Compensation 32 7K 409A Non Qualified Deferred Comp Plan 32 7L Auto 7 Auto Allowance 33 7M Deferred Gomp ici iii 33 7N Non Qualified Deferred Comp 33 3 DEFCMP INSPR3 DEFCM5 DEFCM7 DEFCM8 457FDS 409A DEFCM9 409ANF DEFCMF DEFCMS DEFC10 MEALTX NOCITY NOTAX SUBSL2 SUBSLP SUBSH2 SUBSHP 3PSNT MEALPT LODGE STDISB NQPENS SUBLIF SUBDIS SUBSN2 SUBSNP CODMPR SUBHSA MAMED RELIGS CODPPT SUBSH3 3PSICK 3PSLTD 1099M1 1099M2 1099 1099 1099 CLERGY REVHSE CLRHSE 3PSKUI CLERGY Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print In
65. eferred Compensation Paid deferred compensation taxable for Base 1 Federal and State NONPRF 7H Non Profit Earnings Non Profit Earnings Use for Non Profit that is taxable for FUTA and SUI taxable wages CQ0457H 71 Company 457 Plan 03 8 05 A company 457 plan for highly compensated employees and is taxable for FICA and Medicare DEFCM5 7J Accrued Deferred Compensation 01 05 11 amp 14 Accrued deferred compensation taxable for FUTA Federal Medicare and Ul This is for a prior year deferral which became Federal and Medicare taxable 409ANC 7K 409A Non Qualified Deferred Comp Plan 01 03 amp 05 12 code Z Income under section 409A on a nonqualified deferred compensation plan that was included in Box1 32 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description AUTO 7 7L Auto 7 Auto Allowance 01 03 amp 05 Reported in FW State only however fully taxable and deductible for FICA Medicare fully taxable for FUTA SUI and certain OH locals DEFCM6 7M Deferred Comp 03 amp 05 Taxable for FICA and Medicare and Certain Ohio locals 409ADQ 7N Non Qualified Deferred Comp 12 code Y Nonqualified deferred compensation plan amounts includible in income because of section 409A DEFCMP 70 Deferred Comp FW TAXABLE ONLY 01 INSPR3 7P Insurance Premium KY LOC 01 03 amp 05 Insurance premium special taxation for Kentucky Locals Taxable for FICA MED and reported for
66. eported but the tax is not withheld For New Jersey employers this accumulator relates to those S Corps that have made the S election for Federal purposes only Review SUBSNP Code 8H below Contact Payroll Associates if you are in doubt as to which accumulator should be used 3PSICK 90 Taxable Third Party Sick Pay 01 03 8 05 2nd W 2 Taxable portion of Third Party Sick Pay reported and paid by a state or insurance company disability plan Taxable for Social Security Medicare only until 6 months of payments Added to FWT and SWT taxable wages 3PSLTD 91 LTD 3PSP 01 2ndW 2 3rd Party Sick Pay after the first six 6 months Payments are no longer taxable for FICA or Medicare but continue to be taxable for 3PFWT Must use Deduction Code S3 3PSW 1099M1 93 Rents 1099 MISC Box 1 Amounts paid to recipients for all types of rents Public housing agencies must report rental assistance payments made to owners of housing projects in Box 1 37 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description 1099M2 94 Royalties 1099 MISC Box 2 Gross royalty payments of 10 or more before reduction for severance and other taxes which may have withheld and paid Include gross royalties before reduction for fees commissions or expenses paid by a publisher directly to an author agent or by agent to author 1099 95 Independent Contractors 1099 MISC Box 7 Payments made
67. er when OTHER THAN 1 On the employer s business premises For the employer s convenience and In kind Cash may not be paid USED FOR NON ACCOUNTABLE MEAL PLANS See IRS Pub 525 Code 80 is used for the LODGING portion of non accountable plans IRC 119 b 4 was amended during 1998 The amendment deals with meals and lodging provided for the convenience of the employer The amended law has very specific requirements Your clients must determine proper tax treatment in cooperation with their legal tax advisor MINTIP 6A Tips Deemed Wages TIPS considered being wages up to the Minimum Wage Limit Used only for Wage amp Hour compliance reporting 28 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description DECTIP 6B Make Up Tips 01 03 05 8 07 Make Up Tips This DECTIP Base Accumulator works the 01 05 amp 07 same as Code 63 NOTAX 6C Food and Beverages Sales This NOTAX Base Accumulator is used to track food and beverage sales DECTIP 6D Cash Tips 01 03 05 amp 07 Cash Tips This DECTIP Base Accumulator works the same as Earnings Code 63 DECTIP 6E Hours Tips 01 03 05 amp 07 Hours Tips This DECTIP Base Accumulator works the same as Earnings Code 63 DECTP2 6F Declared Tips FICA Exempt 01 Declared TIPS To Be Used For FICA Exempt Used for foreign nationals working in the US under a work visa where the Tipped Employee is Soc
68. eral income tax or withholding requirements The only Federal requirement is for the EMPLOYER CONTRIBUTION to be reported in W 2 Box 12 coded R If you become aware of specific state reporting taxation requirements for EMPLOYER CONTRIBUTIONS please contact Payroll Associates See IRS Pub 969 If this is an IL Qualified Plan please make sure to edit the employee s W 2 to include the COMSA amount in Box 14 Please refer to Chapter 6 for instructions on editing the W 2 COHSA 30 ER Health Savings Account 12 Code W Employer contributions to Health Savings Accounts are deductible like any other qualified corporate health benefit payment but the amounts must be reported in BOX 12 of the 2004 Form W 2 Unlike the Archer MSA an employer or an employee or both can open an HSA Does not reduce taxable wages for Fed Some states COHSA are included in taxable wages HSA 3P EE Health Savings Account This accumulator has been established to handle EMPLOYEE CONTRIBUTIONS to HSA accounts Post tax deduction Unlike an ARCHER MSA either an employer or an employee or a combination of both can open an HSA Tax credit is taken on the EE 1040 return at the end of the year 60 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description 401A 3Q MA Teacher s Retirement 5 amp 14 This accumulator was established for the specific situation where teachers in this case members of the Massachuse
69. escription PRDTPS 1P Declared Tips for Puerto Rico PRW 2 BOX 10 Declared tips reported on Puerto Rico W 2 GPARCH 10 EE GOLDEN PARACHUTE PAYMENT W 2 BOX 12 Code K Fully taxable earnings code used for Golden Parachute Payments must set FWT to take 20 Excise Tax BONUSF 1R Bonus No Federal Tax Deducted 01 03 8 05 This bonus code is a fully taxable earnings code however it DOES NOT withhold Federal tax Bonus payments are fully taxable and should be processed using code 13 Bonus This code allows the client to pay an employee a bonus without the need to override the federal tax when it is determined not to withhold the tax Using this code could under withhold employees potentially subjecting them to penalty for underpayment of taxes when filing their personal tax return NOTAX 24 Absent No Tax Earnings Code This No Tax base accumulator is used to track hours STNOTX 2A REG NO STATE TAX 01 03 amp 05 Regular Hours and Dollars This Code was setup for a specific licensee s application This earnings code is taxable for Federal Social Security Medicare and FUTA It is non taxable for Wisconsin State and Wisconsin Unemployment STNOTX 2B OVERTIME STATE NO TAX 01 03 amp 05 OT Hours and Dollars This Code was setup for a specific licensee s application This earnings code is taxable for Federal Social Security Medicare and FUTA It is non taxable for Wisconsin State and Wisconsin Unemployment STNOTX 2C HALFTI
70. fo 70 Deferred Comp FW TAXABLE ONLY 33 7P Insurance Premium KY LO 33 LORD AHO EE 33 TR ET 33 SPEER MP ER 33 71 457F DISTRIBUTION A 33 7U 409A NON QUALIFIED INCOME 33 7V DEFCOMP FW MC STATE TAXES o aaeniisesseneeeeenreeeeeenene 34 7W DEF COMP FW MC STATE TAXES rrnnrrnnnrrnnrrnnnnrrnnnnnn 34 7X DEF COMP NOT TAXABLE FOR FW 34 7Y DEF COMP NI FICA MED 00d 34 7Z DEF COMP FED ON Ys 34 80 Lodging Allowance 34 81 Non Resident City Tax 34 84 User DENE Lasses od oia od ee 34 85 S Corporation Sole OWNED ee 34 86 S Corporation 2 Owner eeecceeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeenaeees 34 87 S Corporation Health 2 Ower 35 88 S Corporation Sole Ower 35 89 Non Taxablo IPS iris 35 8A Taxable Meal for CA DD 35 8B Lodging for Workers Comp 35 8C State Disability Short Term 35 8D Non Qualified Pension Distrbutpons 35 8E S Corporation Taxable Life INS 29 35 8F S Corporation Taxable Disb Ines 35 8G S Corporation NJ Sole Owner 36 8H S Corporation NJ 2 OWner uarrrnnnnnnvrrnnnnnnnnnnvnnnnnvrrnnnnn 36 81 Company Domestic Partner Premium 36 8J S Corporation 2 e EE 36 8K MA MED INS sad 36 8L RELIGIOUS ORDER EARDNINGS 36 8V Company Domestic Partner Premium 37 8W S Corporation Sole Owner eeeeeeeeeeeeeeeeeeeeeeeneaeees 37 90 Taxable Third Party Sick Pay 37 IT LTB Rok toi toda 37 93 eee RR A RRR A ROMA eR eR 37 94 Royalties ccocosiica ios 38 95 Independent Contractors eeernnnnnrnnnnnnnnnnnnnnn
71. for FW FICA MED STATE and LOCALS Taxable for PA State withholding and all PA Locals CTRP 2D CONN ALT RETIREMENT PLAN 03 AND 05 Box 12 code D Connecticut Municipal retirement plan not taxable for FW and State but is taxable for Fica Med CTRT 2E CONN ALT RETIREMENT PLAN Accumulates CTRP eligible wages CTRT plans are usually calculated on GROSS PAY COCTRT 2F CO MATCH FOR CT RETIREMENT PLAN 401AIC 2G 401A ICMA PLAN 03 AND 05 Box 14 401A retirement plan not taxable for FW and State but is taxable for Fica Med 401A 2H 401A RETIREMENT PLAN Accumulates 401A eligible wages 401A plans are usually calculated on GROSS PAY 55 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description RTIRCU 21 ROTH IRA CATCH UP PSERS 2J PAPSERS PaPublic School Employee retirement fund LEGAL 2K LEGAL Fee Reduction Legal fee deduction plan TOOLNT 2L TOOLS NO TAX Pretax deduction for tools as part of a cafe plan Not reported on the w 2 PTXIRA 30 IRA Deduction for contributions to an IRA deduction plan where FWT and SWT taxable wages are reduced at time of the IRA deduction while remaining fully taxable on Forms 941 and W 2 The IRA deduction amount does NOT print on W 2 Taxable wages are reported in full on the W 2 including tips and other compensation regardless of the amount of deduction for deposit into an IRA account This deduction code simply provides an emplo
72. h state Base Accumulators are also used to identify Year To Date YTD amounts for placement in the appropriate boxes on Federal Forms W 2 W 3 This document includes all base accumulators used by PayChoice licensees A few special use accumulators are included in the Master tables of Earnings and Deductions which should NOT BE USED herein since they were created for special one client applications Do not use any base accumulator that indicates DO NOT USE in this document unless they were established specifically for your service bureau or are directed by Payroll Associate s Customer Support Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info SETTING UP EARNINGS OR DEDUCTIONS IN PAYCHOICE When setting up any earnings or deduction types for a company in PayChoice you must first determine if these earnings deductions will be LIVE in Net or MEMO not in Net In Net affects Gross and Net Pay where Not in Net is primarily used for reporting purposes only The Not in Net amount may indirectly alter net pay by increasing or decreasing taxable wages In either case make sure to display the earnings or deductions on the PayChoice Journal or register layout if you wish to force them to print on YTD and QTD reports Provide a column on the timesheet for specific earnings types which may need to be entered on a regular basis Any special earnings amounts entered for reporting purposes only M
73. hat have made the S election for Federal purposes only Review SUBSNP Code 8H below Contact Payroll Associates if you are in doubt as to which accumulator should be used 3PSNT 89 Non Taxable 3PSP 2nd W 2 Non taxable portion return of employee deduction of Third Party Sick payments See New Jersey wage definition from the Service Bureau Maintenance Menu under Taxation Employee contributions only MEALPT 8A Taxable Meal for CA DD Partially Taxable Meal earnings Taxable for California DD and WC only LODGE 8B Lodging for Workers Comp Lodging for Workers Comp at 100 STDISB 8C State Disability Short Term 01 03 amp 05 State Disability payments taxable for FWT Social Security Medicare and FUTA Part of unemployment taxable wage base for some states NQPENS 8D Non Qualified Pension Distributions 01 03 054 11 Distributions from non qualified pension plans that are taxable for FWT Social Security and Medicare SUBLIF 8E S Corporation Taxable Life Ins 2 01 amp 14 S Corporation LIFE Insurance by the corporation for owners with at least 2 ownership in an S Corp Social Security Medicare and FUTA exempt SUBDIS 8F S Corporation Taxable Disb Ins2 S Corporation Disability Insurance for owners with at least 2 ownership in an S Corporation Social Security Medicare and FUTA exempt 35 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description SUBSN2 8G S
74. he Employment Status Field if the employee is a Statutory Employee 84 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info Useful IRS Publications Pub 15 Employer s Tax Guide Circular E Pub 15 A Employer s Supplemental Tax Guide Pub 15 B Employer s Tax Guide to Fringe Benefits Pub 15 T New Wage Withholding and Advanced Earned Income Credit Payment Tables for wages paid through December 2009 Pub 17 You re Federal Income Tax Pub 51 Circular A Agricultural Employer s Tax Guide Pub 54 Tax Guide for US Citizens and Resident Aliens Abroad Pub 393 Federal Employment Tax Forms Pub 463 Travel Entertainment and Gift Expenses Pub 509 Tax Calendars Pub 513 Tax Information for Visitors to the US Pub 515 Withholding Of Tax on Nonresident Aliens Pub 517 Social Security amp Other Information for Members of the Clergy and Religious Workers Pub 519 US Tax Guide for Aliens Pub 521 Moving Expenses Pub 525 Taxable and Nontaxable Income Pub 531 Reporting Tip Income Pub 535 Business Expenses Pub 560 Retirement Plans For Small Businesses Pub 571 Tax Sheltered Annuity Plans Pub 575 Pension and Annuity Income Pub 596 Earned Income Credit Pub 901 US Tax Treaties Pub 926 Household Employer s Tax Guide Pub 957 Reporting Back Pay and Special Wages to the SSA Pub 969 Health Savings Accounts and Other Tax Favored Health Plans Pub 1281 Backup Withholding On Missing and Incorrect TINs Pub 1474 Technical Specific
75. ial Security Medicare exempt at F5 screen Part of normal tips all year Make sure this earnings code is sequenced properly above 64 65 and 6A and that the correct earnings calculation is entered 6F ACCUM3 ACCUM3 Please call Payroll Associates for additional information If Tips were keyed to Code 63 all year you may need to transfer to DECTP2 before W 2s are processed via an adjustment payroll on the F7 adjustment screen MINTIP 6J Internal Use Only Used in the calculations when a restaurant model is used TRIMET 6K Tri met Wages OR Used in the OR State TriMet wage calculations LANEWG 6L Lane Wages OR Used in the OR State Lane wage calculations FITPCR 6M FICA TIP CREDIT WAGE CALC DECTP2 6T Declared Tips FICA Exempt 01 Same as Earnings Code 6F 29 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description BNQTPY 6W Banquet Tips 08 Same as Earnings Code 68 however prints YTD information TIPS 6X DECLARED TIPS Declared Tips DEFC12 6Z Paid Deferred Comp Non Box 11 01 Paid Deferred Comp taxable for Base 1 Federal amp State This is the same as code 78 though Box 11 is not used since there are payments and deferrals in the same year UNFORM 70 Uniform Allowance Non Taxable Uniform Allowance paid to maintain required employee uniforms DEPCAS 71 DEP CARE ASSISTANCE PLAN 10 Dependent Care Although included in the Master Earnings Code table this i
76. id Moving Expenses 01 03 054 14 Taxable amount of employer paid moving expenses not considered deductible by the employee Examples include fixed amount allowances for miscellaneous expenses reimbursements for home improvements to help sell the home loss on the sale of the home mortgage penalties any part of the purchase price of the new home refitting carpets draperies storage charges except those incurred in transit and for foreign moves house hunting trips prior to the move temporary living expenses costs associated with selling the old residence or ending a lease and purchasing a new residence or acquiring a new lease as well as all meal expenses including those incurred while en route to the new location Also see Pub 17 Chapter 27 and Pub 521 See EXMOVE Code 5B for Employer paid moving expenses considered to be deductible by the employee INSPRM 59 Group Term Life Insurance Premiums 01 03 05 amp 12 Code C Taxable Group Term Life Insurance Premiums paid by the employer on coverage in excess of 50 000 per year Taxable for Federal Social Security Medicare and possibly State and Local Federal is NOT withheld however State and Local taxes MAY or MAYNOT be withheld depending on the jurisdiction Must be submitted with other paid wages or as an adjustment to allow Social Security Medicare to automatically catch up on current or next live payroll check voucher Not taxable for FUTA SUTA except for MDSUI PA state
77. in Box 12 with Code T Most states are following Federal guidelines DEFCM4 7C Accrued Deferred Comp 03 amp 05 Accrued Deferred Comp taxable for BASE2 FUTA Social Security Medicare and Ul This accumulator is to be used for taxing current year deferrals that are Social Security and Medicare taxable because they are no longer subject to substantial risk of forfeiture DEFCM4 is NOT reported in Box 11 For prior year deferrals see DEFCM2 Code 79 31 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description MEALUI 7D Meals State UC Taxable Meals considered taxable for State Ul DI only Not taxable for FUTA BASE2 This accumulator was set up at the request of a specific licensee Use this accumulator only if you are confident it meets your specific requirements The requesting licensee had this established for a specific NJ situation hence it has been added to NJDD NJDDNG NJDI NJUD NJUDNC and NJUI This deduction code also adds to NYUI CAUC and CADD AND CATR If this accumulator needs to be added to any other state Ul please contact Payroll Associates NQDCPA 7E NON QUALIFIED DEFCOMP Nonqualified DEFCMP NONTX PA SUTLLC 7F DRAW TAXABLE FOR SUTA ONLY Use for a specific client for lowa UC This accumulator is used to tax a portion of an LLC Member s draw for Ul purposes The employer must supply the dollar amount DEFCMP 7G DEFERRED COMP 01811 D
78. included on any box of the W 2 See Earnings Code 3W for reimbursements over the federal limit See Earnings Code 36 for situations involving per diem and mileage allowances MILAGE 36 Per Diem 12 Code L Substantiated employee business expense reimbursements This code is used to report the amount treated as substantiated that is the nontaxable portion in box 12 using code L You should use only if you reimbursed your employee for employee business expenses using a per diem or mileage allowance and the amount is the non taxable portion of employee business expense reimbursement NOTE Do not use base accum MILAGE if you pay a per diem or mileage allowance and the amount paid exceeds the amount treated as substantiated under IRS rules this must be paid as wages on Form W 2 The excess amount is subject to income tax withholding and social security and Medicare taxes Also see Deduction Code 60 WARNING The MILAGE code should be used only if you are confident it is appropriate Regular mileage reimbursements are to be entered using Earnings Accumulator Code 35 SEVERN 37 Severance Pay 01 03 8 05 Taxable Severance and Dismissal Pay to be combined with GROSS Wages Only separated out for purposes of Workers Comp This also will be noted as a separate item on the employee s pay stub Taxable for SUl and FUTA except in AKUD AKUI LAUI MSUI PRUI SDUI WVUI and WYUI Revision 10 1 2015 Earnings amp Deduction Accumulator
79. inition and does not allow a pre tax deduction When using this deduction code it must be sequenced before the applicable taxes on the Deduction Tax Sequencing screen COHLTH 89 ER Paid Health Benefits Employer paid Health Medical benefits that may be reportable at some time in the future 401KLN 90 401 k Loan 401 K Loan Goal type deduction 70 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description 414HLN 91 414 h Loan 414 H Loan Goal type deduction CLRCAF 9D Clergy Cafeteria Deductions Cafeteria plan flex spending deduction for Clergy who are NOT Social Security Medicare taxable CLRDEP 9E Clergy Dependent Care CLRHSA 9F Clergy Pre Taxed HSA CL403B OG Clergy 403 b ERHCST 9H Employer Healthcare Cost 12 Code DD Used for the W 2 reporting of the aggregate cost of applicable employer sponsored health insurance coverage Reporting is optional in 2011 LTD BL Long Term Disability CHSUPP sil Child Support Child Support and OR flat dollar amount payment deductions Deduction Code C1 C2 C3 C4 C5 C6 C7 and C8 401ACE CE CERS for Kentucky Employee Contribution Employee contributions to the County Employees Retirement System CERS which is a qualified benefit plan under Section 401 a This is taxable to the Kentucky localities PENSN2 CP Company Paid Pension Company paid pension contributions payments into a qualified pension plan Can also use
80. it 2007 72 E6 USERRA Wage Limit 2007 72 E7 USERRA Wage Limit 2004 EE 72 E8 USERRA Wage Limit TEE 72 E9 USERRA Wage Limit 2006 72 EA 401 k Catch Up Contributions ccccceeceeeeeeeeeeeteeeeeeeees 72 EB 401 k Catch Up Wage AcCcumulator 72 EC SARSEP Catch Up Contributions 0000000000aaaeaeaaaaaaeeaaa 73 ED SARSEP Catch Up Wage Accumulator seeeeeeeeeeeneeeee 73 EE 408 k 6 Catch Up Gontribulions u neumunmrmmnmmnebnmnsbmumrn 73 EF 403 b Catch Up CGontrbutons 73 EG 457 Catch Up Contributions rrnvrrrrvnnnnnnnrrrnnnnrrrrrnnnnnnnennn 74 EH 501 c Catch Up Contributions oooooccccccccccncccncnananancninonnnnn 74 EJ 414 h Catch Up Contributions ooooococcccccnonccccanananaccccnoninon 74 EK TAS Catch Up Contributions AANEREN 74 EN SIMPLE IRA CATCH UP CONTRIBUTION sssssssssssneeeeneene 75 EP SIMPLE 401 k Catch Up Contrbutons 75 EQ SIMPLE Catch Up Wage Accumulator orrnnnvrrrrrnnnnnnnnrrn 75 10 403BCL 414DCU USERA1 USERA2 USERA3 USERA4 USERA5 USERA6 COFPPA USERA7 USERAS USERA9 FIERCW NOTAX FPPADD FPPA NOCITY OPTTAX ORWCWG ORWCWG ORWBFH COPERA ARSR PERA KSPERA COKPER MESEAS MENSEA SSXSNP RRHR 1 RRHR 2 SSTIPX VTHRSW NMWC NMWC NMWC NMWC WCOFF NVWC WAWCWG WAWCWG NVWC WRKEXP WCOFF WCOFF WCOFF Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info ER 403 b Life Time CGatch Up 75 EU 414 d Catch Up Contribution oooooococ
81. le Pension Plan 58 3E Company Match Simple Pension Plan nnnnnnnnnnnnnnnnnennne 58 3F Company Match Simple Pension Plan 58 3G PERSI Retirement Plan 58 3H PERSI Retirement 29 59 Il SUG Acacia incaico 59 3J Simple HA 59 3K Post Tax 401 k Contributions 59 3L PERSI Wage Amounts EE 59 3M Medical Savings Accounts 60 3N ER Contributions MSA svvvvvvvvvvvvvvvvvvvvvnnnnnnnnnnnnnnnnnnnnnnnnnn 60 30 ER Health Savings Account 60 SP EE Health Savings ACCOUNT isc 60 3Q MA Teacher s Retirement nnnnnnnnnnrrrrnrrrrrrrrrrrrnrnnrnnnnne 61 SR PERA Da a ras endr 61 3S MA SEP FOR S CORP OWNER cuca 61 3T MSA lllinois ER Gontribution ss ensekstesnbeksbebuseknkennbeknbebenene 61 3V Company Match for 403 b ooooococcccccccnncccccoccccnoncconnnnaanannnnos 61 SW 403 b Wage Accumulator eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeanees 61 3X WI Contribution to HSA 61 3Y 401A KRS Taxable for Louisville oooooooonononoccono nono 62 3Z 401A KRS PUR GER CH TX Louisville 62 40 Medical Section 128 62 41 Medical Section 128 62 42 Medical Section 128 62 43 Medical Section E res ceczretinciestinncaretinecreudscncimetaneimedienetentil 62 44 Medical Section 125 ssssssssvvnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn 62 45 Medical Section 128 62 46 Medical Section 125 idas 63 47 Section 129 Dependent Care 63 48 Section 129 Dependent Care 63 49 Health Savings Ac
82. llowed to contribute additional elective deferrals which can total cumulatively up to 15 000 based on years of service and other plan parameters The administrator of the plan spells out details to the employee on an annual basis In these situations use the conventional 403 b accumulator to account for regular annual plan contributions federal limit Then to withhold the additional deferral in excess of the conventional annual limit use one of the other available deduction codes but change the accumulator to 403B The proper control of this secondary accumulator will require close cooperation between the service bureau and the employer 457 51 Section 457 b EE Contributions 03 8 05 12 Code G Section 457 b employee deferral contributions Elective deferrals to a state or local government or other tax exempt organization deferred compensation plan NOTE For 457 f plans use Deduction Code 4E NQEEDF 408K6 52 Section 408 k 6 03 8 05 12 Code F 13 Retirement Plan Section 408 k 6 Salary Reduction Simplified Employee Pension Plan See SARSEP Code 39 Employee contributions elective deferrals 67 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description 501C 53 501 c Non Profit 01 03 amp 05 12 Code H 13 Retirement Plan 501C Tax Deferred Non Profit Organization Deductions IRC Section 501 c 18 D employee contributions ele
83. lows catch up contributions to be made by anyone reaching age 50 before the end of the calendar year For setup instructions please go to the Customer Support Website Support and Knowledge Base select the Deduction Category and select Catch Up Contributions for Pension Plans 403BCU EF 403 b Catch Up Contributions 03 amp 05 12 Code E 13 Retirement Plan The Economic Growth and Tax Relief Act of 2001 EGTRA allows individuals age 50 and older to make catch up contributions to various tax favored retirement plans beginning January 1 2002 This act allows catch up contributions to be made by anyone reaching age 50 before the end of the calendar year For setup instructions please go to the Customer Support Website Support and Knowledge Base select the Deduction Category and select Catch Up Contributions for Pension Plans 73 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description 457CU EG 457 Catch Up Contributions 03 amp 05 12 Code G The Economic Growth and Tax Relief Act of 2001 EGTRA allows individuals age 50 and older to make catch up contributions to various tax favored retirement plans beginning January 1 2002 This act allows catch up contributions to be made by anyone reaching age 50 before the end of the calendar year For setup instructions please go to the Customer Support Website Support and Knowledge Base select the Deduction Categ
84. ls restaurants or other businesses dealing with food or lodging CAUTION Since treatment as a statutory employee has significant implications for both the employee and employer the determination of whether or not an employee is to be classified as statutory is entirely the responsibility of the employer The service bureau should never be involved in making that determination If necessary the employer should contact his tax legal advisor s to assist in making a correct determination STATO1 ST Statutory Employees 01 03 amp 05 Box 13 Statutory Employee Statutory employees not subject to FUTA therefore NOT included in BASE2 Wages are included in Box 1 for reporting purposes only NOT subject to withholding Federal or State In contrast to accumulator STATO2 Code SN accumulator STATO1 is generally used for statutory employees in the following categories 1 Full time life insurance salespersons or 2 Home workers who work by the guidelines of the person for whom the work is done with materials furnished by and returned to that person or to someone that person designates CAUTION Since treatment as a statutory employee has significant implications for both the employee and employer the determination of whether or not an employee is to be classified as statutory is entirely the responsibility of the employer The service bureau should never be involved in making that decision SSXSTX SZ Company Same Sex Premium T
85. ly for FUTA and SUTA This is used in a situation where the 3rd party provider is preparing the W 2 and 941 for both the employee and employer taxes but passes the third party sick wages back to the employer for taxing of FUTA and SUTA Individual employee as determined by the third party provider must enter the taxable amount of third party sick pay CLERGY 9F Clergy Earnings 01 Same as Earnings Code 9A Clergy STKOP3 9G Stock Options 01 03 05 amp 14 12 Code V Granted Stock Options Same as STKOP2 Earnings Code 9R Fully taxable however NOT taxable for Pennsylvania wages CLERGY 9H Clergy Earnings 01 Same as Earnings Code 9A Clergy RVHSPN 9l Parsonage Housing Box 14 Parsonage Housing that is NOT taxable for PA state or locals OTHRCM 9J Clergy Other Compensation 01 amp 14 Cash allowance to assist the clergy in paying all or a portion of his SS CLERG3 9K Clergy Taxable for CADD UI STUEXP 9L Student Wages 01 Student wages taxable for FWT only CLRINS 9M Clergy Employer Med Reimbursment 01 168 18 Not Taxable for FICA Med except PA and PA Locals STKOPP 9N Stock Options 01 03 05 amp 14 12 Code V Same as Earnings Code 9R however taxable Stock Option exercised in PA 39 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description STKIOS 90 Incentive Stock Options 01 amp 14 Same as Earnings Code 9S STKOPN 9P Stock Options 01 Fed
86. mbursement Payments relating to a self insured medial reimbursement plan taxable for federal and state only TXLTDP 5V TAXABLE LT DIS PREMIUM 01 amp 17 Taxable Long Term Disability Premium Set up for a specific client Same as 5U except this is used for Long Term Disability ERHLTH 5W EMPLOYER HEALTH 01 Health Insurance Set up for a specific client Federal taxable ERHLT2 5X EMPLOYER HEALTH FULLY TAXABLE 01 03 04 amp 16 Health Insurance Set up for a specific client Fully taxable TRS 5Y TEXAS TEACHERS RETR SYS 01 058 14 Set up for a specific client Used for Texas Teachers Retirement System Taxable for FWT Medicare FUTA and SUTA however not for Social Security SC105R 5Z SUB S CORP SEC105 REIMBURSMENT Sub S Corp SE 105 Reimbursements Set up for a specific client W2PENS 60 Taxable Pension Distributions 1099 R Taxable Pension Payments distributions FWT and SWT only Old W 2p NOTE Distributions to plan participants from non qualified plans including section 457 plans are to be reported on Form W 2 NOT Form 1099 R Please see Deduction Code 54 for Non Qualified 457 Plan Distributions If federal withhold tax is to be withheld please use Tax Code BU Backup Withholding which is reported on the Annual 945 Return DECTIP 63 Declared Tips 01 05 amp 07 Fully taxable cash TIPS declared and reported by employees throughout the year Taxes calculated on DECTIP are withheld from other paid wages Since
87. nnnrnnnnnnnnnenenen 38 96 Independent Contractors ooooocccccccccccccconanananccnnnnncnnnannannnonons 38 97 Independent Contractors sernnnnnrrnnnnnnnnnnnnnnnnnvnnnnnnnnnnennn 38 O ihe eae eerie eaten nedates 38 9B Clergy HOUSING eet 38 9C Clergy Housing Allowance ennnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnennne 38 9E 3PSP Taxable for FUTA and GUTA 39 9F Clergy Earnings usd is 39 4 STKOP3 CLERGY RVHSPN OTHRCM CLERG3 STUEXP CLRINS STKOPP STKIOS STKOPN STKOP2 STKOPT CLERG2 CLERG2 RVHSNT CLRGTX 1042 CLERG3 CASLBR DIFPAY PRIGRS PRIGR2 PRIGR4 PRIGR5 ACATAX NOTAX 1099MO 1099M3 1099M5 1099M6 1099M7 1099M8 1099MA 1099MC 1099MG 1099MI ADJMTA NOFICA CLERG2 CLERG2 CLERG2 CLERG2 CLRGWC CLERG4 1099R1 1099R2 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info 9G Stock Optons ooooocccccccccccnonononancncnnnnnnnnnnnnnnnnncnnnnnncnnnnnnnnnnnnnos 39 o d dene ddedaddnnddsddeseene 39 91 Parsonage Housing cccccccccnnnnnononcnnnnncnnnnnnnnnnncnnnnnncnnnnnnnnnnnnnns 39 9J Clergy Other Compensaton nenene 39 9K Clergy Taxable for CADD Ul rrnnnnnnnnnnnnrrrnnnnnnnnnnrnnnnnrrrnnnnn 39 9L Student Wages ee 39 9M Clergy Employer Med Reimbursment rrnnnnnnnnnnnnnnnrrnnnnnn 39 9N Stock ee EE 39 90 Incentive Stock Options oooooooccccccccccccnncnoonancccnnncncnnnanana nono 40 9P Stock OPNE ah alee a a ie he ek 40 IR S k le e me 40 9S Incentive Stock OPTIONS sontiicat clio 40 9U
88. ode 55 NOTAX 53 FRINGNT Non taxable Fringe This NOTAX Base Accumulator is used for non taxable fringe benefits and should be used with caution FRING3 54 Fringe3 FICA MC TAXABLE 03 05 8 14 Fringe Benefits taxable for Social Security and Medicare not reported as taxable for Federal or State FRING3 entries must be submitted with other paid wages to allow for tax deductions or must be submitted as an adjustment to allow Social Security Medicare to automatically catch up on current or next live payroll check voucher Same as FRINGC Code 5K AUTO 1 55 Taxable Auto Allowance 01 03 05 amp 14 Taxable Auto Allowance including either 100 of the value of the employee s use of the vehicle or only the value of personal use of the vehicle depending upon the employer s accounting policy Taxed same as FRING1 subject to ALL taxes Pennsylvania keeps changing the tax treatment of this item As of the 4th Quarter of 1998 the State of Pennsylvania excludes this item from income while PA locals tax auto allowance AUTO 2 56 Non Taxable Company Provided Vehicles Non Taxable company provided vehicles Includes the following Working condition fringes De Minims benefit Qualified non personal use vehicle Auto Dealership special rules Reimbursement of employee out of pocket expenses 22 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description MOVE 1 57 Taxable ER Pa
89. omestic employees and the Federal tax obligations Withholding Social Security Medicare and FUTA will eventually be reported on the client s Form 1040 Schedule H PayChoice does not generate Schedule H DOMEST will function as a calculation only tool DOMEST is added in Box 1 on the W 2 however is not included in the BASE1 accumulator Itis not intended to generate deposits However the entire payroll for a specific company ID must be setup without deposit parameters in order for the non deposit to function correctly State reporting and deposit requirements vary Most states do NOT have an equivalent to Federal Schedule H If you have questions regarding DOMEST first review any state related requirements with your client Then review the application of DOMEST in BASE1 BASE2 and the appropriate state income tax and state unemployment accumulators All state wage definition include DOMEST Contact Payroll Associates if you need special attention for your situation For setup information please go to the Customer Support Website Support Knowledge Base and Category of Earnings DEATH2 DH Beneficiary or Estate Earnings 1099 MISC Box 3 Accrued vacation holiday and other amounts paid to the beneficiary or estate of a deceased employee in any year other than the year of death Not subject to Social Security or Medicare Compare this comment with the definitions for DEATH and DEATH1 to fully understand the overall reporting circumstances
90. onger subject to substantial risk of forfeiture For current year accruals which are Social Security and Medicare taxable therefore not reportable in Box 11 use Code 7C DEFCM4 ADOPTN 7A Adoption Assistance 03 05 amp 12 Code T Adoption Assistance Code 7A is to be used for the base amount of up to 10 960 in 2006 per child The dollar limits are per child and could easily be spread over more than one tax year It is assumed that the employer has a proper written plan in compliance with Federal law This base amount along with any amount in excess of 10 960 will be included in Box 12 as Code T This amount could consist of a combination of employer paid monies in addition to monies paid out of a pre tax contribution made by the employee into a Section 125 adoption account It is taxable for Social Security Medicare and FUTA Most states are following Federal guidelines Code 7B is to be used for amounts in excess of the base amount ADOPTX 7B Adoption Assistance 03 05 8 12 Code T Adoption Assistance in excess of the base amount reported under Code 7A As in Code 7A the adoption assistance is treated on a per child basis In contrast to Code 7A Code 7B is included in Box 1 wages and is subject to FWT This amount could consist of employer paid monies in addition to monies paid out of a pre tax contribution made by the employee into a Section 125 adoption account As stated above the combined total of 7A and 7B is included
91. ory and select Catch Up Contributions for Pension Plans 501CCU EH 501 c Catch Up Contributions 01 03 amp 05 12 Code H 13 Retirement Plan The Economic Growth and Tax Relief Act of 2001 EGTRA allows individuals age 50 and older to make catch up contributions to various tax favored retirement plans beginning January 1 2002 This act allows catch up contributions to be made by anyone reaching age 50 before the end of the calendar year For setup instructions please go to the Customer Support Website Support and Knowledge Base select the Deduction Category and select Catch Up Contributions for Pension Plans 414HCU EJ 414 h Catch Up Contributions 03 amp 05 The Economic Growth and Tax Relief Act of 2001 EGTRA allows individuals age 50 and older to make catch up contributions to various tax favored retirement plans beginning January 1 2002 This act allows catch up contributions to be made by anyone reaching age 50 before the end of the calendar year For setup instructions please go to the Customer Support Website Support and Knowledge Base select the Deduction Category and select Catch Up Contributions for Pension Plans TSACU EK TAS Catch Up Contributions 03 8 05 12 Code E 13 Retirement Plan The Economic Growth and Tax Relief Act of 2001 EGTRA allows individuals age 50 and older to make catch up contributions to various tax favored retirement plans beginning January 1 2002 This act allows cat
92. pport Knowledge Base Category of Deductions 401K 35 401 k Eligible Wages Accumulates 401 k eligible wages 401 k plans are usually calculated on GROSS PAY but may be less a combination of earnings types such as bonuses severance or commission dollars This MEMO NOT IN NET deduction takes 100 of the earnings types against which to later calc the actual 401k deductions For set up information please go to the Customer Support Website Support Knowledge Base Category of Deductions PENSN2 36 Company Pension Contributions Company paid pension contribution payments into a qualified pension plan Can also use Deductions Code CP SEPP 37 SARSEP 408 k 6 03 05 amp 12 Code F 13 Retirement Plan Same as SARSEP Deduction Code 39 SEPIRA 38 Simple Employee Pension Plan 14 Simplified Employee Pension Plan funded by IRA contributions This is an Employee deduction for an employer depositing employee funds into the IRA of an employee It has no W 2 taxing implications SARSEP 39 SARSEP 408 k 6 03 05 amp 12 Code F 13 Retirement Plan Section 408 k 6 Salary Reduction Simplified Employee Pension Plan See 408 k 6 Employee contributions elective deferrals No new SARSEP plans can be set up after 12 31 96 However existing plans can continue to accept contributions as well as new enrollees SIMP 3A Simple Eligible Wages Accumulates eligible wages for a SIMPLE pension plan May be us
93. rints on Pay Sb 46 STUB S2 Prints on Pay lbs occiso di 46 STUB O E 46 STUB S4 Prints on Pay EE 46 SCORDT SD S CORP DISTIN ara Ao 46 STATO2 SN Statutory Ermplovees AEN 47 SSXSTX SZ Company Same Sex Premium EE 47 VOCREH VR Vocational Rehabilitation ooonooocccccnnnnncncnncccccccccccnnncnnnannn 47 NOTAX VX VERMONT WORK HOURS ssssaesennnennennnnneernrnnerrnneerennene 48 1099 Z1 Independent Contractors rrrnnrnrrrnvvnrrnnvnnrrnrverrrnnnerrnnnnernnn 48 Do Not Use Earnings COVES cdta did od eg 49 CTAWBP 1D DO NOT USEL ada 49 3PSPAY SP D NOT USB ia ca 49 3PSNTX 30 DO NOT USB ad 49 3PSPAY 3R DO NOT US Errata dea 49 3PSNTX Oo DONO USE 49 MILENT 3X DO NOT USE Non Taxable Milage cooooococccinncccccccnno oo 49 SARSEP AS DONOT USE eher eege Egeter 49 TRTYEX SA PO NOT USE sis 49 AUTO 4 AN DO NOT USE avaricia 49 MOVE 2 58 DONO TUS Ea ON 49 LIFINS ES PO NOT USE ha 50 AUTO 3 5R DO NOT EE aaa 50 CCTIP 66 DO NOT USE Credit Card Time 50 MEALIT 6G DO NOT USE asar ani 50 MEALIT or gegen RE 50 NOTAX 6l DO NO TUBE a 50 ILSUBS EDO NOTUSE Sonora 50 MED125 72 DO NOT USE camita 50 MHEAT SM DO NOTUSE casan 50 NOCITY ON DO NOT USE da 51 CANERN 8P DO NOT Eeer eege 51 MHB 80 DO NOT USE KNE 51 409AFQ 8R DO NOT USE 409A Non Qualified Plan 51 409AFT 8S DO NOT USE 409A Fully Taxable 51 DEFCOM 8T DO NOT USE 457 DefComp No FICAMED 51 CIVIUN 8U DO NOT USE Civil Union 51 NO CITY 8X PONOTUSB EE 51 SUBS
94. rnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description USERA6 F1 USERRA Military Catch Up 2006 03 amp 05 12 Code D06 A rehired Veteran must be permitted to make up missed contributions required to earn a benefit accrual for the military service period A rehired veteran has up to three times the period of service not to exceed 5 years to make up missed employee contributions The amount of makeup contributions is subject to the limits that would have applied during the military service period COFPPA F2 Match FPPA Benefit USERA7 F3 MILITARY CATCH UP 2007 USERA8 F4 MILITARY CATCH UP 2008 USERA9 F5 MILITARY CATCH UP 2009 FIERCW F7 FICA Credit Wages 2010 NOTAX FC FICA Tax Credit on TIPS FPPADD FD Fire amp Police Disability Deduction Fire amp Police Disability Deduction FPPA FP Fire amp Police Pension Fire amp Police Pension NOCITY OC Wages Paid to Non Residents Wages paid to a non resident employee for working outside of the tax authority city Reduces local city taxable wages Stored as a MEMO deduction in PayChoice See Philadelphia Also see Earnings Code 81 OPTTAX OP Occupational Privilege Tax 14 Occupational Privilege Tax Code Please refer to the specific state setup found on the Customer Support Website Support Knowledge Base Category of States ORWCWG OW Oregon Workers Compensation Oregon workers compensation code Please refer to the Oregon State setup
95. rs W 2 Print Info BASE ACCUM W 2 BOX Code Description CLRGTX 9X Clergy Earnings Fully Taxable 01 03 amp 05 Special accumulator for clergy who choose be fully taxed for Federal Social Security Medicare and State Use only upon demand from your client To be used with Earnings Code 9W Do NOT add dollar amounts for 9W and 9X together when entering on a payroll 1042 oy 1042 Foreign Worker Wages This earnings code is used to accumulate foreign worker 1042 wages and uses the 1042 tax tables which taxes the wages at 30 Does NOT feed to the 941 CLERG3 9Z Clergy Earnings for CAWH Fully taxable earnings code for clergy Do not use unless this fits your taxability CASLBR CL Casual Labor Casual Labor used for states that require Ul and Workers Comp to be calculated for 1099 type workers DIFPAY DP Differential Pay Differential pay that is subject to Federal and State withholding but is not subject to FICA Social Security and Medicare FUTA or State Unemployment PRIGRS G1 Prior Gross Wages Prior GROSS wages subject to Social Security and Medicare from the previous business owner which are used to give employees appropriate credit toward tax ceilings in a Predecessor Successor business purchase Non correcting Social Security and Medicare tax tables must be used For more information on predecessor successor refer to the Green Advanced User Manual Chapter A 2 or the Customer Support Website under PayChoice Documentation
96. s W 2 Print Info BASE ACCUM W 2 BOX Code Description EDUCAS 39 Educational Taxable 01 03 05 amp 14 Taxable portion the amount in excess of 5250 of Educational Assistance payments made to for employees Beginning in tax year 2002 the 5250 exclusion amount will apply to graduate as well as undergraduate courses Thus the exclusion covers not only job related courses but also any undergraduate or graduate level courses that are not hobby related NOTE Special exemption from taxation may apply if such expenditures are considered by the employer to be working condition fringe benefits Your client should consult with their accountant for appropriate tax advice FUTA and SUI taxable SEVUTU 3A Severance Pay in Utah 01 03 amp 05 Special Earnings Code of Severance paid in Utah when under a contract or union contract Fully taxable earnings code and are taxable for UT SUI wages SEVNC 3B NC Severance N T 35 000 Fully taxable except for NC withholding up to the first 35 000 EDUCA4 3E Non Taxable Education Assistance NO TAX 3PSLTX 3L 3RD PARTY SICK LTD SEVRNP 3T Severance pay for Non Profit Organization 01 03 amp 05 Taxable Severance and Dismissal pay to be combined with GROSS Wages Only separated out for NYSUI Not SUI taxable in NY for Non Profit Organizations EDUCA2 3U California Graduate Tuition 14 California Graduate Tuition up to and including 5 250 00 is considered non taxable for Federal and C
97. s actually handled as a deduction See Code 47 in the DEDUCTIONS segment of this document FLXSPN 72 Flexible Spending Account Non taxable monies paid to employees as part of a Cafeteria Plan Flexible Spending Account PENSNT 74 Non Taxable Pension Payments 1099 R Box 1 Non taxable Pension Payments from an internally funded company pension plan where the employee contributions are paid out first Old W 2P Do not use this accumulator if the payment will be at least partially taxable Rather 1099 R Box 1 1099R1 should contain the Gross Distribution amount while 1099 R Box 2a 1099R2 should contain the taxable amount of the distribution LTDISB 76 Long Term Disability Payments Long Term Disability Payments that are FUTA taxable only These payments are not to be confused with Disability Pensions MEALNX 77 Meal Expenses Non taxable and non reportable Meal Earnings USED FOR ACCOUNTABLE MEAL AND EXPENSE PLANS See comments for Codes 69 and 80 30 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description DEFCMP 78 Paid Deferred Comp 01811 Paid Deferred Comp taxable for Base 1 Federal 8 State DEFCM2 79 Paid Deferred Comp 03 05 8 11 Accrued Deferred Comp taxable for Base 2 FUTA FICA Medicare and Ul This accumulator is to be used for taxing prior year deferrals which have become Social Security and Medicare taxable during the current year because they are no l
98. s calculations 1099MO MO Other Income NV SUI 1099 MISC 1099MISC payments considered SUI taxable in Nevada Box 7 1099M3 M3 Other Income 1099 MISC Box 3 Other payments that are not for services rendered Prizes awards for employees are reported on W 2 while prizes awards for non employees are reported in Box 7 of 1099 MISC Box 3 includes various miscellaneous items such as punitive damages wages paid after an employee dies non compete agreements etc Review appropriate Revenue Procedures for further clarification Tax legislation signed in October 1996 has a significant impact on the reporting of legal settlements and punitive damages If a client has activity in these areas it is of the utmost importance that the decision of how to report such information be based on advice from a competent tax attorney in the service of your payroll client 1099M5 M5 Fishing Boat Proceeds 1099 MISC Box 5 No 600 exclusion for this category Includes share of all proceeds from the sale of catch or the FMV of a distribution in kind to each crewmember of fishing boats with normally fewer than 10 crewmembers 42 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description 1099M6 M6 Medical and Health Care Payments 1099 MISC Box 6 Do not be deceived by the title 1099 MISC Box 6 is used to report amounts of 600 or more made to each physician or other supplier or provider of medical h
99. site Support Knowledge Base Category of Deductions COSIM2 3E Company Match Simple Pension Plan 13 Retirement Plan SIMPLE Plan employer 2 non elective contribution for either SIMPLE IRA plans or SIMPLE 401k plans This is not a matching contribution It is to be applied to all eligible employees with certain statutory restrictions regardless of whether or not they are having individual contributions deducted from their pay NOT to be used in conjunction with 3D For set up information please go to the Customer Support Website Support Knowledge Base Category of Deductions COSMPK 3F Company Match Simple Pension Plan 13 Retirement Plan Employer matching portion of a SIMPLE 401k plan Employers can match 100 of the employee s first 3 deduction An alternative of not less than 1 can be used in any 2 out of 5 years with proper notification NOT to be used in conjunction with 3E For set up information please go to the Customer Support Website Support Knowledge Base Category of Deductions PERSI 3G PERSI Retirement Plan 13 Retirement Plan Public Employee s retirement plan of Idaho 58 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description PERSI 3H PERSI Retirement 13 Retirement Plan Public Employee s retirement plan of Idaho SMPIRA 31 Simple IRA 03 05 amp 12 Code S 13 Retirement Plan Simplified Pension Plan
100. these TIPS are paid in cash they are usually not paid via the payroll Can also use PayChoice Earnings Codes 6B Makeup Tips 6D Cash Tips and 6E Tip Hr 27 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description NOTAX 64 MINREG This NOTAX Base Accumulator is used in the calculations of TIPS This is automatically setup as part of a restaurant model NOTAX 65 MINO T This NOTAX Base Accumulator is used in the calculations of TIPS This is automatically setup as part of a restaurant model CCTIP 66 Credit Card Tips 01 03 05 amp 07 Fully taxable credit card paid TIPS declared and reported throughout the year Taxes calculated on CCTIP are withheld from paid wages Since CCTIP are paid via credit card they are frequently included in payroll ALCTIP 67 Allocated Tips 08 Allocated TIPS are not considered to be taxable wages until the employee acknowledges the allocation as part of preparing his Form 1040 tax return ALCTIP are not subject to FWT SWT Social Security or Medicare withholding See IRS Pub 531 BNQTIP 68 Banquet Tips 08 Banquet TIPS are not actually TIPS when the customer loses the ability to control the amount and method of distribution Banquet TIPS are thus treated the same as other taxable wages They are taxed and reported as normal gross wages MEALTX 69 Meal Allowance 01 03 05 amp 14 Taxable Meal Allowance paid by the employ
101. tion 414H 55 414 h Contributions 03 05 amp 14 414 h employee contributions to certain state plans Currently included in state wages for AL lA MA NJ and NY TSA 56 Tax Sheltered Annuity 03 amp 05 12 Code E 13 Retirement Plan Tax Sheltered Annuity 403 b plans This accumulator was established to accommodate the needs of clients who preferred the TSA terminology rather than reference to the IRS code designation HOUSNG 57 Clergy Housing 14 Clergy housing deduction allowance reportable in W 2 Box 14 68 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description HOUSE 58 Housing Allowance 14 Housing Allowance at 66 This memo deduction is used to calculate 66 of the Lodging for California Workers Comp reporting MEALNT 59 Non Taxable Deduction Meal deductions which are non taxable RHS 5A Retirement Health Savings Box 14 RHSEE 5B Retirement Health Savings Box 14 CORHS 5C Co Retirement Health Savings Box 14 SCP132 5D NON TX TRANS PASS PHILADELPHIA HSACU 5E Health Savings Catch Up 55 Additional contribution if you are an eligible individual who is age 55 or older there is a yearly limit that you can contribute Post tax deduction CO457F 5F Company Match 457 03 8 05 Company match for 457 Taxable for Social Security and Medicare wages 414D 5G State Pension Plan 414 d 03 05 8 14 501CUN 5H 501 C 18 D PENSION RTHIRA 5I
102. tributions is subject to the limits that would have applied during the military service period USERA3 EX USERRA Military Catch Up 2003 03 amp 05 12 Code D03 A rehired Veteran must be permitted to make up missed contributions required to earn a benefit accrual for the military service period A rehired veteran has up to three times the period of service not to exceed 5 years to make up missed employee contributions The amount of makeup contributions is subject to the limits that would have applied during the military service period USERA4 EY USERRA Military Catch Up 2004 03 amp 05 12 Code D04 A rehired Veteran must be permitted to make up missed contributions required to earn a benefit accrual for the military service period A rehired veteran has up to three times the period of service not to exceed 5 years to make up missed employee contributions The amount of makeup contributions is subject to the limits that would have applied during the military service period USERA5 EZ USERRA Military Catch Up 2005 03 8 05 12 Code DO5 A rehired Veteran must be permitted to make up missed contributions required to earn a benefit accrual for the military service period A rehired veteran has up to three times the period of service not to exceed 5 years to make up missed employee contributions The amount of makeup contributions is subject to the limits that would have applied during the military service period 76 Revision 10 1 2015 Ea
103. tts Teachers Retirement Board make contributions to their Section 401 a annuity savings account retirement plan These contributions are subtracted from Gross in deriving Box 1 Wages and Box 3 Social Security Wages These contributions are however taxable for Medicare and appear in Box 5 Medicare Wages NOTE There are other programs similar to this possibly even within Massachusetts which could have other taxation parameters If you acquire a client participating in a 401 a program be sure you fully understand the taxing implications If their situation is different from the one described in this paragraph contact Payroll Associates 401ASR 3R PERA 401 a 03 05 8 14 PERA 401 a PERA is a tax qualified plan under section 401 a Code Federal and State taxes on contributions are deferred until the member withdrawals funds or receive a lump sum distribution PERA is Social Security and Medicare taxable PERA Public Employees Retirement Association in Minnesota SEPMA 3S MA SEP FOR S CORP OWNER 03 amp 04 Sep plan not taxable for FW and state except for MA ILMSA 3T MSA Illinois ER Contribution 14 Illinois employer contributions to a MSA plan that does not qualify for federal purposes Please call for additional assistance This is a very unique situation If the IL plan qualifies for federal purposes please use Deduction Code 3N COMSA CO403B 3V Company Match for 403 b 13 Retirement Plan Employer matching contri
104. uded in wages for income tax withholding purposes on the 2 Shareholder Employee s W 2 MAMED 8K MA MED INS Fully taxable fringe but not taxable for MA W H MAUI and MAHI Under Massachusetts law residents are required to have health insurance for children until the age of 26 regardless of dependent status for federal income tax purposes This is the taxable portion of the Medical deduction RELIGS 8L RELIGIOUS ORDER EARNINGS Box 03 05 and 14 This Earnings code is for a Religious Order where the Nuns pay FICA MED only This is reported in Box 14 of the W 2 36 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description CODPPT DV Company Domestic Partner Premium 01 03 amp 05 Federal taxable company paid domestic partner insurance premium which are not taxable for state taxes This code is to be used when the state does not follow the Federal definition and considers the amount a non taxable fringe benefit This must be paid with regular wages See code 8l for company paid domestic partner insurance premiums which are considered taxable for Federal and state purposes SUBSH3 8W S Corporation Sole Owner 01 amp 14 S Corporation Accident and Health Insurance premiums paid by the corporation for owners with at least 2 ownership in an S Corp where an employee non discriminatory medical plan is offered Social Security Medicare and FUTA exempt Federal Taxable wages are r
105. when the state does not follow the Federal definition and allows a pre tax deduction 409ANQ 4Q 409 a Non Qualified Deferral Compensation 03 amp 05 12 Code Y Reporting of the yearly deferrals under a section 409A non qualified compensation plan 1099DF 4R Section 409 a Deferrals 1099misc BOX 5A Enter the amount of the total deferrals during the year of at least 600 for the non employee from all nonqualified deferred compensation NQDC plans subject to the provisions of section 409A The deferrals during the year include earnings on the current year and prior year deferrals COPERS 45 Company PERSI Retirement Match 65 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description COROTH AT Company Match Roth401 k Pension Plan 13 Retirement Plan Employer matching contributions are pre tax and will continue to go into a regular 401k account PTXRTH 4U ROTH 401 k Plan Flat 12 Codes AA Designated Roth contributions to a section 401 k plan Same as 4V PTXRTH 4V ROTH 401 k Box 12 Code AA Roth 401 k accounts are funded with POST TAX DEDUCTIONS Withdraws can be made tax free after age 591 2 if the account has been held for at least 5yrs The base accumulator 401K accumulates the eligible wages 35 and should be joined to 4V RTHKCU AW ROTH 401 k Catch Up Flat Accumulates the catch up contributions to be made by anyone reaching age 50 Before the end
106. yer the ability to make employee requested deposits into the IRA account of an employee Explanation revised 1 12 2000 401K 31 401 k Salary Reduction Plan 03 05 amp 12 Code D 13 Retirement Plan Section 401 K Salary Reduction Plan employee contributions Report the elective deferral made by the employee to IRC Section 401 K cash or deferred program Can also use PayChoice Deductions Code 32 and 33 Most states except Pennsylvania do not treat these plans as taxable wages and therefore no state withholding is required Always use a limit of 999 999 99 when setting up this code The Annual PayChoice Year End release will automatically update any federal limits that have changed for the coming year For set up information please go to the Customer Support Website Support Knowledge Base Category of Deductions 401K 32 401 k Salary Reduction Plan 03 05 amp 12 Code D 13 Retirement Plan Same as Deduction Code 31 401K 33 401 k Salary Reduction Plan 03 05 amp 12 Code D 13 Retirement Plan Same as Deduction Code 31 56 Revision 10 1 2015 Earnings amp Deduction Accumulators W 2 Print Info BASE ACCUM W 2 BOX Code Description CO401K 34 Company Match for 401 k 13 Retirement Plan Employer matching contributions to IRC 401 k Salary Reduction Plans May be subject to unemployment tax in some states For set up information please go to the Customer Support Website Su

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