How To Verify Earnings/Deduction Codes are Reporting to the Proper W2 Box

Verify that Earnings/Deduction Codes are being reported to the proper W2 boxes. This should be completed before balancing.

Verify that Earnings are set to be reported to the proper W2 box

  1. New UI users navigate to: Admin > Company Settings > Payroll Setup > Earning Codes
  2. Once on the page, click on Select Columns and add the following Columns to the report:
    1. 1099 Box Type
    2. W2 Box Type
    3. W2 Box Type #2
  3. Then click on Select Columns. These columns will now appear on the screen. Verify that all earnings are reporting to the proper boxes. If they are not showing the proper box click on the blue pad and pencil on the earning code line. In the Earning Code setup, at the top right side locate the Scheduled Default Values
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W2 Box Type - If this box is grayed out, the W2 Box Type for this earning is system controlled. This occurs based on the type of earning that is selected when establishing the earning code. If the W2 Box Type is not grayed out, you can select the appropriate W2 Box from the drop-down menu. If you select Box 14, you will also be able to enter a label to appear on the W2 in this box.

W2 Box Type #2 - If this box is grayed out, the W2 Box Type for this earning is system controlled. This occurs based on the type of earning that is selected when establishing the earning code.  If the W2 Box Type #2 is not grayed out, you can select the appropriate W2 Box from the drop-down menu (see above). If you select Box 14, you will also be required to enter a label to appear on the W2 in this box.

  1. After you make the proper selections for this earning code simply click save and back to return to your report. 


Verify that Deductions are set to be reported to the proper W2 box

  1. New UI users navigate to: Admin > Company Settings > Payroll Setup > Deduction Codes
  2. Once on the page, click on Select Columns and add the following Columns to the report:
    1. W2 Box Type
    2. W2 Box 14 Description
    3. W2 Box Type (ER)
    4. W2 Box Type Description (ER)
    5. W2 Box Type #2
    6. W2 Box 14 Description #2
    7. W2 Box Type (ER) #2
    8. W2 Box Type Description (ER) #2
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  1. Then click on Select Columns. These columns will now appear on the screen. Verify that all deductions are reporting to the proper boxes. If they are not showing the proper box click on the blue pad and pencil on the deduction code line. In the Deduction Code setup, at the top right side locate the Scheduled Default Values
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  1. Within this widget you will locate 4 drop downs for the W2 setup.

W2 Box Type: If this box is grayed out, the W2 Box Type for this deduction is system controlled. This occurs based on the type of deduction that is selected when establishing the deduction code. When the W2 Box Type is not grayed out (on custom deductions for example), you can select the appropriate W2 Box from the drop-down menu. If you select Box 14, you will also be able to enter a label to appear on the W2 in this box.

W2 Box Type #2: If this box is grayed out, the W2 Box Type for this deduction is system controlled. This occurs based on the type of deduction that is selected when establishing the deduction code. If the W2 Box Type #2 is not grayed out, you can select the appropriate W2 Box from the drop-down menu (see above). If you select Box 14, you will also be able to enter a label to appear on the W2 in this box.

W2 Box Type (ER): If this box is grayed out, the W2 Box Type for the employer contribution for this deduction is system controlled. This occurs based on the type of deduction that is selected when establishing the deduction code. If the W2 Box Type is not grayed out, you can select the appropriate W2 Box from the drop-down menu. If you select Box 14, you will also be able to enter a label to appear on the W2 in this box.

W2 Box Type (ER) #2: If this box is grayed out, the W2 Box Type for the employer contribution for this deduction is system controlled. This occurs based on the type of deduction that is selected when establishing the deduction code. If the W2 Box Type #2 is not grayed out, you can select the appropriate W2 Box from the drop-down menu. If you select Box 14, you will also be able to enter a label to appear on the W2 in this box.

  1. After you make the proper selections for this earning code simply click save and back to return to your report. 


NOTE: If you unsure what box to report earnings/deductions to on the W2 click the following link for the IRS page and their general instructions for forms W2 & W3: https://www.irs.gov/instructions/iw2w3