W2 Mapping
All deduction, earning and employer contribution payroll codes need to be verified before running W2.
When payroll codes are setup, it is important to identify the W2 classification of that code. You will want to make sure that the W2 Classification box is marked with the appropriate Box and Code. You will want to be sure all items that are required to be reported are mapped to the appropriate boxes. Taxable wages and taxes withheld for federal withholdings, Social Security, Medicare, State Withholding Tax and Local Withholding Tax will already be mapped. Any additional taxes withheld, such as State Disability Tax or Paid Leave will not be mapped automatically. Also, it is best practice to only map codes that are required. Deductions such as Vision Insurance or Flexible Medical Spending are not required and often take up too much space on the W2, which causes it to carry over to multiple pages.
Earnings
Be sure to watch for earning codes that are required to be reported in Box 12 and Box 14.
The new requirement for reporting Qualified Sick Leave or Qualified Family Leave Wages that have been reported on the 941 under FFCRA will need to be mapped to Box 14 and designated which type of leave they are associated with. Below is an example of how to map your COVID Pay.
Other earnings will need to be mapped the same way if they are required to be reported in Box 12 or Box 14.
Deduction Codes
For deductions that are required to be reported are mapped in a similar way. Here is an example of retirement plans and health insurance.
A 401k Traditional plan has a W2 classification of box 12D while a 401k ROTH plan has a W2 classification of box 12AA.
There are different box classifications for different payroll codes.
In the BENEFIT SETUP section there is a check box for W2 RETIREMENT PLAN. This needs to be checked for plans that are classified by the IRS as “Retirement Plan” for box 13 of the W2.
Payroll codes that are for employer contributions should be marked as RETIREMENT EMPLOYER CONTRIBUTION.
Any pretax health insurance deductions that are marked for box 12DD, need to have the HEALTH INSURANCE DEDUCTION box marked in the BENEFIT SETUP section of the payroll code.
Any employer contributions related to the pretax health deductions that are marked for box 12DD need to have the HEALTH INSURANCE CONTRIBUTION box marked in the BENEFIT SETUP.
Other Taxes
For all taxes withheld from employees pay that are not already mapped, you will want to be sure they are in Box 14.
Questions / Resources
If you have questions or comments, please email support@integrity-data.com
If you would like to search for information and resources for Integrity Data products, check out the following sites:
- Knowledge Base: https://www.integrity-data.com/knowledge-base/
- Videos: https://www.integrity-data.com/video-library
Last Review: 12/2/2021 – Revision: 0.0
Applies To: Tax Filing
Keywords: Mapping
Categories: Tax Filing
KB15-016