IRS directions

Check this box when an error is made on Form W-2 and you are voiding it because you are going to complete a new Form W-2. Do not include any amounts shown on "Void" forms in the totals that you enter on Form W-3.

QuickBooks behavior

QuickBooks does not check this box.

IRS directions

Enter the number shown on the employee's social security card.

If the employee does not have a card, he or she should apply for one by completing Form SS-5, Application for a Social Security Card. The SSA lets you verify employee names and SSNs online. For information about these free services, visit the Employer W-2 Filing Instructions & Information web site at www.socialsecurity.gov/employer. If you have questions about using these services, call 1-800-772-6270 (toll free) to speak with an employer reporting specialist in the SSA.

If the employee has applied for a card but the number is not received in time for filing, enter "Applied For" in box a on the paper Forms W-2 filed with the SSA. If e-filing, enter zeros (000-00-0000 if creating forms online or 000000000 if uploading a file).

Ask the employee to inform you of the number and name as they are shown on the social security card when it is received. Then correct your previous report by filing Form W-2c showing the employee's SSN. If the employee needs to change his or her name from that shown on the card, the employee should call the SSA.

If you do not provide the correct employee name and SSN on Form W-2, you may owe a penalty unless you have reasonable cause.

ITINs for aliens. Do not accept an ITIN in place of an SSN for employee identification or for work. An ITIN is only available to resident and nonresident aliens who are not eligible for U.S. employment and need identification for other tax purposes. You can identify an ITIN because it is a 9-digit number, beginning with the number "9" with either a "7" or "8" as the fourth digit, and is formatted like an SSN (for example, 9NN-7N-NNNN). An individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN.

QuickBooks behavior

QuickBooks uses the employee's Social Security number from the employee's record to fill in this box.

How to verify your QuickBooks result

If the Social Security number is incorrect, click Save & Close to close the Payroll Tax Form window. Click Employee Center, click the Employees tab, and double-click on the name to access the Personal Info tab where you can edit the Social Security number. Click OK to save your changes. When you return to the employee W-2, the new Social Security number is displayed in box a.

IRS directions

Show the EIN assigned to you by the IRS (00-0000000). This should be the same number that you used on your federal employment tax returns (Forms 941, 941-SS, 943, 944, CT-1, or Schedule H (Form 1040)). Do not use a prior owner's EIN. If you do not have an EIN when filing Forms W-2, enter "Applied For" in box b; do not use your SSN. You can get an EIN by applying online at IRS.gov, by calling the toll-free number, 1-800-829-4933, or by filing Form SS-4, Application for Employer Identification Number.

QuickBooks behavior

QuickBooks pulls this information from the Federal Employer Identification Number field in the company information window.

How to verify your QuickBooks result

If the federal ID number is incorrect, click Save & Close to close the Payroll Tax Form window. You will have to create a new form once you've changed your company ID.

To change your ID, click on Company and then on Company Information. Enter the correct EIN in the Federal Employer Identification Number field, and click OK. When you return to the employee W-2, the newly entered ID number is displayed in box b.

IRS directions

This entry should be the same as shown on your Forms 941, 941-SS, 943, 944, CT-1, or Schedule H (Form 1040). The U.S. Postal Service recommends that no commas or periods be used in return addresses.

QuickBooks behavior

QuickBooks pulls this information from the company information provided in the "Legal Information" section of the company information window. Assisted Payroll customers will see their customer number, also known as the Payroll Service ID, here as well.

How to verify your QuickBooks result

If the company's address has changed or there is an error in the company name, click Save & Close to close the Payroll Tax Form window. You will have to create a new form once you've change your company address.

From the Company menu, choose Company Information. Make any necessary correction to the address, and click OK. When you return to the W-2, the new name and address information are displayed in box c.

IRS directions

You may use this box to identify individual Forms W-2. You do not have to use this box.

QuickBooks behavior

QuickBooks does not supply this information.

IRS directions

Enter the name as shown on your employee's social security card (first name, middle initial, last name). If the name does not fit in the space allowed on the form, you may show the first and middle initials and the full last name. It is especially important to report the exact last name of the employee. If you are unable to determine the correct last name, use of the SSA's Social Security Number Verification System may be helpful. Separate parts of a compound name with either a hyphen or a blank. Do not join them into a single word. Include all parts of a compound name in the appropriate name field. For example, for the name "John R Smith-Jones", enter "Smith-Jones" or "Smith Jones" in the last name field. If the name has changed, the employee must get a corrected social security card from any SSA office. Use the name on the original card until you see the corrected card. Do not show titles or academic degrees, such as "Dr.," "RN," or "Esq.," at the beginning or end of the employee's name. Generally, do not enter "Jr.," "Sr.," etc. in the "Suff." box on Copy A unless the suffix appears on the card. However, the SSA still prefers that you do not enter the suffix on Copy A.

Include in the address the number, street, and apartment or suite number (or P.O. box number if mail is not delivered to a street address). The U.S. Postal Service recommends that no commas or periods be used in delivery addresses. For a foreign address, give the information in the following order: city, province or state, and country. Follow the country's practice for entering the postal code. Do not abbreviate the country name.

The IRS expects to change the third-party sick pay recap reporting and filing requirements for wages paid in 2014. Information about this change will be included in the 2014 Publication 15-A, Employer's Supplemental Tax Guide (Supplement to Circular E, Employer's Tax Guide, Publication 15) and other relevant tax products.

QuickBooks behavior

QuickBooks uses the First Name, M.I., and Last Name and Home Address fields in the employee record to fill in the employee's name and address for you. The name in the employee record should match the name on the employee's Social Security card. If you have used "Jr.," "Sr.," or any similar suffix that would appear in the "Suff." box, that information will appear at the end of the employee's last name.

How to verify your QuickBooks result

When an employee's name changes (e.g., marriage or divorce), have the employee contact any Social Security office to get a new Social Security card. If the employee's name or address is incorrect or has changed, click Save & Close to close the Payroll Tax Form window. Click Employee Center, click the Employees tab and double-click the name to edit. Click OK to save your changes. When you return to the employee W-2, the new employee name or address is displayed in box e or f.

IRS directions

Show the total taxable wages, tips and other compensation (before any payroll deductions) that you paid to your employee during the year. However, do not include elective deferrals (such as employee contributions to a section 401(k) or 403(b) plan) except section 501(c)(18) contributions. Include the following:

1. Total wages, bonuses (including signing bonuses), prizes, and awards paid to employees during the year.
2. Total noncash payments, including certain fringe benefits.
3. Total tips reported by the employee to the employer (not allocated tips).
4. Certain employee business expense reimbursements.
5. The cost of accident and health insurance premiums for 2%-or-more shareholder-employees paid by an S corporation.
6. Taxable benefits from a section 125 (cafeteria) plan if the employee chooses cash.
7. Employee contributions to an Archer MSA.
8. Employer contributions to an Archer MSA if includible in the income of the employee.
9. Employer contributions for qualified long-term care services to the extent that such coverage is provided through a flexible spending or similar arrangement.
10. Taxable cost of group-term life insurance in excess of $50,000.
11. Unless excludable under Educational assistance programs, payments for non-job-related education expenses or for payment under a nonaccountable plan.
12. The amount includible as wages because you paid your employee's share of social security and Medicare taxes (or railroad retirement taxes, if applicable). If you also paid your employee's income tax withholding, treat the grossed-up amount of that withholding as supplemental wages and report those wages in boxes 1, 3, 5, and 7. (Use box 14 if railroad retirement taxes apply.) No exceptions to this treatment apply to household or agricultural wages.
13. Designated Roth contributions made under a section 401(k) plan, a section 403(b) salary reduction agreement, or a governmental section 457(b) plan.
14. Distributions to an employee or former employee from a nonqualified deferred compensation plan (including a rabbi trust) or a nongovernmental section 457(b) plan.
15. Amounts includible in income under section 457(f) because the amounts are no longer subject to a substantial risk of forfeiture.
16. Payments to statutory employees who are subject to social security and Medicare taxes but not subject to federal income tax withholding must be shown in box 1 as other compensation.
17. Cost of current insurance protection under a compensatory split-dollar life insurance arrangement.
18. Employee contributions to a health savings account (HSA).
19. Employer contributions to an HSA if includible in the income of the employee.
20. Amounts includible in income under a nonqualified deferred compensation plan because of section 409A.
21. Payments made to former employees while they are on active duty in the Armed Forces or other uniformed services.
22. All other compensation, including certain scholarship and fellowship grants. Other compensation includes taxable amounts that you paid to your employee from which federal income tax was not withheld. You may show other compensation on a separate Form W-2.

QuickBooks behavior

From the employee's paychecks, QuickBooks calculates the total wages, tips, bonuses, overtime pay, etc., paid to the employee during the reporting year. Wages earned in the reporting year, but paid in the following year, are not included. QuickBooks adds together all items paid to this employee with the tax tracking type you've assigned to this employee's pay (annual salary, hourly wages, etc.) and other items used to create paychecks (additions, company contributions).

How to verify your QuickBooks result

1. Run the Payroll Item Listing report.
2. Filter the report. In the columns, clear everything except the Payroll Item and Tax Tracking Type.
3. Print the report.
4. Put a check mark next to any item that has a tax tracking type of Compensation, Reported tips, dependent care FSA, Section 457 Distribution, Non-qual. Plan Distr., Fringe Benefits, Other Moving Expenses, 401(k), 403(b), 408(k)(6)SEP, Elective 457(b), Simple IRA, Taxable Grp Trm Life, Med Care Flex Spend, Premium Only/125, SCorp Pd Med Premium.
5. Now run a Payroll Summary report for the calendar year.
6. Click Modify (or Customize) Report.
7. Click the Filters tab.
8. Under Current filter choices, click Payroll Item.
9. In the drop-down box in the middle, pick Multiple Payroll Items. Check off all the payroll items you marked earlier. If any of them are incorrect, the tax tracking type needs to be modified.

To change a tax tracking type, go to the Payroll Item List. Double-click the payroll item in question. Click Next until you get to Tax Tracking type. Correct the tracking type and click Next until you reach Finish. This will correct the form, but if the taxability changed, a Payroll Checkup should be run to correct the taxable wage bases.

To find out how to run a Payroll Checkup, click here.

IRS directions

Show the total federal income tax withheld from the employee's wages for the year. Include the 20% excise tax withheld on excess parachute payments.

QuickBooks behavior

From the employee's paychecks, QuickBooks calculates federal income tax withheld from the employee's wages.

How to verify your QuickBooks result

For instructions on correcting this amount if it seems wrong, run a Payroll Summary report for the entire calendar year. The number is equal to the amount of the Federal Withholding item. This number can be double-clicked to see what transactions contribute to the total.

If this amount seems incorrect, you will have to do a liability adjustment. Click here. You will need to maximize the window to view the entire procedure.

IRS Directions

Show the total wages paid (before payroll deductions) subject to employee social security tax but not including social security tips and allocated tips. If reporting these amounts in a subsequent year (due to lapse of risk of forfeiture), the amount must be adjusted by any gain or loss. Generally, noncash payments are considered to be wages. Include employee business expense reimbursements reported in box 1. If you paid the employee's share of social security taxes rather than deducting them from wages, you must include these payments as wages subject to social security tax. The total of boxes 3 and 7 cannot exceed $117,000 (2014 maximum social security wage base).

Report in box 3 elective deferrals to certain qualified cash or deferred compensation arrangements and to retirement plans described in box 12 (codes D, E, F, G, and S) even though the deferrals are not includible in box 1. Also report in box 3 designated Roth contributions made under a section 401(k) plan, under a section 403(b) salary reduction agreement, or under a governmental section 457(b) plan described in box 12 (codes AA, BB, and EE).

Amounts deferred (plus earnings or less losses) under a section 457(f) or nonqualified plan or nongovernmental section 457(b) plan must be included in boxes 3 and/or 5 as social security and/or Medicare wages as of the later of when the services giving rise to the deferral are performed or when there is no substantial forfeiture risk of the rights to the deferred amount. Include elective and nonelective deferrals for purposes of nongovernmental section 457(b) plans.

Wages reported in box 3 include:

• Signing bonuses an employer pays for signing or ratifying an employment contract.
• Taxable cost of group-term life insurance over $50,000 included in box 1.
• Cost of accident and health insurance premiums for 2%-or-more shareholder-employees paid by an S corporation, but only if not excludable under section 3121(a)(2)(B).
• Employee and nonexcludable employer contributions to an MSA or HSA. However, do not include employee contributions to an HSA that were made through a cafeteria plan.
• Employee contributions to a SIMPLE retirement account.
• Adoption benefits.

QuickBooks behavior

From the employee's paychecks, QuickBooks calculates the total gross wages subject to employee Social Security tax, not including Social Security tips (box 7) or allocated tips (box 8), up to the maximum amount.

How to verify your QuickBooks result

Run a Payroll Summary report and double-click on the amount of Social Security Employee for the employee in question. The number is equal to the wage base total minus the wage base tips total.

If this amount is incorrect, you will have to do a liability adjustment. Click here. You will need to maximize the window to view the entire procedure.

IRS directions

Show the total employee social security tax (not your share) withheld, including social security tax on tips. For 2014, the amount should not exceed $7,254 ($117,000 x 6.2%). Include only taxes withheld (or paid by you for the employee) for 2014 wages and tips.

QuickBooks behavior

From the employee's paychecks, QuickBooks calculates the amount of Social Security tax withheld from the employee's wages (box 3) and tips (box 7), up to the maximum amount.

How to verify your QuickBooks result

Run a Payroll Summary report for the entire calendar year. The amount for Social Security Employee will be equal to the number in this box. The amount can be double-clicked to see what transactions contribute to the total.

If this amount is incorrect, you will have to do a liability adjustment. Click here.

IRS directions

The wages and tips subject to Medicare tax are the same as those subject to social security tax (boxes 3 and 7) except that there is no wage base limit for Medicare tax. Enter the total Medicare wages and tips in box 5. Be sure to enter tips that the employee reported even if you did not have enough employee funds to collect the Medicare tax for those tips. See Box 3 - Social security wages, for payments to report in this box. If you paid the employee's share of Medicare taxes rather than deducting them from wages, you must include these payments as wages subject to Medicare tax.

If you are a federal, state, or local governmental agency with employees paying only Medicare tax, enter the Medicare wages in this box.

Example of how to report social security and Medicare wages. You paid your employee $140,000 in wages. Enter in box 3 (social security wages) 117000 but enter in box 5 (Medicare wages and tips) 140000. There is no limit on the amount reported in box 5. If the amount of wages paid was $117,000 or less, the amounts entered in boxes 3 and 5 would be the same.

QuickBooks behavior

From the employee's paychecks, QuickBooks calculates total gross wages subject to Medicare tax, not including allocated tips (box 8).

How to verify your QuickBooks result

Run a Payroll Summary report for the entire calendar year. Double-click on the amount of Medicare Employee. This is the total of the wage base column.

If this amount is incorrect, you will have to do a liability adjustment. Click here. You will need to maximize the window to view the entire procedure.

IRS directions

Enter the total employee Medicare tax (including any Additional Medicare Tax) withheld. Do not include your share. Include only tax withheld for 2014 wages and tips.

For more information on Additional Medicare Tax, go to IRS.gov and enter "Additional Medicare Tax" in the search box.

QuickBooks behavior

From the employee's paychecks, QuickBooks calculates the amount of Medicare tax (including any Additional Medicare Tax) withheld from the employee's wages (box 5) for the year. It uses two payroll items for this calculation: Medicare Employee and Medicare Employee Addl Tax.

How to verify your QuickBooks result

Run a Payroll Summary report for the entire calendar year. The number is equal to the amount of Medicare Employee plus the amount of Medicare Employee Addl Tax. The amounts can be double-clicked to see what transactions contribute to the total.

If the Medicare Employee amount is incorrect, you will have to do a liability adjustment. Click here. You will need to maximize the window to view the entire procedure.

If you didn't set up the Medicare Employee Addl Tax payroll item and didn't withhold this tax from employee's wages over $200,000, you'll need to report this to the IRS following the instructions here. (If you're an Assisted Payroll user, you need to contact Assisted Payroll support at 888.712.9702 for assistance.)

IRS directions

Show the tips that the employee reported to you even if you did not have enough employee funds to collect the social security tax for the tips. The total of boxes 3 and 7 should not be more than $117,000 (the maximum social security wage base for 2014). Report all tips in box 1 along with wages and other compensation. Include any tips reported in box 7 in box 5 also.

QuickBooks behavior

From the employee's paychecks, QuickBooks calculates the amount of employee-reported tips.

How to verify your QuickBooks result

Run a Payroll Summary report for the entire calendar year. The number is equal to the amount of the Reported Tips item (any item that has a tax tracking type of Reported Tips). You can double-click the amount to see what transactions contribute to the total.

If this amount is incorrect, you will have to do a liability adjustment. Click here. You will need to maximize the window to view the entire procedure.

IRS directions

If you are a food or beverage establishment, show the tips allocated to the employee. Do not include this amount in boxes 1, 3, 5, or 7.

QuickBooks behavior

Enter in box 8 of the W-2 Worksheet the total of tips allocated to the employee based on hours worked, gross receipts, or good faith. It should not include amounts already classified as wages, tips, and other compensation in box 1, Social Security wages in box 3, Medicare wages and tips in box 5, or Social Security tips in box 7.

How to verify your QuickBooks result

To change a tax tracking type, go to the Payroll Item List. Double click the payroll item in question. Click Next until you get to Tax Tracking Type. Correct the tax tracking type, and click Next until you reach Finish. This will correct the form, but if the taxability is changed, you should run a Payroll Checkup to correct the taxable wage base.

If this amount is incorrect, you will have to do a liability adjustment. Click here. You will need to maximize the window to view the entire procedure.

IRS directions

Do not enter an amount in box 9.

QuickBooks behavior

QuickBooks leaves this box empty.

IRS directions

Show the total dependent care benefits under a dependent care assistance program (section 129) paid or incurred by you for your employee. Include the fair market value (FMV) of care in a daycare facility provided or sponsored by you for your employee and amounts paid or incurred for dependent care assistance in a section 125 (cafeteria) plan. Report all amounts paid or incurred (regardless of any employee forfeitures), including those in excess of the $5,000 exclusion. This may include (a) the FMV of benefits provided in kind by the employer, (b) an amount paid directly to a daycare facility by the employer or reimbursed to the employee to subsidize the benefit, or (c) benefits from the pre-tax contributions made by the employee to a section 125 dependent care flexible spending account. Include any amounts over $5,000 in boxes 1, 3, and 5.

QuickBooks behavior

From the employee's paychecks, QuickBooks calculates deductions for Dependent Care FSA, including amounts in a Section 125 (cafeteria) plan, up to the annual limit.

How to verify your QuickBooks result

Run a Payroll Summary report for the entire calendar year. The amount for Dependent Care FSA and Co. Paid Dep. Care will be equal to the number in this box. You can double-click the amount to see what transactions contribute to the total.

If this amount is incorrect, you will have to do a liability adjustment. Click here. You will need to maximize the window to view the entire procedure.

IRS directions

The purpose of box 11 is for the SSA to determine if any part of the amount reported in box 1 or boxes 3 and/or 5 was earned in a prior year. The SSA uses this information to verify that they have properly applied the social security earnings test and paid the correct amount of benefits.

Report distributions to an employee from a nonqualified plan or a nongovernmental section 457(b) plan in box 11. Also report these distributions in box 1. Make only one entry in this box. Distributions from governmental section 457(b) plans must be reported on Form 1099-R, not in box 1 of Form W-2.

Under nonqualified plans or nongovernmental 457(b) plans, deferred amounts that are no longer subject to a substantial risk of forfeiture are taxable even if not distributed. Report these amounts in boxes 3 (up to the social security wage base) and 5. Do not report in box 11 deferrals included in boxes 3 and/or 5 and deferrals for current year services (such as those with no risk of forfeiture).

Unlike qualified plans, NQDC plans do not meet the qualification requirements for tax-favored status for this purpose. NQDC plans include those arrangements traditionally viewed as deferring the receipt of current compensation. Accordingly, welfare benefit plans, stock option plans, and plans providing dismissal pay, termination pay, or early retirement pay are not generally NQDC plans.

Report distributions from NQDC or section 457 plans to beneficiaries of deceased employees on Form 1099-MISC, not on Form W-2.

Military employers must report military retirement payments on Form 1099-R.

Do not report special wage payments, such as accumulated sick pay or vacation pay, in box 11.

QuickBooks behavior

From the employee's paychecks, QuickBooks calculates Section 457 distributions in box 11.

How to verify your QuickBooks result

To change a tax tracking type, go to the Payroll Item List. Double click the payroll item in question. Click Next until you get to Tax Tracking Type. Correct the tax tracking type, and click Next until you reach Finish. This will correct the form, but if the taxability changed, you should run a Payroll Checkup to correct the taxable wage base.

If this amount is incorrect, you will have to do a liability adjustment. Click here. You will need to maximize the window to view the entire procedure.

IRS directions

Complete and code this box for all items described here. Note that the codes do not relate to where they should be entered in boxes 12a through 12d on Form W-2. For example, if you are only required to report code D in box 12, you can enter code D and the amount in box 12a of Form W-2. Report in box 12 any items that are listed as codes A through EE. Do not report in box 12 section 414(h)(2) contributions (relating to certain state or local government plans). Instead use box 14 for these items and any other information that you wish to give to your employee. For example, union dues and uniform payments may be reported in box 14.

On Copy A (Form W-2), do not enter more than four items in box 12. If more than four items need to be reported in box 12, use a separate Form W-2 to report the additional items.

Use the IRS code designated here for the item you are entering, followed by the dollar amount for that item. Even if only one item is entered, you must use the IRS code designated for that item. Enter the code using a capital letter(s). Use decimal points but not dollar signs or commas. For example, if you are reporting $5,300.00 in elective deferrals under a section 401(k) plan, the entry would be D 5300.00 (not A 5300.00 even though it is the first or only entry in this box). Report the IRS code to the left of the vertical line in boxes 12a through d and the money amount to the right of the vertical line.

QuickBooks behavior

Box 12 is the total of any amounts that fit into these categories or codes. QuickBooks automatically enters in this box only the codes and amounts that it tracks.

How to verify your QuickBooks result

To change a tax tracking type, go to the Payroll Item List. Double click the payroll item in question. Click Next until you get to Tax Tracking Type. Correct the tax tracking type and click Next until you reach Finish. This will correct the form, but if the taxability changed, you should run a Payroll checkup to correct the taxable wage base.

If this amount is incorrect, you will have to do a liability adjustment. Click here. You will need to maximize the window to view the entire procedure.

IRS directions

Complete and code this box for all items described here. Note that the codes do not relate to where they should be entered in boxes 12a through 12d on Form W-2. For example, if you are only required to report code D in box 12, you can enter code D and the amount in box 12a of Form W-2. Report in box 12 any items that are listed as codes A through EE. Do not report in box 12 section 414(h)(2) contributions (relating to certain state or local government plans). Instead use box 14 for these items and any other information that you wish to give to your employee. For example, union dues and uniform payments may be reported in box 14.

On Copy A (Form W-2), do not enter more than four items in box 12. If more than four items need to be reported in box 12, use a separate Form W-2 to report the additional items.

Use the IRS code designated here for the item you are entering, followed by the dollar amount for that item. Even if only one item is entered, you must use the IRS code designated for that item. Enter the code using a capital letter(s). Use decimal points but not dollar signs or commas. For example, if you are reporting $5,300.00 in elective deferrals under a section 401(k) plan, the entry would be D 5300.00 (not A 5300.00 even though it is the first or only entry in this box). Report the IRS code to the left of the vertical line in boxes 12a through d and the money amount to the right of the vertical line.

QuickBooks behavior

Box 12 is the total of any amounts that fit into these categories or codes. QuickBooks automatically enters in this box only the codes and amounts that it tracks.

How to verify your QuickBooks result

To change a tax tracking type, go to the Payroll Item List. Double click the payroll item in question. Click Next until you get to Tax Tracking Type. Correct the tax tracking type and click Next until you reach Finish. This will correct the form, but if the taxability changed, you should run a Payroll checkup to correct the taxable wage base.

If this amount is incorrect, you will have to do a liability adjustment. Click here. You will need to maximize the window to view the entire procedure.

IRS directions

Complete and code this box for all items described here. Note that the codes do not relate to where they should be entered in boxes 12a through 12d on Form W-2. For example, if you are only required to report code D in box 12, you can enter code D and the amount in box 12a of Form W-2. Report in box 12 any items that are listed as codes A through EE. Do not report in box 12 section 414(h)(2) contributions (relating to certain state or local government plans). Instead use box 14 for these items and any other information that you wish to give to your employee. For example, union dues and uniform payments may be reported in box 14.

On Copy A (Form W-2), do not enter more than four items in box 12. If more than four items need to be reported in box 12, use a separate Form W-2 to report the additional items.

Use the IRS code designated here for the item you are entering, followed by the dollar amount for that item. Even if only one item is entered, you must use the IRS code designated for that item. Enter the code using a capital letter(s). Use decimal points but not dollar signs or commas. For example, if you are reporting $5,300.00 in elective deferrals under a section 401(k) plan, the entry would be D 5300.00 (not A 5300.00 even though it is the first or only entry in this box). Report the IRS code to the left of the vertical line in boxes 12a through d and the money amount to the right of the vertical line.

QuickBooks behavior

Box 12 is the total of any amounts that fit into these categories or codes. QuickBooks automatically enters in this box only the codes and amounts that it tracks.

How to verify your QuickBooks result

To change a tax tracking type, go to the Payroll Item List. Double click the payroll item in question. Click Next until you get to Tax Tracking Type. Correct the tax tracking type and click Next until you reach Finish. This will correct the form, but if the taxability changed, you should run a Payroll checkup to correct the taxable wage base.

If this amount is incorrect, you will have to do a liability adjustment. Click here. You will need to maximize the window to view the entire procedure.

IRS directions

Complete and code this box for all items described here. Note that the codes do not relate to where they should be entered in boxes 12a through 12d on Form W-2. For example, if you are only required to report code D in box 12, you can enter code D and the amount in box 12a of Form W-2. Report in box 12 any items that are listed as codes A through EE. Do not report in box 12 section 414(h)(2) contributions (relating to certain state or local government plans). Instead use box 14 for these items and any other information that you wish to give to your employee. For example, union dues and uniform payments may be reported in box 14.

On Copy A (Form W-2), do not enter more than four items in box 12. If more than four items need to be reported in box 12, use a separate Form W-2 to report the additional items.

Use the IRS code designated here for the item you are entering, followed by the dollar amount for that item. Even if only one item is entered, you must use the IRS code designated for that item. Enter the code using a capital letter(s). Use decimal points but not dollar signs or commas. For example, if you are reporting $5,300.00 in elective deferrals under a section 401(k) plan, the entry would be D 5300.00 (not A 5300.00 even though it is the first or only entry in this box). Report the IRS code to the left of the vertical line in boxes 12a through d and the money amount to the right of the vertical line.

QuickBooks behavior

Box 12 is the total of any amounts that fit into these categories or codes. QuickBooks automatically enters in this box only the codes and amounts that it tracks.

How to verify your QuickBooks result

To change a tax tracking type, go to the Payroll Item List. Double click the payroll item in question. Click Next until you get to Tax Tracking Type. Correct the tax tracking type and click Next until you reach Finish. This will correct the form, but if the taxability changed, you should run a Payroll checkup to correct the taxable wage base.

If this amount is incorrect, you will have to do a liability adjustment. Click here. You will need to maximize the window to view the entire procedure.

IRS Directions

Check all boxes that apply.

Statutory employee. Check this box for statutory employees whose earnings are subject to social security and Medicare taxes but not subject to federal income tax withholding. Do not check this box for common-law employees. There are workers who are independent contractors under common-law rules but are treated by statute as employees. They are called statutory employees.

1. A driver who distributes beverages (other than milk), or meat, vegetable, fruit, or bakery products; or who picks up and delivers laundry or dry cleaning if the driver is your agent or is paid on commission.
2. A full-time insurance sales agent whose principal business activity is selling life insurance or annuity contracts, or both, primarily for one life insurance company.
3. An individual who works at home on materials or goods that you supply and that must be returned to you or to a person you name if you also furnish specifications for the work to be done.
4. A full-time traveling or city salesperson who works on your behalf and turns in orders to you from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similar establishments. The goods sold must be merchandise for resale or supplies for use in the buyer's business operation. The work performed for you must be the salesperson's principal business activity.

Retirement plan. Check this box if the employee was an "active participant" (for any part of the year) in any of the following:

1. A qualified pension, profit-sharing, or stock bonus plan described in 401(a) (including a 401(k) plan).
2. An annuity plan described in section 403(a).
3. An annuity contract or custodial account described in section 403(b).
4. A simplified employee pension (SEP) plan described in section 408(k).
5. A SIMPLE retirement account described in section 408(p).
6. A trust described in section 501(c)(18).
7. A plan for federal, state or local government employees or by an agency or instrumentality thereof (other than a section 457(b) plan).

Generally, an employee is an active participant if covered by (a) a defined benefit plan for any tax year that he or she is eligible to participate in or (b) a defined contribution plan (for example, a section 401(k) plan) for any tax year that employer or employee contributions (or forfeitures) are added to his or her account. For additional information on employees who are eligible to participate in a plan, contact your plan administrator.

Do not check this box for contributions made to a nonqualified or section 457(b) plan.

See the Form W-2 Box 13 Retirement Plan Checkbox Decision Chart in the printed 2014 General Instructions for Forms W-2 and W-3.

Third-party sick pay. Check this box only if you are a third-party sick pay payer filing a Form W-2 for an insured's employee or are an employer reporting sick pay payments made by a third party.

QuickBooks behavior

Check the Special Situations box on the Step 1 Interview screen to activate the Special Situations interview screen.

Statutory employees. QuickBooks automatically marks this checkbox when you choose Statutory in the Type field on the employee's record. Although you can manually check or override the Statutory employee checkbox on the employee's W-2 Worksheet, we recommend that you change the Type selection on the employee's record to ensure that the tax settings are correct for the employee.

Retirement plan. QuickBooks checks this box if one or both of the following is true: 1) The employee's paycheck contained payroll items with any of the following tax tracking types: 401(k), Roth 401(k), 403(b), Roth 403(b), 408(k)(6) SEP, 501(c)(18)(D), or SIMPLE Retirement. 2) The Employee is covered by a qualified pension plan box is checked on the employee record.

Third-party sick pay. QuickBooks checks this box if you complete the Third Party Sick Pay Interview screen. To access it, you must check Yes in the Special Situations box on Step 1 of the Interview, and then indicate sick pay recipients on the next screen.

How to verify your QuickBooks result

To change a tax tracking type, go to the Payroll Item List. Double click the payroll item in question. Click Next until you get to Tax Tracking Type. Correct the tax tracking type, and click Next until you reach Finish. This will correct the form, but if the taxability changed, you should run a Payroll Checkup to correct the taxable wage base.

If this amount is incorrect, you will have to do a liability adjustment. Click here. You will need to maximize the window to view the entire procedure.

IRS directions

If you included 100% of a vehicle's annual lease value in the employee's income, it must also be reported here or on a separate statement to your employee. You may also use this box for any other information that you might want to give to your employee. Label each item. Examples include state disability insurance taxes withheld, union dues, uniform payments, health insurance premiums deducted, nontaxable income, educational assistance payments, or a member of the clergy's parsonage allowance and utilities. In addition, you may enter the following contributions to a pension plan: (a) nonelective employer contributions made on behalf of an employee, (b) voluntary after-tax contributions (but not designated Roth contributions) that are deducted from an employee's pay, (c) required employee contributions, and (d) employer matching contributions.

If you are reporting prior year contributions under USERRA, you may report in box 15 makeup amounts for nonelective employer contributions, voluntary after-tax contributions, required employee contributions, and employer matching contributions. Report such amounts separately for each year.

For employees covered by RRTA tax, report the RRTA compensation, Tier 1, Tier 2, Medicare, and any Additional Medicare Tax withheld in box 14. Label them "RRTA compensation," "Tier 1 tax," "Tier 2 tax," "Medicare tax," and "Additional Medicare Tax." Include tips reported by the employee to the employer in "RRTA compensation." Use additional Forms W-2 if needed.

QuickBooks behavior

QuickBooks reports any of the following information in this box:

CA SDI, for California SDI contributions
CA VDPI, for California Voluntary Disability Plan contributions
NJ SDI, for New Jersey SDI contributions
UI/HC/WD, for New Jersey welfare insurance contributions
Union Dues, for union dues deductions
Health Ins, for health insurance premiums deductions
Nontax Inc, for nontaxable income
Contrib, for voluntary after-tax contributions
Ed Asst, for educational assistance payments
Parsonage, for a member of the clergy's parsonage allowance and utilities

If the employee is subject to withholding for state disability insurance (SDI) or state unemployment insurance (SUI), QuickBooks automatically enters the amount withheld in this box. (For New Jersey, QuickBooks enters four separate lines for the four withheld employment taxes.) QuickBooks also enters a line for each payroll item with tax tracking set to Other, Fringe Benefits, Moving Expenses, and SCorp Medical Premiums.

If you pay your SDI to a private agency (in any state other than Hawaii or New York) and use a Deduction payroll item rather than an SDI payroll item, be sure that you set the tax tracking type for the payroll item to Other.

How to verify your QuickBooks result

To change a tax tracking type, go to the Payroll Item List. Double-click the payroll item in question. Click Next until you get to Tax Tracking Type. Correct the tax tracking type, and click Next until you reach Finish. This will correct the form, but if the taxability has changed, you should run a Payroll Checkup to correct the taxable wage base.

If this amount is incorrect, you will have to do a liability adjustment. Click here. You will need to maximize the window to view the entire procedure.

IRS directions

Use boxes 15 through 20 to report state and local income tax information.

In box 15, enter the two-letter abbreviation for the name of the state and the employer's state ID number. The employer's state ID numbers are assigned by the individual states.

QuickBooks behavior

QuickBooks automatically fills in this box based on the payroll item or items for state income tax withheld. It enters a separate line for each state. (If an employee had tax withheld for more than two states, QuickBooks prints a multiple-page W-2).

How to verify your QuickBooks result

If the state information entered by the program is incorrect, or if the program did not enter anything, enter the correct state identification number, if applicable, for this employee. Changing the entry on this line supersedes any entry made by QuickBooks but does not change any data in QuickBooks itself.

IRS directions

Use boxes 15 through 20 to report state and local income tax information.

In box 16, enter the amount of wages, tips, etc., for up to two states. Keep each state's information separated by the broken line. If you need to report information on more than two states, prepare a second Form W-2.

QuickBooks behavior

From the employee's paychecks, QuickBooks calculates this amount. If the employee receives wages subject to taxes in a second state, the amount appears below the amount for the first state. If an employee had tax withheld for more than two states, QuickBooks prints a multiple-page W-2.

How to verify your QuickBooks result

Run a Payroll Summary report for the entire calendar year. Double-click on the amount for the state withholding in question. The amount here is equal to the total of the wage base column.

If this amount is incorrect, you will have to do a liability adjustment. Click here. You will need to maximize the window to view the entire procedure.

IRS Directions

Use boxes 15 through 20 to report state and local income tax information.

In box 17, enter the amount of tax withheld for up to two states. Keep each state's information separated by the broken line. If you need to report information on more than two states, prepare a second Form W-2.

QuickBooks behavior

From the employee's paychecks, QuickBooks calculates this amount. If an employee had tax withheld for more than two states, QuickBooks prints a multiple page W-2.

How to verify your QuickBooks result

Run a Payroll Summary report for the entire calendar year. The amount is equal to the amount of the state withholding in question. You can double-click this amount to see all the transactions that contribute to the total.

If this amount is incorrect, you will have to do a liability adjustment. Click here. You will need to maximize the window to view the entire procedure.

IRS directions

Use boxes 15 through 20 to report state and local income tax information.

In box 18, enter the amount of wages, tips, etc., for up to two localities. Keep each locality's information separated by the broken line. If you need to report information on more than two localities, prepare a second Form W-2.

QuickBooks behavior

From the employee's paychecks, QuickBooks calculates this amount. If you withhold more than one local tax from the employee's paychecks, each tax appears on a separate line. If an employee had more than two local taxes withheld, QuickBooks prints a multiple-page W-2.

How to verify your QuickBooks result

Run a Payroll Summary report for the entire year. Double-click on the amount of the local income tax in question. This amount is equal to the total of the wage base column.

If this amount is incorrect, you will have to do a liability adjustment. Click here. You will need to maximize the window to view the entire procedure.

IRS directions

Use boxes 15 through 20 to report state and local income tax information.

In box 19, enter the amount of tax withheld for up to two localities. Keep each locality's information separated by the broken line. If you need to report information on more than two states, prepare a second Form-W-2.

QuickBooks behavior

If you withhold more than one local tax from the employee's paychecks, each tax appears on a separate line. If an employee had more than two local taxes withheld, QuickBooks prints a multiple-page W-2.

How to verify your QuickBooks result

Run a Payroll Summary report for the entire year. The amount is equal to the item that tracks the local income tax (any item with a tax tracking type of Local Income).

To change the tax tracking type, go to the Payroll Item List. Double-click the payroll item in question. Click Next until you get to Tax Tracking Type. Correct the tax tracking type and click Next until you reach Finish. This will correct the form, but if the taxability changed, you should run a Payroll Checkup to correct the taxable wage base. This amount can be double-clicked to see the transactions that contribute to the total. If the locality information entered by the program is incorrect, or if the program did not enter anything, enter the correct locality, if applicable, for this employee. Changing the entry on this box supersedes the entry made by the program, but does not affect the name of the payroll item on the employee record.

If this amount is incorrect, you will have to do a liability adjustment. Click here. You will need to maximize the window to view the entire procedure.

IRS directions

Use boxes 15 through 20 to report state and local income tax information.

In box 20, enter the name of the locality for which tax was withheld.

QuickBooks behavior

The name you assigned to the payroll item in the employee's record for tracking local withholding taxes goes here. If you withhold more than one local tax from the employee's paychecks, each locality appears on a separate line. If an employee had more than two local taxes withheld, QuickBooks prints a multiple-page W-2.

How to verify your QuickBooks result

If the locality information is incorrect or if the program did not enter anything, enter the correct locality, if applicable, for this employee. Changing the entry on this line supersedes the entry made by QuickBooks, but does not affect the name of the payroll item on the employee record.