Affects of Specific Situations on W2 Reporting
This document describes the affects of situations a district may have on W2 reporting.
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The items listed here in |
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red affect balancing between W2 Report and Submission and Quarter Report. These items will cause the total gross on W2 Report and Submission to be higher than that found on Quarter Report as they apply. |
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Adoption Assistance - Cash Payment
Payment processed as Adoption Assistance pay type
Exempt from:
Federal taxation
Ohio taxation
SERS/STRS
Not exempt from:
Medicare taxation
ODJFS wages
City taxes treated according to how the 'Tax Non Cash Earn' flag is
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set on the Payroll Item Configuration
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record
Adoption
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Assistance - Section 125
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Treated as
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Wages
Set up as Payroll Item Configuration/Item with
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Type as Adoption Assistance
Included annuity type of Section 125 treated as wages
Exempt from:
Federal taxation
Ohio taxation
Not exempt from:
Medicare taxation
ODJFS wages
SERS/STRS
City taxations are according to whether or not the city honors
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annuities
Cost of Life Insurance over $50,000
Use Life Insurance Premium Pay Type
Exempt from:
Federal tax withholding
Ohio withholding
SERS/STRS
Not exempt from:
Federal taxation
Ohio taxation
Medicare taxation
City taxes treated according to how the 'Tax Non Cash Earn' flag is
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set on the Payroll Item Configuration
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record
Dependent Care Benefits
Exempt from:
Federal taxation up to exclusion limit of $5000
Ohio taxation up to exclusion limit of $5000
City taxation if a Section 125
plan
Educational Reimbursements
Contact legal or tax advisor if necessary to determine how
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payment should be handled
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. Contact NWOCA if assistance is needed in
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implementing
Employee Expense Reimbursements
If paid through warrant and the district wants the amounts to appear on
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the W2 form
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see separate document for more details-
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Reimbursable Employee Expenses
Fringe Benefits
Amounts must be entered in Core/Adjustments on the Federal 001 record using Type- 'Fringe Benefit'
Health Savings Accounts (Employee portions)
Set up as annuity in Payroll Item Configuration with type HealthSavingsAccount. Mark Annuity Type
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as ‘Other’
Exempt from
Federal taxation
Ohio Taxation
City withholdings
Medicare
ODJFS Reporting
Not exempt from:
SERS/
STRS
Health Savings Accounts
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-Employer
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Amount
Set up as annuity in Payroll Item Configuration with type HealthSavingsAccount. Mark Annuity Type
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as ‘Other’
Enter only board portions in Payroll Item records
Exempt from
Federal taxation
Ohio taxation
City withholdings
Medicare
ODJFS reporting
SERS/
STRS
Insurance
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Amounts Paid to Annuity Company
Exempt from:
SERS/STRS
Medicare taxation
Not exempt from:
Federal taxation
Ohio taxation
City
taxation
Medical Savings Accounts
Set up as Payroll Item Configuration type of
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Medical Savings
Exempt from:
Ohio taxation
SERS/STRS
ODJFS reporting
Not exempt from:
Federal taxation
Medicare taxation
City taxation will be according to the 'Tax Employer Amount' flag in payroll item configuration
Medicare,
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Employer Pays Employee Share
Set up as 692/693 with Employer amount as 2.9%
Exempt from:
SERS/STRS
Not exempt from:
Federal taxation
Ohio taxation
Medicare taxation
City taxation will be according to 'Tax Employer Amount' flag found
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in Payroll Item Configuration
Moving Expenses-Active Military Only
Section 125 plans
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- Treated as non-wages
Set up as Payroll Item record with
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Type Annuity
Exempt from:
Federal taxation
Ohio taxation
Medicare taxation
City taxation
Not exempt from:
SERS/
STRS
SERS/STRS Employer Pickup
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- Annuitized
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Set up as 590/591 Payroll Item records
Exempt from:
Federal taxation
Ohio taxation
Not exempt from:
Medicare taxation
City taxation is according to whether or not city honors annuities
SERS/STRS - Non-annuitized
Set up
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as 400/450 Payroll Item records
Not exempt from:
Federal taxation
Ohio taxation
City taxation
Medicare
taxation
Third Party Sick Pay; Taxable
Contact insurance provider to determine type of third party sick payment
Contact legal or tax advisor if necessary to determine how payment
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should be handled
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See Third Party Sick
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Pay.
Third Party Sick Pay; Non-taxable
Enter amount in Core/Adjustments on the Federal 001 Payroll Item using the 'Third Party Pay' Type
See Third Party Sick Pay.
Use of Company Vehicle
Contact legal or tax advisor if necessary to determine how payment
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should be handled
Any amounts reportable must be entered in Core/Adjustments on the Federal 001 Payroll Item using the 'Vehicle lease' Type
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