Affects of Specific Situations on W2 Reporting

This document describes the affects of situations a district may have on W2 reporting.
Note: The items listed here in bold italics 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.

Adoption assistance, cash payment

• Payment processed as Adoption Assistance pay type
• Exempt from:

• Federal taxation
• Ohio taxation
• SERS/STRS

• Not exempt from:

• Medicare taxation
• OBES wages

• City taxes treated according to how the 'Tax Non Cash Earn' flag is
  set on the Payroll Item Configuration record
  

  Adoption assistance, Section 125 treated as wages

• Set up as Payroll Item with type of ADOP
• Included annuity type of Section 125 treated as wages
• Exempt from:

• Federal taxation
• Ohio taxation

• Not exempt from:

• Medicare taxation
• OBES wages
• SERS/STRS

• City taxations are according to whether or not the city honors 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
  set on the Payroll Item Configuration 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 payment
  should be handled
• Contact SSDT if assistance is needed in implementing
  

  Employee Expense Reimbursements

• If paid through warrant and the district wants the amounts to appear on
  the W2 form
• See separate document for more details-Expense Reimbursement
  

  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 Annuity Type = "I"
• Exempt from

• Federal taxation
• Ohio Taxation
• City withholdings
• Medicare
• OBES Reporting

• Not exempt from:

• SERS/STRS
  

  Health Savings Accounts (Employer portions)

• Set up as annuity in Payroll Item Configuration with Annuity Type = "I"
• Enter only board portions in Payroll Item records
• Exempt from

• Federal taxation
• Ohio taxation
• City withholdings
• Medicare
• OBES reporting
• SERS/STRS
  

  Insurance 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 MSA
• Exempt from:

• Ohio taxation
• SERS/STRS
• OBES reporting

• Not exempt from:

• Federal taxation
• Medicare taxation

• City taxation will be according to the 'Tax Employer Amount' flag in

  Payroll Item Configuration

  
  

  Medicare, 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
  in Payroll Item Configuration
  

  Moving Expenses-Active Military Only

  
  
  

  Section 125 plans, treated as non-wages

• Set up as Payroll Item record with ANN type
• Exempt from:

• Federal taxation
• Ohio taxation
• Medicare taxation
• City taxation

• Not exempt from:

• SERS/STRS
  
  
  

  SERS/STRS Employer Pickup (Annuitized)

• 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 as400/450 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
  should be handled
• Contact SSDT if assistance is needed implementing-See Third Party Sick documents
  

  Third Party Sick Pay; Non-taxable

• Enter amount in Core/Adjustments on the Federal 001 Payroll Item using the 'Third Party Pay' Type
  

  Use of Company Vehicle

• Contact legal or tax advisor if necessary to determine how payment
  should be handled
• Any amounts reportable must be entered in Core/Adjustments on the Federal 001 Payroll Item using the 'Vehicle lease' Type
• Contact SSDT if assistance is needed in implementing
  
  
  
  
  
  
  
  Revised 15-Nov-2018