A new feature is now available in Datatech’s Payroll Software to automatically print optional information in Box 14 of the W-2.
This article will explain how to add the various optional amounts that you would like to include on W-2’s for employee information.
The IRS W-2 Instructions include this information on Box 14:
Box 14 - Other
“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 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 minister’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.”
Employer Pension Contributions
The software will compile the Employer Pension Contributions from the check records. This will default to print in Box 14. An option may be added to allow users to turn this off.
Currently, the software only handles employer pension contributions on pre-tax plans. If you would like to include employer pension contributions on a post-tax plan, you can manually update the contributions on the Edit W-2 Information window as discussed below.
You may need to manually edit this information if you:
- Did not have the Program set up with the Employer Pension Contributions and want to add it for W-2 printing.
- Used another software application for part of the year and want to add prior employer contributions to the W-2’s.
Automatically Generating Deduction Information to Box 14
In addition to the Employer Pension Contributions, we have allocated 3 lines in Box 14 for printing optional information. These are coded as positions A, B, and C.
A button has been added to the Payroll Tax Reports Control Center > Year End Closing for Box 14 Mapping. If you want to have the program automatically calculate entries for Box 14, complete the mapping before proceeding to Archive/Print/Clear/ step.
When you select Box 14 Mapping, a window will display your Miscellaneous Payroll Deductions:
For the deductions you would like included in Box 14, select the respective Mapping Box 14 A, B, or C.
Then, enter the Descriptions for each category. The Description should be limited to 15 characters.
You may have multiple deductions assigned to the position. For example, you may allow employees to contribute to a 401k or ROTH IRA. As a Description, you may enter Retirement Contr and use this code for all deductions that are retirement contributions.
Another example would be printing the total of employees contributions to their health insurance. You may have a separate deduction for the self coverage and one for spouse/family. You should select the same mapping for any deduction you want included in the total. The program will add any deductions assigned to the same code for one total amount to print on the W-2.
Once you have completed the mapping, click the Archive/Print/Clear button to proceed. Since this information is compiled during the archive process, if you archive/clear without generating the data you would have to re-open Qtr 4/ 2020 and re-close to update the information automatically.
Manually Entering Information for Box 14
You may also manually enter information to print in Box 14. To do this, go to Payroll > Year End Tax Reporting > Edit YTD Archive File.
Use the lookup on the year, first selecting the year and then going to the Acct # column and enter the Employee Account # to select an Employee. Click on the tab W2 Box 14 to view any compiled information and/or add any additional data.
Editing through the Edit W-2 Information window
You can also use the Edit W-2 Information window to update this information. To access this window, use the button on the Payroll Tax Reports Control Center or access through the Edit YTD Archive File.
When using the Edit W-2 Information window, it is helpful to select just the columns you need to modify. Use the Select Columns button to choose which columns to display.
Then, edit the amounts, box descriptions, and/or print settings as needed.
You can edit the information in the Archive file at any time. When W-2 forms are printed, the information entered on this tab will print in Box 14:
If you have any questions as to whether or not you should print any optional information on your W-2’s, please refer to your accountant or legal representation.
If you have any questions on entering or modifying this data through the software, please get in touch with our team at Support@DatatechAg.com.