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Scenario 1

If paid through a USAS disbursement and district wants the amount to appear on the W2 as wages but not in Box 14 as Fringe Benefits:

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• Calculate the amount of Medicare tax as it applies to the total.  If there is Medicare pickup, be sure to inflate the Medicare amount as well as the Total and Applicable Gross.

•  Go to Core>Adjustments

• • Click 'Create'
  • Employee - Find employee by typing in a few characters of first or last name
  • Payroll Item - Choose Medicare Tax 
  • Type - Choose Total Gross
  • Transaction Date - Enter or choose date from calendar
  • Amount - Enter in the amount to be included in the total gross
  • Description - Enter in a description (optional)
  • Click 'Save'

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• Calculate the amount of Medicare tax as it applies to the total.  If there is Medicare pickup, be sure to inflate the Medicare amount as well as the Total and Applicable Gross.

• Before the last pay of the calendar year, enter withholding amount on the Medicare Payroll Item record as an Error Adjustment both Employee and Employer amounts.
• Manually increase the Total and Applicable Gross amount on the Medicare Payroll Item record (if applicable):

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• Determine total the amount paid through a USAS disbursement.

• Calculate the amount of Medicare tax as it applies to the total.  If there is  Medicare pickup, be sure to inflate the Medicare amount as well as the Total and Applicable Gross.

• Before the last pay of the calendar year, enter the withholding amount on the Medicare Payroll Item record as an Error Adjustment for both Employee and Employer amounts.
• If City withholding is needed, calculate the amount of City tax as it applies to the total.
• Before the last pay of the calendar year, enter this amount on the City Payroll Item(s) as an Error Adjustment.
• Manually increase the Total and Applicable Gross amount on the Federal, Ohio, OSDI, city and Medicare records (if applicable) by the amount paid through the USAS disbursement:

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Non-Cash Amounts for W2 Reporting

Scenario 1

Using Non-cash Taxable Benefit type prior to the last calendar year payroll and NOT in box 14 as Fringe Benefits

If the district wants the amount to appear on the W2 as wages but Not in box 14 as Fringe Benefits.

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  Using the Taxable Benefits Type, this amount would only be entered under the 001 Federal Payroll Item. This will update the total and taxable gross totals on the Federal , State, City (If applicable) OSDI and Medicare records during W2 Report. No manual adjustments are needed for the Gross and Taxable Gross amounts.

• • Enter the amount as a 'Taxable Benefits' on the 001 Federal record: 

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• • • • Click 'Create'
      • Employee - Find employee by typing in a few characters of first or last name
      • Payroll Item - Choose Federal Tax 
      • Type - Choose Taxable Benefits
      • Transaction Date - Enter or choose date from calendar
      • Amount - Enter in the amount of the Fringe Benefit
      • Description - Enter in a description (optional)
      • Click 'Save'

Medicare Total and Taxable Amounts will automatically be increased by the Taxable Benefit Amount so Medicare tax will need to be recorded and paid.  If the Medicare withholding is paid by the employee (1.45%) and employer (1.45%), adjustments must be made to the Amount Withheld and Board Amount of Payroll Item.

If Medicare is fully board paid (Pickup), then an Adjustment should be made to the Board's Pickup Amount of Payroll Item (1.45%) only.  This will update both Medicare Pickup and Medicare on the Employee's W2.

• •  Go to Core>Adjustments

• •  
    • Click 'Create'
    • Employee - Find employee by typing in a few characters of first or last name
    • Payroll Item - Choose Medicare Tax 
    • Type - Choose Amount Withheld
    • Transaction Date - Enter or choose date from calendar
    • Amount - Enter in the withholding amount of Employee Medicare
    • Description - Enter in a description (optional)
    • Click 'Save'
  •  Go to Core>Adjustments

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